The Laws That Shaped America by Dennis W. Johnson

Author:Dennis W. Johnson [Johnson, Dennis W.]
Language: eng
Format: epub
ISBN: 9781282084506
Google: X0GYnQAACAAJ
Publisher: Taylor & Francis
Published: 2009-01-15T01:15:33+00:00

The End of the Marshall Plan

The Marshall Plan was to cease on June 30, 1952; in actuality, it had ended in late November 1951, when the Chinese army intervened in the Korean war. The invasion had an important impact on both the foreign and the domestic policies of the Truman administration.150 Congress cobbled together a new foreign aid program that combined military and economic programs, and by October 1951 it had created the first Mutual Security Act and the Mutual Security Agency. Two years later, the Foreign Operations Administration was created as an independent agency outside of the State Department, and in 1954 its operations were merged into the International Cooperation Administration (ICA). One of the features of the Mutual Security Act of 1954 was the Food for Peace program.

In September 1961, Congress passed the Foreign Assistance Act, which reorganized the U.S. foreign assistance program, separating military and non-military aid, and establishing an agency to administer economic assistance programs. The U.S. Agency for International Development (USAID), established in November of the same year, was the first such federal agency responsible for long-range economic and social development assistance. In proposing the new U.S. foreign assistance program, President John F. Kennedy addressed the question of why the United States should continue foreign economic assistance:

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