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Dawes Plan 

The Dawes Plan helped restore prosperity in Europe. Its name came from the head of the committee, Charles Dawes. After the World War I, Germany was facing a huge financial problem which was to pay for the cost of the war. The committee composed of the USA, the UK, Italy, France and Belgium aimed to help boost Germany’s economy.

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  • The American plan helped to restore prosperity to Europe in the mid 1920s was called the Marshall Plan.

The Marshall Plan was known to kick-start the European Recovery Program, ERP which was created by American initiative passed for foreign aid to Western Europe.

The United States was known to transferred about $13 billion in economic recovery programs to Western European economies after the end of World War II.

  • The United States aimed to rebuild war-torn regions, remove trade barriers, modernize industry, boast European prosperity, while also hindering the spread of communism.

Conclusively, the main reason of the Marshall plan was to help Europe regain a good economy after WWII and to help hinder the spread of Soviet comminism.

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