The Marshall Plan - Research Paper Example

RESEARCH PAPER, HISTORY FINAL PAPER ABOUT THE MARSHALL PLAN By: Introduction It is important to highlight that this is a research paper that delves in the discussion of The Marshall Plan (European Recovery Program). This was an initiative that was meant for the changing of the image of the European continent economically, politically and socially. This was a program for making the continent grow after the aftermath of the Second World War. Maintaining good international relations and boosting the intercalations among the countries (Greg 2007, pg 14). The origin of Marshall Plan Background Marshall Plan was an initiative that acted as a remedy for the rebuilding of the European continent. This was after the Second World War. The major aim besides the rebuilding is that it targeted to avert the percolation of the Soviet Communism. It is important to highlight that this plan was employed from April 1948 for a span of four years (Nicolaus, 2008, pg 32). Wartime destruction after the Second World War This came into being after the European cities had underwent some serious destructions and even the individual families seriously affected. This was a serious incident and the trade in the continent was adversely affected. The people thereby lived in the refugee camps and got assistance from the United Nations Administration. This was consequently followed by food shortage which was experienced in the harsh seasons of winter. Various infrastructural facilities were attacked aerially while the sea vessels were sunken (John, and Nicholas, 2004, pg 42) The Initiation of Marshall Plan Goals of the master plan To civilize and make the industries in the continent more modernized. To reconstruct and rejuvenate areas in Europe that was destroyed during the war. To make the European continent quite successful and excellent for another time. To remove all the hindrances and barriers to trade. The famous Speech gave by George Marshall This was a speech that was given when the United States could not hold it any longer for the several unsuccessful mediations with the Soviet Union. This was by George Marshall who was the Secretary of the state at Harvard University. In the speech, he assured of the support from America in the making the economic status of the European states to grow through a gradual recovery system. In the speech, what came out so clearly is that Marshall believed that for the country to recover, grow and be economically stable, there has to high levels of cool political climate in the sense that a country has to be peaceful with no form of political violence that would stimulate high massive investments to flow into the economy (Robert, 2008, pg 71). Negotiation with Soviet Union It is important to highlight that the negotiation with the Soviet Union was in January 1947.this was after Marshall was appointed into the office. The officials thereby had to make arrangements on how they could meet the Soviet Foreign minister. The move was aiming at the recovery of Germany for financial economic states. It is important to highlight that for the effective and efficient implementation of the plan, there has to be proper agreement and a consensus among the various parties who are involved. For the case of the Economic Recovery Plan for the European continent, it can be clearly noted that there was a negotiation that was done and it finally went to the United States Congress. Each state had its own point of concern and focus, France never wanted Germany to get back its excess powers back while the Scandinavian states wanted a break with the eastern trading partners (Charles, 2009, pg 619). Low recovery in life standard and low productivity during the post-war time There were very poor standards of life during the post war time. This was realized on the high rates of unemployment and the fall in the food supply. This therefore led to hunger in the states. Certain states such as Germany were adversely affected in the transport infrastructure and there was poor housing. It is also important to highlight that the productivity in the economy of the member states came to a reduction of half the normal productivity (Charles, 2009, pg 269). The implementation of Marshall Plan Distribution of the financial aid The table below gives the monetary values that were given to the various countries during the implementation stage of the Marshall Plan. country 1948/49 ($ millions) 1949/50 ($ millions) 1950/51 ($ millions) Cumulative ($ millions)  Austria 232 166 70 468  Belgium and Luxembourg 195 222 360 777  Denmark 103 87 195 385  France 1085 691 520 2296  West Germany 510 438 500 1448  Greece 175 156 45 376  Iceland 6 22 15 43  Ireland 88 45 0 133  Italy and  Trieste 594 405 205 1204  Netherlands 471 302 355 1128  Norway 82 90 200 372  Portugal 0 0 70 70  Sweden 39 48 260 347   Switzerland 0 0 250 250  Turkey 28 59 50 137  United Kingdom 1316 921 1060 3297 Totals 4,924 3,652 4,155 12,731 Foundation of Economic Cooperation Administration (ECA)and OECD (OEEC) It is important to highlight that the Economic Cooperation Act was founded when President Harry Truman was addressing the security personnel of the European nations in the 1948, March 17th and what comes out so clearly is that he touched on the negative impacts of the Soviet Union and later called for a Joint Congress Session. In the meeting with the congress, it is important to highlight that the he so the need to cope with the union and then requested for the coming up with a peacetime draft for the military. This was later agreed upon by the congress having agreed on the request and he signed it on 3rd April 1948 (Charles, 2009, pg 169). After the establishment of this, the states that were involved in the ECA later formed an organization that was mandated and charged with the responsibility of coordinating all the monetary financial assistance that the member states would get. This therefore led to the Foundation of Organization for European Economic Cooperation (which was later called the Organization for Economic Cooperation and Development or OECD) (Robert, 2008, pg 161). The Impact of Marshall Plan The way the Marshall Plan affects economic growth/recovery in European countries The plan is very much influential in the developing of the states in the sense that there were loans and grants that were provided and they were paid to the government. These were thereby used in the development of the other sectors of the economy. The plan as well had a well laid out blue-print the development of the states to a recovery stage (John, and Nicholas, 2004, pg 63) The way the Marshall Plan helped in the integration of Europe Integration is the measure that is used in the making the various countries be on unit and together. In this measure, it is important to highlight that the countries are open to one another and they can involve themselves in the international trading as either bilateral states trade agreements o multilateral trade agreements. In the case of European countries, it can be clearly noted that the Marshall Plan was very much effective in the unification of the states within the continent. This was in the sense that the trade barriers and hindrances that were in place initially were removed and the countries traded without any block and without being barred in any way and without regulation of any kind (Greg 2007, pg 91). It is also important to acknowledge the fact that it was one president of one of the member state that requested for the establishment of an organization that helped in the coordination of the financial matters in the continent. This allowed for transparency in the states and that they had to show high level of accountability in each country. The member states therefore had to be together to ensure that the financial coordinating body is effective. This could only be realized by a good relation of the European countries. This was perceived as unity of the countries from economic perspective and also ensured that the politically, the countries were also in peace and unity (Evan, 2001,pg 72). Foundation of non-government organizations The Non Government Organizations were formed for the facilitating of the various roles that were in favor of the human welfare. These included the United Nations Relief and Rehabilitation Administration (UNRRA) that aimed at the relief support and other United Nations agencies (Charles, 2009, pg 69). Changes in politics among European countries The political states of the countries changed in the sense that was a division in the European countries. This was noted in the failure of the countries in the Eastern Europe. The North Atlantic states therefore were stepped into the Cold war with the guideline from the plan (Robert, 2008, pg 61). Debate on the Marshall Plan The Marshall Plan was perceived by certain scholars in the ages such as Walter Lafebe and the view concerning this move they saw as an imperialistic way and that it kind of gained dominance similar to the case of the Soviet Union in the Eastern parts of the European continent. It is important to highlight that the European Recovery Program or the Marshall Plan was very essential in the transformation of the continent and that the fruits of this move were realized in several states within the continent. Good examples and cases were seen in France, Italy, Germany as well as Belgium. This faster economic recovery without the overreliance on the foreign assistance from the developed countries during those times was therefore very quick and noted faster recovery (John, and Nicholas, 2004, pg 52) References Charles, P., Marshall Plan Days, Taylor & Francis Publishers, (2009) Evan, M., The Marshall plan for novel writing: a 16-step program guaranteed to take you from idea to completed manuscript, United Kingdom, F+W Media Publishers, (2001). Greg B., The Most Noble Adventure: The Marshall Plan and the Time When America Helped Save Europe, Simon and Schuster publishers, (2007). John A., J. and Nicholas E., The Marshall Plan Today: Model and Metaphor, London, Psychology Press, (2004). Nicolaus M. Winning the Peace: The Marshall Plan and Americas Coming of Age as a Superpower, Boston, John Wiley & Sons publishers, (2008). Robert, E., From Marshall Plan to Debt Crisis: Foreign Aid and Development Choices in the World Economy, California, University of California Press, (2008). Read More