Reflections on the Marshall Plan and John Edwards
Sixty years ago this June, General George Marshall stepped into Harvard Yard and delivered what may be the most famous commencement speech of all time, proposing what came to be called the Marshall Plan. On the anniversary of Marshall’s speech, I’ve been reflecting on what has changed since 1947. The developing countries are in the midst of a massive urbanization that makes the redevelopment of Europe after WWII look puny, and yet American leadership on the international stage is nowhere to be found, making John Edwards comments at the end of the last debate so important.
Marshall’s plan involved massive transfers of funds from America to the rebuilding countries in Western Europe, totaling some $170 billion in today’s dollars. Yet as Marshall made clear, it was a bargain, for by investing in Europe’s redevelopment America was insuring its own security. As he put it, it was only “logical that the United States should do whatever it is able to do to assist in the return of normal economic health in the world, without which there can be no political stability and no assured peace.” Marshall’s key insight was that aid, properly conceived, is not charity but an essential part of national security.
After WWII, the clear link between Europe and the U.S. was direct military conflict. Marshall essentially argued that if America did not aid Europe it would have to deal eventually with another world war started in that region. Today the link is not a direct threat of interstate violence, but the growing web of transboundary issues. The increasingly globalized nature of the world economy and environment make what happens over there, in the developing world, central to what happens here in America.
And there is a lot happening over there. This year, for the first time in the history of Homo sapiens, a majority of our species live in cities. This process of urbanization will continue, driven by the greater number of deaths than births among urban dwellers, as well as rural-to-urban migration. By 2030 the United Nations Population Division estimates there will be 1.75 billion new urban residents, the equivalent of building a city the size of Vancouver every single week. More new dwellings will be built in the next 25 years than currently exist in all of Europe. If you were to push all this new urban area together, a good guess is that it will cover an area the size of California.
I spend most of my professional time thinking about one potent link between urbanization in the developing world and America’s well-being, the environment. The billions of new urban dwellers will increasingly demand more and more oil to drive their cars, as they begin to approach American standards of living. How much oil they end up using depends on the form of the coming urbanization, and whether safe and efficient mass transit is available. That in turn will affect whether over the long-term, the number of potential consumers of oil will grow faster than oil supply, resulting in much higher prices at the pump.
Additionally, there is now broad consensus in the scientific literature of the serious potential effects of global warming. Some of these effects, such as the flooding of low-lying areas and climate-change induced famines, may create large movements of refugees. One recent study by the British NGO Christian Aid predicts 250 million refugees will flee global warming’s effects, a figure several times larger than the number of displaced people during all of WWII. Just how bad global warming will be depends, in no small part, on how the poorer countries of the world grow and urbanize.
Yet American leadership during this crucial period in history is mostly absent, or at least distracted by other issues. We have engaged in a war of choice in Iraq that in one year costs us almost as much as the entire Marshall Plan. At the same time, we remain stingy with our foreign aid, giving only 17 cents in aid for every $100 our economy produces. How far we have come since Marshall’s vision of enlightened investment in a better world! If America continues to shirk its responsibilities, we will be abdicating a leadership role in the globalized world of the 21st century, to our own detriment.
And that’s why I found John Edwards comments at the end of his last debate so heartening. When asked what he highest priority would be when he got into office, he said it would be to “re-establish America's moral authority in the world”, saying that in comparison other issues “become less important and subservient.” It was a subtle answer, and perhaps one not well suited to the quick sound bite. However, it reflects exactly the kind of positive reengagement with the world that American needs.
