U.S. Foreign Aid Reform: Changing Institutional Problems in Order to Meet Modern Day Needs

economy and growing prosperity.3 In the shadow of the emerging Cold War, the United States sought to further its alliances with Europe by helping to rebuild the countries destroyed in World War II. 4 On April 3, 1948, President Harry Truman signed the Foreign Assistance Act (-FAA‖).5 This enacted legislation that put into force the Marshall Plan, a foreign assistance program that allowed Europe to reconstruct itself with American assistance.6 The Marshall Plan remained in place for nearly four years until December 31, 1951.7 Under the Marshall Plan, the United States gave $13.3 billion to Europe for economic recovery.8 3.In fact, many business people thought the Marshall Plan, discussed infra notes 4-10 and accompanying text, would also reduce the possibility of another Great Depression because it would boost exports.Library of Congress, For European Recovery: The Fiftieth Anniversary of the Marshall Plan, Benefits for the U.S. Economy, http://www.loc.gov/exhibits/marshall/mars11.html(last visited Apr.16, 2009).4. Library of Congress, For European Recovery: The Fiftieth Anniversary of the Marshall Plan, Introduction, http://www.loc.gov/exhibits/marshall.mars0.html(last visited Apr.16, 2009) [hereinafter Fiftieth Anniversary Introduction].In signing the Foreign Assistance Act, Truman stated that the Act was -America's answer to the challenge facing the free world today.‖Library of Congress, For European Recovery: The Fiftieth Anniversary of the Marshall Plan, Truman Signs the Economic Assistance Act, http://www.loc.gov/exhibits/marshall/mars3.html(last visited Apr.16, 2009) [hereinafter Truman Signs the Act].Truman also stated, -Those who are skeptical of the effectiveness of a democratic system should ponder the lesson of the enactment of this measure. . . .It is an outstanding example of cooperative endeavor for the common good.‖Statement by the President Upon Signing the Foreign Assistance Act, PUB.PAPERS 203 (Apr.3, 1948).Ostensibly, the obvious undertone of this message was Truman responding to the Communist threat by saying that capitalism can also provide for the common good in a very effective manner.Opponents thought it would hinder the domestic economy, but the Communist revolution in Czechoslovakia ensured that Communist concerns overrode domestic concerns.Library of Congress, For European Recovery