why was spain excluded from the marshall plan?

The American supplier was paid in dollars, which were credited against the appropriate European Recovery Program funds. World War II decimated Western Europes economy. The plan looked to the future and did not focus on the destruction caused by the war. The Plan was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan, with help from the Brookings Institution, as requested by Senator Arthur Vandenberg, chairman of the United States Senate Committee on Foreign Relations. Despite Allied protests, Franco aided the Axis Powers by sending the Blue Division to the Soviet Union and seizing. Total aids for the Dutch East Indies amounted to $101.4 million ($84.2 million in grants, $17.2 million in loans). The European nations had all but exhausted their foreign-exchange reserves during the war, and the Marshall Plan aid represented almost their sole means of importing goods from abroad. SOURCES: Tarnoff, 2018; Bureau of Labor Statistics; and authors calculations. Why was Spain excluded from the Marshall Plan? Under Paul G. Hoffman, the Economic Cooperation Administration (ECA), a specially created bureau, distributed over the next four years some $13 billion worth of economic aid, helping to restore industrial and agricultural production, establish financial stability, and expand trade. Without the plan, agriculture would have played a larger role in the recovery period, which itself would have been longer. During that conference, on the initiative of the delegations of Australia and Mexico, a motion was adopted which, without explicitly mentioning Spain, referred to it with these terms: With regard to paragraph 2 of chapter III, the delegation of Mexico considers that this paragraph can not be applied to States whose regimes were established with the help of military forces from countries that have fought against the United Nations as long as these regimes remain in power. He accused the United States of attempting to impose its will on other independent states while at the same time using economic resources distributed as a relief to needy nations as an instrument of political pressure. State Department officials, however, knew that Stalin would almost certainly not participate and that any plan that would send large amounts of aid to the Soviets was unlikely to get Congressional approval. This was the Marshall Plan or European Recovery Program (ERP). [63] The Marshall Plan was described as "the American plan for the enslavement of Europe". He reserved the power to appoint and to dismiss ministers and other major decision makers. In the case of Germany, there also were 16 billion marks of debts from the 1920s which had defaulted in the 1930s, but which Germany decided to repay to restore its reputation. Its worth noting, too, that the Central Intelligence Agency (CIA), the secret service agency of the United States, received 5 percent of the funds allocated under the Marshall Plan. The idea behind the aid was that if the countries received money from the U.S. to rebuild then they were less likely to become communist countries and more likely to become democratic. The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative enacted in 1948 to provide foreign aid to Western Europe. The resolution was adopted with 34 votes in favour, 6 votes against, 13 abstentions and one absence. Politically, however, the legacy of the Marshall Plan arguably tells a different story. Direct link to David Alexander's post This could compare to "Wh, Posted 2 years ago. Second, they compared the existing output rates in a particular country to output rates in other nations. Direct link to Kim Kutz Elliott's post Great question! This money was owed to government and private banks in the US, France, and Britain. So, as it turns out, communism is just a dream to human society. This could compare to "Why were the British so concerned about the spread of the French empire?" "[109] One effect of the plan was that it subtly "Americanized" European countries, especially Austria, through new exposure to American popular culture, including the growth in influence of Hollywood movies and rock n' roll.[110]. It was the ideological influence of the Marshall Plan had the largest impact; Western European business structures became more Americanized, international trade barriers and tariffs were. Articles with the HISTORY.com Editors byline have been written or edited by the HISTORY.com editors, including Amanda Onion, Missy Sullivan and Matt Mullen. This left the following countries to participate in the plan: Austria, Belgium, Denmark, France, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Sweden, Switzerland, Turkey, the United Kingdom, and western Germany. Direct link to Anthony Natoli's post Emma Lazarus' great poem , Posted 7 years ago. Aid was originally offered to almost all the European countries, including those under military occupation by the Soviet Union. The Technical Assistance Program allowed Europeans to bring home many types of American ideas. Notably, invitations were extended to the Soviet Union and its satellite states. This caused most Europeans to rely on a 1,500 calorie per day diet. On the basis of a unified plan for western European economic reconstruction presented by a committee representing 16 countries, the U.S. Congress authorized the establishment of the European Recovery Program, which was signed into law by U.S. Pres. Which countries participated in the Marshall Plan? The Marshall Plan was very successful. Many, many countries have tried to develop socialism, but the result was really terrible. Byelorussian SSR, Czechoslovakia, Guatemala, Israel, Mexico, Poland, Ukrainian SSR, Uruguay, USSR, Yugoslavia. The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative enacted in 1948 to provide foreign aid to Western Europe. Somewhat more aid per capita was also directed toward the Allied nations, with less for those that had been part of the Axis or remained neutral. They write new content and verify and edit content received from contributors. So how could that be possible? The Truman administration, represented by William L. Clayton, promised the Europeans that they would be free to structure the plan themselves, but the administration also reminded the Europeans that implementation depended on the plan's passage through Congress. Direct link to Odessa L.'s post Are the Truman Doctrine a, Posted 2 years ago. [87], In the aftermath of the war Britain faced a deep financial crisis, whereas the United States enjoyed an economic boom. Convertibility was suspended on 20 August 1947. [57] Finland also declined, to avoid antagonizing the Soviets (see also Finlandization). To help rebuild after the war, the United States pledged $13 billion of aid to Europe in the Marshall Plan. It asked Europeans to create their own plan for rebuilding Europe, indicating the United States would then fund this plan. 3. Under those conditions, Spain was gaining sympathy among several member countries of the UN. Five percent of the counterpart money was paid to the US to cover the administrative costs of the ERP. "[63]It argued that "the bosses of Wall Street" were "tak[ing] the place of Germany, Japan, and Italy". [124] By looking at polling data over time from pre-World War II to post-World War II, one would find that there was a change in public opinion in regards to ideology. [34] Historian Nicholas Balabkins concluded that "as long as German industrial capacity was kept idle the economic recovery of Europe was delayed. Francos life was spent as a professional soldier, and his conception of society showed this. The brainchild of U.S. Secretary of State George C. Marshall, for whom it was named, it was crafted as a four-year plan to reconstruct cities, industries and infrastructure heavily damaged during the war and to remove trade barriers between European neighborsas well as foster commerce between those countries and the United States. In a 1947 speech to the United Nations, Soviet deputy foreign minister Andrei Vyshinsky said that the Marshall Plan violated the principles of the United Nations. The economic recoveries of France, Italy, and Belgium, Cowen argues, began a few months before the flow of US money. By clicking Accept All, you consent to the use of ALL the cookies. First, given the wars destruction to Europes manufacturing base, we would have expected Europe to import large amounts of manufacturing goods primarily from the U.S., since the region likely would not have been able to manufacture enough goods needed to meet the demands of reconstruction. During Truman's presidency, the Truman Doctrine would result in another conflict in Asia, this time in Korea, as the US government attempted to prevent the unification of Korea under a communist government. Wilhelm Rpke, who influenced German Minister for Economy Ludwig Erhard in his economic recovery program, believed recovery would be found in eliminating central planning and restoring a market economy in Europe, especially in those countries which had adopted more fascist and corporatist economic policies. From July 1945 through June 1946, the United States shipped 16.5 million tons of food, primarily wheat, to Europe and Japan. Per-capita gross domestic product (GDP) had fallen to 30% of U.S. per-capita GDP in 1945 from 63% in 1933. The rest of the world includes the following countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, Hong Kong, Iceland, Japan, Mexico, New Zealand, Peru, Singapore, South Korea and Taiwan. The Marshall Plan was a massive program of aid from the United States to sixteen western and southern European countries, aimed at helping economic renewal and strengthening democracy after the devastation of World War II. Per-capita gross domestic product (GDP) had fallen to 30% of U.S. per-capita GDP in 1945 from 63% in 1933. [76], The Marshall Plan aid was divided among the participant states on a roughly per capita basis. Already wary of communism thanks to George Kennan's, When the United Kingdom notified the United States that it could no longer afford to fight communist insurgencies in Greece and Turkey, US President Harry S. Truman issued what would become known as the. [citation needed], The U.S. government did not give money directly to the participating countries so that they could buy whatever they thought they needed. Australia, Belgium, Bolivia, Brazil, Byelorussian SSR, Chile, China, Czechoslovakia, Denmark, Ethiopia, France, Guatemala, Haiti, Iceland, India, Iran, Liberia, Luxembourg, Mexico, New Zealand, Nicaragua, Norway, Panama, Paraguay, Philippines, Poland, Sweden, Ukrainian SSR, United Kingdom, United States, Uruguay, USSR, Venezuela, Yugoslavia. Over the next decade, a considerable amount of American aid would go to Spain but less than its neighbors had received under the Marshall Plan. The United States transferred $13.3 billion (equivalent of $173 billion in 2023) in economic recovery programs to Western European economies after the end of World War II. [69], Congress reflected public opinion, which resonated with the ideological argument that communism flourishes in poverty. The consent submitted will only be used for data processing originating from this website. This blog offers commentary, analysis and data from our economists and experts. Often, these technologies came from the United States; by the time the Technical Assistance Program began, the United States used statistical technologies "more than a generation ahead of what [the Europeans] were using".[84]. A. Franco did not oppose communism or socialism. [63]It described the world now breaking down "into basically two campsthe imperialist and antidemocratic camp on the one hand, and the anti-imperialist and democratic camp on the other". In the end, only 17 senators voted against it on March 13, 1948[68] A bill granting an initial $5 billion passed Congress with strong bipartisan support. However, in 1948 Tito broke decisively with Stalin on other issues. [82], A high priority was increasing industrial productivity in Europe, which proved one of the more successful aspects of the Marshall Plan. The communist influence on Western Europe was greatly reduced, and throughout the region, communist parties faded in popularity in the years after the Marshall Plan. I think there are two major reasons that the U.S. was afraid of the spread of communism: 1) The U.S. was committed to democracy and "self-determination," or the right of citizens to determine their own form of government. Receive updates in your inbox as soon as new content is published on our website, The Marshall Plan: Design, Accomplishments, and Significance, A New Look at the Bretton Woods Agreement, The Arsenal of Democracy: The United States in World War II, The COVID-19 Recession in Historical Perspective, Read more about the author and her research. [5] These sanctions failed to weaken Francoist Spain, which in domestic politics reacted to a propaganda campaign that managed to strengthen Franco by stirring up the spectre of "foreign interference." Europe includes the following countries: Austria, Belgium, Denmark, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland, Turkey and the United Kingdom. The Benelux countries (Belgium, Netherlands, and Luxembourg), despite also suffering under the Nazis, had long been closely linked to the German economy and felt their prosperity depended on its revival. 2023, A&E Television Networks, LLC. The main years of autarky are not those commonly considered, but 1947-55, marked by the exclusion of Spain from the Marshall Plan and the Madrid Treaty between Franco's regime and the US. Agricultural production was 83% of 1938 levels, industrial production was 88%, and exports 59%. that the "technical abstract" service should be the central source of information. The. The British could not accept the inclusion of Spain in the ERP because it would give weight to the negative image that the USSR was propagating about the ideology of the Marshall Plan. U.S. DEPARTMENT OF STATE U.S. EMBASSY SINGAPORE Notice of Funding Opportunity . All data from the official document: U.S. Bureau of the Census. After the fall of communism, several proposed a "Marshall Plan for Eastern Europe" that would help revive that region. Economic historians J. Bradford DeLong and Barry Eichengreen call it "history's most successful structural adjustment program. Instead of the Federal government granting money directly to Europe, American businesses would provide technology, expertise, and materials to Europe as a strategic partner, and in exchange, the Federal government would purchase stock in the US businesses to reimburse them. Much of the Marshall Plan aid would be used by the Europeans to buy manufactured goods and raw materials from the United States and Canada. Following the Franco regime's support of the Axis Powers, Spain was excluded from the Marshall Plan and then pursued a policy of autarky. [5] The United States provided similar aid programs in Asia but they were not part of the Marshall Plan. [77], The Marshall Plan aid was mostly used for goods from the United States. While every effort has been made to follow citation style rules, there may be some discrepancies. The purpose of this campaign was to sway public opinion in their direction and to inform the common person of what the Marshall Plan was and what the Plan would ultimately do. A common American interpretation of the program's role in European recovery was expressed by Paul Hoffman, head of the Economic Cooperation Administration, in 1949 when he told Congress Marshall aid had provided the "critical margin" on which other investment needed for European recovery depended. Afghanistan, Canada, Colombia, Cuba, Egypt, Greece, Honduras, Lebanon, Netherlands, Saudi Arabia, South Africa, Syria, Turkey. Ultimately, 16 countries signed up to the Marshall Plan: Austria, Belgium, Denmark (with the Faroe Islands and Greenland), France, Greece, Iceland, Ireland, Italy (and San Marino), Luxembourg, the Netherlands, Norway, Portugal (with Madeira and the Azores), Sweden, Switzerland (with Liechtenstein), Turkey and the . It is chiefly due to the fact that one nation has not only refused to cooperate in the establishment of a just and honorable peace buteven worsehas actively sought to prevent it. For Spain, the Cold War represented a sort of diplomatic opportunity as the US sought to make Franco an ally against the spread of communism across Europe. Although all other Communist European Countries had deferred to Stalin and rejected the aid, the Yugoslavs, led by Josip Broz (Tito), at first went along and rejected the Marshall Plan. [100] By 1969 the Irish Marshall Plan debt, which was still being repaid, amounted to 31 million pounds, out of a total Irish foreign debt of 50 million pounds. In addition, the resolution recommended that the Security Council take the necessary measures if, within a "reasonable time", no new Government was established whose authority emanated from the consent of the governed. The Marshall Plan sparked a resurgence in European industrialization and attracted extensive investment to the region. It involved more than $12 billion of aid, the equivalent of $130 billion today. American post-war aid was less than the money flowing in the other direction. Which U.S. president signed the Marshall Plan into law? Direct link to Aniket Patil's post Why didn't the eastern bl, Posted 7 years ago. To log in and use all the features of Khan Academy, please enable JavaScript in your browser. 1. To finance the reconstruction of Europe, an American initiative called the Marshall Plan was instituted, and the International Bank for Reconstruction and Development (IBRD)now known as the World Bankwas created. The ECA's official mission statement was to give a boost to the European economy: to promote European production, to bolster European currency, and to facilitate international trade, especially with the United States, whose economic interest required Europe to become wealthy enough to import US goods. [102], Germany, which up until the 1953 debt agreement had to work on the assumption that all the Marshall Plan aid was to be repaid, spent its funds very carefully. The Marshall Plan money was transferred to the governments of the European nations. Countries that received funds under the plan were not required to return the money to the United States because the money was provided in the form of grants. 2. If you look at socialist and communist nations such as Russia, Venezuela, China, North Korea and others, you will find that their economies are mostly terrible. Britain received an emergency loan of $3.75 billion in 1946; it was a 50-year loan with a low 2% interest rate. In late June 1941, the Francoist regime decided to participate in the "anti-communist crusade", the invasion of the USSR by the Axis, by sending a Spanish infantry division composed of volunteers, known as the Blue Division, to the Russian front. Some countries (especially Argentina) did not abide by the recommendation to withdraw their ambassadors, while many others simply left their delegations in charge of chargs d'affaires. Its headquarters were on the new Arbat Street in Moscow. How did the Marshall Plan stop the spread of communism? Spain joined the North Atlantic Treaty Organization (NATO) in 1982. Our editors will review what youve submitted and determine whether to revise the article. "[8] Some new studies highlight not only the role of economic cooperation but approach the Marshall Plan as a case concerning strategic thinking to face some typical challenges in policy, as problem definition, risk analysis, decision support to policy formulation, and program implementation.[9]. In some ways, this effort failed, as the OEEC never grew to be more than an agent of economic cooperation. Neither did internationally have great effects, beyond constituting a symbol of international ostracism of the Spanish State. Direct link to Jeff Kelman's post How come instead of the p, Posted 7 years ago. The Special Fund, then supervised by the Federal Economics Ministry, was worth over DM 10 billion in 1971. Under the London Debts Agreement of 1953, the repayable amount was reduced by 50% to about 15 billion marks and stretched out over 30 years, and compared to the fast-growing German economy were of minor impact. Views expressed are not necessarily those of the St. Louis Fed or Federal Reserve System. The BLS could then use its expertise in the field of productive efficiency to implement a productivity drive in each Western European country receiving Marshall Plan aid. 2) The U.S. is a capitalist country, and so its prosperity depends on having people buy its products all over the world. Indeed, in June 1940, after the Fall of France, the Spanish Ambassador to Berlin had presented a memorandum in which Franco declared he was "ready under certain conditions to enter the war on the side of Germany . 16 countries This is why the Truman Doctrine and the Marshall Plan where so important at this time. The Eastern bloc, beyond the Iron Curtain, was communist and under the Soviet Union's influence. Across America, multiple interest groups, including business, labor, farming, philanthropy, ethnic groups, and religious groups, saw the Marshall Plan as an inexpensive solution to a massive problem, noting it would also help American exports and stimulate the American economy as well. [99], Ireland which received US$146.2 million through the Marshall Plan, received US$128.2 million as loans, and the remaining US$18 million as grants. His policy of, To help rebuild after the war, the United States pledged $13 billion of aid to Europe in the, The world was in flux in the aftermath of World War II, and political upheaval reigned in many countries. Industrial production fell more than half and reached pre-war levels at the end of 1949. Of the some $13 billion allotted by mid-1951, $3.4 billion had been spent on imports of raw materials and semi-manufactured products; $3.2 billion on food, feed, and fertilizer; $1.9 billion on machines, vehicles and equipment; and $1.6 billion on fuel. So, I have a question- so there are many things that are good for the economy such as socialism being a part of communism. OK, very good question. However, prominent Spanish Republican leaders did attend the conference, exerting a notorious influence on several delegations, extended to the conditions of entry into the United Nations. Nicholas Shaxson comments: "It is widely believed that the plan worked by offsetting European countries' yawning deficits. In the following weeks, the Soviet Union pressured its. How many countries were assisted under the Marshall Plan and how much assistance was given? The Soviets imposed large reparations payments on the Axis allies that were in its sphere of influence. The Marshall Plan also played an important role in European integration. The United Kingdom and France received the most at $33 billion and $28 billion, respectively. [24], By the end of World War II, much of Europe was devastated. Who were the three allies in World War II? They were especially impressed with the prosperity of American workers, and how they could purchase an inexpensive new automobile for nine months work, compared to 30 months in France.[85]. In the latter years, under pressure from the United States Congress and with the outbreak of the Korean War, an increasing amount of the aid was spent on rebuilding the militaries of Western Europe. At the UN, the issue of Spain was one of the first to be addressed by the organization, on the initiative of the Polish delegation. Direct link to Isaac Ashdown's post Because, Europe was so vu, Posted 7 years ago. Due to Franco's sympathy with the Axis powers, the winners of the war excluded Spain from the post-war international order.[1]. Austria, Finland, Hungary, Romania, and especially East Germany were forced to pay vast sums and ship large amounts of supplies to the Soviet Union. The resolution was adopted with 38 votes in favour, 10 against, 12 abstentions and no absences.[2]. The Marshall Plan: The Economic Exchange of the Century by Tyler Bray, United States Senate Committee on Foreign Relations, Organisation for European Economic Co-operation, United Nations Relief and Rehabilitation Administration, communist, although non-Soviet, insurgency, Committee of European Economic Co-operation, Organisation for Economic Co-operation and Development, Timeline of United States diplomatic history, https://www.youtube.com/watch?v=nymHILU_XNg, "Soviet Union rejects Marshall Plan assistance", "Biography of Wilhelm Rpke (18991966): Humane Economist", "The PostWorld War II Allied Occupation of Austria: What Can We Learn about It for Iraq in Successful Nation Building? In 1997 it was worth DM 23 billion. [2] The Marshall Plan proposed the reduction of interstate barriers and the economic integration of the European Continent while also encouraging an increase in productivity as well as the adoption of modern business procedures. The upper-bound welfare loss for 1947-55 is 26 per cent of GDP. The other Eastern Bloc states immediately rejected the offer. Italy and Belgium would follow by the end of 1948. In 1946 the United Nations (UN) called on Spain's representatives to withdraw their ambassadors from Madrid; Spain was not included in the list These cookies ensure basic functionalities and security features of the website, anonymously. What are some other conflicts that the Truman Doctrine caused? UNRRA provided billions of dollars of rehabilitation aid and helped about 8 million refugees. The Marshall Plan: Design, Accomplishments, and Significance. Congressional Research Services, Jan. 18, 2018. It ceased operation of displaced persons camps in Europe in 1947; many of its functions were transferred to several UN agencies. [30], Food production was two-thirds of the pre-war level in 194648, while normal grain and meat shipments no longer arrived from the East. And, despite the significant investment on the part of the United States, the funds provided under the Marshall Plan accounted for less than 3 percent of the combined national incomes of the countries that received them. an agenda that involves promoting open markets, international institutions, cooperative security, democratic . In this sense, Stalin was, in a certain way, seeking revenge against the Francoist State, due in part to the fact that the State had sent the Blue Division (volunteers fighting with the German armed forces) to the Soviet Union during World War II.[2]. It does not store any personal data. Necessary cookies are absolutely essential for the website to function properly. The political effects of the Marshall Plan may have been just as important as the economic ones. While $19.4 billion was allocated for capital costs in the Marshall Plan, the Technical Assistance Program only required $300 million. Before proposing anything to Congress in 1947, the Truman administration made an elaborate effort to organize public opinion in favor of the Marshall Plan spending, reaching out to numerous national organizations representing business, labor, farmers, women, and other interest groups. Japan saw a large infusion of US investment during the Korean War. On June 5, 1947, in an address at Harvard University, Secretary of State George C. Marshall advanced the idea of a European self-help program to be financed by the United States, saying. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. The plan was opposed by conservatives in the rural Midwest, who opposed any major government spending program and were highly suspicious of Europeans. [3] Between May and June 1946, the UN Security Council made a study on the political situation in Spain, arriving at the following conclusions: Convinced that the Francoist State was imposed on the Spanish people by force with the help of the Axis powers (which it helped during the war) and did not represent the Spanish people, making it impossible to participate in international affairs of the Spanish people with The United Nations,[4] on December 12, 1946, the General Assembly adopted Resolution 39, which excluded the Spanish government from international organizations and conferences established by the United Nations. [63], Although the Eastern Bloc countries, except Czechoslovakia, had immediately rejected Marshall Plan aid, Eastern Bloc communist parties were blamed for permitting even minor influence by non-communists in their respective countries during the run-up to the Marshall Plan. Herbert Hoover noted that "The whole economy of Europe is interlinked with German economy through the exchange of raw materials and manufactured goods. IBRD lending also supplemented European reconstruction, and the following figures show IBRD disbursements to Europe from 1947-60 by year and by country, respectively. Yet few know much about it. The main reason for the reluctance of the Spaniards to enter the war was due to Spains dependence on US imports. The Marshall Plan, also known as the European Recovery Program, was a U.S. program providing aid to Western Europe following the devastation of World War II.

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