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Economic Effects
One of the most dramatic effects of the war was the expansion of governmental powers and
responsibilities in Britain, France, the United States, and the Dominions of the British Empire. To harness
all the power of their societies, governments created new ministries and powers. New taxes were levied
and laws enacted, all designed to bolster the war effort; many have lasted to the present. Similarly, the
war strained the abilities of some formerly large and bureaucratised governments, such as in Austria-
Hungary and Germany.
The European organisation adopted was a permanent organisation for economic co-operation,
functioning in accordance with the following principles:
promote co-operation between participating countries and their national production programmes for
the reconstruction of Europe,
develop intra-European trade by reducing tariffs and other barriers to the expansion of trade,
study the feasibility of creating a customs union or free trade area,
study multi-lateralisation of payments, and
achieve conditions for better utilisation of labour.
The OEEC was also involved in the allocation of Marshall Aid dollars. This problem, partly solved thanks
to arbitration by a "Committee of Wise Men" (G.Guindey, E.P.Roll, G.Malagodi, D.Spierenburg) in August
1949, flared up again at the second aid share-out. It was overshadowed by the British currency crisis and
devaluation in September 1949. Baron Snoy d'Oppuers, Deputy Chairman of the OEEC Council, and
Secretary General Robert Marjolin acted as arbitrators. They drew up a scale for sharing out the aid,
which Britain accepted. Participants received 11,800,000,000 dollars between 3 April 1948 and 31 June
1950 (Britain 24%, France 20%, Italy 11.1%, FRG 11%).
The Congress, organized by Duncan Sandys and Jó zef Retinger, brought together representatives from
across a broad political spectrum, providing them with the opportunity to discuss ideas about the
development of European political cooperation. It was held under the auspices of the International
Committee of the Movements for European Unity and subsequently became the European Movement
after the Congress.
The European Coal and Steel Community (ECSC) was a European organization created after World War II
to regulate the coal and steel industries. It was formally established in 1951 by the Treaty of Paris, signed
by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. The ECSC was an
international organization based on the principle of supranationalism and started a process of
integration that ultimately led to the creation of the European Union.
The ECSC was first proposed as the Schuman Declaration by French foreign minister Robert Schuman on
the 9th of May 1950 (today's Europe Day of the EU), the day after the fifth anniversary of the end of
World War II, as a way to prevent further war between France and Germany. He declared he aimed to
"make war not only unthinkable but materially impossible", which was to be achieved by regional
integration, of which the ECSC was the first step. The Treaty would create a common market for coal and
steel among its member states with freely set market prices, free movement of products, and without
customs duties or taxes, subsidies, or restrictive practices.
The Foreign Ministers of the ECSC had to meet in order to nominate a member of the High Authority of
the ECSC and to appoint its new president and vice- presidents for the period expiring on 10 February
1957. The meeting was held at Messina (and partially in Taormina) at the request of Gaetano Martino, the
Italian Foreign Minister, who was detained in Sicily because of the Regional Assembly elections. They
appointed René Mayer as president of the High Authority to replace Jean Monnet. The ministers also
reappointed the Belgian, Albert Coppé, and the German, Franz Etzel, as vice-presidents of the college.
In April 1951, the Treaty of Paris was signed, creating the European Coal and Steel Community (ECSC).
This was an international community based on supranationalism and international law, designed to help
the economy of Europe and prevent future war by integrating its members.
With the aim of creating a federal Europe two further communities were proposed: a European Defence
Community and a European Political Community. While the treaty for the latter was being drawn up by
the Common Assembly, the ECSC parliamentary chamber, the proposed defense community was rejected
by the French Parliament. ECSC President Jean Monnet, a leading figure behind the communities,
resigned from the High Authority in protest and began work on alternative communities, based on
economic integration rather than political integration.
At the end of the war, millions of people were dead and millions more were homeless, the European
economy collapsed, and much of the European industrial infrastructure had been destroyed. The Soviet
Union, too, had been heavily affected. In response, in 1947, U.S. Secretary of State George Marshall
devised the "European Recovery Program", which became known as the Marshall Plan. Under the plan,
during 1948–1952 the United States government allocated US$13 billion (US$158 billion in 2022 dollars)
for the reconstruction of the affected countries of Western Europe.
- Economic Aftermath -
By the end of the war, the European economy had collapsed with some 70% of its industrial
infrastructure destroyed. The property damage in the Soviet Union consisted of the complete or partial
destruction of 1,710 cities and towns, 70,000 villages/hamlets, and 31,850 industrial establishments. The
strength of the economic recovery following the war varied throughout the world, though in general, it
was quite robust, particularly in the United States.
At the end of the war, the United States produced roughly half of the world's industrial output. Further,
much of its pre-war industry had been converted to wartime usage. As a result, with its industrial and
civilian base in much better shape than most of the world, the US embarked on an economic expansion
unseen in human history. US gross domestic product increased from $228 billion in 1945 to just under
$1.7 trillion in 1975.
- Life in 1950s -
The 1950s were a decade marked by the post-World War II boom, the dawn of the Cold War, and the civil
rights movement in the United States. “America at this moment,” said the former British Prime Minister
Winston Churchill in 1945, “stands at the summit of the world.” During the 1950s, it was easy to see what
Churchill meant. The United States was the world’s strongest military power. Its economy was booming,
and the fruits of this prosperity–new cars, suburban houses, and other consumer goods–were available to
more people than ever before. However, the 1950s were also an era of great conflict. For example, the
nascent civil rights movement and the crusade against communism at home and abroad in the Korean
War exposed underlying divisions in American society.
The booming prosperity of the 1950s helped to create a widespread sense of stability, contentment, and
consensus in the United States. However, that consensus was a fragile one, and it splintered for good
during the tumultuous 1960s.