Efforts for the Development and Stabilization of the Economy during the Period of the Marshall Plan
After the destruction of World War II, Marshall Plan aid contributed to the reconstruction and development of the Greek economy. Greece was a special case in the implementation of the Marshall Plan in Europe because of the shortcomings of its backward economy. The problems of corruption and inefficiency in the state administration and coalition governments influenced political and social issues, while the Marshall Planners tried to create institutions to facilitate reconstruction. The Greek economy was too weak to absorb fully the enormous amount of aid granted because private and state investments were too negligible to support economic development. Moreover, a number of Greek politicians and members of the bourgeoisie opposed the economic programs that they felt would threaten their privileges. The Marshall Planners froze a great part of the aid to cover the budget deficit and hold down inflation. Ultimately, the Marshall Plan increased agricultural and industrial production in Greece which laid the foundations for the country’s post-war economic development. Later, integration into the European Economic Community helped Greece achieve permanent economic stability.