Guadalupe Ivars

To what extent did economic interests play a role in the development of the Cold War during the years 1943-
1953?

Economic
● Truman Doctrine and Marshall aid
● Reparations over Germany
● Economic difference in Berlin
● New currency in West Berlin which triggered Berlin Blockade

USSRs foreign policy

● Expansionism- buffer zone defensive actions pg 55
● Mao Zedog’s seize of power- People’s Republic of China
● Spreading world communism
● Iran crisis

USA’s foreign policy

● South Korea being attacked by North Korea- apparently not because of Stalin
● UN asks for help- USA mainly providing backup
● The missile gap- USA concerns about the USSR match of the nuclear bombs (including hydrogen
bomb)
● Red Scare and McCarthyism- hardening the stance of US foreign policy against communists
● ‘Roll back’ and containment policy—- NSC 68

The development of the Cold War during the years 1943-1953 was due to numerous factors that
accumulated tensions between the superpowers: USA and USSR. It is clear that economic interests
played a major role in allowing the Cold War to progress, the Marshall Plan is believed to be a turning
point in the history of the Cold War, economic differences and the entrance of new currencies are
seen as aspects of paramount importance to increase mistrust. However, the aggressive foreign
policies, were economic interests can be placed into, of these powerful countries can be a crucial
component of a fast-developing hostility. Ideology BARE causes.

Firstly, during the Potsdam Conference (1945), the USSR demanded excessive reparations from the
recently defeated Germany. The major issue at this conference was the way to handle Germany, the
USSR demanded harsh reparations, as the Soviets were the one who suffered the most from the
Second World War. Subsequently, Truman disagreed about this reparations, creating the first source
of tension. We should not forget that at this point, Truman had created the first atomic bomb without
the USSR knowing, meaning that his attitude was more aggressive than in other occasions. The
USSR’s economic interests caused conflict in the conference, as the Soviets and Americans had
different points of views.

Furthermore, one of the crucial economic factors came from the USA, the Marshall Aid (1947). The
policies of economic aid in Europe, collectively referred to as the Marshall Plan, were intentionally
created to divide East and West Europe into warring states, which was an aggressive move against
communist expansion and led to increased tensions that developed the Cold War. ‘The United States
should do whatever it is able to do to assist in the return of normal economic health in the world’-
Secretary of State George C. Marshall. Truman’s intention in implementing the plan was to draw
Western countries away from the power that the Soviet Union had, directly undermining Soviet
powers in the region. By having “strings attached” to the financial aid packages that they provided to
Europe, the United States maneuvered to have a larger control over the domestic and foreign policies
Guadalupe Ivars

of Western European countries, this can be named dollar imperialism,were 13 billion dollars flowed to
other Western countries.

Moreover, Berlin was also an important location of economic interests, were both superpowers
confronted ‘peacefully’ each other. One factor that could probably influence the antagonism between
the countries could have been the economic difference between the FRG and the GDR. It is clear
that the citizens in the communist side could see the living standards of the capitalist side of
Germany. As a result of this, GDR citizens were migrating to the FGR, for example, in the first 3
months of 1898, 48 000 people migrated. In addition, the Western powers decided to introduce a new
currency in their zones, including West Berlin. The new Deutscher Mark would provide economic
stability and aid recovery. It is often seen as a symbol of the growing prosperity of the Western
sectors compared with the East. This economic change, triggered a major event in the Cold War, the
Berlin Blockade (1948), which was the first real action of enmity between the powers.

However, the development of the Cold War owed much to the different foreign policies of the two
countries based on their opposed ideologies and national interests.

On the one hand, the USSR adopted a policy of expansionism that was utterly disliked by the
Americans. The extension of Soviet control to Eastern Europe can be seen as a defensive measure:
the creation of a buffer zone to protect the Soviet Union from invasion from the West.in this respect,
Stalin’s foreign policy should be seen as the product of Soviet weakness rather than a strength,
making difficult to describe this policy as aggressive. Nevertheless, Truman did not even show a
minimum of empathy towards a country invaded in the past three times by foreign countries, and
completely misunderstood this measure. Although this measure is seen as defensive, the spread of
communism around the world was a real threat to the US, the establishment of the COMECON or the
Cominform (1947) confirm Stalin’s aim. Not only this but Mao Zedong’s communist Communist Party
declared the People’s Republic of China, fulfilling the main aim of Stalin, now half of the world was
ruled by Communism. This expansionist policy created concern and even more tension in the
capitalist states, which highlighted a clear division previously referred as the ‘iron curtain’.

On the other hand, the main foreign policy in the US was ‘containment’, trying to stop the feared
communism. Thus, after Mao ruling China, this policy developed into a ‘roll back’ policy consisting of
freeing countries from the opposite ideology, described in the NSC 68 report, when the Americans
thought they were losing this war. Again, this policies created further conflict in the world, as the US,
decided not only to help South Korea from the North Korean invasion, General McArthur decided to
invade North Korea even proposing the use of a dreadful atomic bomb, highlighting the extent at
which these superpowers were at that point not able to coexist peacefully. ‘If we let Korea down, the
Soviet[s] will keep right on going and swallow up one [place] after another’- Harry Truman itself
emphasised his preocupación about this state. This war was starting to transform not into an
economic war, but into an ideological conflict, a tactical war. Furthermore, at the US, the Red Scare
and McCarthyism were introduced, hardening the stance of US foreign policy against communists
creating a hatred against everyone that could possibly be related with the USSR.

In conclusion, economic interests caused to a certain extent the development of the Cold War.
However, and in my opinion, these economic interests differed and created hostility due to the
different ideologies and national interests of the USSR and the USA. In this way, reparations were
demanded because of the USSR's national interest, opposed to the US, the Marshall Plan was
Guadalupe Ivars

created to fulfil US’ foreign policy of containment based on the capitalist ideology and the entrance of
en currency in Berlin was set to benefit the West countries. The progress of this situation was due to
the scarce sensitivity of Stalin and Truman directly reflected in their foreign policies, treating each
other with suspicion and mistrust, Staling adopting a defensive position without trusting foreign
countries, ’Russia was moved only to protect its security’ stated the historian A. Schlesinger, and
Truman adopting a not justified position against communism and the country that once was an
American ally.