The report laid out the conditions required for the success of the Marshall Plan as well as the requirements for restoring self-sufficiency in Europe.
The Bank's reconstruction loans to France, the Netherlands, Denmark and Luxembourg provided early assistance while the countries of Europe waited for the Marshall Plan to be passed by the U. S. government. One of the main principles in the World Bank charter drafted at Bretton Woods called for the Bank to be the main source of aid for restoring economic balance in countries affected by the war. However, at the conclusion of the Second World War, the Bank was finding that the world's economic problems were more challenging than Bretton Woods delegates had predicted. As American aid began to flow into Europe in 1947, the Bank found that countries in Europe were choosing aid from the Marshall Plan as opposed to Bank assistance, as the former offered more favorable credit terms. While the Bank was trying to determine what role it would play in the continued reconstruction of the European continent, it published "The Prospects of European Recovery" which looked at the recovery process of the United Kingdom, France, Germany and other European countries under the Marshall Plan. The report laid out the conditions required for the success of the Marshall Plan as well as the requirements for restoring self-sufficiency in Europe.
The report contains updates on the European Recovery Program and a short survey of developments.
Feb. 9, 1948
The letter from the Bank staff economist accompanied his memo on the problems and prospects of European recovery (1188800).
Feb. 4, 1949
The letter from the Bank's representative in Paris discusses the dissemination of "The Prospects of European Recovery" report (1502513).