Pivotal Politics the Marshall Plan: a Turning Point in Foreign Aid and the Struggle for Democracy

261 Words2 Pages
In 1947, post-World War II (WWII) Europe saw the growing threat of communism and declining economies. This economic and political environment caused President Harry Truman and Secretary of State George Marshall to devise the European Recovery Plan, or ERP. The ERP was an economic stimulus program that injected over $13 billion into the struggling economies of Western Europe. This program, now referred to as the “Marshall Plan,” marked a turning point in American foreign policy. It was a reversal from post-World War I (WWI) isolationism and generated long-lasting relations with other nations. The Marshall Plan was founded on President Woodrow Wilson’s ideas of multilateralism1 or international cooperation in economic and diplomatic affairs. Economic prosperity keeps peace throughout the world, and a country with a good economy has little incentive to attack other nations.2 Wilson proposed that reducing tariffs would facilitate peace.3 Since multilateralism places all countries on an equal footing in trade (in contrast to bilateralism, which favors one country over others), it encourages prosperity throughout the world. Countries with strong trading relationships are unlikely to wage war against their partners because it would damage the well-being of their citizens. However, despite Wilson's efforts, Congress rejected multilateralism because Great Britain, one of the US's strongest allies, disapproved. To protect its colonial interests, Britain created the Sterling Bloc – or the Commonwealth – which reduced tariffs on British colonies 2 1 Freeland, Richard M., The Truman Doctrine and the Origins of McCarthyism, New York: Alfred A. Knopf Inc., 1970, Print. 2 Ibid., p. 15-17. 3
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