Consequences of the Marshall Plan

Question 1

1st consequence

Answer 1

The first effect of the Marshall Plan was that the outcome was highly successful

• Over four years 1948-52, $13.7 billion of aid was provided
• When the plan ended in 1952, the countries were more economically prosperous
• the plan helped the USA as by rebuilding Western Europe, America was creating wealthy trade partners who would want to buy large amounts of American goods.
• the plan successfully tied Western Europe countries into supporting the USA, known as ‘dollar imperialism’ by the Soviets. As Stalin rejected the plan Europe became divided into 2 economic and political camps

Question 2

2nd consequence

Answer 2

The second effect was that it set Stalin an economic and political challenge, leading him to set up two new organizations for the communist countries of Europe, Cominform and Comecon

• Cominform represented communist parties across Europe under the direction of the USSR, giving Stalin a way of directing and controlling the governments of the satellite states, rejecting the Marshall Plan.
• It spread propaganda, accusing America of being no different from Nazi Germany
• Comecon was an aid aid package based on communist beliefs that was in direct competition with the Marshall Plan and aimed to support economic development in its member states.
• It discouraged trade with the USA and Western Europe