What was the marshall plan

Another program of the Marshall Project provided Europeans with technical training in U. By the end of , over 6, Europeans had traveled to the U.

The Marshall Plan generated economic growth by providing the necessary funds for many European countries and Japan to rebuild themselves. There were acute food and fuel shortages across Europe, and many countries lacked the funds to purchase imported goods from the U.

The Marshal Plan was intended to bolster production and encourage international trade among European countries and between Europe and the rest of the world. Between and , the U. The aid programs included in the Marshall Plan were considered both unprecedented and successful. Once on the brink of an economic collapse, the participants in the Marshall Plan embarked on a golden age of economic growth in the decades that followed.

Under the Bretton Woods System, gold was the basis for the U. While the Bretton Woods System was dissolved in the s, both the IMF and World Bank have remained strong pillars for the exchange of international currencies. The World Bank was originally created in order to provide aid to European countries in the postwar reconstruction period. However, the role of the bank was quickly replaced after the establishment of the Marshall Plan because Marshall Plan institutions drove postwar international monetary relations.

The Soviet Foreign Minister V. Molotov walked out of negotiations with the British and French governments and, ultimately, ended up rejecting the extension of aid to the Soviet Union that was offered through the Marshall Plan. The Soviet objections to the Marshall Plan were many, but above other things, they were adamant that Germany not receive any aid through the plan.

Unfortunately, British and French representatives did not share the same objections. In the end, they were successful because none of the Soviet satellites participated in the Marshall Plan. In , the Soviet Union introduced a plan to provide aid to its allies in Eastern Europe. They called this plan the Molotov Plan. The Truman Doctrine was a precursor to the Marshall Plan. These countries included Greece and Turkey.

Then, in June , Secretary of State George Marshall proposed the extension of massive economic assistance to the whole of Europe. Marshall's plan, which was called the European Recovery Project better known as the Marshall Plan was the one that was implemented after authorization by the U. Department of State: Office of the Historian.

Congressional Research Service. Accessed April 20, Cambridge University Press. The Washington Post. Here are four reasons it was so important. Department of State. American Foreign Relations. Office of the Historian. Monetary Policy. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.

The Cold War was mostly fought with words and threats rather than violent acts. The two nations at war were the United States and the Soviet Union. Although the two superpowers had worked as allies to defeat Germany during World War II, tensions grew between them after the war, resulting in a standoff over competing visions for the post-war world.

This doctrine proposed to give aid to countries that were suffering from the aftermath of World War II and threatened by Soviet oppression. The U. Truman hoped that by enacting the Marshall Plan two main goals would be accomplished. In the immediate post-World War II period, Europe remained ravaged by war and thus susceptible to exploitation by an internal and external Communist threat. Marshall issued a call for a comprehensive program to rebuild Europe.

The Marshall Plan generated a resurgence of European industrialization and brought extensive investment into the region. It was also a stimulant to the U. Although the participation of the Soviet Union and East European nations was an initial possibility, Soviet concern over potential U.