Reconstruction
All western Europe suffered greatly from the effects of the war. Cities, communications, and resources were destroyed. Victorious nations, as well as those that lost the war, faced economic ruin. Thousands of refugees, known as displaced persons, were scattered across Europe. Some wanted to return to their homelands, but others feared returning to areas that were now under Soviet control. The United Nations Relief and Rehabilitation Administration (UNRRA) was set up to help the victims of war. UNRRA ended its work in 1946, but western Europe was still in a weakened condition.
To give aid to Europe, the United States put into effect the European Recovery Program (Marshall Plan) in 1947. This program called for financial assistance from the United States and cooperation from the European nations. With help from the United States, Australia, New Zealand, Canada, and South Africa, the British Isles were soon on the road to recovery. The Netherlands, one of the countries most severely damaged by the war, reached a prewar economic level in 1948. Other nations in western Europe had returned to a normal standard of living by 1950.
Under the "Truman Doctrine," military and economic aid was given to Greece and Turkey by the United States in 1947. This strengthened these countries and kept them from falling under Communist domination. Japan was faced with inflation and unemployment after the war. Assistance from the United States and the International Bank for Reconstruction and Development helped Japan rebuild its industries and recover its export markets.
The wartime destruction of industry in Germany and Japan forced those countries to completely rebuild their factories, and thus they gained new and modern industrial facilities. This modernization aided them in competing economically with other countries, and hastened their overall recovery. By the mid-1950's, both West Germany and Japan had become important economic powers.
The Soviet Union's losses during the war were enormous. Production of coal and steel was cut in half, and other industries were damaged or destroyed. However, the nation's economic recovery was hastened by several means. The Soviet Union stripped occupied territories of equipment and resources. Large reparations were received from former Axis nations. Prisoners of war, many of them detained for as long as 10 years after the war, were put to work restoring Soviet industries, farms, and communications.
Yugoslavia received aid from UNRRA and the European Recovery Program. The Soviet Union prevented other satellite countries from receiving assistance from the Western powers and attempted, by a blockade begun in 1948, to keep Berlin from getting food and supplies. However, United States and British planes flew supplies into Berlin, and the Soviets lifted the blockade in 1949.
The standard of living in East Germany and in other Communist-dominated countries continued to be lower than that of the nations of western Europe.
