Thursday, March 18, 2010

Marshall Plan vs Comecon

Hey all,

I realised it is the COMECON and not the Cominform that I am doing on. Today I'll be doing the second part of my write up, the Marshall Plan vs The Comecon

USA - Marshall Plan

  • It was - A mechanism for CONTAINMENT, called the European Recovery Programme, commonly known as the Marshall Plan/Aid
  • Its purpose - To help the EUROPEAN ECONOMIES RECOVER from the ruins they were in after WWII. This was a WIN-WIN situation because both Europe and America benefitted, as USA woud create more cash flow and this also provides a market for US exports.
  • Its underlying reason - STOP SPREAD OF COMMUNISM because they believed POVERTY and HARDSHIP made Europe POTENTIAL COMMUNIST BREEDING GROUNDS. Thus they believed REVIVING the EUROPEAN ECONOMY, Europe would be able to RESIST COMMUNISM, which was the point of containment.

  • Its implications - USA was still WARY OF USSR, FEARING that they were still in the PURSUIT OF COMMUNIST EXPANSION, and thus tried to contain the spread, and also much DISTRUST. It also shows that USA was still TREATING COMMUNISM LIKE A VIRUS. However, it did show that USA did trust the USSR a bit more after the war because it became containment rather than ELIMINATION communism.
  • Its impact - BILLONS of dollars poured into the Eurropean economy from 1947-1951, providing the VITAL AID that they needed TO RECOVER. Europe's ECONOMY got BACK ON ITS FEET, but only parts of it, and all were WESTERN EUROPE states, because Stalin banned Eastern Europe get help from it. This resulted in MORE FRICTION BETWEEN THE 2 SUPERPOWERS, and also Stalin's FORMATION of the COMECON.

Cartoon showing a man (Europe) climbing up a cliff with a rope (Marshall Plan)




Picture showing only Western Europe accepting the Marshall Aid



Cartoon showing the shelter from communism that US's Marshall Plan could provide Western Europe (Words at top left corner - Marshall Plan Delay)





USSR - Comecon

  • It was - a TRADING BLOC OF COMMUNIST COUNTRIES, which was the SOVIET'S REACTION to the American measure, the Marshall Plan. It is also known as the Council for Mutual Economic Aid

  • Its objective - to COORDINATE TRADE and INDUSTRIES of the Eastern Europe countries. It also served a purpose to PROMOTE ECONOMIC DEVELOPMENT and COOPERATION among themselves.

  • Its underlying reasons - The Comecon was suppose to promote economic growth for all in Eastern Europe, however, MAINLY USSR BENEFITTED from the Comecon because USSR now had a market to sell it's goods. This probably means that the USSR was using the COMECON as an EXCUSE TO EXPAND THEIR MARKET.

  • Its implications - USSR was probably putting on a PRETENCE to help out its countries, because USSR was only keen on RIVALLING THE USA, rather than having the real intention of helping the countries out. Also, from the fact that the Comecon favored the USSR most, showed that it was more of SELF-PROFIT for it's economy. This show that the USSR was still not backing down to the American's actions and had every intention to rival them. This resulted in TENSION BETWEEN THE 2.

  • Its impact - USSR had gained a market to initiate cash flow and allow itself to prosper because of mass export. The Eastern Europe countries were guaranteed a supply of raw materials from the USSR in return. Ultimately, after all the implications of the formation of the Marshall Plan and Comecon, the USSR and USA ended up with worse relationships.

Really sorry, I tried to find some pictures, cartoon and videos of the Comecon but no luck, will try to add more pictures in my next topic.

And the verdict - Considering the implications, both parties were pretty much equally at fault, because the USA was trying to go through with the plan of containment and the USSR was trying to fight back. In the end both parties had parts to play in the worse relationship. However, the fact the USSR was trying to fight back showed the clear mistrust and distrust in the USA, and that the Comecon was simply a facade to fight back, without any intentions to help out the Eastern Europe countries, while the USA's Marshall Plan did have intentions to help out the war-striken areas, although it too did had the intention of expanding its own economy.



Thus I conclude that the USSR was more at fault at this point of time.



And the winner is............. THE USSR



In my next post I will try to fit in the Arms and Space race together and wrap up the whole section of my project

But one last picture to end off the section, showing Stalin trying to spread communism.




Hao

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