WI: Marshall Plan-like operation following collapse of Soviet Union

What if following the collapse of the Soviet Union an economic plan similar to that of the Marshall Plan was instituted in Eastern Europe? Would Eastern Europe be in a better position than OTL? Is it economically feasible?
 
What if following the collapse of the Soviet Union an economic plan similar to that of the Marshall Plan was instituted in Eastern Europe? Would Eastern Europe be in a better position than OTL? Is it economically feasible?

The US were trying to assist Russia and Eastern European nations, but don't forget that the US economy in 1991 was not doing well itself, due to the early 1990s recession, so I doubt it would be able give away $130 billion (approximately equivalent of the $13 billion given in 1947)

I understand, your sentimentality, but I sadly don't think any one would have been able to lessen the blow that came after the collapse of the Soviet Union in 1991
 
You'd have to do something about the rise of neoliberalism in the 70s and 80s. Once neoliberal economics becomes orthodoxy the Russians have little hope of help from the west. All they're going to get is the economic boar bile enema that was shock therapy.
 
the original Marshall Plan had as much symbolic value as actual economic.

That said, in 1991, the old Soviet bloc was in no where nearly as bad shape as Western Europe after World War Two, so 130 billion dollars would've had far less relative overall effect.
 
You'd have to do something about the rise of neoliberalism in the 70s and 80s. Once neoliberal economics becomes orthodoxy the Russians have little hope of help from the west. All they're going to get is the economic boar bile enema that was shock therapy.

Milton Friedman and Chicago Boys
 
the original Marshall Plan had as much symbolic value as actual economic.

That said, in 1991, the old Soviet bloc was in no where nearly as bad shape as Western Europe after World War Two, so 130 billion dollars would've had far less relative overall effect.

Still, as you point out, the symbolic value... I can't help but think that this could have an enormously beneficial effect on US-Russian relations.
 
Still, as you point out, the symbolic value... I can't help but think that this could have an enormously beneficial effect on US-Russian relations.

You misunderstand Shock Therapy. That was supposed to be the help that they really needed. Besides, Russia had more than enough in assets. The problem is that said assets were taken by a handful of thugs and gangsters. Which will be the exact same case if any kind of handout ASB-ly gets proposed and pushed through.

And when Americans see that they've just handed a sackful of cash to a bunch of criminals...that's not exactly going to help relations.
 
Shock Therapy worked in places like Poland where there has been 25 consecutive years of growth. Why did it work there but not in Russia?
 
Well it did and it didn't. It worked better than Russia, but not necessarily well to start off with. GDP shrunk by a sixth in those first two years and unemployment jumped into double digits.

But it did work better than Russia, and there's a lot of debate as to why. Some say Shock Therapy was a lot more gradualist in Poland and closer to what the Chinese did. Others say it's because Russia was just so insanely corrupt beforehand. Being a massive pinko myself, I lean towards the former explanation.
 
Eastern Europe recieved a lot of assistance from the EU

german reunification worked becasue the FRG was approx 3 times the size of the DDR
 
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