Marshall Plan was the scheme of the United States to assist Europe, in which the country offered $17 billion, roughly $160 billion in present dollar value, in financial support to assist reconstruct European economies following the end of the Second World War. The Marshall Plan was in function for four years starting in April 1948. The objectives of America were to restore war-distressed areas, eliminate trade barricades, update industry, and to make Europe a prosperous country again.
The Marshall Plan financial help was divided among the member states on the basis of an approximate per capita. A better sum was offered to the main industrial powers, as the current view was that their revival was necessary for the general revival of Europe. Rather, additional aid per capita was as well, directed towards the Allied countries, with less for countries, which had been a division of the Axis or continued neutral. The major beneficiary of Marshall Plan financial aid was the United Kingdom that received about 26% of the total money, next by France that received about 18% of the total money and the third being West Germany that received about 11% of the total money. Some other 18 countries of Europe received Plan assistance. Even though offered contribution, the Soviet Union declined the Plan benefits, and as well, blocked the benefits to Eastern Bloc nations.
The name of the Marshall Plan is named after George Marshall, the Secretary of State. The initiative had bipartisan shore up in Washington, where the Congress was controlled by Republicans and the White House was controlled by Democrats with Harry S. Truman as the president. The Plan was mostly the formation of the State Department administrators, particularly George F. Kennan and William L. Clayton, with the assist from the Brookings Institution, as demanded by Arthur H. Vandenberg, the Senator and chairman of the Foreign Relations Committee Senate. Marshall spoke about an urgent necessity to help the recovery of Europe in his speech at Harvard University during June 1947.The expression "counterpart of the Marshall Plan" is frequently employed to explain a planned large-scale release program.
Much of Europe was destroyed by the end of the Second World War. The constant airborne bombardment had poorly damaged most major cities, and particularly, the industrial facilities were the hardest-hit areas during the war. The trade flows of the region had been painstakingly disturbed, and millions of people in refugee camps were living with help from the Relief and Rehabilitation Administration of United Nations and other agencies. Food deficiencies were harsh, particularly during the 1946–1947 harsh winters. The United States transported 16.5 million tons of food, chiefly wheat From July 1945 to June 1946 to Japan and Europe. It accounted for one-sixth of the food supply of America, and offered 35 trillion calories, sufficient to provide 400 calories per day for one year to the 300 million victims.
Particularly damaged was the transport infrastructure, as bridges, railways, and docks had been purposely under attack by air strikes, whereas much commercial shipping had been ruined. Even though nearly all undersized towns and villages had not experienced as much harm, the obliteration of transportation left them isolated economically.