My answer on Quora.
The European Recovery Program (ERP) or Marshall Plan was important in that it helped expedite the rebuilding of Europe after the Second World War, stabilized the economies of many of the war torn areas and in the long run improved conditions in a way that provided less fertile ground for the spread of Communism. It didn’t come cheaply though.
Eastern European countries were tempted but Uncle Joe kept them in line. Source: Cartoons by Leslie Gilbert Illingworth
Although the Marshall Plan was focused on Europe there was a similar plan initiated by the US for Asia.
It took effect over a period of four years (1948–1952) and was responsible for the lessening of trade restrictions, the removal of excessive regulations and the formalization of better business practices that were more conducive to economic growth in recipient nations.
Marshall Plan versus Iraq/Afghanistan expenditure. The former offered a better return on investment than the latter. Source: Council on Foreign Relations
Great Britain , France, Italy and West Germany were the largest recipients of the aid associated with the plan, which in the face of Soviet push back was rejected by almost all Eastern European countries.
The Council for Mutual Economic Assistance (COMECON) was established by the USSR and her satellite countries in 1949 as a counter to the Marshall Plan.
Source: Phoenix Gazette, 1949
Needless to say some critics on the left and right have challenged the notion of the Marshall Plan’s efficacy as well as its expense (no pleasing everyone) but in the grand scheme of things it certainly played a role in formalizing the economic divide (and ideological battle) that would develop as the timeline of the Cold War unfolded.
Truman Doctrine/Marshall Aid Source: John D Clare
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