Truman → wanted to use → US’s mighty economic power → to prevent spread of communism.
- ordered US secretary of state → George Marshall → to come up with an economic aid plan.
- June 1947: Marshall plan → was announced to world.
US → would put 13 billion → into helping Europe’s shattered economies recover.
- Starting April 1948: food, machinery, animals and countless other items → were shipped to democratic countries in Europe.
- Truman → wanted people to get back to work + make money.
- wanted to make them feel good abt. capitalism → so they would not be attracted to communism.
Marshall plan → widely seen → by US’s allies → as incredibly generous gesture →were extremely grateful.
- however important to remember that US → looking after its own interests.
First → US → needed to recover → so that its industries → had market → to export their goods to.
Second → largest amts. of financial aid from Marshall Plan→ went to US’s closest political allies → Britain and France.
Third → countries which did not have democratic, capitalist systems → did not receive such financial support.
- e.g. Italy did not receive any aid → until non communist govt took power in 1948.
Marshall Plan → key development → in Cold war.
In economic terms → it provided massive boost to Western Europe + brought about speedy recovery for countries.
Britain + France benefitted → and so did war ravaged West Germany → to the extent that west Germany enjoyed an ‘economic miracle’ by early 1950s.
- helped to bind the US and its allies closer against communism