Muslims in Europe: - International Institute - University of Michigan

evenues. Their expenditure for the war effort was about $120 billion. Without U.S. and Canadian
aid, Britain would have defaulted on its considerable debts. Even so, the flood of wealth out of the
country was considerable. The winter of 1947 was probably the lowest economic point of the
century. Fuel shortages, gas rationing, inadequate food and shelter, and one of the coldest seasons on
record all added to the nation’s problems. Unemployment reached 2.3 million, and the monetary
crisis worsened. (MSN Encarta)
Postwar Germany
After World War II the German economy lay in shambles. They had spent approximately $272
billion on the war. The war, along with Hitler's scorched-earth policy, had destroyed 20 percent of
all housing. Food production per capita in 1947 was only 51 percent of its level in 1938, and the
official food ration set by the occupying powers varied between 1,040 and 1,550 calories per day.
Industrial output in 1947 was only one-third its 1938 level. Moreover, a large percentage of
Germany's working-age men were dead.
(www.econlib.org/library/Enc/GermanEconomicMiracle.html)
Most of the major cities had been badly damaged, with industrial production especially hard-hit.
Many cities lay either in ruin or were severely damaged. The economic structure was ruined and
millions had been made homeless. The shortage of food was one of the most acute problems. The
situation was especially bad in Germany where in 1946-47 the average calorie intake per day was
only 1,800, an insufficient amount for long-term health. Western Europe in 1946-47 had only 4/5 of
its 1938 supply of food. Its population had increased by 20 million, more than a tenth, even after
accounting for military and civilian deaths.
As important was the shortage of coal, aggravated by the cold winter of 1946-47. In Germany
homes went unheated and hundreds froze to death. German coal production in 1947 proceeded at
little more than half of the pre-war pace.
Postwar France
Though France was occupied by Germany throughout most of the war, their economy still had to be
rebuilt following the cessation of hostilities in 1945. Not only did France have serious financial
problems, but it was also faced with wartime destruction, social dislocation, and political turmoil.
For example, the destruction of 4/5 of its railway cars hampered transportation. The purge of Vichy
collaborators, which took thousands of lives, brought the country close to anarchy. Over 5,000
collaborators were killed by partisans.
Postwar Italy
Italy had spent about $94 billion on World War II. Coming out of the Second World War completely
ruined and crippled by the severe territorial restrictions imposed by the peace treaty (Paris, 1
February 1947), the new Italian Republic had to face the many problems of material and moral
reconstruction. Like the other European nations, Italy had suffered severe casualties of both its
military and civilian populations. In addition, the Allied campaign in Italy left some cities and some
of the countryside in shambles. Roads and bridges had been destroyed
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