Western Europe: Economic Reconstruction

1. Western Europe: Economic Reconstruction

2. Following WWII, the U.S. continued to aid western Europe with economic aid to avoid a recession and possible revolution that occurred after WWI • The Office for European Economic Cooperation (OEEC) in Paris allocated the funds of the Marshall Plan • Results of Marshall Plan: improved transportation and infrastructure; reduced trade barriers amongst w. Europe; encouraged economic cooperation • The U.S. benefited by creating a world market for American goods1950s economic boom

3. Economic Growth • W. Germany—by 1950, exceeded pre-war production level; by 1958 it was the leading industrial nation of Europe • France, Italy, and other w. European nations experienced an “economic miracle” from 1948 to 1974 • Some western European countries lacked enough workers to fill factories • Invited “guest workers from southern Europe, Spain, and Portugal to join their labor force • Many immigrants arrived in W. Europe from colonies in Africa, Asia, and the Caribbean

4. Reshaping the Global Economy • Bretton Woods Conference • GATT, the agreement, and effects • WTO and function • Define: “world economy” • Predict why the SU and Eastern Europe began economic relations with the West in the late 1960s • Function of the IMF • Function of the World Bank • The goal of the Council of Europe • Function of Benelux • European Coal and Steel Community (Monet Plan) • The Common Market or EEC function • The European Community • Significance of the European Community