5.1. Common Characteristics of the British Economy

Britain’s economy is based on private enterprise, which accounts for 75% of output and nearly 70% of employment.

British industries can be divided into 3 main groups:

a) Primary industries providing raw materials and food from the land and the sea (energy resources, agriculture) - 13%.

b) Manufacturing industries making finished goods from raw materials (electronics, aerospace, chemical) – 22%.

c) Service industries (baking, business, computing tourism) – 65%.

Among the main trends of Britain’s economy have been:

a) the decline in the heavy industry;

b) the growth of the offshore oil and gas industry;

c) the rapid development of the electronic industry;

d) the continual rise in the service industries.

● Primary industries

Britain has the largest energy resources in Europe and is a major world producer of oil, natural gas and coal (from the North Sea).

About 80% of offshore production of oil and gas is brought ashore by submarine pipeline. The most perspective technologies belong to wind, tidal and solar power.

British agriculture is known for its high efficiency and productivity. The industry produces nearly 2/3 of Britain’s food (3% of population are busy in it).

More than half of the farms devoted to cattle and sheep are on the hills of Scotland, Wales and Northern Ireland. Farms devoted to arable farming are in eastern, central and southern England.

The fishing industry provides about 65% of British fish supplies in Europe.

● Manufacturing industries

There are a number of large companies in the electronic, aerospace and chemical industries.

The electronic industry produces computer hardware systems, associated equipment and software.

The aerospace industry (the 3-rd largest in the world) exports over 70% of its production: civil 2 military aircraft, satellites, space systems, guided weapons and components.

The chemical industry (the 3-rd largest in the Western Europe) exports nearly 50% of its production: pharmaceuticals, pesticides, cosmetics.

● Service industries

The service industries account for 66% of Britain’s Gross Domestic Product (GDP) and 71% of employment.

The banking services are responsible for about 20% of international bank lending and insurance.

The business services contribute about 1/6 of the national income.

The computing services include such areas of software development as data and word processing, telecommunication, defense and consumer electronics.

The tourism services employ nearly 1.5 million people. More than 20 mln people visit Britain and about 35 mln people (British economy for residents) trip abroad.

● Trade

Trade has been a key part of British economy for centuries. Britain has only 1% of the world population but is the 5^th largest trading nation.

Britain’s export earnings from services (such as banking, computer services and tourism) exceed those from exports of goods.

Answer the questions:

1. What main industries in Britain’s economy do you know?

2. What are the main trends of Britain’s economy?

3. What is the character of the primary industry?

4.What do the manufacturing industries produce and export?

5.What are the main branches of Britain’s service industries?

6.Where does Britain get oil and gas from?

7.What percentage of Britain’s working population is engaged in agriculture?

5.2. Main Industrious Centers of UK

For purpose of simplification Britain can be divided into 8 great industrial regions:

1. The Midland Area (around Birmingham and Wolverhampton) produces vehicles, metal goods, electrical and engineering goods.

     2. Yorkshire – the woolen industry/the coalfields.

Leeds is a great centre for clothing and engineering. Sheffield is famous for its steel and cuttery. Hull is one of the most important fishing ports.

    3. Lancashire (Manchester as its centre). Electrical goods, dye-stuffs,                          heavy engineering products are made here. Liverpool is one of the world’s great ports, where ship repairing is carried out.

   4. Wales is noted for mineral wealth, producing iron, copper, lead, zinc, slate and limestone. South Wales is a coal-mining area. Today there are lots of factories producing plastics chemicals textiles.

   5. Durham and Northumberland.

Coal is mined in the eastern parts. There are important iron and steel industries (on Clydeside), shipbuilding and ship repairing yards.

  6. Scotland has extensive iron and steel industry. The industrial belt of central Scotland extends from Glasgow to Edinburgh.

  7. Northern Ireland is famed for its linen. It is the centre of production of cigarettes and tobacco. Chemicals and engineering products are made here.

  8. The London area is characterized by mixed light industry, by the concentration of business control, by its port.

Answer the questions:

1. What industrial regions of Britain do you know?

2. What are the main goods of these regions?

 5.3. History of the British Economics Development

There is a short survey of the history of the British economics development.

● The Medieval economy

     Society in the Middle Ages was based on the feudal system and most people lived and worked on the land (over 90% of the population). By the 14^th c. the population had increased so much that there was a food shortage, mane people died from starvation. In 1348 the Black Death killed 1/3 of the population in 18 months. Suddenly there were not enough laborers to work the land, but formers did not want to raise wages (peasants’ revolts, Wat Tyler)

Between 1100 and 1300 about 140 new towns appeared. The first guilds, associations of merchants and craftsmen were established in the 11^th c. In the Middle Ages wool was England’s most important export, also cloth, tin, lead and grain. Imports: timber and furs from the Baltic; wine, metal goods and leather from France; spices, cigars, silks and jewels from the East.

 ● The Commercial Activities in the 18^th c.

     It was a time of increasing prosperity for many people in Britain. By the end of the 18^th c. Britain was one of the richest and strongest powers in Europe.

     Britain’s first banking company, The Bank of England, was established in 1694. Banks were formed by rich individuals who lent money on condition that a rate of interest was paid on the loan.

     From 1750s the introduction of new inventions and the discoveries of steam as a source of power led to the development of industry. Steel and machine – building industries (new) developed; new methods of production and improved forming machinery.

Britain exported textile and iron goods to America and imported raw cotton, tobacco and sugar. By the mid – 18^th c. Britain was the leader in the slave trade. Africans were sold to plantation owners in South Africa and the West Indies, who need more laborers.

● The History of the Industrial Revolution

     By 1800 Britain was the most industrialized state in the world.

 I Industrial Revolution is characterized by

- ports facing to Atlantic; coastal shipping; good system of internal waterway

- growth of transport: busses (1828); trains (mid 19^th c.); underground railway “the tube” (1863) was opened;

- growth of heavy industries (iron, steel, textiles and shipbuilding).

II Industrial Revolution (late 19^th c. – early 20^th c.) is characterized by

- industrial activity (steel, electric power, the internal combustion engines);

- Weapon project (October 3, 1952 – the first British atomic weapon test, called Hurricane);

- growth of service industries (the most remarkable phenomenon now);

- tourism.                 

Tasks:

          1. Enumerate the main characteristics of the medieval economics.

          2. Prove that by the end of the 18^th c. Britain was one of the richest and strongest powers in Europe.

          3. Characterize the history of the Industrial Revolutions.