2015-08-12
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In the 19th c. Britain was the largest & the most influential economy in the world. It was a pioneer in the Ind. Revolution & was renowned for being “the workshop of the world”. The Ind. Revolution occurred in the 1770-1850s & was driven by heavy manufacturing based on plentiful supplies of coal & iron ore (the 2 major components). + cotton.
The UK was at the forefront of technological advances that gave it a strong economic advantage over other countries. As other countries began to catch up technologically, the UK economy was also greatly affected by the two WW & the breaking of the British empire (отсоединение колоний, Индия – самая богатая). Eventually, the USA surpassed Britain.
Although the UK economy has recovered since then, it has never returned to its former position of the top economic power in the world.
Still being a key global player, B. has seen its influence decline steadily as other powers overtook it economically (G20 club is now taking the lead+ China). The UK is a member of the G7, the EU & the OECD (Organization for Economic Cooperation & Development).
In 2010 the UK economy was overtaken by Brazil’s economy.
Today the economy of the UK is the 7th largest national economy in the world measured by nominal GDP. The 8th largest – measured by purchasing power parity (PPP).
It’s the 3rd largest in Europe measured by nominal GDP (after Germany & France).
USA -1, China – 2, Japan – 3, Germany – 4, France – 5, Brazil – 6, UK – 7.
Until 1979 the UK was known as the “sick man of Europe” (Russia – until 1914).
PM Margaret Thatcher helped shed this mantle (общее направление) stagnation.
She broke the power of Br. trade unions & ushered in free market reforms.
North Sea oil – revenue from sales.
The UK economy of today is based o private enterprise with 75 % being controlled by the private sector. The UK economy encompasses those of its home nations – England, Sc., Wales & NI.
The Isle of Man & the Channel Isles are also considered to be part of the British Isles but have offshore banking statuses.
The UK economy GDP composition by sectors (2011):
-services (77,8 %)
- industries (21, 4 %)
- agriculture (0,7 %)
In 2010:
-77.1 %
-22.1%
- 1,4%
New & old industries.
Over the last 30 yy new industries made serious progress in the UK: aerospace, chemicals, oil & gas, electronics, biotechnology, nanotechnology.
Traditional have declined: textiles, shipbuilding, coal mining, steel, shipping.
The North-South divide. In GB the term N-S divide refers to the perceived economic & cultural differences between Southern England & the rest of Great Britain (Northern England, Wales & Scotland). The divide cuts through the English Midlands. Sometimes, the term is widened to include the whole UK, with NI included as part of “the North”.
North – Industrial revolution.
Presently the divide can be explained in terms of economy, e.g. Southern England contains the wealthy financial areas whereas Northern England & Scotland have seen poor economic performance over the yy. due to its industrial roots.
The existence of the N-S divide id fiercely contested. However, some claim that it’s even expanding. The following criteria are used to indicate the divide:
1) Health conditions are generally worse in the North though spending on the health there is higher.
2) House prices are higher in the South, particularly, the South-East.
3) Earnings are higher in the South & East.
4) Gov-t expenditure is higher in the North (both in gross terms & relative to tax revenues)
5) Political influence of the South is much higher than that of the North.
Industrial decline is most usually given as an explanation for the N-S divide. During the IR, many northern cities underwent a process of intense industrialization as raw materials such as coal & iron ore could be found in these areas.
As heavy industry began to leave these areas (the “New international division of labour”), these areas declined rapidly. Events like the UK miners’ strike (1984-1985) polarized public opinion & led to an increase in the divide. Economy shrank & led to unemployment.
Although the UK gov-t tries to solve the problems, one of the visible signs is inner migration – from the North to the South – resulting in a housing market problem.
