Chapter4TheUKEconomy.ppt

Chapter 4vWhat does the "British Disease" refer to(“英英国病国病”指的是什么指的是什么)？？vA century ago Britain was known as "the factory of the world". v However, today, Britain is not in the same position as it was during the 19th century. It is faced with severe economic problems. A slow rate of industrial growth, unemployment, and a rising inflation rate are all major concerns. This economic decline is often referred to as the "British Disease". vBritain was the first industrialized nation in the world and has remained an economic giant for the past 2 centuries. After World War II, though remains one of the Group of Seven/Eight, Britain’s economy experienced a period of great difficulty and relative economic decline.vthe eight economic superpowers in the world: America, Britain, France, Germany, Japan, Italy and Canada plus Russia. I. Relative decline of the UK economyvReasons:1) Britain suffered great losses in the two World Wars. It went into heavy debt to finance both wars, which resulted in economic problems during the postwar period.2) By the mid-20th century, the era of the British Empire was over. The members of the Empire, such as India, which provided raw materials and a large market for British goods gained independence successively.3) Britain was forced to maintain an expensive military presence in many overseas locations until the end of the 1960s, when the process of decolonization was completed; Meanwhile, as a member of the UN Security Council, it had to make substantial financial contributions, which caused it to spend more its national wealth on military expenditure than its competitors.v4) Britain failed to invest in industry after World War II because its industry survived and was comparatively unaffected, while some of its competitors had to start from nothing, which compelled them to use the latest equipment and means of production, resulting in the rapid development of their economy.vCharacteristics of the UK economy:v1) relatively low rates of domestic investment ( in relation to other developed economies), no close links bet. Industry and banks.v2) A very high rate of overseas investmentvConclusion:vThe decline of the UK economy is not an absolute one: Britain is not poorer, or producing less than it was in 1945, actually, it is a lot wealthier and more productive than it was then. The problem is that though it has improved, other countries have improved more rapidly, hence the slide from the 2nd largest economy to being the 6th, as it is at present.1. Privatization in the 1980sThe British economy went through a very bad period in the 1970s, with high rates of inflation and devaluation of the Pond. Thus, in the 1980s, when the Conservative Party under Margaret Thatcher was in power, an extensive programme of privatization was carried out. Many state-owned businesses (steel, telecom, gas, aerospace) were turned into private companies. Privatization was successful in inflation control but meanwhile unemployment rate increased rapidly.II. Recent historyvIn 1997, Tony Blair won the election and carried out his “Third Way”: making the Bank of England independent, emphasizing the minimum wage, individual responsibility and supplementing low incomes , thus succeeding in limiting government spending, keeping inflation under control and reducing unemployment. By the end of the century, British economic growth surpassed that of other major European countries.2. “Third way” of Tony Blair ( The Labor Party) in the late 1990svEconomic system: free enterprise/market economy/capitalism (46-47)vMain sectorsvPrimary industries: agriculture, fishing and miningvSecondary industries: manufacturing complex goods from those primary productsvTertiary/service industries: banking, insurance, tourism and the retailingIII. The Main Sectors of the UK economyvThe Britain’s economic structure vThe public sector vState-owned enterprises: The Labor government nationalized a number of basic industries and extended government control over some social services closely related with people’s daily needs, including coalmining, electricity, post and telecommunication, railways, bus companies, oil , gas, banks etc. Together they account for more than 10% of the gross domestic product. The results were disappointing. Then, between 1979 and 1996, the Conservative government sold many of these state-owned companies.vThe role played by the government in economic lifev1) the government is the biggest buyer in Britain and it spends more than $ 500billion a year, about 1/3 of the GDP(1998).v2) About 60% of the government’s revenue is spent on the welfare system, health program, and education (1998).v3) the government is the largest purchaser of goods, office and military equipment, offers financial help to farmers.v4) the government is the major employer, and guide economic activities. vThus, some nationalized and private businesses depend heavily on government programs for development.vThe private sectorvBusinesses owned and managed by private individualsvMost of them are small (unincorporated) and only a small number of them are big (corporate) business. They account for about 90% of Britain’s GDP.vThe private sector includes the greater part of activity in the agricultural, mining, manufacturing, construction, distributive, financial, and service industries.vThe private sector varies in terms of ownership. vSmall private businesses: homeownership, partnership( not allowed to be listed in the stock market)vBig businesses: public companies with limited liability (public limited company / PLC after the name), contributing about 60% of the GDPAgriculture (54-55): small sector but efficient, producing 58% of the UK’s food needs with only 2% of its workforce. wheat and barley are the 2 commonest.vWhat is about Britain's agriculture（英国的农业）？（英国的农业）？vpioneers in modem agriculture and among the first to bring science and machinery to farming; developed new varieties of plants and used the method of crop rotation to help keep soil fertile. highly mechanized farming also called "agribusiness" and one of Britain's most important industries.vWhat is mixed farming? Where is it best suited in Britain(什么是混合农业？它在英国什么地方最适宜什么是混合农业？它在英国什么地方最适宜)？？vMany British farmers practice mixed farming -- they raise a variety of crops (Arable farming) and animals (livestock farming) and methods of mixed farming vary from farm to farm. In the rough highlands of Scotland, Wales, and western England, grass grows much better than farm crops. So farmers use most of their land for grazing. The land in southern and eastern England is drier and flatter, which is more easily worked, so farmers use most of their land for raising crops.vTransportationvBritain’s railroads are among the densest and most heavily used in the world. vIn the Victoria Era became known as the Railway Age. Now, railways are mainly used to carry bulky goods not easy for trucks to transport. Only a small number of particular travelers, mostly tourists, ride in trains.v Britain has developed highways and expressways. About (0% of all passenger travel is by road, about 60% of freight transportation is carried on roads.vBritain’s overseas water transportation and inland navigation are also highly developed.vBritain’s Airways covers more than 90 countries.Energy Production: The North Sea: oil and gas Which area in Britain is called the "Silicon Glen"(英国什英国什么地方被称为么地方被称为“硅谷硅谷”)？？vThe area between Glasgow and Edinburgh in Scotland is called the "Silicon Glen".Manufacturing industryEsp. strong in pharmaceuticals ( British Glaxo-Wellcome is the biggest drug company in the world)Chemicals, aerospace and food and drink (Scotch whisky being a major export)vWhat is the state of Britain's Textile industry today(英国纺织业的现状英国纺织业的现状)？？vThe decline of Britain's textile industry is due to these reasons:v1) its exports cannot compete well with othersv2) a rise in cheaper imports of textiles to Britain from foreign countries;v3) poor and outdated management decision , especially new markets have not been found and new techniques have not been used;v4) substitutions of human-made fibers for natural fibers;v5) an improvement of output per worker has been achieved due to mechanization.vIn the developed countries, the service industry has played an increasingly important role : for one thing, it requires a large group of people working in it so that abundant employment opportunities are provided; for another, it causes little pollution.vBritain’s service industry contributes about 63% of the GDP, employs more than half of the labor force.vThe structure of the service industry is changing. For example, chain stores are replacing Independent retailing.vThe leisure industry has been growing rapidly. In the past, most people took their holidays at the seashore, now, overseas holidays have become fashionable and common for working class people.The service industryvChange the economy （（Cameron’s government）） Gordon Brown’s debt, waste and taxes have wrecked the economy and threaten to kill the recovery. A Conservative government will take action now to cut the deficit, stop Labour’s jobs tax, help keep mortgage rates low and get the economy moving. We will create a new economic model built on investment and savings, not borrowing and debt.vBenchmarks for Britain vEnsure macroeconomic stability vCreate a more balanced economy v Get Britain working again v Encourage enterprise: vEnsure the whole country shares in rising prosperity v Reform public services to deliver better value for money vCreate a safer banking system that serves the needs of the economy vBuild a greener economy: vEnsure macroeconomic stability vUrgent action to reduce debtvCut government waste to stop Labour’s jobs taxCreate a more balanced economy Make Britain the leading hi-tech exporter in EuropevEncourage saving and investmentvHelp households manage their debtsvGet Britain working again vReduce welfare dependencyvBoost small businessvImprove skills and strengthen higher educationvEncourage enterprise vCut and simplify business taxesvSupport innovation and sustainable developmentvAttract the brightest and best to our countryvReduce regulationvEnsure the whole country shares in rising prosperityvCreate a modern transport networkvSpread prosperityvReform public services to deliver better value for moneyvDecentralization, accountability and transparencyvCreate a safer banking system that serves the needs of the economyvReform financial servicesvBuild a greener economy vWe will reduce UK greenhouse gas emissions and increase our share of global markets for low carbon technologies.vCreate a low carbon futurevThis wave of low carbon innovation we want to unleash requires investment, so we will create Britain’s first Green Investment Bank – which will draw together money currently divided across existing government initiatives, leveraging private sector capital to finance new green technology start-ups. We will create green Individual Savings Accounts to help provide the financial backing we need to create a low carbon economy.。