Marshall Plan

The Marshall Plan, known officially following its enactment as the European Recovery Program (ERP), was the main plan of the United States for the reconstruction of Europe following World War II. The initiative was named for United States Secretary of State George Marshall and was largely the creation of State Department officials including William L. Clayton and George F. Kennan.

Related Topics:
United States - Europe - World War II - United States Secretary of State - George Marshall - State Department - William L. Clayton - George F. Kennan

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The reconstruction plan was developed at a meeting of the participating European states in July 1947. The Soviet Union and the states of Eastern Europe were invited, but Stalin saw the plan as a threat and did not allow the participation of any countries under Soviet control. The plan was in operation for four fiscal years beginning in July 1947. During that period some $13 billion of economic and technical assistance - equivalent to nearly $100 billion in 2005, when adjusted for inflation - was given to help the recovery of the European countries which had joined in the Organization for European Economic Cooperation.

Related Topics:
July - 1947 - Soviet Union - Eastern Europe - Stalin - Fiscal year - $ - Inflation - Organization for European Economic Cooperation

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By the time the plan ended the economy of every participant state, except for Germany, had grown well past prewar levels. Over the next two decades Western Europe as a whole would enjoy unprecedented growth and prosperity. The Marshall Plan has also long been seen as one of the first elements of European integration, as it erased tariff trade barriers and set up institutions to coordinate the economy on a continental level. In recent years historians have questioned both the motivation and the effectiveness of the Marshall Plan, but most still see it as a positive and highly successful operation.

Related Topics:
Economy - Germany - Western Europe - European integration - Tariff - Trade barriers

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