Marshall's plan: pay for peace: as a devastated Europe smoldered after World War II, general-turned-diplomat George C. Marshall proposed the idea of opening America's wallet to countries in need. (times past).

EUROPE WAS A SMOKING CRATER. THE rise and fall of Nazi Germany in World War II had come at a huge cost--millions of people were dead, cities lay in ruins, and country after country was devastated. Jobs and food were scarce, as fears grew that Europe could never recover. In 1947, two years after the war's end, a New York Times writer in Britain reported:

The first time you see a little girl with a pinched face lugging a sack [of coal] nearly her size through the streets, it shocks you.... The whole family joins the struggle to keep life going, to keep a little fire in the hearth.

Britain's wartime leader, Winston Churchill, declared that all of Europe had become "a rubble heap, a charnel house, a breeding ground for pestilence and hate." U.S. Secretary of State George C. Marshall responded to Europe's plight by launching the largest aid program in world history, known as the Marshall Plan. U.S. aid has played a global role ever since.

Today, President George W. Bush and others believe a new Marshall Plan is needed for Afghanistan--the world's latest war-torn rubble heap. Just as the plan pulled Europe out of poverty and protected it from hostile takeover, they argue, aid could rescue Afghans, rebuild their country, and keep it free from radicals and terrorists.

TWO SUPERPOWERS

But the situation after World War II was different than it is in today's war on terror. By 1947, the U.S. and the Soviet Union had emerged as the leading military powers. Both wanted influence over Europe, and the continent was being torn in half between them. The U.S. and its Allies were trying to keep Western Europe free; the Soviets wanted to expand through Eastern Europe and beyond.

Marshall and his boss, President Harry Truman, knew that the unrest in Europe was playing into the hands of Moscow's Communist leadership. Communism promised a better life in a classless society where everyone had what they needed to live, at the cost of personal freedom. This appealed to people in devastated countries such as Italy and France, where the Communist Party's popularity was surging. Truman wanted to contain Communism within its existing borders while bringing new hope to Europe.

The job of rebuilding Europe's economy fell to Marshall, a retired military man from Uniontown, Pennsylvania. As the Army's Chief of Staff during World War II, Marshall had helped lead the Allied war effort against the Axis powers. After 43 years in the military, the general accepted appointment as Secretary of State.

Shifting to his peacetime role as America's top diplomat, Marshall won nearly universal respect for his modesty, strong-mindedness, and intelligence. France's Foreign Minister, Georges Bidault, who would go on to be Prime Minister, said of Marshall:

[He] did not pretend to be infallible. He would ask others for advice and could be unsure, even hesitant. But once he made up his mind, nothing could have made him change it,

FIGHTING HUNGER

Marshall was determined to institute what was officially called the European Recovery Program, though everybody else called it the Marshall Plan. He introduced the idea in a commencement address at Harvard University on June 5, 1947. He said the aid was open to all countries in Europe, including the Soviet Union.

Our policy is directed not against any country or doctrine, but against hunger, poverty, desperation, and chaos.

However, the aid came with conditions. The U.S. would oversee the spending; most of the money had to be used to buy American-made goods; and the countries would have to work together on their rebuilding efforts. It was clear that the Soviets wouldn't agree to such terms.

Marshall needed all his skills to wrestle money for the program out of Congress. Much like today, many key lawmakers deeply opposed foreign entanglements and big government programs. The Marshall Plan was both. It would commit the U.S. to Europe's recovery and cost $13 billion, equivalent to about $90 billion today.

Congressional opposition to the Marshall Plan died down--thanks to the Soviets. The Communists overthrew the last remaining democracy in Eastern Europe in February 1948 when they took control of Czechoslovakia. Fearful of further Soviet expansion, Congress passed the plan. Within days, the first freighter loaded with 9,000 tons of wheat left Galveston, Texas, for France.

Though food and clothes went for immediate needs, most of the aid was intended to help Europeans help themselves. British auto factories cranked out cars on assembly-line machines sent from Detroit. Greek farmers received Missouri mules to replace animals killed in the war. Across Europe, the Marshall Plan sparked optimism. As one U.S. official put it, "The psychological effect was four fifths accomplished before the first supplies arrived."

A SUCCESS STORY

The Marshall Plan produced a financial boom on both sides of the Atlantic. The economic well-being of Europeans jumped dramatically, while U.S. firms benefited from the revitalized markets. Communism's popularity in Europe faded as free enterprise took over. In 1953, Marshall was awarded the Nobel Peace Prize.

The plan's success led the U.S. to become a source of foreign aid for many countries in need whether to rebuild war-torn regions or maintain strategic alliances (see "Then and Now," page 27).

But no other programs since have seen such amazing results. In part that's because Europeans were rebuilding once-prosperous countries. Much of today's aid must do something tougher--drag less-developed countries into the modern age. In the case of Afghanistan, it must rebuild a shell-shocked nation, where even safe drinking water is rare.

Since Sept. 11, President Bush has pledged to boost American aid to poor countries by 50 percent over the next three years, and his administration requested $40 million for aid to Afghanistan. "We fight against poverty because hope is an answer to terror," he says.

Those who benefited from the Marshall Plan saw it the same way. As Britain's Foreign Minister, Ernest Bevin, said, the plan was "a lifeline to sinking men.... We grabbed the lifeline with both hands."

THEN NOW

When the U.S. instituted the Marshall Plan after World War II, a devastated Western Europe was the focus for economic assistance. The U.S. continues to aid other countries today, but the priorities have changed. Here is a look at the top U.S. aid recipients (all figures expressed in 2002 dollars).

1949
United Kingdom    $12.1 billion
France            $9.84 billion
Germany           $9.47 billion
Italy             $5.14 billion
Netherlands       $3.79 billion
Austria           $2.06 billion
Belgium           $1.96 billion
Greece            $1.53 billion
Denmark           $947 million
Norway            $755 million

2002
Israel            $720 million
Egypt             $655 million
Russia            $170 million
Ukraine           $170 million
Jordan            $150 million
India             $146 million
Yugoslavia        $145 million
Indonesia         $133 million
Kosovo            $120 million
Bangladesh        $102 million

U.S. Aid Saves Western Europe After World War II, Brings Prosperity to Both Sides of Atlantic

DISCUSSION QUESTIONS

* Why do you think President Bush believes that a new Marshall Plan could keep Afghanistan free of terrorists?

* Does the U.S. have a moral obligation to give financial aid to poor countries?

* What conditions, if any, should the U.S. impose on aid recipients?

TEACHING OBJECTIVES

To help students understand one of the most dramatic turning points in world history--America's rescue of Western Europe from poverty, degradation, chaos, and Communism in the desperate days following World War II.

CLASSROOM STRATEGIES

CRITICAL THINKING: Students should understand that the Marshall Plan was not just an altruistic gesture.

Direct attention to the headline of this history feature. Ask what the headline implies. What evidence does the article provide that the U.S. received value for its investment in the rebuilding of Western Europe? (The advance of Communism, which could have provoked a U.S.-Soviet war, was halted and American companies prospered from the newly revitalized markets in Western Europe.)

DEBATE: Note that many in Congress originally opposed the Marshall Plan. Ask students to imagine that the time is September 1947, before the Soviets overthrew the elected government of Czechoslovakia. Congress is debating the proposed Marshall Plan. Have students take sides in the debate. Students supporting the plan should make two or three arguments explaining why the Marshall Plan would be in the best interests not only of Western Europe, but also in the best interests of the U.S. Those who oppose the Marshall Plan should make two or three arguments explaining why the Marshall Plan would not be in the best interests of an already war-weary American people.

RATING THE AID: Have students examine the aid table on page 27. Do the dollar amounts seem enormous? Tell students that the U.S. is the biggest aid donor in terms of raw dollars, but between 1992 and 2001 Japan was the biggest donor. Today, the U.S. ranks 22nd in terms of the percentage of its gross national product spent on foreign aid. Denmark, a major Marshall Plan recipient in 1949, ranks first.

WEB WATCH: For current information on U.S. foreign aid go to the U.S. Agency for International Development at www.usaid.gov.

Upfront QUIZ 4

MULTIPLE CHOICE

DIRECTIONS: Circle the letter next to the correct answer.

1. Following World War II, tensions between the U.S. and the Soviet Union focused on the division between

a Eastern and Western Europe.

b Northern and southern Europe.

c Asia and Europe.

d the Northern and Southern hemispheres.

2. General George C. Marshall, father of the Marshall Plan, traded his Army uniform for civilian garb when he accepted the high-level position of

a Vice President.

b U.S. Senator.

c Secretary of Defense.

d Secretary of State.

3. In addition to helping Europe, President Truman also wanted the Marshall Plan to

a increase tensions between the U.S. and Soviet Union.

b persuade Europeans to adopt U.S.-style governments.

c contain Communism within its existing borders.

d give U.S. farmers an edge over European farmers.

4. Marshall Plan aid to Europe came with certain conditions. One of those conditions was that

a recipients had to renounce socialist economic systems.

b most of the money had to be used to buy U.S. goods.

c European factories had to stop producing goods that were similar to American-made goods.

d English had to be taught in all schools.

5. Congressional opposition to the Marshall Plan faded

a after the cost of the program was reduced.

b with George Marshall's threat to resign unless the plan went forward.

c with the eruption of civil war in Greece in 1947.

d because of fears of Soviet expansion in Europe.

6. A major difference between the Marshall Plan and aid to poor countries today is the fact that the Marshall Plan

a focused almost exclusively on food aid.

b was less expensive than today's foreign aid programs.

c was more expensive than today's foreign aid programs.

d helped rebuild once-prosperous countries.

ANSWER KEY

1. (a) Eastern and Western Europe.

2. (d) Secretary of State.

3. (c) contain Communism within its existing borders.

4. (b) most of the money had to be used to buy U.S. goods.

5. (d) because of fears of Soviet expansion in Europe.

6. (d) helped rebuild once-prosperous countries.