Question

The basic cause of conflict lay in the differences of principles between the communist and democratic states. In this context, explain how the following events led to the development of the Cold War :

The Marshall Plan. 

Answer 1

The Marshall Plan: European integration after 1945 was aided by the Cold War. America extended massive financial help for reviving Europe’s economy under the Marshall Plan. The Marshall Plan, officially known as the European Recovery Program, was an American initiative to aid Western Europe, in which the United States gave over $13 billion in economic assistance to help rebuild Western European economies after the end of World War-II.

The plan was in operation for four years beginning on April 3, 1948. The goals of the United States were to rebuild war-tom regions, remove trade barriers, modernize industry, improve European prosperity and prevent the spread of Communism.

The Marshall Plan aid was divided amongst the participant states roughly on a per capita basis. A larger amount was given to the major industrial powers, as it was thought that their resuscitation was essential for the general European revival.

About eighteen European countries received benefits from this plan. Although offered participation, the Soviet Union refused Plan benefits, and also blocked benefits to Eastern Bloc countries, such as Hungary and Poland. Under the Marshal Plan, the Organisation for European Economic Cooperation was established in 1948 to channel aid to the west European countries. It became a forum where the western European countries began to cooperate on trade and economic issues.

The Council of Europe, established in 1949, was another step forward in political cooperation. The process of the economic integration of European capitalist countries proceeded step by step escalating the cold war.