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Marshall Plan

The Marshall Plan was an American initiative enacted in 1948 to provide foreign aid to Western Europe. The United States transferred US$13.3 billion to 17 European countries in economic recovery programs to Western European economies after the end of World War II in Europe. Replacing an earlier proposal for a Morgenthau Plan, it operated for four years beginning on April 3, 1948; though in 1951, the Marshall Plan was largely replaced by the Mutual Security Act. The goals of the United States were to rebuild war-torn regions, remove trade barriers, modernize industry, improve European prosperity and prevent the spread of communism. The Marshall Plan proposed the reduction of interstate barriers and the economic integration of the European continent while also encouraging an increase in productivity as well as the adoption of modern business procedures. According to a report from the U.S. Congressional Research Service, 83% of the Marshall Plan funds were spent within the United States.

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