2.3.2

Costs of the Empire

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Costs of Sustaining the British Empire

By the late 19th century, the British public began to question the costs of the British Empire.

Resenting taxes

Resenting taxes

There was increasing resentment amongst British upper middle classes about paying for imperial defence through taxes.
Some thought that Britain's navy was too expensive.

Failure to modernise

Failure to modernise

Britain’s reliance on the British Empire meant that the country failed to modernise at a time when Germany & the United States were industrialising fast.
Britain's share of global manufacturing production fell from 23% in 1880 to 13.6% in 1913.
Landes (1969) says that "the cities of the early 19th Century were not built to accommodate the factories of the 20th Century". Germany and the USA did not have these issues.

The negative impact of cheap imports

The negative impact of cheap imports

Some groups in the British public argued that colonial food imports undermined domestic food production.
There was also concern that cheap foreign labour in colonies depressed wages in Britain.

British loans and investment

British loans and investment

British loans to countries in the British Empire yielded higher interest rates for investors, so they often invested in the Empire instead of Britain.
This helped to generate competition against British industries.
Lancashire's cotton mills faced increased competition from Indian cotton mills.
Harley (2004) says that although this investment policy was optimal for private investors, it wasn't optimal for Britain's domestic economy. Landes (1969) argues that capital markets and investors unfairly favoured overseas investments relative to Britain.

1

High Water Mark of the British Empire, 1857-1914

1.1

Development of Imperialism, 1857-1890

1.1.1Empires over Time 1.1.2Key Questions About Empires 1.1.3Expansion into Africa 1.1.4History of Egypt 1.1.5Control of Egypt 1.1.6Control of Sudan

1.2

Imperial & Colonial Policy, 1857-1890

1.2.1The British Empire & India 1.2.2The British Raj 1.2.3International Relations with other Powers 1.2.4Scramble for Africa 1.2.5The Informal Empire

1.3

Trade & Commerce, 1857-1890

1.3.1Trade & Commerce in the Empire 1.3.2Infrastructure of Trade & Commerce 1.3.3Products of Trade & Commerce

1.4

Attitudes Towards the Empire, 1857-1890

1.4.1Explorers 1.4.2Missionaries 1.4.3Traders & Colonial Administrators 1.4.4Government Attitudes Towards Imperialism

1.5

Relations with Indigenous Peoples, 1857-1890

1.5.1Relations with India 1.5.2Relations with South Africa 1.5.3British-Boer Relations

2

Imperial Consolidation & Liberal Rule, 1890-1914

2.1

Consolidation & Expansion in Africa, 1890-1914

2.1.1Consolidation & Expansion into Africa 2.1.2Consolidation & Expansion in South Africa 2.1.3Historical Interpretations: Expansion into Africa

2.2

Imperial & Colonial Policy, 1890-1914

2.2.1Policy in India 2.2.2Policy in Egypt 2.2.3Native Policy in Colonies 2.2.4International Relations with Other Powers

2.3

Trade & Commerce, 1890-1914

2.3.1The Benefits of Trade 2.3.2Costs of the Empire 2.3.3Debates Over Trade

2.4

Attitudes Towards the Empire, 1890-1914

2.4.1Key Administrators - Chamberlain & Rhodes 2.4.2Key Administrators - Baring & Milner 2.4.3Key Administrators - Curzon 2.4.4Government Attitudes to the Empire 2.4.5National Efficiency & the Boer War 2.4.6Popular Attitudes Towards Imperialism

2.5

Relations with Indigenous Peoples, 1890-1914

2.5.1Challenges in India 2.5.2Challenges in Africa 2.5.3Challenges in South Africa 2.5.4Historical Interpretations of the Boer War 2.5.5Relations & Business with Iran

3

Imperialism Challenged, 1914-1967

3.1

Expansion & Contraction of Empire, 1914-1947

3.1.1Impact of WW1 3.1.2Palestine 3.1.3Ireland & WW1 3.1.4Impact of WW2 on the British Empire

3.2

Colonial Policy & Administration, 1914-1947

3.2.1Administration in India & Palestine 3.2.2Administration in Iraq & the Dominions 3.2.3Imperial Defence

3.3

Trade, Commerce & Economic Impact of War

3.3.1Economic Impact of WW1 3.3.2Inter-War Trade & Commerce 3.3.3Economic Impact of WW2

3.4

Attitudes Towards the Empire, 1890-1914

3.4.1Colonial Administrators 3.4.2Trusteeship 3.4.3Gandhi 3.4.4Montagu, Haig & Linlithgow 3.4.5Cameron, Mitchell, Cohen & Furse - African Admins 3.4.6Imperialist Ideals

3.5

Relations with Indigenous Peoples, 1914-1947

3.5.1Ireland & India 1914-1947 3.5.2The Middle East and Africa

4

The Wind of Change, 1947-1967

4.1

Decolonisation in Africa & Asia, 1947-1967

4.1.1Reasons for Decolonisation 4.1.2Decolonisation in East & West Africa 4.1.3Decolonisation in Central & South Africa 4.1.4Decolonisation in Asia

4.2

Colonial Policy & Administration, 1947-1967

4.2.1Relations & Business with Iran after WW2 4.2.2The 'Winds of Change'4.2.3The Suez Canal Crisis - 1956 4.2.4International Relations 1947-1967

4.3

Trade & Commerce, 1947-1967

4.3.1The Economic Impact of WW2

4.4

Attitudes Towards the Empire, 1947-1967

4.4.1Colonial Administrators: Cohen & Arden-Clarke 4.4.2Local Leaders in the Independence Movement 4.4.3Pan-Africanism in Nationalism

4.5

Post-Colonial Ties, 1947-1967

4.5.1Windrush & Immigration 4.5.2Commonwealth Immigrants Act 4.5.3Residual Impact of the Empire

4.6

Relations with Indigenous Peoples, 1947-1967

4.6.1Challenges to Colonial Rule Post 1947 4.6.2Kenya & the Mau Mau Uprising 4.6.3Nigeria & Rhodesia

Jump to other topics

1

High Water Mark of the British Empire, 1857-1914

1.1

Development of Imperialism, 1857-1890

1.1.1Empires over Time 1.1.2Key Questions About Empires 1.1.3Expansion into Africa 1.1.4History of Egypt 1.1.5Control of Egypt 1.1.6Control of Sudan

1.2

Imperial & Colonial Policy, 1857-1890

1.2.1The British Empire & India 1.2.2The British Raj 1.2.3International Relations with other Powers 1.2.4Scramble for Africa 1.2.5The Informal Empire

1.3

Trade & Commerce, 1857-1890

1.3.1Trade & Commerce in the Empire 1.3.2Infrastructure of Trade & Commerce 1.3.3Products of Trade & Commerce

1.4

Attitudes Towards the Empire, 1857-1890

1.4.1Explorers 1.4.2Missionaries 1.4.3Traders & Colonial Administrators 1.4.4Government Attitudes Towards Imperialism

1.5

Relations with Indigenous Peoples, 1857-1890

1.5.1Relations with India 1.5.2Relations with South Africa 1.5.3British-Boer Relations

2

Imperial Consolidation & Liberal Rule, 1890-1914

2.1

Consolidation & Expansion in Africa, 1890-1914

2.1.1Consolidation & Expansion into Africa 2.1.2Consolidation & Expansion in South Africa 2.1.3Historical Interpretations: Expansion into Africa

2.2

Imperial & Colonial Policy, 1890-1914

2.2.1Policy in India 2.2.2Policy in Egypt 2.2.3Native Policy in Colonies 2.2.4International Relations with Other Powers

2.3

Trade & Commerce, 1890-1914

2.3.1The Benefits of Trade 2.3.2Costs of the Empire 2.3.3Debates Over Trade

2.4

Attitudes Towards the Empire, 1890-1914

2.4.1Key Administrators - Chamberlain & Rhodes 2.4.2Key Administrators - Baring & Milner 2.4.3Key Administrators - Curzon 2.4.4Government Attitudes to the Empire 2.4.5National Efficiency & the Boer War 2.4.6Popular Attitudes Towards Imperialism

2.5

Relations with Indigenous Peoples, 1890-1914

2.5.1Challenges in India 2.5.2Challenges in Africa 2.5.3Challenges in South Africa 2.5.4Historical Interpretations of the Boer War 2.5.5Relations & Business with Iran

3

Imperialism Challenged, 1914-1967

3.1

Expansion & Contraction of Empire, 1914-1947

3.1.1Impact of WW1 3.1.2Palestine 3.1.3Ireland & WW1 3.1.4Impact of WW2 on the British Empire

3.2

Colonial Policy & Administration, 1914-1947

3.2.1Administration in India & Palestine 3.2.2Administration in Iraq & the Dominions 3.2.3Imperial Defence

3.3

Trade, Commerce & Economic Impact of War

3.3.1Economic Impact of WW1 3.3.2Inter-War Trade & Commerce 3.3.3Economic Impact of WW2

3.4

Attitudes Towards the Empire, 1890-1914

3.4.1Colonial Administrators 3.4.2Trusteeship 3.4.3Gandhi 3.4.4Montagu, Haig & Linlithgow 3.4.5Cameron, Mitchell, Cohen & Furse - African Admins 3.4.6Imperialist Ideals

3.5

Relations with Indigenous Peoples, 1914-1947

3.5.1Ireland & India 1914-1947 3.5.2The Middle East and Africa

4

The Wind of Change, 1947-1967

4.1

Decolonisation in Africa & Asia, 1947-1967

4.1.1Reasons for Decolonisation 4.1.2Decolonisation in East & West Africa 4.1.3Decolonisation in Central & South Africa 4.1.4Decolonisation in Asia

4.2

Colonial Policy & Administration, 1947-1967

4.2.1Relations & Business with Iran after WW2 4.2.2The 'Winds of Change'4.2.3The Suez Canal Crisis - 1956 4.2.4International Relations 1947-1967

4.3

Trade & Commerce, 1947-1967

4.3.1The Economic Impact of WW2

4.4

Attitudes Towards the Empire, 1947-1967

4.4.1Colonial Administrators: Cohen & Arden-Clarke 4.4.2Local Leaders in the Independence Movement 4.4.3Pan-Africanism in Nationalism

4.5

Post-Colonial Ties, 1947-1967

4.5.1Windrush & Immigration 4.5.2Commonwealth Immigrants Act 4.5.3Residual Impact of the Empire

4.6

Relations with Indigenous Peoples, 1947-1967

4.6.1Challenges to Colonial Rule Post 1947 4.6.2Kenya & the Mau Mau Uprising 4.6.3Nigeria & Rhodesia

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The Benefits of Trade

Debates Over Trade