Marshall Plan and Postwar European Recovery, 1947–1952

Given the dearth in Europe and the financial impossibility of buying American products, supporting this plan demanded prior coordination of European countries for implementation. This was held in June–July 1947 as a conference in Paris which, after much hesitation, the USSR did not attend. Despite the campaign of the communist parties, sixteen countries agreed to participate and met at a conference in September 1947.

Conference Objectives

• Prevent European insolvency, which would have had dire consequences for the U.S. economy.
• Prevent the spread of communism in Europe.
• Create a structure that favored the establishment and maintenance of democratic regimes.

In July of that year the Committee of European Economic Cooperation was created to coordinate support for the U.S. plan. In 1948, after the U.S. government approved the Foreign Assistance Act, the Committee became the Organisation for European Economic Cooperation (OEEC) to distribute concrete aid. Western countries met to organize the effort; Spain was not invited.

Although an initial proposal raised the figure of $17 billion in aid, the total support is estimated at $13,000 million (about $13 billion) between 1947 and 1952. Money was distributed unevenly: Great Britain received the largest percentage; France and Italy received slightly lower but significant proportions. The Soviets ensured that no Eastern European country accepted the U.S. proposal.

Results and Impact

The success of the plan was essential for economic recovery and the establishment of democratic regimes in Western Europe. The Marshall Plan ended in 1952 and, having exceeded expectations, much remained to be done. The plan contributed to approximately a 30% growth in the world economy. The Korean War occurred during the plan's final phase and affected global demand, but the mission was largely fulfilled. European agriculture and industry re-emerged, and poverty became largely a thing of the past. The United States managed to position itself as the hegemonic power of the Western world.