Page 113 - Berkshire Encyclopedia Of World History Vol I - Abraham to Coal

this fleeting world / our world: the modern era tfw-53

The Marshall Plan

In a speech delivered on 5 June 1947 by U.S.Secretary economic, social, and political deterioration of a very
of State George C. Marshall at Harvard University, grave character.
Marshall laid out what would become known as the The remedy lies in breaking the vicious circle and
Marshall Plan.The United States was willing to offer up restoring the confidence of the European people in
to $20 billion in relief to a war-torn Europe struggling the economic future of their own countries and of
to survive after a brutal winter if theWestern European Europe as a whole.The manufacturer and the farmer
nations would cooperate as a single economic unit. throughout wide areas must be able and willing to
(Marshall also offered aid to the Soviet Union and its exchange their products for currencies the continuing
allies, which was rejected by the Soviet leader Joseph value of which is not open to question.
Stalin.) As evidenced by Marshall’s words in the Aside from the demoralizing effect on the world at
extracts that follow from his speech, the plan was cru- large and the possibilities of disturbances arising as a
cial to the survival and growth of post–World War II result of the desperation of the people concerned, the
Europe. consequences to the economy of the United States
should be apparent to all. It is logical that the United
I need not tell you gentlemen that the world situation
States should do whatever it is able to do to assist in
is very serious.That must be apparent to all intelligent
the return of normal economic health in the world,
people. I think one difficulty is that the problem is
without which there can be no political stability and
one of such enormous complexity that the very mass
no assured peace. Our policy is directed not against
of facts presented to the public by press and radio
any country or doctrine but against hunger, poverty,
make it exceedingly difficult for the man in the street
desperation, and chaos. Its purpose should be the
to reach a clear appraisement of the situation. Fur-
revival of working economy in the world so as to per-
thermore, the people of this country are distant from
mit the emergence of political and social conditions
the troubled areas of the earth and it is hard for them
in which free institutions can exist. Such assistance, I
to comprehend the plight and consequent reaction of
am convinced, must not be on a piecemeal basis as
the long-suffering peoples, and the effect of those reac-
various crises develop. Any assistance that this Gov-
tions on their governments in connection with our
ernment may render in the future should provide a
efforts to promote peace in the world.
cure rather than a mere palliative. Any government
[...]
that is willing to assist in the task of recovery will find
The truth of the matter is that Europe’s require-
full cooperation, I am sure, on the part of the United
ments for the next 3 or 4 years of foreign food and
States Government.
other essential products—principally from America—
[...]
are so much greater than her present ability to pay
Source: Congressional Record (June 30, 1947). Retrieved September 8, 2004, from http://
that she must have substantial additional help, or face usinfo.state.gov/usa/infousa/facts/democrac/57.htm
Chinese government tried to force the pace of industrial- successors cautiously reintroduced elements of a market
ization by abolishing all private property) and the chaos economy, and as entrepreneurial activity spread in China,
of the Cultural Revolution (1966–1976, a period of economic growth accelerated. Capitalism was never
internal chaos during which millions were accused of entirely destroyed in China (as it had been in the Soviet
anticommunist activities and subjected to exile, banish- Union), which is why, despite the survival of its Com-
ment, or death), combined with the growing rift between munist government, its economy has shifted with some
China and the Soviet Union, encouraged the Chinese success toward a competitive market economy.
government to retreat from the Soviet ideal of total state Throughout the world economic growth and the many
control of the economy. After Mao’s death in 1976 his changes that have come with growth transformed lifeways