Marshall Plan or European Recovery Program, project instituted at the Paris Economic Conference (July, 1947) to foster economic recovery in certain European countries after World War II. The Marshall Plan took form when U.S. Secretary of State George C. Marshall Marshall, George Catlett, 1880–1959, American general and cabinet member, b. Uniontown, Pa. A career army officer, Marshall graduated from the Virginia Military Institute.
..... Click the link for more information. urged (June 5, 1947) that European countries decide on their economic needs so that material and financial aid from the United States could be integrated on a broad scale. In Apr., 1948, President Truman signed the act establishing the Economic Cooperation Administration (ECA) to administer the program.

The ECA was created to promote European production, to bolster European currency, and to facilitate international trade. Another object was the containment of growing Soviet influence (through national Communist parties), especially in Czechoslovakia, France, and Italy. Paul G. Hoffman was named (Apr., 1948) economic cooperation administrator, and in the same year the participating countries (Austria, Belgium, Denmark, France, West Germany, Great Britain, Greece, Iceland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, Turkey, and the United States) signed an accord establishing the Organization for European Economic Cooperation (later called the Organization for Economic Cooperation and Development Organization for Economic Cooperation and Development (OECD), international organization that came into being in 1961. It superseded the Organization for European Economic Cooperation, which had been founded in 1948 to coordinate the Marshall Plan for European
..... Click the link for more information. ) as the master coordinating agency.

The ECA functioned until 1951, when its activities were transferred to the Mutual Security Agency. Over $12 billion was dispersed (1948–51) under the program. From the start the Soviet Union strongly opposed the Marshall Plan while the various countries in Eastern Europe denounced or ignored it. Completed in 1952, the Marshall Plan was one aspect of the foreign aid foreign aid, economic, military, technical, and financial assistance given on an international, and usually intergovernmental level. U.S. foreign aid programs have included at least three different objectives: rehabilitating the economies of war-devastated countries,
..... Click the link for more information. program of the United States and greatly contributed to the economic recovery of Europe.

Bibliography

See S. E. Harris, ed., Foreign Economic Policy for the United States (1948, repr. 1968); H. B. Price, The Marshall Plan and Its Meaning (1955); J. B. DeLong and B. Eichengreen, The Marshall Plan (1991).

Marshall Plan

(1948–51) U.S.-sponsored program to provide economic aid to European countries after World War II. The idea of a European self-help plan financed by the U.S. was proposed by George Marshall in 1947 and was authorized by Congress as the European Recovery Program. It provided almost $13 billion in grants and loans to 17 countries and was a key factor in reviving their economies and stabilizing their political structures. The plan's concept was extended to less-developed countries under the Point Four Program.

Marshall Plan

U.S.-led project to rebuild post-WWII Europe. [Eur. Hist.: Van Doren, 515]

See : Aid, Governmental