Marshall Plan and European Programs
Marshall Plan primarily consisted the general reconstruction plan of the United States for the allied countries of Europe after the Second World War. It was also geared towards repelling communism after its spread in the Soviet countries. The plan was developed on July 12, 1947 and offered monetary aids to the countries that were destroyed by the war, provided that those countries will allow political and economic reforms within their countries.
Indeed, Europe and other participating countries suffered severely from the destruction brought by the war, physically, politically and economically. There are several factors that can be attributed to the recovery in Europe. These factors are: (1) government reforms; (2) growth in world trade; (3) advances in scientific and technological discoveries; and (4) foreign trade (“Economic Cooperation”).
Among the four factors that were integral to the economic renewal in Europe, the fourth was the most important and most pronounced. Foreign aids brought in Europe hastened the process towards economic recovery after the post-war years. There were several programs brought towards Europe which offered financial aid. One of these was the Marshall Plan.
The Marshall Plan centered on rebuilding their economy through initiating international cooperation among their neighboring countries. In this way, countries developed allies to work together for a global cooperation system. Moreover, through Marshall Plan, they adopted a tariff system and calibrated their industrial and agricultural program so that the financial aid that they get from the plan will be translated into mutal gains and economic recovery among the member countries of the organization rather than encouraging competition among them.
Thus, aside from providing financial assistance in Europe, the Marshall Plan also influenced the way reforms and policies were formed in such a manner that competition was eliminated. In this way, different countries were able to work together to promote mutual economic renewal.
Economic Cooperation. 1979. Retrieved March 24, 2008 from http://www.thecorner.org/hist/europe/econ-coop.htm