Europe: The Marshall Plan

Beginning with the economic aspect, by bombing Germany, the Allies strived to damage their economy, as well as

The Soviet Union wanted to spread communism throughout the world. While the United States wanted to restrict communism's influence around the globe. These opposing ideals destined the countries to conflict. “After WW II ended, both the Soviet Union and the U.S. wanted to influence Europe with their systems of government and economy.” (Doc. 1) The United States was so desperate to stave off communism that they sent economic aid to countries suffering from the war.

First and foremost, a great deal of Europe’s success would not have happened without its initial aid from the United States. After helping destroy so much of the continent, the U.S. pumped billions and billions of dollars back into the European economy through The Marshall Plan. It was named after Secretary of State George C. Marshall, who said “The world of suffering people looks to us for leadership. Their thoughts, however, are not concentrated alone on this problem. They have more immediate and terribly pressing concerns where the mouthful of food will come from, where they will find shelter tonight, and where they will find warmth. Along with the great problem of maintaining the peace we must solve the

Economic aid for nations, especially Europe, was another weapon used to fight the war. After World War II, most of European countries were in a desperate situation. They suffered in poverty, hunger, and disease. Improved technology and the development of explosives with massive powers led to the devastation of Europe. Approximately 36 million European men have died in World War II. Not only did the population decrease, infrastructure had to be reconstructed and it required tremendous amount of reparation. As the European countries were weakened economically and militarily, they were desperate and more likely to rather fall into and be attracted to the Soviet Union’s communism than United States’ democracy. United

Changes were happening all over Europe between World War I and World War II, and the book Europe in the Era of Two World Wars highlights a lot of them. Volker Berghahn, the author, discusses how violence escalated all across Europe during this time frame. The book digs into the desires and upsets of countries like Germany, Britain, France, and Russia, during war times more than others I have read do. Economies of each country and the escalading violence are the main focuses of the book. In the following review of Berghahn’s work, Europe in the Era of Two World Wars, I will highlight why the author is qualified to write the book, and survey the strengths and weakness of the information he provided.

The source in question is an extract from the United States Secretary of State George C. Marshall’s commencement speech for receiving an honorary degree from Harvard University; it was delivered on the 5th of June, 1947 at Harvard University.

Continuing to act as police of the world and leader of capitalism, Truman drafted the Marshall Plan. The Marshall Plan, which complemented the Truman Doctrine, "was a program of large scale economic and military aid to Europe." Considered by some, this was the most "innovative piece of foreign policy in American History. Where over the next four years the United States contributed over $12 billion to a highly successful recovery effort." The Soviet Union stilled commanded a blockade on highway, rail, and river traffic to West Berlin. As a result, the United States responded by entering into a peacetime military alliance; this being the first time since the American Revolution.

Famine and unemployment, coupled with the near destruction of the continent’s infrastructure left Europe on the brink of economic collapse and starvation. America began supplying financial aid to Europe immediately after the end of the war, George C. Marshall developed the first piece of foreign policy that would serve to not only assist in the rebuilding of Europe, but also counter the growing communist influence on the continent. “Marshall was convinced the key to restoration of political stability lay in the revitalization of national economies. Further he saw political stability in Western Europe as a key to blunting the advances of communism in that region.” http://marshallfoundation.org/marshall/the-marshall-plan/history-marshall-plan/

After so much devastation has taken place, there is a lot to be rebuilt. The European countries can not rebuild by themselves because there is not enough available financing. The United States took the initiative to help these countries and create grand fiscal systems to help finance the reconstruction. John Maynard Keynes and Harry Dexter White created the International Monetary Fund during the war, which financed a lot of the construction after the war. Along with this organization, the World Bank was created, focusing on giving loans for governments in order to rebuild infrastructure. As the United States helped create these organizations, this was not its only contribution. The Marshall Plan was created to help provide money for reconstruction.

The allies did liberated large parts of Western Europe and recreated democratic nations. This divide Europe into two blocks and each occupied by armies America and the Allies and in the east Russia. The United States wanted a democratic Europe and Russia wanting a communist Europe. The difference was added fear of the Soviet invasion in the West and Russians fear of the atomic bomb. There was also fear of economic collapse in the west versus fear of economic domination by the west. This lead to the clash of ideologies; capitalism versus communist. The Soviet feared a rearmed Germany hostile to Russia. Churchill described the dividing the lines between East and West Germany as an Iron Curtain.

After World War I Germany could make no money because all of these factories were bombed. They could not make any goods because they had no factories to make any in. Also a lot of farmland was destroyed so they had to get all that back and grow more food. They had no money so they couldn't buy anything from other countries. They had to get by with the little amount of things they have left. Germany had money but after the war there currency was just about worthless. This was the complete opposite for the United States seeing as World War I really helped our economy. After World War II Austria Hungary was no longer a country.

Truman formed a new trading policy called GATT (General Agreement on Tariffs and Trade) which opened all of the 17 nations in Europe to American trade. Western Europe became a major center of American Trade and investment. Basically the Americans bought off the European countries to deter them from communism and to ensure the strength of the Untied States. The Soviet Union felt that the United States was trying to rebuild Germany to incorporate it in an anti-Soviet block. In retaliation the Soviets placed a blockade in Germany to stop trade with the Untied States. The Berlin crisis was an opportunity for Truman to show the Soviets that the United States wasn't easily defeated. Truman along with Great Britain sent over 2 million tons of supplies to allies in Berlin. In May of 1949 the Soviets conceded defeat and lifted their blockade.

If countries accepted Marshall Aid, the USA would have control over what that money was spent on. The Soviets didn’t want that as they thought the USA was just trying to westernise countries and turn them away from communism. When Germany and Berlin were separated into 4 zones, the Russian zone was the only one that was a communist area. The Allies then started to merge their zones together to create Bizonia and then soon afterwards Trizonia which consisted of the American, British and French zones. This caused separate development between West and East Germany. They both had different currencies and were both working towards different aims. In the end, that is what drove the two sectors apart and then the two countries later

“On June 24 the Soviets responded to the implementation of the new currency arrangement in the western zones by halting all western land traffic into the city.” The United States placed a counter blockade on the goods from the Western Zones into Eastern Germany which would effect the Soviet economy. The government of the United States was prepared to

Located on the tip of the Balkan Peninsula in Southern Europe, Greece has been formally recognized as a member of the European Union since 1981 (1). Climactically Greece experiences mild, wet winters and hot, dry summers consistent with a Mediterranean climate (2). Between 1950 and 1980 Greece experienced a period of climactic cooling that reduced its average annual temperatures; however, by the late 90’s that cooling trend reversed and Greece began experiencing progressive temperature increases (3). This trend is consistent with IPCC predictions that temperatures in Europe are expected to increase at a rate of 0.1 and 0.4 degrees Celsius per decade, with the greatest warming impacts concentrated in Southern Europe (4). Higher