Asked by: Gurutz Minovitsky
business and finance financial crisis

What was the main reason for the Marshall Plan?

Last Updated: 6th January, 2020

The Marshall Plan (officially called the European Recovery Program [ERP]) was a plan of the United States for rebuilding the allied countries of Europe after World War II. One of the main reasons this was done was to stop communism (basically the USSR).

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Thereof, what was the major purpose of the Marshall Plan?

Marshall spoke of an urgent need to help the European recovery in his address at Harvard University in June 1947. The purpose of the Marshall Plan was to aid in the economic recovery of nations after World War II and to reduce the influence of Communist parties within them.

Also Know, what problem did the Marshall Plan help solve? In his speech, George Marshall was very clear that the “breakdown of the business structure of Europe during the war” was the problem that aid most needed to solve: “Our policy is directed not against any country or doctrine but against hunger, poverty, desperation, and chaos.

Additionally, why the Marshall Plan was successful?

The Marshall Plan was very successful. The western European countries involved experienced a rise in their gross national products of 15 to 25 percent during this period. The plan contributed greatly to the rapid renewal of the western European chemical, engineering, and steel industries.

Did Britain benefit from the Marshall Plan?

Britain actually received more than a third more Marshall Aid than West Germany - $2.7 billion as against $1.7 billion. The truth is that the post-war Labour Government, advised by its resident economic pundits, freely chose not to make industrial modernisation the central theme in her use of Marshall Aid.

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Why did the US contain communism?

According to Communist principles, the state should control the economy and the lives of citizens. The Soviet Union wanted to spread Communism to other countries, and the United States wanted to contain it within the countries where it already existed.

Xiaoyi Schebaum


What countries were helped by the Marshall Plan?

Participating countries included Austria, Belgium, Denmark, France, West Germany, Great Britain, Greece, Iceland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, and Turkey. Congress appropriated $13.3 billion during the life of the plan for European recovery.

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Who came up with the Marshall Plan?

On April 3, 1948, President Truman signed the Economic Recovery Act of 1948. It became known as the Marshall Plan, named for Secretary of State George Marshall, who in 1947 proposed that the United States provide economic assistance to restore the economic infrastructure of postwar Europe.

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How did the Marshall Plan stop the spread of communism?

But in places where communism threatened to expand, American aid might prevent a takeover. To avoid antagonizing the Soviet Union, Marshall announced that the purpose of sending aid to Western Europe was completely humanitarian, and even offered aid to the communist states in the east.

Shaban Montez


Was the Marshall plan a success or failure?

First, the Marshall Plan model has routinely failed when applied elsewhere. Between 1948 and 1951, the U.S. provided about $13 billion in cash goods and services–about $90 billion in today's dollars–to Europe. That was a significant amount of money, but is dwarfed by subsequent “Marshall Plans.”

Jerry Iriarte


How successful was the Truman Doctrine?

Indeed, both nations established repressive right-wing regimes in the years following the Truman Doctrine. Yet, the Truman Doctrine successfully convinced many that the United States was locked in a life-or-death struggle with the Soviet Union, and it set the guidelines for over 40 years of U.S.-Soviet relations.

Masseye Doschek


Is the Marshall Plan still in effect today?

The Marshall Plan—the mammoth aid scheme to revive western Europe after World War II—celebrates its 70th anniversary on April 3. And perhaps its most enduring legacy is the endless desire to repeat it. The aid tendered, as a percentage of U.S. output, would be equivalent to about $800 billion today.

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What did the Truman Doctrine do?

With the Truman Doctrine, President Harry S. Truman established that the United States would provide political, military and economic assistance to all democratic nations under threat from external or internal authoritarian forces. Truman asked Congress to support the Greek Government against the Communists.

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What is the Truman Doctrine and Marshall Plan?

The Truman Doctrine demonstrated that the United States would not return to isolationism after World War II, but rather take an active role in world affairs. To help rebuild after the war, the United States pledged $13 billion of aid to Europe in the Marshall Plan.

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How did the Soviet Union respond to the Marshall Plan?

The Soviet reaction to Marshall's speech was a stony silence. Molotov immediately made clear the Soviet objections to the Marshall Plan. First, it would include economic assistance to Germany, and the Russians could not tolerate such aid to the enemy that had so recently devastated the Soviet Union.

Bobbi Qualunque


Did Germany pay back the Marshall Plan?

Most of the countries that received Marshall Plan money assumed they would never be asked to repay it. But West Germany wasn't sure of its status, so it treated the money as a loan. In 1953, it was agreed that the Germans would repay one-third of their postwar debt to the U.S.

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Why was NATO created?

The North Atlantic Treaty Organization was created in 1949 by the United States, Canada, and several Western European nations to provide collective security against the Soviet Union. NATO was the first peacetime military alliance the United States entered into outside of the Western Hemisphere.

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What reasoning does Marshall use to explain why the US should provide aid to Europe?

Marshall calls on the United States to assist in the economic recovery of postwar Europe. His speech provided the impetus for the so-called Marshall Plan, under which the United States sent billions of dollars to Western Europe to rebuild the war-torn countries.

Barbara Viranovsky


How did the Marshall Plan contribute to the Cold War?

The Marshall Plan was designed to prevent the further advancement of Soviet power in Europe. If the U.S.S.R. was allowed to extend its influence into Western Europe, then only the Atlantic would stand between it and the United States.

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How did the US stop the spread of communism?

The strategy of "containment" is best known as a Cold War foreign policy of the United States and its allies to prevent the spread of communism after the end of World War II.

Fady Leve


How did the Marshall Plan work?

The Marshall Plan, also known as the European Recovery Program, was a U.S. program providing aid to Western Europe following the devastation of World War II. In addition to economic redevelopment, one of the stated goals of the Marshall Plan was to halt the spread communism on the European continent.

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How did the Marshall Plan benefit the United States economically?

The Marshall Plan, it should be noted, benefited the American economy as well. The money would be used to buy goods from the United States, and they had to be shipped across the Atlantic on American merchant vessels. (The aid was all economic; it did not include military aid until after the Korean War.)

Antulio Fleta


How did the Marshall Plan impact the future of Europe?

The Marshall Plan had one other great effect on West Europe's evolution over the past four decades: It encouraged the economic integration that led, first, to the creation of the European Coal and Steel Community among six nations -- Belgium, France, Germany, Italy, Luxembourg and the Netherlands -- in 1950.