Chapter 4 Economy Recent History of British Economy * Economic decline
* After World War II, the British economy experienced a period of great difficulty and relative economic decline. Causes
* two World Wars-great economic loss
* the era of the British Empire was over-decolonization (losses of raw material & market) * military expense (until the process of decolonization completed in the 1960s) Policies
* \
* an economy in which there is some public ownership as well as privately owned business
* During the 20th century the government has become involved in the economy through introduction of social welfare policies and laws to regulate industrial relations. Policies (1945-1979)
* In 1945 the Labor party * carried out drastic reforms
nationalize key industries (such as coal, steel and transport)
* laid the foundation for postwar British social and economic development * Result: Britain's economic growth fell behind that of western European countries Policies (1979-1997)
* 1979-1997 Conservative Party * Margaret Thatcher
* Radical economic reform
? sell back those industries to the private sector beat inflation (primary objective) ? Promote competitive spirit in economy * Social welfare reduced
* Result: Britain's economic growth still lagged behind
\politics if you want anything said, ask a man. If you want anything done, ask a woman.\-Margaret Thatcher
* 政治上，假如你想要的是空谈，找男人；假如你想有些作为，找女人。 * In 1997 the Labor party Tony Blair
* the \Way\differ from the old the Labor party's nationalization reform and the conservative party's extreme individualism ? made the Bank of England independent
? emphasized on the minimum wage and supplementing low incomes ? emphasized individual responsibility
> Britain's economic growth surpassed other major European countries II. Current British Economy
* the world's fifth largest economy (after US, Japan, Germany and China)
* The UK's people are the world's twelfth richest
* Sterling-performed relatively well against major currencies in recent years Natural Resources & Infrastructures * Principal resources-oil and gas (in the North Sea, on the coast of Scotland) * Large amount of coal (kept for future use)
* Highly developed & efficient main road and rail network and airports Agriculture
* A small proportion of the population engaged in agricultural activities * 1% of the country's labor force employed * A high degree of mechanization
* Meets around 60% of the national demands
* Mild climate-favorable environment for agriculture and stock raising * Important crops-wheat, barley, sugar beet, potatoes.
* Dairy farming, fishing Manufacturing-still playing important role * The world's leading * exporter of cattle, * sheep, pigs and * horses.
Energy Production
* Coalfields are mostly located in Central Scotland, Central England and South Wales, around Glasgow, Manchester, Sheffield and Newcastle.
* Rio Tinto__ one of the world's largest mining companies, operates mines all over the world. * Britain's oil industry is relatively new. In 1975, the first oil came ashore from the North Sea. Not only self-sufficient, but also an oil exporter.
* 3 Big producers: Shell, British Petroleum (BP), British Gas (BG)
Manufacturing Industry
* Around 30% of manufactured goods are exported, accounting for some 60% of Britain's total export.
* Pharmaceuticals (GlaxoSmithkine, the largest drug company in the world) * Chemicals (ICI, the second largest paint producer in the world) * Food and drink (Scotch whisky being a major exporter) * Electronics industry (the fifth largest)
* British Steel Corporation (BSC, the fourth largest steel manufacturer in the world) Services industries
* The major trends in the British economy since the war have been a further decline in the already small agricultural sector, a reduction in the industrial sector and a sizable expansion of the service sector (retailing, banking, tourism, and public services).
* Services industries, especially, business and financial services-the strongest performing sector in the UK economy
* London-the strongest performing region in the UK
* London is one of the three * principal financial centers of * the world, with the other * Two being New York and * Tokyo. Finance
* Importance of institutions of City of London cannot be over-emphasized * known as the world's leading international financial centre
* Over 550 international banks and 170 global securities houses have offices in London * BANKING
* The Bank of England
* the central bank of the UK-a nationalized industry operated on behalf of the government. * controls the currency and acts as banker both to the government and to the commercial banks * aims to maintain the integrity and value of the currency, maintain the
stability of the financial system and ensure the effectiveness of the financial services sector.
* The London foreign exchange market is the largest in the world, with daily turnover of $504bn in April 2001, accounting for 31% of global turnover, more than New York and Tokyo combined. * The London Stock Exchange is one of the world's largest centers for trading stocks and bonds. * London is the world's largest fund management centre, and the leader in the management of overseas clients non-domestic portfolios.
* London is the major centre for the international bond market.
* London-based book runners accounted for about 60% of international bonds issued, with 70% of trading in the secondary market, including euro-denominated issues, also based in London Tourism
* One of the largest industries in Britain. * Employs 1.8 million people
* The income from tourism makes up about 5% of the world's total income from tourism * About 25 million people visit England every year from all over the world. * Magnificent countryside views, a wide variety of culture
* Dorset and East Devon Coast, The Lake District, Stonehenge, Windsor Castle, and the beautiful university towns
* Dorset and East Devon Coast ___ a Natural World Heritage Site Lake District Windsor Castle
* 温莎城堡(Windsor castle)距伦敦约35公里，900多年以来一直是英国王室的居住地。温莎城堡占地7公顷，所有建筑都用石头砌成，共有近千个房间，四周是绿色的草坪和茂密的森林。温莎城堡是英国至今为止仍有人居住的最大的城堡。 * Tourists flock to Windsor Castle Garter Day procession
* Give brief answers to the following questions.
* 1. What was the negative aspect of Thatcher's reform in early 1980s ? * 2. What are the characteristics of Britain's agriculture ?
* 3. What happened to Britain's beef industry in the mid-1990s ? * 4. What are some of the popular tourist attractions in Britain ?