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The council for mutual assistance founded in 1949 was the soviet response to marshal aid.
It was supposed to be a means by which the Soviet Union could financially support countries in eastern Europe.
In reality it was used by the soviets to:
-control the economies of these states
-give soviets access to their resources
-encourage countries to specialize in things; Czechoslovakia to concentrate on heavy industry. Romania to concentrate on production of food etc.
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What was Russia's response to the Truman Doctrine?
Stalin set up the Cominform (Communist Information Bureau) in 1947 which later expanded to the COMECON (Council of Mutual Economic Assistance). With this he aimed to tighten his grip on the Soviet satellite states.
What policiy was established by the soviet union in response to george marshall?
The Soviet Union made COMECON to encourage trade and production among the socialist countries (Made by Stalin in 1949). The sociailst countries with the leadership of and order from the Soviet Union refused the Marshall Plan.
What was the Molotov Plan?
The Molotov Plan was the system created by the Soviet Union in 1947 in order to provide aid to rebuild the countries in Eastern Europe that were politically and economically aligned to the Soviet Union. It can be seen to be the USSR's version of the Marshall Plan, which for political reasons the Eastern European countries would not be able to join without leaving the Soviet sphere of influence. Soviet foreign minister Vyacheslav Molotov rejected the Marshall Plan (1947), proposing the Molotov Plan - the Soviet-sponsored economic grouping which was eventually expanded to become the COMECON.The plan was a system of bilateral trade agreements which also established COMECON to create an economic alliance of socialist countries.[3] This aid allowed countries in Europe to stop relying on American aid, and therefore allowed Molotov Plan states to reorganize their trade to the USSR instead.Apex- The Soviet plan for giving aid to Eastern Europe.
How did World War 2 affect the European economy?
1. In the approach to WWII Germany, France, Britain and the Soviet Union (and some other countries) greatly increased spending on armaments. In addition, Germany built a strategic road network and invested vast sums in order to produce oil from coal and making synthetic rubber and other substitutes. 2. During WWII most of Europe came under German control and the economies of both Germany and occupied countries were geared to the war. The economies of Britain and the Soviet Union were also very closely harnessed to the war effort. 3. After the war, much of continental Europe was very badly damaged. Perhaps most serious of all was the damage to the communications infrastructure, especially the rail and road networks. This was most important, as it meant that it was difficult to move even essential goods around in many areas. The British economy was utterly exhausted. Throughout the countries that had fought in WWII there was widespread and often severe inflation. Rationing and the absence of many luxury good during the war had forced people to save, but now there was very little to spend the savings on ... Most European countries borrowed very heavily, mainly from the U.S. Towards the end of WWII there were fears that Western Europe would become Communist. In many countries, especially Britain and France, there was a sharp swing to the Left. The war was followed by a very long boom, which lasted with minor hiccups till 1973 and led to rapid recovery from the ravages of WWII. or the marshall plan lent more money then COMECON did.
What was idea of the Cold War?
The USSR tried to take over everywhere. Germany tried to stay protected. The east was communist. My grandpa told me that "if there was no wall there would be no people (from the east) in the east. TYhey would all go to the west."
