Military Aid To South Vietnam

The United States’ goal of reconstructing the states was to establish an anti-communist state through the military intervention. East Asia has had many economic advances because of the United States’ assistance. It is seen as being “necessary to allow for economic growth and recovery that took place in the postwar years” (Gray, 2014, 41). The investments helped control the country, increased the supply of food, protected income distribution, facilitated technology transfer, strengthened military defense and more. The United States gave billions of dollars to Eastern Asia for the economic and military aid. Gray writes that South Korea received $69 billion, Taiwan received $41 billion, and South Vietnam received $115 billion. These three investments

equal to 42% of the United States’ aid from 1946 to 1975. The aid from the United States to South Vietnam didn’t have a positive impact. They had troubles building and keeping a strong institution. The aid to Taiwan and South Korea “...played a crucial role in the stabilization…”(Gray, 2014, 43). The United States helped create the foundation for industrialization. It is shocking how much money we gave to the three states for them to better themselves and rebuild. Many people wouldn’t know how this money affects nations and how it can help others.
The aid to South Vietnam failed to have a positive impact on the development post-war.

The military aid and economic aid is given to South Vietnam was more than that of South Korea and Taiwan. They were facing trouble settling almost one million refugees from the North. This caused the French to withdraw, causing a loss of technicians, aid, and agricultural productivity. The people were trying to deal with the refugee problem caused by the separation of the country. The U.S. mission was known as the United States Operations Mission (USOM). This helped provide finances to settle the refugees temporarily in villages to prevent a negative impact on the economy. The United States helped provide manufactured commodities made in the U.S. food aid and technical assistance. The beginning efforts looked promising and seemed to show progress. The state showed prosperity and had desirable qualities. The underlying economic problems caused the progress to decline. They were not importing raw materials or industrial machinery, only used for consumer items. “U.S. aid advisors were increasingly sent to serve in field operations, and funds were diverted from the CIP to pacification efforts.” (Gray, 2014, 46). Later on, there was more of an inflation problem and political instability that eventually lead to a collapse in economic

policymaking.
The division of Korea had a large impact on their industry, economy, power, military.

The south was left with close to nothing since the North had the countries power, coals deposits and industry base. At this time the Japanese technicians left and caused the hindering of industrial production. This lead to higher inflation rates that caused the food prices to rise. During the civil war in the 1950’s caused refugees to increase and hurt the economy, and food distribution. The state was not able to provide enough food to its people, could not provide shelter or sufficient amounts of water. The United States gave South Korea almost one hundred percent of its aid. The goal was to economically stabilize the payments support known as the Commodity Import Program (CIP). The aid moved toward production and reconstruction. The aid was focusing on keeping the people fed and provided basic needs. The united states helped militarily as well to protect the South Korean state from the North. At the 38th Parallel, South Korea is protected by the United States and South Korean military. This was to help protect them from the threats from the North. Through the United States help, they have had a positive impact on the South Korean

people.
The aid to Taiwan from the United States was beneficial to local and foreign investors. The land reform dispossessed the landlords and lowered inflation to “...protected income distribution, facilitated technology transfer, strengthened state planning, military defense…” (Gray, 2014, 45). During the 1940’s the change in Taiwan was not a good one. Almost two million refugees came in and affected the basic necessities of the Taiwan people. These refugees caused a shortage of food and shelter. It also affected the military aspect because they had to increase the number of military officials. The military spending caused a decrease in the KMT budget. They lost $90 million in gold and other currency, reducing their foreign exchange to below minimum to operate. The KMT had internal rebellion in February of 1947. The aid to Taiwan was given through two policies. The Economic Stabilization Board (ESB), and the Council on U.S. aid (CUSA). The goal of these was to achieve stabilization, meet the basic needs of the people, lowering price inflation. Taiwan used most of their funding to nature, fertilizer, cotton and industrial materials, replaced and expanded plants. The KMT was compliant with the United States’ goals. They also made efforts to make peace with Japan. The U.S. aid was the only one who wanted to provide aid to the KMT. The help kept the spending down which was a benefit to the post-war development. Built infrastructures, human services, agriculture and the public sector. These helped stabilize the economy in Taiwan, by keeping the money used to the states necessities. This supply of economic boost protected the “infant industries” through exchange rates, tariffs and import restrictions leading to the ISI program in Taiwan successful.