The marshall plan today model and metaphor

    Model and Metaphor Books of Related Interest Geopolitics at the End of the Twentieth Century Nurit Kliot, Haifa University, Israel, and David Newman, Ben Gurion University of the Negev (eds) Boundaries, Territory and Postmodernity David Newman, Ben Gurion University of the Negev (ed.) Geopolitics: Geography and Strategy Colin S Gray, University of Hull, and Geoffrey Sloan, Britannia Royal Naval College, Dartmouth (eds) Geoproperty Foreign Affairs, National Security and Property Rights Geoff Demarest, United States Army Land-Locked States of Africa and Asia Dick Hodder, Sarah J Lloyd and Keith McLachlan School of Oriental and African Studies, London (eds) From Geopolitics to Global Politics: A French Connection Jacques Lévy (ed.) The Changing Geopolitics of Eastern Europe Andrew H Dawson and Rick Fawn University of St Andrews (eds) THE MARSHALL PLAN TODAY Model and Metaphor Editors JOHN AGNEW J NICHOLAS ENTRIKIN University of California, Los Angeles First published in 2004 in Great Britain by Routledge 11 New Fetter Lane London EC4P 4EE and in the USA and Canada by Routledge 29 West 35th Street New York, NY 1001 Copyright in collection © 2004 Routledge Copyright in chapters © 2004 individual contributors Routledge is an imprint of the Taylor & Francis Group This edition published in the Taylor & Francis e-Library, 2004 British Library Cataloguing in Publication Data A catalogue record for this book is available from The British Library ISBN 0-203-50307-4 Master e-book ISBN ISBN 0-203-58233-0 (Adobe eReader Format) ISBN 7146-5514-7 (cloth) ISSN 1466-7940 Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress All rights reserved No part of this publication may be reproduced, stored in or introduced into a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher of this book Contents List of illustrations Contributors Foreword: The Marshall Plan Speech Preface List of Abbreviations Introduction: The Marshall Plan as Model and Metaphor John Agnew and J Nicholas Entrikin vii ix xiii xvii xix Part I: European Recovery Post-World War II western European Exceptionalism: The Economic Dimension J Bradford DeLong 25 Europe and the Marshall Plan: 50 Years On Alan S Milward 58 The Economic Effects of the Marshall Plan Revisited Dafne C Reymen 82 The Marshall Plan and European Integration: Limits of an Ambition Gérard Bossuat 127 Part II: Markets and National Policy As the Twig is Bent: The Marshall Plan in Europe’s Industrial Structure Raymond Vernon 155 Confronting the Marshall Plan: US Business and European Recovery Jacqueline McGlade 171 The Marshall Plan: Searching for ‘Creative Peace’ Then and Now Paul Bernd Spahn 191     vi Part III: International Cooperation and Globalization The Marshall Plan and European Unification: Impulses and Restraints Wilfried Loth The Marshall Plan: a Model for What? Thomas C Schelling 217 234 10 From Marshall Plan to Washington Consensus? Globalization, Democratization, and ‘National’ Economic Planning 241 Stuart Corbridge Index 270 Illustrations The following plates appear between pp 140 and 141 Plates ‘All Our Colours to the Mast’ ‘Western Europe’s Recovery’ President Harry Truman signs the Foreign Assistance Act of 1948, setting into motion the ‘Marshall Plan’ for European Recovery The central figures of the Marshall Plan were (left to right) President Harry Truman, Secretary of State George Marshall, Will Clayton and Paul Hoffman ‘Without the Marshall Plan Your Bread Would Be Bare ’ ‘England: Something for Everybody’ Miner’s Homes in Holland ‘The American Bludgeon’ was Russia’s interpretation of America intruding on the sovereignty of west European economies ‘Can He Block It?’ Figures 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 3.1 3.2 7.1 10.1 Germany: GDP per capita, 1870–1994 France: GDP per capita, 1870–1994 Italy: GDP per capita, 1870–1994 Britain: GDP per capita, 1870–1994 GDP per capita since 1900 Exports plus imports divided by national product Real investment as a share of GDP US transfers abroad as a share of GDP German unemployment, 1949–70 Western European inflation, 1950–96 Days lost to strikes Allotments and aid received per country Contribution by Marshal Plan in GNP growth European Recovery Program recipients Diagram of the world system during (A) and after (B) the Cold War 27 28 29 30 35 40 44 46 47 47 49 113 115 197 261 viii     Tables 1.1 Effect of international trade on Western European post-WWII development 2.1 Net ERP aid received, after trading settlements made with ‘conditional’ aid 2.2 Net total ERP aid received, after trading settlements made with ‘conditional’ aid and drawing rights 2.3 Additional output growth attributable to the Marshall Plan, allowing for interaction effects 3.1 Comparison between aid requiring counterpart deposits and allotments 3.2 Aid requiring counterpart deposits and loans compared to allotments 3.3 Deposits in counterpart funds and loans compared to allotments 3.4 Regression equations used for the simulations 3.5a Contribution to growth by the Marshall Plan through the three traditional channels 3.5b Contribution to growth by the Marshall Plan allowing all channels to operate 3.6 Impact of aid on investment, current account and government spending 3.7 Growth equations (1948–1955) 5.1 Foreign manufacturing subsidiaries established by multinational enterprises in selected areas 5.2 Number of mergers, acquisitions, and joint ventures in manufacturing industries, 1982/83 to 1992/93 7.1 Funds made available to ECA for European economic recovery 7.2 European recovery program recipients 41 61 61 63 116 117 118 119 119 120 120 121 161 165 193 196 Contributors John Agnew is Professor of Geography at UCLA He served as the Associate Director of the UCLA Center for European and Russian Studies He is author of numerous books and articles on geopolitics including Political Geography (Arnold), The United States and the World Economy (Cambridge), and Mastering Space (Routledge) with Stuart Corbridge Gérard Bossuat holds the Jean Monnet Chair of Contemporary History at the University of Cergy-Pontoise (France) He also chairs the Department of History and directs a Master ‘Manager of Europe’ project Professor Bossuat is a member of the Liaison Group of the Historians within the European Community and of the administrative staff of the Jean Monnet Foundation in Lausanne, and of the Institut Pierre Mendes in Paris He is on the editorial boards of Matériaux pour l’Histoire de notre temps, Recherche socialiste, and Journal of European Intégration History Professor Bossuat’s recent books are Les aides américaines économiques et militaires la France, 1938–1960 (Paris), Comité pour l’histoire économique et financière de la France (2001); Les fondateurs de l’Europe unie (Paris, 2001); and (with Georges Saunier) Inventer l’Europe, histoire nouvelle des groupes d’influence et des acteurs de l’unité européenne, actes du colloque de Cergy-Pontoise des 8–10 November 2001, PIE Peter Lang, 2003 Stuart Corbridge is Professor of Geography at the London School of Economics and at the University of Miami He works mainly on India and is the author of Reinventing India: Liberalization, Hindu Nationalism and Popular Democracy (Polity, 2000, with John Harriss) His next book, with Glyn Williams, Manoj Srivastava and Rene Veron, will be published by Cambridge University Press in 2004 under the title Seeing the State: How the Rural Poor Experience Governance and Democracy in India Besides India, his main interests are in development studies and international political economy J Bradford DeLong is Professor of Economics at the University of California, Berkeley, Co-Editor of the Journal of Economic Perspectives, and a Research Associate of the National Bureau of Economic ... Bradford DeLong 25 Europe and the Marshall Plan: 50 Years On Alan S Milward 58 The Economic Effects of the Marshall Plan Revisited Dafne C Reymen 82 The Marshall Plan and European Integration:... salience and discursive power of the idea of the plan in other arenas of international affairs The Introduction provides four services to the reader of the book The first is to situate the Marshall Plan. .. The remedy lies in breaking the vicious circle and restoring the confidence of the European people in the economic future of their own countries and of Europe as a whole The manufacturer and the