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A history of economy in united kingdom

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  1. Ireland was dominated by the Vikings during the tenth century.
  2. Those who were summoned by name in due course formed the House of Lords; others who represented communities became the House of Commons. Capital flows have increased, as have foreign exchange and securities trading.
  3. In turn, the rising price of new homes has created considerable pressure on the land available for housing, which has been relatively tightly controlled.
  4. Building societies also participate to a limited extent in investment services, insurance, trusteeship, executorship, and land services. In the 19th century, wealthy and industrialised, Britain became the major world power with an empire that included colonies on every continent.

Economy The United Kingdom a history of economy in united kingdom a fiercely independent, developed, and international trading economy that was at the forefront of the 19th-century Industrial Revolution. The country emerged from World War II as a military victor but with a debilitated manufacturing sector.

Postwar recovery was relatively slow, and it took nearly 40 years, with additional stimulation after 1973 from membership in the European Economic Community ultimately succeeded by the European Union [EU]for the British economy to improve its competitiveness significantly. Economic growth rates in the 1990s compared favourably with those of other top industrial countries. The United States is a major investment and trading partner, and Japan has become a significant investor in local production.

American and Japanese companies often choose the United Kingdom as their European base. Ships serving North Sea oil platforms at dock in the port of Aberdeen, Scotland. Privatization, accompanied by widespread labour unrest, resulted in the loss of tens of thousands of jobs in the coal-mining and heavy industrial sectors. Although there was some improvement in the standard of living nationally, in general there was greater prosperity in the South East, including London, than in the heavily industrialized regions of the West Midlandsnorthern England, Clydeside, and Belfastwhose economies suffered during the 1980s.

Unemployment and inflation rates were gradually reduced but remained high until the late 1990s. Moreover, its exploitation of offshore natural gas since 1967 and oil since 1975 in the North Sea has reduced dependence on coal and imported oil and provided a further economic boost.

Agriculture, forestry, and fishing Agriculture The United Kingdom is unusual, even among western European countries, in a history of economy in united kingdom small proportion of its employed population about 2 percent engaged in agriculture. With commercial intensification of yields and a high level of mechanization, supported initially by national policy and subsequently by the Common Agricultural Policy CAP of the EU, the output of some agricultural products has exceeded demand.

Employment in agriculture has declined gradually, and, with the introduction of policies to achieve reduction of surpluses, the trend is likely to continue.

Efforts have been made to create alternative employment opportunities in rural areas, some of which are remote from towns. The land area used for agriculture about three-quarters of the total has also declined, and the arable share has fallen in favour of pasture. Official agricultural policy conforms to the CAP and has aimed to improve productivity, to ensure stable markets, to provide producers a fair standard of living, and to guarantee consumers regular food supplies at reasonable prices.

To achieve these aims, the CAP provides a system of minimum prices for domestic goods and levies on imports to support domestic prices. Exports are encouraged by subsidies that make up the difference between the world market price and the EU price. For a few products, particularly beef and sheep, there are additional payments made directly to producers.

More recent policies have included milk quotas, land set-asides to compensate farmers for taking land out of agricultural useand reliance on the price mechanism as a regulator. The most important farm crops are wheat, barley, oats, sugar beets, potatoes, and rapeseed. While significant proportions of wheat, barley, and rapeseed provide animal feedmuch of the remainder is processed for human consumption through flour milling wheatmalting and distilling barleyand the production of vegetable oil rapeseed.

The main livestock products derive from cattle and calves, sheep and lambs, pigs, and poultry. The United Kingdom has achieved a high level of self-sufficiency in the main agricultural products except for sugar and cheese. Sheep grazing on the Antrim coast, Northern Ireland. The government-supported Forestry Commission manages almost half of these woodlands, and the rest are in private hands. The majority of new plantings are of conifers in upland areas, but the commission encourages planting broad-leaved trees where appropriate.

Fishing limits were extended to 200 nautical miles 370 km offshore in the mid-1970s, and, because a significant part of the area fished by other EU members lies within British waters, it has been necessary to regulate catches on a community-wide basis.

Meanwhile, the United Kingdom has lost opportunities to fish in some more-distant waters e. The most important fish landed are cod, haddock, mackerel, whiting, and plaice, as well as shellfish, including Nephrops Norway lobsterslobsters, crabs, and oysters. Estuarine fish farming—mainly of trout and salmon—has expanded considerably.

Resources and power Minerals The United Kingdom has relatively limited supplies of economically valuable mineral resources.

United Kingdom Economy Data

The once-important extraction of iron ore has dwindled to almost nothing. Other important metals that are mined include tin, which supplies about half the domestic demand, and zinc. Sand, gravel, limestone, and other crushed rocks are quarried for use in construction. Energy By contrast, the United Kingdom has larger energy resources—including oil, natural gas, and coal—than any other EU member.

Coalthe fuel once vital to the British economy, has continued to decrease in importance. Compared with its peak year of 1913, when more than one million workers produced more than 300 million tons, current output has fallen by more than four-fifths, with an even greater reduction in the labour force.

Power stations are the major customers for coal, but, with growth in the use of other fuels and the increasing closing of pits that have become uneconomical to operate, the industry remains under considerable pressure.

  • Unemployment and inflation rates were gradually reduced but remained high until the late 1990s;
  • More recent policies have included milk quotas, land set-asides to compensate farmers for taking land out of agricultural use , and reliance on the price mechanism as a regulator;
  • The most important farm crops are wheat, barley, oats, sugar beets, potatoes, and rapeseed;
  • From 1832, the vote, initially held by the land-owning classes only, was gradually extended until universal male suffrage was achieved in 1918.

The discovery of oil in the North Sea and the apportionment of its area to surrounding countries led to the rapid development of oil exploitation. Since the start of production in 1975, the quantities brought ashore have grown each year, and the United Kingdom has become virtually self-sufficient in oil and even an exporter.

The balance of payments has benefited considerably from oil revenues, and a substantial proportion has been invested abroad to offset diminishing oil income in the future. Proven reserves were estimated at around 700 million tons in the late 1990s. Since offshore natural gas supplies from the North Sea began to be available in quantity in 1967, they have replaced the previously coal-based supplies of town gas.

A national network of distribution pipelines has been created. Proven reserves of natural gas were estimated at 26. Manufacturing The manufacturing sector as a whole has continued to shrink both in employment and in its contribution now around one-fifth to the GDP. The decline in manufacturing largely accounted for the rapid rise in unemployment in the early 1980s.

Once economic growth returned, however, there was great improvement in productivity and profits in British manufacturing. In a history of economy in united kingdom of their relative importance to the GDP, the most important manufacturing industries are engineering; food, beverages including alcoholic beveragesand tobacco; chemicals; paper, printing, and publishing; metals and minerals; and textiles, clothing, footwear, and leather.

The fastest-growing sectors have been chemicals and electrical engineering.

United Kingdom

Within the chemical industrypharmaceuticals and specialty products have shown the largest increases. Within the engineering industry, electrical and instrument engineering and transport engineering—including motor vehicles and aerospace equipment—have grown faster than mechanical engineering and metal goods, and electronic products have shown the fastest growth.

On the other hand, the growth in motor vehicle production has occurred among foreign-owned, especially Japanese, companies investing in the United Kingdom. British automobile manufacturers have been in decline since the 1970s. After a period of restructuring during the 1980s, the British steel industry substantially increased its productivity, output, and exports during the 1990s.

However, food, beverages, tobacco, leather, and engineering as a whole have had below-average growth. Textiles, clothing, and footwear have been in absolute decline because British companies have faced increasing difficulty competing with imports, especially from Asia. During the 1980s imports of manufactured products increased dramatically, and, although exports of finished manufactured products increased in value, the surplus in the balance of trade disappeared and was transformed into a large deficit.

Construction in Britain stagnated during the 1990s because of a decline in prices and in demand for new housing and because of decreased government investment in infrastructure during the first half of the decade.

About half the labour force in construction is self-employed. More than half of all construction work is on new projects, the remainder on repair and maintenance. There has a history of economy in united kingdom a marked switch from housing funded and owned by public authorities toward private development.

Considerable efforts have also been made to encourage tenants of publicly owned rented houses to become owner-occupiers, with the result that the proportion of owner-occupied homes has grown considerably since the early 1970s. The supply of privately rented accommodations became scarcer because of statutory rent controls that discouraged new construction, but changes during the 1980s both in the economic climate and in official policy began to stimulate the supply.

The average price of a new house, particularly in London and the South East, has generally continued to increase more rapidly than the prevailing rate of inflation, although prices have fluctuated considerably. In turn, the rising price of new homes has created considerable pressure on the land available for housing, which has been relatively tightly controlled. Here, too, public policy has been changing in favour of greater permissiveness.

Private industrial and commercial construction and public projects account for the remainder of construction.

  • The land area used for agriculture about three-quarters of the total has also declined, and the arable share has fallen in favour of pasture;
  • Once economic growth returned, however, there was great improvement in productivity and profits in British manufacturing;
  • The country emerged from World War II as a military victor but with a debilitated manufacturing sector.

Finance The United Kingdom, particularly London, has traditionally been a world financial centre. Some long-standing distinctions between financial institutions have become less clear-cut.

United Kingdom - Economic Indicators

Two related developments have occurred: Building societies also participate to a limited extent in investment services, insurance, trusteeship, executorship, and land services. At the end of the 20th century, the financial services industry employed more than one million people and contributed about one-twelfth of the GDP.

Although financial services have grown rapidly in some medium-sized cities, notably Leeds and EdinburghLondon has continued to dominate the industry and has grown in size and influence as a centre of international financial operations. Capital flows have increased, as have foreign exchange and securities trading. Consequently, London has more foreign banks than any other city in the world.

  1. While significant proportions of wheat, barley, and rapeseed provide animal feed , much of the remainder is processed for human consumption through flour milling wheat , malting and distilling barley , and the production of vegetable oil rapeseed.
  2. Wales came under English rule during the 13th century, during the reign of Edward I; but the continuing strength of Welsh national feeling was shown by a rising at the beginning of the 15th century. Christianity spread in the sixth to seventh centuries.
  3. The Bank of England retains the sole right to issue banknotes in England and Wales banks in Scotland and Northern Ireland have limited rights to do this in their own areas.
  4. A national network of distribution pipelines has been created.

Increased competition and technological developments have accelerated change. As a result, new companies link British and foreign banks with former brokers and jobbers. In 1997 the government established the Financial Services Authority FSA to regulate the financial services industry; it replaced a series of separate supervisory organizations, some of them based on self-regulation.

The FSA was widely criticized for its response to the financial crisis that erupted in 2008 and led to a government bailout for a number of prominent British banks. The Bank of England retains the sole right to issue banknotes in England and Wales banks in Scotland and Northern Ireland have limited rights to do this in their own areas.

United Kingdom Economic Growth

The pound sterling is a major internationally traded currency. A variety of institutions, including insurance companies, pension funds, and investment and unit trusts, channel individual savings into investments.

Finance houses are the primary providers of home mortgages and corporate lending and leasing. There are also companies that finance the leasing of business equipment; factoring companies that provide immediate cash to creditors and subsequently collect the corporate debts owed; and finance corporations that provide venture capital funding for innovations or high-risk companies and that supplement the medium- and long-term capital markets, otherwise supplied by the banks or the Stock Market.

The United Kingdom has a number of organized financial markets. The securities markets comprise the International Stock Exchange, which deals in officially listed stocks and shares including government issues, traded options, stock index options, and currency options ; the Unlisted Securities Market, for smaller companies; and the Third Market, for small unlisted companies. Money market activities include the trading of bills, certificates of deposit, short-term deposits, and, increasingly, sterling commercial paper.

Other markets are those dealing in Eurocurrency, Eurobonds, foreign exchange, financial futuresgold, ship brokerage, freight futures, and agricultural and other commodity futures. Within this area, service transactions have grown rapidly, and financial services have grown the fastest.