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Questions and Answers
What was the political consequence of the Eastern Bloc's refusal to participate in the Marshall Plan?
The initiative reinforced divisions that were already beginning to take root on the continent.
What percentage of the funds allocated under the Marshall Plan did the CIA receive?
5 percent
What was the primary goal of the Marshall Plan, according to its designer George C. Marshall?
To combat hunger, poverty, desperation, and chaos.
What happened to the Marshall Plan with the beginning of the Korean War in 1950?
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What did the countries that received funds under the Marshall Plan have to repay to the United States?
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Study Notes
Cold War and Marshall Plan
- Goal of the Marshall Plan: to halt the spread of communism in Europe
- Implementation of the Marshall Plan marked the beginning of the Cold War between the US, its European allies, and the Soviet Union
- The Soviet Union had taken control of central and eastern Europe, establishing satellite republics as communist nations
Marshall Plan and NATO
- The Marshall Plan led to the formation of the North Atlantic Treaty Organization (NATO), a military alliance between North America and European countries, established in 1949
Economic Impact of the Marshall Plan
- Debate surrounds the true economic benefit of the Marshall Plan
- Despite significant investment from the US, the funds provided accounted for less than 3% of the combined national incomes of the countries that received them
- Modest growth of GDP was seen in these countries during the four-year period the plan was in effect
- By 1952, economic growth in the countries that received funds had surpassed pre-war levels, indicating a positive impact
Political Legacy of the Marshall Plan
- The Marshall Plan reinforced divisions between Eastern and Western Europe, as Soviet states refused to participate
- The CIA received 5% of the funds allocated under the Marshall Plan
- The CIA used these funds to establish "front" businesses in several European countries, furthering US interests in the region
- The CIA allegedly financed an anti-communist insurgency in Ukraine, then a Soviet satellite state
Other Key Facts
- George C. Marshall, designer of the plan, stated, "Our policy is not directed against any country, but against hunger, poverty, desperation and chaos"
- Efforts to extend the Marshall Plan beyond its initial four-year period stalled with the beginning of the Korean War in 1950
- Countries that received funds did not have to repay the US, as the monies were awarded in the form of grants
- Countries returned roughly 5% of the money to cover administrative costs of the plan's implementation
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Description
Assess your knowledge of the Cold War and the Marshall Plan, which aimed to halt the spread of communism in Europe and sparked the Cold War between the US, its allies, and the Soviet Union.
