The Marshall Plan The Lessons Learned for the 21st Century There are not many of us left who served through the Marshall Plan from its beginning, and fewer still who served time in the Hotel Talleyrand in Paris, the site of the anniversary celebration, in June 2007, of Marshall Plan Secretary George C. Marshall’s 1947 commencement address launching the European Recovery Program. There are, though, scholars who can address those times and evaluate them so that the experience can live on. The dedication of the Hotel de Talleyrand as a memorial to that unique enterprise provided the opportunity; The Marshall Plan and the analyses and evaluations in this splendid volume, The Marshall Plan: Lessons Learned for the 21st Century, refl ect the excitement, as well as the accomplishments, of an economic enterprise that produced the infrastructure of NATO and the European Union. Long live the spirit of Marshall’s vision! Lessons Learned Thomas C. Schelling, Marshall Plan alumnus, Washington, for the 21st Century Copenhagen, Paris, Washington, ’48-‘53, Nobel Prize in Economics 2005 Lessons Learned for the 21 A historical event is and remains crucial when it does interact with others in such a way as to contribute to a deep and positive change in the course of history. In this sense, the Marshall Plan made an outstanding and lasting contribution. It was instrumental to overcoming the temptation of isolationism in the US, to reviving our badly needed economic recovery and gave a decisive input to coordinating our national efforts, thus paving the way to our future European integration. When I think of the world as it would have been without the Marshall Plan, I am encouraged to conclude that even in our challenging times, another, better world is possible. This collection of well written st Century contributions and analyses, The Marshall Plan: Lessons Learned for the 21st Century, further strengthens my convictions. Giuliano Amato, Former Prime Minister, Italy Former Vice President, European Constitutional Assembly Edited by Eliot Sorel and Pier Carlo Padoan ISBN 978-92-64-04424-1 01 2008 09 1 P ����������������������� -:HSTCQE=UYYWYV: The Marshall Plan Lessons Learned for the 21st Century ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. 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FOREWORD - 3 Foreword “… It is logical that the United States should do whatever it is able to do to assist in the return of normal economic health in the world, without which there can be no political stability and no assured peace. Our policy is directed not against any country or doctrine but against hunger, poverty, desperation and chaos.” – George C. Marshall, 5 June 1947 On 13 June 2007, the partnership of the George C. Marshall Foundation, the George Washington University, the Organisation for Economic Co-operation and Development (OECD), and Jean Monnet Foundation for Europe, in collaboration with the three US missions in Paris, France (the Embassy, the OECD and the United Nations Educational, Scientific and Cultural Organization – UNESCO – missions) jointly organized the Marshall Plan 60th Anniversary Symposium at the recently restored, elegant Hôtel de Talleyrand, now the George C. Marshall Center. This historic symposium, celebrating one of America’s and Euro-Atlantic alliance’s finest hours, was a great success, by virtue of the superb scholarly presentations and concluding speech by Under-Secretary R. Nicholas Burns, the spirited participation of the audience and the extraordinary support provided by Ambassadors Craig R. Stapleton, Constance A. Morella, and Louise V. Oliver, and their superb staffs. The Marshall Plan 60th Anniversary Monograph is derived from the Symposium’s scientific presentations and inspired by several anteceding tributaries, including: • the Marshall Plan Exhibit at the US State Department in Washington, DC (during Secretary Colin Powell’s term in office, June 2004); followed by • The Marshall Plan: French and American Perspectives on Lessons Learned Applicable to the 21st Century, organized by the Conflict Management and Resolution Section of the World Psychiatric Association, the George Washington University Institute for European, Russian and Eurasian Studies, the United States Mission at OECD, The French Embassy in Washington, the US Diplomacy Center, and held at the Elliott School for International Affairs, Washington, DC, in February 2005; and • the George C. Marshall Foundation sessions at the Hôtel de Talleyrand in Paris, and the ensuing monograph, In Search of a Usable Past: The Marshall Plan and Postwar Reconstruction Today in June 2006. The 60th Anniversary symposium and the monograph are a synthesis of these three antecedent events, augmented by the new knowledge generated through scholarly contributions presented herein, in the context of contemporary and anticipated 21st century global challenges. THE MARSHALL PLAN: LESSONS LEARNED FOR THE 21ST CENTURY 4 - FOREWORD The 60th anniversary monograph Our 21st century world is replete with contrasting challenges. Hunger, poverty, desperation, chaos and conflict are still quite pervasive in large areas of the globe, as they were in post World War II Europe, contrasting with the remarkable achievements and wellbeing of the European Union and its enlargement to include central and parts of Eastern Europe, in effect a continuation of the Marshall Plan. The Marshall Plan: Lessons Learned for the 21st Century monograph addresses historical, diplomatic, economic, and strategic aspects of the European Recovery Program (ERP), (popularly known as the Marshall Plan), which brought Europe out of the chaos, hunger, poverty, desperation, and ashes of World War II. The authors of the monograph review the more than half a century journey from the early days of the ERP through the common market, the OECD, the European Union and its central and Eastern European inclusion. The Marshall Plan was intended for the whole of Europe and not only its western part. The authors – scholars, policy makers, and business leaders – address applications of the Marshall Plan’s lessons learned to the 21st century, for capacity building, human and sustainable development, and the role of public, private partnerships in emerging market economies and democratic societies. The scholarly contributions are from France, Italy, Poland, Romania, the United Kingdom and the United States. The editors hope that this monograph, of insightful, thought-provoking papers derived from the Marshall Plan 60th Anniversary Symposium would further stimulate the dialogue regarding the lessons learned from the European Recovery Program, and contribute to the development of solutions to the complex global challenges of the 21st century. - Eliot Sorel and Pier Carlo Padoan, editors THE MARSHALL PLAN: LESSONS LEARNED FOR THE 21ST CENTURY MARSHALL PLAN 60TH ANNIVERSARY SYMPOSIUM: INTRODUCTORY REMARKS - 5 Marshall Plan 60th Anniversary Symposium: Introductory Remarks by Ambassador Constance A. Morella Good morning ladies and gentlemen, welcome to the Marshall Plan 60th Anniversary Symposium. Today, we hope to review the lessons learned from the Marshall Plan and their applicability in the 21st century. On 5 June 1947, speaking to the graduating class at Harvard University, Secretary of State George C. Marshall laid the foundation