212 The Marshall Plan and Molotov Plan
32.3.2: The Marshall Plan and Molotov Plan
In June 1947, in accordance with the Truman Doctrine, the United States enacted the Marshall Plan. This was a pledge of economic assistance for all European countries willing to participate, including the Soviet Union, who refused and created their own Molotov plan for the Eastern Bloc.
Learning Objective
Distinguish between the Marshall Plan and the Molotov Plan
Key Points
- In early 1947, Britain, France, and the United States unsuccessfully attempted to reach an agreement with the Soviet Union for a plan envisioning an economically self-sufficient Germany.
- In June 1947, in accordance with the Truman Doctrine, the United States enacted the Marshall Plan, a pledge of economic assistance for all European countries willing to participate, including the Soviet Union.
- The years 1948 to 1952 saw the fastest period of growth in European history; industrial production increased by 35%, some of which has been attributed to the Marshall Plan aid.
- The Soviet Union refused the aid because Stalin believed that economic integration with the West would allow Eastern Bloc countries to escape Soviet control.
- In response, the Soviet Union created the Molotov Plan, later expanded into the COMECON, a system of bilateral trade agreements and an economic alliance between socialist countries in the Eastern Bloc.
Key Terms
- Molotov Plan
- The system created by the Soviet Union in 1947 to provide aid to rebuild the countries in Eastern Europe that were politically and economically aligned to the Soviet Union.
- National Security Act of 1947
- A bill that brought about a major restructuring of the United States government’s military and intelligence agencies following World War; it established the National Security Council, a central place of coordination for national security policy in the executive branch, and the Central Intelligence Agency (CIA), the U.S.’s first peacetime intelligence agency
- Marshall Plan
- An American initiative to aid Western Europe in which the United States gave more than $12 billion in economic support to help rebuild Western European economies after the end of World War II.
Overview
In early 1947, Britain, France, and the United States unsuccessfully attempted to reach an agreement with the Soviet Union for an economically self-sufficient Germany, including a detailed accounting of the industrial plants, goods, and infrastructure already removed by the Soviets. In June 1947, in accordance with the Truman Doctrine, the United States enacted the Marshall Plan, a pledge of economic assistance for all European countries willing to participate, including the Soviet Union.
The plan’s aim was to rebuild the democratic and economic systems of Europe and counter perceived threats to Europe’s balance of power, such as communist parties seizing control through revolutions or elections. The plan also stated that European prosperity was contingent upon German econ