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AGuidetoEnglish-SpeakingCountriesChapterEconomy4Lead-inWatchthevideoandthinkaboutthequestion.Whatisthemostimpressivethingyoulearnedfromthevideo?ThinkandTalkDiscussthequestionswithyourpartner.1.WhatwereMargaretThatcher’seconomicpoliciesinthe1980s?2.WhatdoyouknowaboutBritishenergyproduction?3.WhyistheserviceindustryimportantintheBritisheconomy?RecentHistoryoftheBritishEconomyCurrentBritishEconomyQuiz010203ContentsPART01RecentHistoryoftheBritishEconomyEconomicDeclineandPoliciesEconomicDeclinePre-warsuccessfirstindustrializednationintheworldowningtheworld’slargestmerchantfleetshippingindustryplayinga
significantpartinglobaltradeEconomicDeclinePost-wardecline:AfterWorldWarII,theBritisheconomyexperiencedaperiodofrelativedecline.Majorcauses:twoWorldWarstheendoftheeraoftheBritishEmpiremilitaryexpensesubstantialfinancialcontributionstoNATOandtheUNSecurityCouncilfailuretoinvestinindustryafterWorldWarIIPolicies(1945–
1979)TheLaborPartycarriedoutdrasticreforms;implementedindustrialnationalization;exercisedaconsiderableamountofcontroloverprivateenterprises.Theoilcrisis(1973)ledtothefallofthepoundandveryhighinflationrates.Result:Britain’seconomicgrowthfellbehindthatofWesternEuropeancountries.Policies(1979
–
1997)TheConservativePartyMargaretThatcher:carriedoutradicaleconomicreform;privatizedstate-ownedindustries;promotedamorecompetitiveenvironment;reducedsocialwelfare;curbedtradeunions.Policies(1979
–
1997)Thatcherandherpolicieswerehighlycontroversial.Result:TheUKeconomyrecoveredforatime,butlaterfellbackintostagnation.Positiveaspectsinflationundercontrolincreaseinbusinessprofitsrecoveryinthe1980sNegativeaspectsincreaseinunemploymentincreaseininequalitybetweentherichandthepoorPolicies(1997–2007)TheLaborPartyTonyBlair:calledforthe“ThirdWay”–
differentfromtheoldLaborParty’snationalizationandtheConservativeParty’sextremeindividualism;madetheBankofEnglandindependent;putanemphasisontheminimumwage;emphasizedindividualresponsibility.Result:40successivequartersofeconomicgrowthPolicies(2008
–
Present)Recession(2008)broughtaboutbytheglobalfinancialcrisisIttookaboutfiveyearstogetbacktopre-recessionlevels.Brexit(2020)MosteconomistsagreethatithasharmedtheBritisheconomy,asit:reintroducedtradebarrierswiththeEU(nearest&largesttradingpartner);underminedbusinessinvestment;ledtoalaborshortageinhealthcare&agriculture;…Healthcareandagriculturewerethetwoindustriesthathavebeenhitthehardest.Whyhavethesetwoindustriesbeenhitthehardest,ratherthanbankingorretail?DiscussionLaborshortagebroughtbyBrexitFordecades,anyEUcitizencouldcomeandworkinBritainwithoutavisa–peoplefromEUcountriescouldarriveandstartworkthenextweek.However,afterBrexit,theyneedavisa,andmanysimplystopcoming.PART02CurrentBritishEconomyAgriculture,EnergyProduction,ManufacturingIndustry,ServiceIndustry,andForeignTradeAgricultureAsmallproportion
ofthepopulation(lessthan1%oftheworkforce)engagedinhighlymechanizedagriculturalactivities.Itproducesabout65%ofthefooditconsumes.About70%oflandisdevotedtoagriculture.uplandareas–sheepfarmingflatareas–cropproductionwetandwarmareas–milkandbeefproductionAgricultureCrops:wheat,barley,sugarbeet,potatoes…Livestock:Scottishbeef,Welshmutton…ThebeefindustrywascrippledbyBSE
/
Mad-cowdisease(1996),
leadingtoadecade-longEUbanonbeefexports(liftedin2006).AgricultureFishingindustryFishisabasicelementofthenationaldiet.Majorfishingareas:NorthSea,EnglishChannel,Irishcoast,andtheseabetweenBritainandIcelandEnergyProductionCoalminingorigininRomantimespeakin1913declinesincethe1980sOilstartin1975(offshoreoilfromtheNorthSea)peakin1999Britainremainsasubstantialproducer.Nuclearpowerfirstplantin1956strongsupportfromthegovernmentongoingexpansionofcapacityandplantsgrowingimportancesincethemid-1990ssources:wind,solar,hydropower,andbioenergyRenewableenergyManufacturingIndustryHistory:longmanufacturingtraditionkeydriverofearlyeconomicgrowthdeclinesincethesecondhalfofthe20thcenturyCurrentsituation:stilloneoftheworld’sstrongestsignificantcontributiontothecountry’sGDPManufacturingIndustryStrengths:engineering,chemicals,metals,minerals,food,beverages,tobacco,textiles,clothing,footwear,andleather.Engineering:fastergrowthinelectrical,instrument,andtransportengineeringlowergrowthinmechanicalengineeringandmetalindustriesChemical:
substantialexpansioninpharmaceuticals(secondtotheU.S.)andspecialtyproductsHowever,manysectorshavenowbeenunderpressure.ServiceIndustrySinceWWII,theBritisheconomyhaswitnessedafurtherdeclineinthealreadysmallagriculturalsector,areductionintheindustrialsector,andasizableexpansionoftheservicesector.Britainboastsoneoftheworld’soldest,mostextensive,andmosthighlydevelopedfinancialsystems.ServiceIndustry:FinancialIndustryLondonisknownasoneoftheworld’sprincipalfinancialcenters.greatestconcentrationofforeignbanksworld’slargestforeignexchangemarketTheCityofLondonfinancialdistrictBankofEnglandfoundedin1694andnationalizedin1946grantedindependencetosetshort-terminterestratesin1997Britain’scentralbank,workingcloselywiththegovernmenttooverseemonetarypolicytogivedirectivestocommercialbankscommittedtomaintainingmonetaryandfinancialstability,contributingtoahealthyeconomyServiceIndustry:FinancialIndustryServiceIndustry:FinancialIndustryLondonStockExchange:oneoftheworld’slargestcentersfortradingstocksandbondsOtherfinancial
institutions:insurancecompanies,merchantbanks,discounthouses,foreignbanks,andcommoditymarketsCorporationofLloyd'sServiceIndustry:TourismTourism:oneofthelargestindustriesinBritainattractions:Oxford,Cambridge…DorsetandEastDevonCoast,LakeDistrict,Stonehenge,WindsorCastle...London:BritishMuseum,TateModern,NationalGallery…LakeDistrictUniversityofOxfordBritishMuseumServiceIndustry:ConferenceConference:oneoftheworld’slargestcentersforinternationalconferencesForeignTradeImportsandexportsaccountforabouthalfofGDPandhavebothincreasedsteadilyinrecentyears.Tradepartners:TheUnitedStatesremainsitslargestexportmarketandacrucialsupplier.AbouthalfofalltradeiswiththeEuropeanUnion.PART03QuizFunFactsandKnowledgeCheckAFleetofTradersQ1BeforeWorldWarII,Britainhadtheworld’slargest____.A)airforceB)merchantfleetC)railwaysystemD)industrialoutput
B)merchantfleetBeforeWWII,Britain'smerchantfleetwasthelargestintheworld.ANSWERConservativesinPowerQ2TheConservativePartywasinpowerfor____consecutiveyearsbefore1997.A)8B)18C)28D)38B)18ThatcherplusMajorledtheConservativesfor18consecutiveyearsbefore1997.ANSWERARecord-BreakingBoomQ3TonyBlair’sgovernmentpresidedover____successivequartersofgrowth.A)14B)40C)4D)24B)40UnderBlair,theUKeconomygrewfor40consecutivequarters.ANSWERFarmingwithFewerFarmersQ4Lessthan____oftheUKworkforceisengagedinagriculture.A)20%B)10%C)5%D)1%D)1%Lessthan1%ofUKworkersarefarmers,yetagriculturestayshighlymechanizedandproductive.ANSWERWheretheGrassIsGreenerQ5Britain’sdairyfarmingispredominantinthe____.A)EasternEnglandB)NorthernEnglandC)WesternEnglandD)SouthernEnglandC)WesternEnglandDairyfarmingisconcentratedinwesternEngland,wherethemildclimatesupportslushpasture.ANSWERATasteofBeefQ6____beefiswellknownforits
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