Saturday, March 29, 2014

What steps did the Western allies (Great Britain, France, and the United States) take to promote economic growth during the early Cold War era?

After World War II, the Western allies consciously chose to rebuild Europe rather than to punish the countries that they had fought against, such as Germany. They realized that punishing Germany after World War I had helped pave the way for Hitler's rise to power, and they were eager to make sure European countries, devastated by the destruction of the war, did not become communist. To this end, the United States instituted the Marshall Plan, which gave $13 billion in aid to rebuild Europe's economy after the war. Great Britain, France, and West Germany received a great deal of the aid. The U.S. offered the Soviet Union aid, but they declined.


In Japan, the United States, led by General Douglas MacArthur, rebuilt the Japanese economy. They redistributed land and broke up large corporations called zaibatsu. The intent was to rebuild Japan along the lines of a Western-style capitalist country, and the U.S. also wrote a new constitution for Japan that included more rights for women and that made the military only serve as defensive if Japan were attacked. The Americans were concerned that if Japan had a weak economy, it would become communist. During the Korean War of 1950-1953, Japan became the staging ground for the American operations in the war (led under the United Nations), which further strengthened the Japanese economy and made the country the recipient of American goods. 

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