Foreign Aid after the Cold War

Keith Griffin
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Keith Griffin: University of California

Chapter 3 in Studies in Globalization and Economic Transitions, 1996, pp 34-71 from Palgrave Macmillan

Abstract: Abstract Foreign aid as it is understood today has its origins in the Cold War. It is largely a product of the ideological confrontation between the United States and the Soviet Union that dominated international politics for forty-five years between 1945 and 1990. It began not as a programme to assist the long-term development of impoverished countries but as a programme to facilitate the short-term economic recovery of Western Europe after the end of the Second World War. The political motivation of what was called the Marshall Plan was to prevent the spread of communism to France and Italy (where the Communist Party was strong), to stabilize conditions in West Germany (and create an attractive alternative to the socio-economic system imposed in East Germany) and to reduce the appeal of socialist policies in the United Kingdom (where the Labour Party enjoyed considerable popularity).

Keywords: Recipient Country; Capital Inflow; Donor Country; Military Expenditure; Domestic Saving (search for similar items in EconPapers)
Date: 1996
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-37213-9_3

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DOI: 10.1057/9780230372139_3

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