Q: Describe and analyze economic policies in Eastern and Western Europe after 1945
Before 1945, economies in Europe were struggling to recover from the many years of back-to-back war, and the Great Depression. However, in 1945, major economic plans were introduced that would help change European economies for the better. Economic relief plans, such as the Marshall plan and COMECON were successful while being competitive, and plans such as the European Economic Community the Council of Europe attempted to build European unity.
In 1945, at the end of World War II and the beginning of the Cold War, the United States Secretary of State George Marshall promoted the idea of an economic relief program. The Marshall Plan was offered to European countries, and was a plan that would loan money to war devastated countries that needed assistance in rebuilding their economies. All of these countries would primarily be using the money to rebuild their industrial economies, as they drastically lower than they had been pre-war, and needed money to be able to buy raw goods and supplies. The Marshall Plan ended up being the most successful economic relief system in history. When it ended, the U.S. had given around 13 billion dollars to 15 west European countries, and most countries had gotten a strong enough foundation to have a successful recovery. The Marshall Plan had been offered to east bloc countries as well, but Stalin didn’t trust the United States and didn’t accept the offer. In 1949, the Soviets and Stalin established the Council for Mutual Economic Assistance (COMECON) in response to the Marshall Plan. These plans were dedicated to economic relief, but, because of the time frame they occurred in and the countries that founded them, were most likely a political competition as well. The Marshall plan was extremely successful, helped fix post-war devastation, and saved thousands of lives through the economic recovery of countries.
Other economic policies post-1945 include organizations attempting to establish economic unity in Europe. In 1948, before Marshall Plan participants were given assistance, they had to join the Organization for European Economic Cooperation, as well as the Council of Europe. These organizations required the countries to cooperate with each other and allow trade and commerce to peacefully occur between the nations. The organizations were successful in unifying the countries, who then started the European Coal and Steel Community in 1951, which then established another program, the European Economic Community, in 1957. The European Economic Community, also known as the Common Market, which promoted reduced tariffs, and combining trade systems to make one large one. The Common Market was successful in creating a solid base for economic growth and recovery, but it was eventually suppressed with a resurge in Nationalism. All of these economic organizations were successful in their first goals. The U.S. wanted to have all the European countries in them collaborate peacefully, which they did. The countries ultimately wanted to create genuine unity among them, and, after they did, found it to be very successful.
The economic policies created after 1945 such as the Marshall Plan, COMECON, European Economic Community, and the Council of Europe were extremely important in creating post-war recovery, and unity.
In 1945, at the end of World War II and the beginning of the Cold War, the United States Secretary of State George Marshall promoted the idea of an economic relief program. The Marshall Plan was offered to European countries, and was a plan that would loan money to war devastated countries that needed assistance in rebuilding their economies. All of these countries would primarily be using the money to rebuild their industrial economies, as they drastically lower than they had been pre-war, and needed money to be able to buy raw goods and supplies. The Marshall Plan ended up being the most successful economic relief system in history. When it ended, the U.S. had given around 13 billion dollars to 15 west European countries, and most countries had gotten a strong enough foundation to have a successful recovery. The Marshall Plan had been offered to east bloc countries as well, but Stalin didn’t trust the United States and didn’t accept the offer. In 1949, the Soviets and Stalin established the Council for Mutual Economic Assistance (COMECON) in response to the Marshall Plan. These plans were dedicated to economic relief, but, because of the time frame they occurred in and the countries that founded them, were most likely a political competition as well. The Marshall plan was extremely successful, helped fix post-war devastation, and saved thousands of lives through the economic recovery of countries.
Other economic policies post-1945 include organizations attempting to establish economic unity in Europe. In 1948, before Marshall Plan participants were given assistance, they had to join the Organization for European Economic Cooperation, as well as the Council of Europe. These organizations required the countries to cooperate with each other and allow trade and commerce to peacefully occur between the nations. The organizations were successful in unifying the countries, who then started the European Coal and Steel Community in 1951, which then established another program, the European Economic Community, in 1957. The European Economic Community, also known as the Common Market, which promoted reduced tariffs, and combining trade systems to make one large one. The Common Market was successful in creating a solid base for economic growth and recovery, but it was eventually suppressed with a resurge in Nationalism. All of these economic organizations were successful in their first goals. The U.S. wanted to have all the European countries in them collaborate peacefully, which they did. The countries ultimately wanted to create genuine unity among them, and, after they did, found it to be very successful.
The economic policies created after 1945 such as the Marshall Plan, COMECON, European Economic Community, and the Council of Europe were extremely important in creating post-war recovery, and unity.