Comments on: Marshall Plan Mythology

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By: Catallarchy

Catallarchy — Mon, 06 Sep 2004 20:27:47 +0000

The Marshall Plan for Mediocrity

Speaking of The Balko, I noticed a link to his nice debunking of the Marshall Plan Myth, of which Balko summarizes:

the plan — while significant at the time — was really pittance of what we give today in aid, the foreign aid we’ve given out since…

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By: Olusegun Akindeji Ajadi.

Olusegun Akindeji Ajadi. — Tue, 25 Nov 2003 15:09:40 +0000

Really Marshall paln has done the magic!Great kudos! to the then secretary of state…George C.Marshall.But why has this same plan which was a success in Europe as it poses economic recovery failed in the thirld-world countries? Post me a responce!!!

By: Another Paul!

Another Paul! — Sun, 07 Sep 2003 06:10:41 +0000

With the apparent failure of the Marshall plan to deliver with its economic goals, is it possible the reason for the plan was ’soley’ political? It is generally accepted, i am sure, that this side of the plan was by far the most successful. Perhaps this is why later Marshall Plans have failed to achieve any economic results. They are not geared towards manipulating a continent into following a certain ideology…

By: taktile

taktile — Tue, 08 Apr 2003 00:15:29 +0000

I don’t get what the “Marshall Plan for Poverty” et al has all that much to do with the original Marshall plan… it seems like they just want to link themselves to a success for propaganda purposes. They’re different things intended for different problems and their probability of success or failure will have little to do with how they are named.

Repeat for “War on drugs”…

By: First Paul

First Paul — Mon, 07 Apr 2003 20:47:24 +0000

Good point “other” Paul. I have no data about the amount of destruction Austria suffered during the war though I would be surprised if it was as bad as that of Germany proper. While I know that much of Vienna was rebuilt after the war, it does not look like the city was leveled.

I was not in any way defending future “Marshal Plan”-style spending programs… Though I think from your comment that we can agree that there may be times where some specific economic assistance is warranted. In general I think that long-term largesse hurts the recipient as well as ourselves.

I was merely 1) pointing out that the data can be used to back either point of view and 2) there was a political motivation in addition to any economic one at that time.

By: The other Paul

The other Paul — Mon, 07 Apr 2003 15:52:32 +0000

True Paul, but Austria was a part of Germany proper from Aunschluss in 1938 to 1945, so its devastation was just as bad as pre-1938 (or post-1945) Germany for the most part. And still, the aid amounts were _extremely_ small relative to the size of the Euro-economies even right after the war.

And Radley’s point was that a massive cash-infusion in order to achieve some far-fetched goal is more often than not bet tilted against you. Where the Marshall plan succeeded it did so by having very limited goals (an end to the temporary starvation) and a very limited time frame (a decade). This is a quality not shared by all of the modern “Marshall Plans,” which are open ended both in time frame and in goal-orientation.

By: Paul

Paul — Mon, 07 Apr 2003 15:36:00 +0000

Ah the magic of numbers. The reason that Germany, France and to a lesser extent Italy were the highest growing is that they were the economies most ravaged by the war and most in need of rebuilding….. It’s a base effect. Consider what building one huge manufacturing plant (say a car factory) would do to the GDP of Afghanistan (not to say that I am in favor of such a thing with my tax dollars)!

In general though, your points are well taken, but consider what the alternative might have looked like. I think the risk of a Communist Europe was too great not to spend some money trying to influence the creation of a capitalist one….. The damage done to Germany in WWI and the reparations that country had to pay was a contributing factor in the rise of fascism. One can imagine what reactionary political forces could have evolved in a post-war Europe left to their own devices….

By: Paul A.

Paul A. — Mon, 07 Apr 2003 15:22:12 +0000

Another funny aspect of this 50-year-long circus that is often overlooked is how small the Marshall plan aid was, relative to even the burned-out economies in the 1945-1955 period. 90 billion in 2003 dollars over a decade for an area which had a population of around 225 million works out to about to a whopping 50 dollars per person per annum. Not something you rebuild an industial economy on, that’s for sure.

In fact, at the time of the program it was assumed that this was wholly a therapeutic measure to alleviate only the absolute worst aspects of depravation after the war. The fear at the time was that starvation among part of the population would lead to a Communist takeover. The plan’s “reconstruction,” if you will, as a rebuilding measure is a narrative which has mostly been created after the 1950’s to justify all that other worthless crap in the post.