WORLD HISTORY

Detailed explanation-1: -On April 3, 1948, President Truman signed the Economic Recovery Act of 1948. It became known as the Marshall Plan, named for Secretary of State George Marshall, who in 1947 proposed that the United States provide economic assistance to restore the economic infrastructure of postwar Europe.

Detailed explanation-2: -Historians have generally agreed that the Marshall Plan contributed to reviving the Western European economies by controlling inflation, reviving trade and restoring production. It also helped rebuild infrastructure through the local currency counterpart funds.

Detailed explanation-3: -Marshall’s speech called on European nations to work with each other and the United States on economic recovery, rather than to simply receive an injection of financial aid to rebuild Europe. In return, it was believed democracy as well as peace and prosperity would flourish worldwide.

Detailed explanation-4: -The plan had two major aims: to prevent the spread of communism in Western Europe and to stabilize the international order in a way favorable to the development of political democracy and free-market economies. European reaction to Marshall’s speech was quick and positive.

Detailed explanation-5: -Some eighteen European countries received Plan benefits. Although offered participation, the Soviet Union refused Plan benefits and also blocked benefits to Eastern Bloc countries, such as Romania and Poland. The United States provided similar aid programs in Asia but they were not part of the Marshall Plan.