Marshall Plan (ERP) Informative Essay

The European Recovery Program (ERP), nicknamed the Marshall Plan after US Secretary of State George Catlett Marshall. The ERP is a program designed by the United States to assist nations overseas in Europe that were crumbled to rubble by World War II. The European nations needed the funding badly and quick.

Post WWII, Europe's agricultural and coal production had nearly stopped, and its inhabitants were threatened with starvation. The US came to the rescue for four main reasons. Europe had been a huge market for American goods, and without this America could be right back into the depression. Without American aid, Western Europe might have turned Communist which had to be avoided at all costs. Also America did not want its rival at the time USSR to invade on any territory/economic gains that America could gain. Lastly, West Germany needed to be rebuilt to server as a barrier to the Iron Curtain.

When the plan was approved in June 1947 by Marshall, Europe needed to devise a cooperative, long-term rebuilding program, for the US to provide funds. Europe held a conference mainly ran by Britain and France in Paris. The USSR left when they found out that they would have to cooperate with the capitalist societies of Western Europe. They decided to integrate Communism into Eastern Europe to rebuild.

The US arranged $13 Billion+ in relief to Europe. 70% was used to purchase good in the US. The Economic Cooperation Administration distributed the money, and the Organization for European Economic Cooperation spent it. The most money went to Britain, France, Italy, and West Germany, in that order. When the Cold War started to freeze, funds started being used for military instead of rebuilding.

Without US support Europe would be economically drained. Also it prevented fifty percent of Europe from turning communist. It separated the Iron Curtain and rebuilt an entire society in Europe. The Marshall Plan was clearly a success.

"European Recovery Program," Microsoft® Encarta® Online Encyclopedia 2004
http://encarta.msn.com © 1997-2004 Microsoft Corporation. All Rights Reserved.

"Marshall Plan." Encyclopædia Britannica. 2004. Encyclopædia Britannica Premium Service.
2 Apr. 2004 <http://www.britannica.com/eb/article?eu=52383>.

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