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The Recovery progamme by US
Marshall Aid (European Recovery Program/Marshall Plan): Shortly after the proclamation of the Truman Doctrine, the American Secretary of State, George Marshall proposed to finance the recovery and reconstruction of Europe by a programme of economic aid. Marshall declared that the U.S. would provide financial aid to European countries if they agreed to rebuild their economy on a co-operative basis. In other words, the European countries should have a joint programme for economic reconstruction. They were expected to adopt an agreed system of tariffs, and to gear their industrial and agricultural production together so that they would not waste any financial aid in unnecessary economic competition between one another and could quicken their mutual economic recovery.Between 1948 and 1951, the Congress authorized more than $13 billion for the European Recovery Program, approximately 10 percent of the annual federal budget. Although some contemporaries may have exaggerated the importance of Marshall Plan assistance in Europe 's reconstruction, there is little question that the aid helped overcome bottlenecks within the European economy and created a basis for rapid economic growth. Western European production rose rapidly, and by 1950 it had topped the prewar level by 25 percent.
On the other hand, Russia also agreed & proposed to finance the recovery & reconstruction of Europe. Because of Marshall Plan was presented as part of the “containment” of Soviet expansionism.
Afterwards, the Soviet attacked the disclosure of the financial record of each recipient country to U.S. because it infringed their economic independence. She also condemned the Marshall Plan as a scheme to sell non-essential U.S. goods to Europe and as an imperialistic tactic to stretch U.S. commercial interests into the communis iNvestment of it market. The Soviet & her satellites withdrew from the conference and did not receive any American aid.
The Recovery progamme by USSR
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