For Hobibob:
U.S. Showed Its Postwar Might
By David Behrens
Staff Writer
Editor's note: As the United States begins the hard job of helping Iraq rebuild after the punishing war, it is useful to review how the United States successfully rebuilt Europe at the end of World War II.
World War II ended in 1945, but two years later the nations of western Europe were still struggling to rebuild their shattered economies.
During six years of combat, nations on both sides of the war had lost millions of civilians and people in uniform. As in Iraq, many cities had been devastated by air raids and by ground combat, creating a vast number of dispirited citizens.
In the most desperate need were America's two principal allies -- Britain and France -- and two of its enemies in the war, West Germany and Italy. The war was over, but people were upset and angry over the shortage of jobs, decent food and housing. Peace had not lessened the pain for many people.
After the bitterly cold winter of 1947, the first inkling of help came from the United States that summer: an aid program known as the Marshall Plan.
U.S. Secretary of State George C. Marshall proposed the idea on June 5, 1947, during a Harvard University commencement address. The plan was aimed at reducing hunger, homelessness, sickness, unemployment and political instability among 270 million people in 16 European nations.
The plan also was meant to address potentially troubling political developments: In France and Italy, Communist parties had attracted new followers with promises of a better life, while in Greece, Communist guerrillas were fighting a civil war to overthrow the government.
Rebuilding Iraq
This spring, the United States and its allies have promised a similar postwar program to rebuild Iraq. President George W. Bush has assured the Iraqi people that the United States "will help you build a peaceful and representative government that protects the rights of all citizens -- and then our military forces will leave."
Most historians say that it would be wise for Americans to leave Iraq as soon as possible. Recalling the U.S. occupation of Germany after World War II, Harvard professor Stanley Hoffmann has said, "The lesson there was that it was a brief period," and by 1949, that nation was in control of its own affairs.
But the rebuilding of Iraq is likely to take many years and many dollars. For economists, the Marshall Plan is still considered a useful example of "economic diplomacy," a graceful way to help a war-ravaged society.
The Marshall Plan
Marshall had been a four-star general and the U.S. Army's chief of staff during World War II, overseeing the growth of the Army from a small force of 200,000 to more than 8.3 million soldiers by the end of the war.
Named secretary of state in early 1947, Marshall told the Harvard graduates that Europe's immediate needs for food and other essentials would be much greater than its ability to pay. "She must have substantial additional help or face economic, social and political deterioration of very grave character," he said.
Earlier, President Harry Truman had planned to help postwar Europe with his Truman Doctrine, economic and military aid aimed at limiting expansion of Communist influence. By then, most of eastern Europe had fallen under dictatorial Communist control.
Congress moved swiftly to start the rescue mission. It voted on some $597 million in interim aid to prevent economic collapse in France, Italy and Austria. Meanwhile, delegates of 16 European countries drew up a list of needed raw materials, food and technical advice.
In 1948, Congress voted $5.3 billion -- just the beginning -- to meet these needs. In the next four years, the U.S. gave more than $13 billion in aid, most of it to Britain, France, Italy and West Germany.
Europe, Rebuilt
With dollars pouring in, their economies soared. All kinds of industrial production rose a remarkable 35 percent, while some specific industries, such as steel and chemicals, recorded even sharper increases. And politically, the Communist party lost key positions in French and Italian governments, while the guerrilla movement in Greece was defeated.
For the most part, the plan did not feed individuals or build homes, schools or factories. The idea was to rebuild the economy and major industries. So the plan created new jobs, boosted income that people could spend and spurred Europe's foreign trade.
In addition, loans allowed Europe to buy equipment from U.S. firms and to send people to visit and study our factories and farms.
The Marshall Plan was a revolutionary idea, requiring recipients to cooperate in solving common problems. Marshall always called it the European Recovery Program -- never the Marshall Plan -- since he felt so many Americans contributed to the idea. Nonetheless, history remembers it as the Marshall Plan. Taxpayers had contributed $11.8 billion to the plan, and European countries paid back another $1.5 billion in loans.
When Marshall was awarded the Nobel Peace Prize in 1953, he modestly refused to accept the award as an individual -- only as the representative of the American people, who put up the money to save Europe from disaster.
Copyright © 2003, Newsday, Inc.
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