The Marshall Plan

EURO PE IN TRANSITION: THE NYU EUROPEAN STUDIES SERIES

The Marshall Plan: Fifty Years After Edited by Martin Schain

The Marshall Plan: Fifty Years After

Edited by

Martin Schain

palgrave

* THE MARS HALL PLAN © Martin Schain, 2001 Softcover reprint of the hardcover 1st edition 2001 978-0-312-22962-7

All rights reserved. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles or reviews.

First published 2001 by PALGRAVE 175 Fifth Avenue, New York, N.Y. 10010 and Houndmills, Basingstoke, Hampshire RG21 6XS. Companies and representatives throughout the world

PALGRAVE is the new global publishing imprint of St. Martin's Press LLC Scholarly and Reference Division and Palgrave Publishers Ltd (formerly Macmillan Press Ltd).

ISBN 978-1-349-62750-9 ISBN 978-1-349-62748-6 (eBook) DOI 10.1007/978-1-349-62748-6

Library of Congress Cataloging-in-Publication Data

The Marshall plan fifty years after/edited by Martin A. Schain. p. cm.-(Europe in transition, the NYU European studies series)

Includes bibliographical references. 1. Marshall Plan. 2. Reconstruction (1939-1951).3. Europe-Foreign

economic relations-United States. 4. United States-Foreign economic relations-Europe. I. Schain, Martin, 1940-11. Series.

HC240.M273172001 338.91 '7304'09044--dc21

A catalogue record for this book is available from the British Library.

Design by Newgen Imaging Systems (p) Ltd, Chennai, India.

First edition: August, 2001 10 9 8 7 6 5 4 3 2 1

Transferred to Digital Printing 2008

00-045808

Acknowledgments

Preface

Contributors

Introduction TonyJudt

Contents

Part One The Marshali Plan and European Construction

VII

IX

XI

From the Marshali Plan to EEC: Direct and Indirect Influences 13 Michelfe Cini

2 The Marshall Plan, Britain, and European Security: Defense Integration or Coat-tai! Diplomacy? 39 Jolyon Howorth

3 Cooperation and Community in Europe: What the Marshali Plan Proposed, NATO Disposed 61 Robert Latham

Part Two The Others: From the Outside Looking In

4 The Marshall Plan and Czechoslovak Democracy: Elements of In terdependancy Bradfey F Abrams

Part Three The Economic Impact of the Marshali Plan

5 The Marshall Plan Fifty Years Later: Three What-Ifs and a When Roy Gardner

93

119

vi • Contents

6 The Market and the Marshall Plan 131 Barry Eichengreen

7 The Marshali Plan in Economic Perspective: Goals and Accomplishments 147 Irnanuel Wexler

8 Struggle for Survival: American Aid and Greek Reconstruction 153 Stelios Zachariou

Part Four The Marshall Plan and the Organization of

Political Life in Postwar Europe

9 The Marshall Plan and French Politics 167 Irwin Wall

10 A Single Path for European Recovery? American Business Debates and Conflicts over the Marshall Plan 185 facqueline McGlade

11 Embedded Liberalism in France? American Hegemony, the Monnet Plan, and Posrwar Multilateralism 205 Stewart Patrick

Part Five The Marshali Plan and Public Opinion

12 French Public Opinion and the Marshall Plan: the Communists and Others 249 Roland Cayrol

13 The Legacy of the Marshall Plan: American Public Support for Foreign Aid 267 Robert Shapiro

14 The Marshall Plan and Cold War Political Discourse 281 farnes E. Cronin

Index 295

Acknowledgments

I would like to thank the staff and students of the Center for European Studies at New York University for the long hours and hard work that they have devoted to this project. In particular, Patrick Lehman, Monique Hofkin and Carolyn Bella Kim, graduate assistants at CES/NYU, have helped to organize and edit this volume. I would also like to thank Michael Flamini and Toby Wahl at Palgrave for their support in launching the Europe in Transition series. Finally, I owe a debt of thanks to the reviewers of the Board of Advisors of this series for their comments and reviews of the manuscript.

Martin A. Schain

Preface

Fifty years after the establishment of the Marshali Plan, this collection of articles demonstrates that there is still a great deal of discussion about its value and impact. This volume brings together an impressive group ofhisto­rians, economists and political scientists from the Uni ted States and Europe. As Tony Judt notes in the introduction, the key question that is addressed by these scholars is not the success or failure of the Marshall Plan, but its relevance for post-war European recovery, and its impact on the shape of post-war Europe. Impact is not easy to evaluate, particularly political impact. Nevertheless, from the perspective of fifty years, the debate about impact has grown more, not less complicated. This complicated debate is the foeus of this volume, together with the links between the European Recovery Pro gram and the process through which Europe of the 1990s was constructed.

One theme that appears in many of these chapters is the use made of Marshali Plan support by key politicalleaders in Western Europe to pursue their own political agendas. Beyond any direct impact on economic recov­ery, the Marshall Plan became an effective political tool in the initiation of European integration and the development of the European welfare state.

The Marshall Plan: Fifiy Years After is the first volume of a new series sponsored by the Center for Europe Studies of New York University, pub­lished by Palgrave: Europe in Transition. In this series we will explore the core questions facing the new Europe. A decade ago, the collapse of the Soviet empire promised a new era of stability and prosperity in Europe. While part of this promise has been fulfilled, the new era has also been defined by unanticipated conflict and war linked to older conflicts that had been held in abeyance during the long Cold War that began with the imple­mentation of the Marshall Plan. We are now beginning to understand that the involvement of the United States in the economic recovery of Western Europe has also meant its involvement in the politics of Europe, and that this process continues even after the end of the Cold War.

These articles on the Marshall Plan provide us with a prism through which we can understand relations between the Uni ted States and Europe after 1947. American involvement in Europe meant intensified economic

x • Preface

interaction, but also American influence on the definition of divisions between right and left (as weH as divisions within each camp), and anti­American reactions among political elites and voters in Western Europe. These articles demonstrate that the involvement of the United States in Western Europe was deep and pervasive during the period of the Marshali Plan, but also they also demonstrate the sometimes unanticipated ways for which this aid was used.

Thus, this examination of the Marshali Plan from the perspective of the post-Cold War period provides us with useful tools for understanding our own time, and serves as an important first volume for our series on Europe in transition. Many of the issues that are analyzed in this volume will be fur­ther elaborated in future books in this series. However, this integrated col­lection of articles stands on its own both as historical re-examination, and analysis of economic and political development.

Martin A. Schain

Contributors

ABRAMS, BRAD is Assistant Professor of History at Columbia University. He has written widely on early postwar Czechoslovakia, and is complet­ing a manuscript entitled "'The Struggle for the Soul of the Nation': Czech Culture and Socialism 1945-1948."

CAYROL, ROLAND is a Research Director at the French National Foundation for Political Sciences (Center for the Study of French Political Life). He also acts as the director of the opinion polling com­pany CSA. He is a professor at the Institute of Political Studies in Paris. His most recent books indude "Sondages, mode d'emploi" (2000), "Medias et democratie, la derive" (1997), both published by Presses de la Fondation Nationale des Sciences Politiques, and "Le grand malentendu, les Fran<;:ais et la politique" (1994), Editions du Seuil.

CINI, MICHELLE is a Jean Monnet Senior Lecturer in European Community Studies in the Department of Politics, University of Bristol, U.K.

CRONIN, JAMES is professor of history at Boston College and an affiliate of the Center for European Studies at Harvard University. He is the author, most recently, of The World the Cold war Made (1996).

EICHENGREEN, BARRY is George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at the University of California, Berkeley, Research Associate of the National Bureau of Research, and Research Fellow of the Centre for Economic Policy Research.

GARDNER, Roy is Chancellor's Professor of Economics and West European Studies at Indiana University, as well as Senior Research Fellow at the Center for European Integration Studies, Bonn, Germany. His research applies the theory of games and economic behavior to issues in business, economics, and politics. He is the author of 50 arti­des and 2 books, most recendy Games flr Business and Economics (Wiley, 1995).

xii • Cantributors

HOWORTH, JOLYON is Jean Monnet Professor of European Politics at the University of Bath. He has been a Visiting Fellow at Harvard University, the Institut Franfais des Relations Internationales, the Western European Union's Institute for Seeurity Studies, the Institut d'Etudes Politiques (Paris) and the Universities of Wisconsin and Washingron. Recent books include: The European Union and National Defenee Poliey, London, Routledge 1997 (edited with Anand Menon) and European Integration and Defence: the Ultimate Challenge, Paris, WEU-ISS, 2000 (Chaillot Paper No. 43)

JUDT, TONY is Erich Maria Remarque Professor of European Studies at New York University and Director of the Remarque Institute. Among his books are A Grand Illusion: An Essay on Europe, and Past Imperfect: Freneh Intelleetuals 1944-1956. He is currendy at work on a Hisrory of Europe since World War Two.

LATHAM, ROBERT serves as Director of the SSRC Program on Information Technology, International Cooperation, and Global Security. He currently teaches at Columbia University, Schaol of International and Public Affairs, courses on human rights and foreign policy. His recent book, The Liberal Moment: Modernity, Security, and the Making of Postwar International Order, was published by Columbia University Press. He has just co-edited a volume, Intervention and Transnationalism in Africa: Global/Loeal Networks of Power, (forthcom­ing, Cambridge University Press) and has written numerous articles on topics such as international security, liberalism, human rights, and sov­ereignty for journals and edited volumes.

MCGLADE, JACQUELINE is an Assistant Professor of History and Chair of the Department of Interdisciplinary Studies at Monmouth University in West Long Branch, New Jersey. She is the author of sev­eral articles and essays on the impact of U.S. aid on the postwar devel­opment of European business.

PATRICK, STEWART is a Research Associate at the Center on International Cooperation at New York University, where he coordi­nates the program on Multilateralism and US Foreign Policy. Dr. Patrick is co-editor of the book Good Intentions: Pledges of Aid for Post­Confliet Recovery.

SHAPIRO, ROBERT is a professor in the Department of Political Science at Columbia University. He specialized in the study of public opinion, policymaking, and American politics. He is the coauthor of The Rational Publie (with Benjamin Page, University of Chicago Press,

Contributors • xiii

1992) and, most recently, Politicians Don't Pander (with Lawrence Jacobs, University of Chicago, 1992).

WALL, IRWIN is a Professor of History at the University of California, Riverside, and Visiting Scholar at New York University, 2000-200l. His received his Ph.D. from Columbia University, and he is the author of The United States and the Making 0/ Postwar France, 1945-1954 (Cambridge University Press, 1991) and France, The United States, and the Algerian Wttr, 1954-1962 (University of California Press, 2001).

WEXLER, IMANUEL is Emeritus Professor of Economics, University of Connecticut. He received a B.A. in Economics (L.S.U.); and M.A. and Ph.D. (Harvard). He is the author of Fundmental 0/ International Economics (1968, 1972); The Marshall Plan Revisited (1983); and many articles, most recently "Marshall Plan," in Encyclopedia 0/ U.S. Foreign Relations (1997).

ZACHARIOU, STELIOS is a research consultant at the Historical Archives of the Greek Ministry of Foreign Affairs. He has written extensivelyon Creek-U.S. relations during the Cold War. Most recently, he has served as the head of a team that is responsible for the declassification process of the NATO archives.