1. Unit 5 The UK Economy

2. Focal Points Absolute decline and relative decline of British economy
The privatization in the 1980s
The main sectors of the UK economy
Primary industries(第一产业) — Agriculture & Energy production
Second industries: the manufacturing industry — e.g. the aerospace industry
Tertiary industries/ service industries (第三/服务产业)
Agriculture
英国经济的绝对衰败和相对衰败
20世纪80年代的私有化

3. Focal Points Energy production The offshore oil industry
The manufacturing industry
The City of London
The aerospace industry

4. Warm-up Questions When was the British economy dominant in the world?
By what time was the UK overtaken by other countries, such as the US and Germany?
1900
Which country does “the Jewel in the Crown” refer to? When did it gain its independence?
India, 1947
What does “The City” refer to according to the text?
The city of London, a financial center in the world

5. Absolute Decline and Relative Decline
Overview
dominant in the world: 1/3 of the world’s manufactured goods; 1/2 of the world’s coal, iron and cotton; shipping greater than the sum of the rest of the world
by the 1880s
by 1900
from 1945 (WWⅡ ended)- now
Overtaken by the US and Germany
Thanks to other countries’ more rapid development after the war, the UK slips from being the 2nd largest economy to being the 6th , although with steady economic growth and rapidly increasing living standard and remains one of the G7 large industrial economies

6. Causes DECLINE huge military expenditure during decolonization heavy
post-war debt
colonies
independence
DECLINE
Lack investment in modern equipment and new products

7. Causes for Decline of UK economy (1945- ) ① debt---finance the war
a. selling many of its
accumulated overseas assets
b. borrowing
large amounts from
the United States and
Canada.

8. ② independence
The era of empire was over.
India
the rest of the empire
③ military
decolonisation--a substantial and expensive
military presence
b. one of the shapers of post-war world
---substantial military contributions
④ The existence of the old factories with pre-war products (very low proficiency)
④ Low rates of investment

9. Relative Decline of the UK economy
The UK has experienced an economic
decline since But this is a relative decline
rather than an absolute one. Britain is wealthier
and more productive than it was in 1945, but
since other countries developed more rapidly, it
has slid from being the second largest economy
to being the sixth.

10. Recent History
1970s
1980s
Recession: the economy shrunk by 2.3%
1995
A particularly bad period: high rates of inflation (25%); many workers’ strikes; the fall in the value of the UK currency
When the conservative party under Margaret Thatcher was in power, and extensive program of privatization was carried out. The reform also led to increasing unemployment
Overall it is 2nd only to the US as a destination for international direct investment, and it is the 2nd biggest international investor in the world

11. Recent History a change of government
1970s: high rates of inflation, strikes, the fall in the value of UK currency, British industry doing badly
negative economic facts
a change of government
the Labor Party
the Conservative Party

12. a radical programme of reform
bureaucracy was reduced.
(small government)
an extensive programme of privatisation
(free market)
successful---in some ways
negative aspect---unemployment

13. The Current UK Economy national economies 1.4% 22% 65% primary
industries
secondary
industries
tertiary
industries
1.4%
22%
65%
agriculture
fishing
mining
manufacture
complex goods
from primary
products
banking
insurance
tourism
the selling
of goods

14. “The City” London Stock Exchange Historic area at the center of London
one of the top 3 financial centers in the world: banking, commodities & insurance
London Stock Exchange
The City
Shown within Greater London
Aerial view of the City of London

15. London Stock Exchange
The heart of “The City” is London Stock Exchange, founded in 1801, one of the busiest share-dealing centres in the world. It is a part of the London Stock Exchange Group (伦敦证券交易所集团 )

17. Case Study: The Aerospace Industry
the first flight was made in UK.
WWI rapid development---the biggest and most sophisticated
after WWI, the civil aviation industry
[most significant (inter-war) --- radar]
three major branches
spurt of technological change
after WWII, problematic (competition)
[the answer collaborative projects]
[most successful---civil airliners]