The Second World War is over. Its consequences for Europe were terrible. Tens of millions of people died, much of the housing stock was destroyed, and agricultural production barely reached 70% of pre-war levels.
Total economic losses were conservatively estimated at 1,440 billion pre-war francs. Without outside support, the countries affected by the war could not solve the problems that had arisen. The Marshall Plan, named after its instigator, U. S. Secretary of State and retired military man George Marshall, defined what that aid should be.
Europe was divided into two parts, the east was in the sphere of influence of the USSR, and the Stalinist leadership made no secret of their hostility to the free market system, as well as their intentions to establish a socialist order in all European countries.
Against this background, the forces that are commonly called "left" have become more active. Communist parties backed by the Soviet Union began to gain ground and their popularity grew.
At this point, the US startedfeel the threat of the communists coming to power in the territory of Western Europe they control.
The Marshall Plan was the most successful implemented economic aid project in human history.
Army General, who became Secretary of State under Truman, J. Marshall had no economic education. The real fathers of the plan were J. Kennan and his group, and they developed the main details of its implementation. They were simply given the task of working out measures to limit Soviet influence in Western Europe, where, if the Communists came to power, the United States could lose the most important sales markets, and in the future face a direct military threat.
As a result, the document developed by economists was called the Marshall Plan. During its implementation, sixteen European countries received a total assistance in the amount of $17 billion. However, the Marshall Plan did not just provide for the distribution of food and eating American money, the assistance was provided under very strict conditions, such as lowering customs duties, refusing to nationalize enterprises and supporting market economic principles, and only democratic countries could receive it. 17% of the funds received were to be spent on the purchase of production equipment.
George Marshall himself, during his Harvard speech on June 5, 1947, expressed the essence of the US military policy clearly. The fight against communism is impossible if Europe is weak.
The Marshall Plan is a successful attempt to restore the economycountries affected by the war, and by 1950 they all exceeded the pre-war level of agricultural and industrial production.
Some assistance was provided free of charge, but mostly it was loans at low rates.
The Marshall Plan was criticized by the leadership of the USSR and the Eastern European countries of "people's democracy", but the macroeconomic indicators achieved in just four incomplete years spoke for themselves. The level of influence of the Communist parties began to decline rapidly, and America received a huge market for its goods.
