The Marshall plan

• The Marshall plan, 1947, was announced by US secretary of state: General George Marshall. It was also known as the European Recovery Plan.
• Why was it introduced?

  • To stabilise economics of countries and provide employment and reasonable prosperity.

  Less chance they would turn to communism if economically stable - Prevent the spread of communism.

  • It was the practical outcome of the Truman Doctrine.
• The Marshall plan aided many countries in Europe, such as Austria, Belgium, Denmark, France, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Sweden, Switzerland, West Germany and Turkey. Some of the main figures to remember are that:

  1. Britain received $3,297 million
  2. France $2,296 million
  3. Greece $376 million

  Britain had received over a quarter of the total aid package.
• With the Marshall plan, the US stood down from the Truman Doctrine. Marshall attempts to be diplomatic, with a less 'good vs evil' approach / less critical of communism. Simply protecting European countries not yet subjected to it.
• Consequences

  Stalin accused the USA of using the plan for their own benefit - to dominate Europe and boost US economy. (Dollar imperialism)

  • Stalins suspicions of the west increased

  This was 'evidence' that USA was trying to destroy the Soviet Union by successfully tying Western countries to supporting USA - Stalin rejected.

  • Europe was divided economically and politically - financial iron curtain as well as political