WHICH COUNTRIES RECEIVED FINANCIAL AID FROM THE MARSHALL PLAN? - HISTORY - 2025

The countries benefiting from the Marshall Plan were West Germany, Belgium, Austria, Luxembourg, Denmark, Greece, France, Ireland, Iceland, Italy, Norway, former Trieste, the Netherlands, Portugal, Switzerland, the United Kingdom, Sweden, and Turkey. It was an economic recovery plan designed by the United States at the end of World War II.

This plan was proposed to help all the nations of the European continent, but only these 18 decided to accept the plan. The Soviet Union, for its part, refused to be part of this group on grounds of sovereignty. The group of nations that were her allies at that time also decided to reject this help.

Mark used in aid packages used in the Marshall Plan

The official name was European Recovery Program (ERP). It was proposed by the US Secretary of State George Catlett Marshall (1880-1959). Its initial objective was in the recovery of European nations from the aftermath of disease, famine and destruction after the recently concluded world confrontation.

However, the Marshall Plan achieved other goals. Between them, it prevented the spread of communism in Europe and made trade between the United States and Europe possible with a minimum of insolvency on the European side.

It also helped in the creation of structures that favored the establishment of democratic governments in the countries of the region.

Which were the countries that received economic aid from the Marshall Plan and how did they benefit?

Scope of benefits for countries that received aid from the Marshall Plan

Although the Marshall Plan had 18 European nations as adherents, they did not receive the same amount of aid. The plan was designed to make aid allocations depending on the per capita gross domestic product (GDP) of each of them.

Likewise, other factors such as population and industrial capacity were considered. The plan was devised to give aid on the basis that the strongest countries had to be prevented from emerging as local powers.

Thus, the philosophy on which the Marshall Plan was designed was to prevent the emergence of nations that dominate their neighbors. In the same way, it was valued to assign the aid the side that helped during the war or if they were neutral.

Of the $ 13 billion disbursed by the United States for this plan, the countries that benefited the most were the United Kingdom, France, and West Germany.

The first received around 26% of the total amount. Meanwhile, France received around 18% and West Germany an amount close to 11%.

On the other hand, according to historical records, it is estimated that - of the total - 26% was used to acquire raw materials and products. In addition, approximately 24% was used in food and fertilizers and around 27% for machinery, vehicles and fuels.

Consequences of its application

The Marshall Plan provided capital and materials that allowed Europeans to successfully rebuild their economy. According to the balance taken at the end of 1951, the economies of the countries of the plan were already showing obvious signs of recovery.

The indicators for that date showed that industrial activity had grown 64% in just 4 years. And they reflected an increase of 41% compared to the period immediately before the war. Likewise, the production of the metallurgical industry had doubled.

On the other hand, the ration cards had disappeared since early 1949 and food production had increased by 24%. In a relatively short time the Europeans were already strengthened and ready to restart their international trade activity.

In relation to the United States, the implementation of this plan also had positive results. On the one hand, in Europe new markets were opened for their products.

At the same time they surrounded themselves with reliable political and business partners. The business relationships established in light of this plan were strong.

The demand for North American products and services from Europe increased. This caused the economic balance of the following decades to tip in their favor.

Finally, politically, the United States cut the Soviet Union's claims to become hegemonic in Europe. Western nations formed democratic governments that continued programs of cooperation and alliances with their North American partner. Many of the trade and military agreements are in place.

The conception of the Marshall Plan

In 1945, after the end of World War II, the European continent was in ruins. The European landscape was shaped by shattered cities, devastated economies, and populations beset by hunger and disease. Since all the nations on the western side were in the same situation, there was a lack of leadership.

Now, this situation was not presented in the same way on the eastern European side due to the presence of the Soviet Union. This led and, in some way, helped in the recovery of the countries of the east wing.

On the other hand, the Communist Party of the Soviet Union began a campaign of expansion towards the western zone that threatened the implantation of communism throughout the continent.

Meanwhile, the main concern of the United States was the economic recovery of the expenses caused by the war.

To face this critical situation, his Secretary of State proposed a recovery plan. Basically, this plan contemplated the active participation of the USA in the reconstruction plans that were designed by the European nations.

On December 19, 1947, President Harry Truman sent it to Congress for approval under the name of the Economic Cooperation Act of 1948.

This was approved and on April 3 of that same year, the American president signed the law that, from that moment, became known as the Marshall Plan.

Application

Over the next 4 years, the United States Congress allocated an amount of USD 13.3 billion for the European recovery. This flow of aid crossed the Atlantic in the form of goods, loans, development projects and assistance programs.

For the coordination and management of the aid, two organizations were created. On the American side, the Administration for Economic Cooperation (ACE) was created.

Meanwhile, in each of the beneficiary countries of the agreement, offices of the European Organization for Economic Cooperation (OECE) were created.

In the first instance, ACE's role was to see that aid was dispatched as planned and to provide advice to recipient nations.

The OECEs, for their part, ensured that the aid was used in the most efficient way possible. These offices worked in coordination supervised by their respective governments.

On the other hand, as already mentioned, the Marshall Plan was not received by the Soviet Union. Initially its leader Joseph Stalin was interested.

Later, in an untimely manner, he withdrew, also forcing the satellite countries of his regime to do so. In this way, the countries of Eastern Europe excluded themselves.

References

1. Walsh, C. (2017, May 22). Birth of a peaceful Europe. Taken from news.harvard.edu.
2. Federal government of the United States. (s / f). Marshall Plan (1948). Taken from.ourdocuments.gov.
3. Steil, B. (2018). The Marshall Plan: Dawn of the Cold War. New York: Simon and Schuster.
4. Holm, M. (2016). The Marshall Plan: A New Deal For Europe. New York: Taylor & Francis.
5. Hogan, MJ (1989). The Marshall Plan: America, Britain and the Reconstruction of Western Europe, 1947-1952. Cambridge: Cambridge University Press.