What is a WWII-style Marshall Plan? Here's how it would look like for Ukraine's post-recovery amid Russia's raging war

After Russia began the invasion of Ukraine, the German Marshall Fund of the United States (GMF) has been pitching the need for a Marshall Plan for Ukraine's recovery and rebuilding. During the Ukraine Recovery Conference on Thursday, Ukrainian President Volodymyr Zelensky emphasised that there is a need post WWII style Marshall Plan for Ukraine's recovery.

The Marshall Plan was one of the most successful US foreign policy initiatives introduced in the 20th century. But as Russia's aggression intensifies, is the plan needed in the 21st century? Kyiv has suffered major losses and damage as Russia continues to attack with hundreds of drones.

The plan is needed to provide hope to the Ukrainian people and is crucial to ensure the full support of the American people.

According to the German Marshall Fund of the United States, "There must be a transparent reform continuum from immediate humanitarian relief all the way to full economic recovery and modernisation."

What is Marshall Plan-style?

As several countries come together to support Ukraine amid its war with Russia, the Marshall Plan comes in the picture. The plan was introduced in the post-World War II period in 1947 after World War II ended in 1956 with Europe suffering and its cities shattered.

US Secretary of State George C. Marshall called for a comprehensive program to rebuild Europe. In 1948, Congress passed the Economic Cooperation Act and approved funding that would rise to over $12 billion for the reconstruction and rebuilding of Western Europe. This brought massive investment into the region.

Over the next four years, Congress provided $13.3 billion for the recovery of Europe. But, for the US, it provided markets for American goods, creating reliable trading partners.

How does it look for Ukraine?

Amid the escalating war in Ukraine, its recovery and reconstruction are important for the Ukrainian people. Russia's continuous and devastating attacks on Ukraine have raised concerns about the need for a post-World War II-style Marshall Plan.

According to an earlier World Bank report, the full recovery of Ukraine would cost at least the equivalent of $540 billion. The Marshall Plan could cost about a third of that amount, the World Economic Forum reported.

Thousands of schools and residential buildings have been damaged since the beginning of the war. Additionally, millions of hectares of protected areas in a nation home to roughly a third of Europe’s biodiversity have been impacted by shelling and war-related pollution.

In 2022, Zelensky met the CEO of the world's biggest asset manager, saying that Ukraine needs to win both on the battlefield and also has to be an "attractive country" for investors.

However, not the US, any future Marshall Plan for Ukraine will probably be European. The recovery of Ukraine will most likely involve Ukraine and its neighbouring countries reaching an agreement to restore its economic and military security.

What did Zelensky say at Ukraine Recovery Conference?

Earlier today, at the Ukraine Recovery Conference, Zelensky urged leaders to use frozen Russian assets to rebuild Ukraine, adding that "We should develop it together". He continues, that it's not just charity, but an investment.

“Rebuilding Ukraine is not just about our country. It’s also about your countries, your companies, technology, your jobs, the way we rebuild our country can also modernise your infrastructure and industries.”

The Ukrainian president added that Europe should "clearly agree that frozen Russian assets should go towards Ukraine’s recovery.”