The Second World War ended. Its consequences for Europe were terrible. Tens of millions of people died, most of the housing stock was destroyed, agricultural production barely reached 70% of the pre-war level.
The total economic loss, according to conservative estimates, amounted to 1,440 billion pre-war francs. Without external support, countries affected by the war could not solve the problems that arose. What this assistance should be defined by the Marshall Plan, named after its initiator, US Secretary of State and retired military officer George Marshall.
Europe was divided into two parts, eastern was in the sphere of influence of the USSR, and the Stalinist leadership did not hide its hostile attitude towards the free market system, as well as its intentions to establish a socialist order in all European countries.
Against this background, intensified forces, which are called "left". Communist parties supported by the Soviet Union began to gain ground, their popularity grew.
At this point, the United States began to feel the threat of the Communists coming to power in the territory of Western Europe they control.
The Marshall Plan was the most successful economic assistance project in human history.
The Army General, who became Secretary of State under Truman, J. Marshall did not have an economic education. The real fathers of the plan was J. Kennan and his group, they developed the main details of its implementation. He was simply given the task - to develop measures to limit Soviet influence in Western Europe, where, in the event the Communists came to power, the United States could lose important sales markets, and in the future also face a direct military threat.
As a result, the document worked out by economists was called the Marshall Plan. During its implementation, sixteen European countries received total assistance worth $ 17 billion. However, the Marshall plan did not just provide for distributing products and eating American money, assistance was provided under very stringent conditions, such as reducing customs duties, refusing to nationalize enterprises and supporting market economic principles, only democratic countries could receive it. 17% of the funds received should have been spent on the purchase of production equipment.
George Marshall himself, during a Harvard speech on June 5, 1947, expressed the essence of US state policy in a military manner clearly. The fight against communism is impossible if Europe is weak.
The Marshall Plan is a successful attempt to restore the economies of war-affected countries, and by 1950 all of them exceeded the pre-war level of agricultural and industrial production.
Part of the assistance was provided free of charge, but mostly these were loans at low interest rates.
Marshall’s plan was criticized by the leadership of the USSR and Eastern European countries for “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 products.