The Economy of the United Kingdom of Great Britain and Northern Ireland Part I

The United Kingdom of Great Britain and Northern Ireland, a leading trading power and financial centre, has the fourth largest economy in the world, the second largest in Europe, and is a member of the European Union as well as the United Nations and North-Atlantic Treaty Organization (NATO). The United Kingdom is composed by the political union of four constituent entities: England, Scotland and Wales on the island of Great Britain and Northern Ireland on the island of Ireland.

Great Britain has a mixed private and public enterprise economy. In Britain's economy private enterprises produce 75% of output and generate nearly 70% of employment. To control and plan the economy, to avoid bankruptcy such private corporations as British Coal, British Steel, the Post Office, British Telecom, the British Airports Authorities, British Rail were nationalized after World War II. To make the British economy more efficient the government tries to stimulate innovations in industry, encourage competition, reduce taxes, promote exports, and work for worldwide free trade. The government provides financial assistance and guidance to small companies as small businesses employ more than a third of the private sector workforce. They are responsible for one-sixth of total output.

Trade has been a key part of the British economy for centuries. Britain has only 1% of the world population but is the fifth largest trading nation. Its prosperity has been dependent upon the export of manufactured goods in exchange for raw materials and foodstuffs. Manufactured goods account for the bulk of all commodity trade in both directions and foodstuffs and raw materials (including oil) account for around one-sixth of both imports and exports.

In fact, nowadays there is no longer any difference in the broad categories of commodities imported and exported. Great Britain's trade focus has shifted from the United States to the European Community, which now makes up over 50% of Britain's trade. In addition, Commonwealth nations account for 11% of Great Britain's trade. Germany, the United States, France and the Netherlands are Britain's main export markets. Exports, mainly to France, the United States,, Germany, Italy and Ireland, are estimated at $190.1 billion and imports from the same coun­tries amount to $221.6 billion annually. The country's chief exports are manufactured goods suoh as electrical and electronic equipment, aerospace equipment, machinery, chemicals, textile fibers, fuels, iron and steel, and transport equipment. The leading imports are manufactured and consumer goods, foodstuffs, industrial and electrical machinery, semi-finished goods, cloth­ing and accessories, office machines and data processing equip­ment, and transport equipment.

There are several main trends that have affected Britain's economy:

- the decline in the heavy industry;

- the growth of the offshore oil and gas industry;

- the rapid development of the electronic industry;

- the increase in the service industries, as distinct from manufacturing ones;

- the increase in the proportion of people in white collars⁵ as distinct from manual jobs.

According to these trends the structure of the British economy can be divided into three main sectors:

1. Primary industries that deal with providing raw materials and food from the land and the sea (energy resources, agriculture, forestry, fishing and water supply) -- 13%.

2. Manufacturing industries that deal with making finished goods from raw materials (electronics, aerospace, chemical, plas­tics, paper and printing industries) 22°/«.

3. Service industries that deal with providing a wide variety of services (banking, insurance, computing, tourism etc) — 65%.

Primary Industries. Britain has the largest energy resources in Europe and abundant supplies of oil and natural gas. It is the world's fifth largest oil producer. By successfully exploiting oil and gas from the North Sea Britain has become self-sufficient in energy. Coal industry is declining now but it still has considerable reserves. Half of the national consumption of energy resources is used for industrial and commercial purposes and the rest for household use.

Great Britain is also rich in such mineral resources as iron ore, tin, limestone, salt, china clay, gypsum, and lead.

The British agriculture is knowri for its high efficiency and productivity according to European standards and based on modern technology and research. The production of some foodstuffs outstrips demand. It employs only 2% of the working population, and produces nearly 2/3 of Britain's food, needed by the country.

In Britain over three-quarters of the land is used for agriculture. Almost 30% of Britain's land is arable, and almost half is meadows and pastures. About three-fifths of farms are engaged in dairy or beef cattle breeding and sheep-raising. Pig-raising is also wide spread in the country. Britain is also broadly self-sufficient in milk, poultry meat and eggs. Barley, wheat, rape, potatoes, sugar beets, fruit, and vegetables are the country's main crops.

Britain is one of Europe's most important fishing nations. The fishing industry provides about 65% of British fish supplies

Date: 2015-12-11; view: 1773