3.3.1

Economic Impact of WW1

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Economic Impact of WW1 on Britain

The economic impact of WW1 was substantial. Britain’s investments overseas were wiped out and her resources were drained through funding the war.

The economic impact of WW1 on Britain

The economic impact of WW1 on Britain

10% of all of Britain’s overseas investments were requisitioned by the government and sold off to fund the war effort.
In 1913, exports made up 30% of Britain's GDP. In the interwar period, this fell to 15% (Harley, 2004). Many of Britain's exports were replaced by rivals during the war. The historian, Eichengreen called this the 'beachhead effect'.
Unemployment rose to 10.9% on average during the interwar period from 6% before the war.
Britain's coal, iron, steel, and mining industries were hit particularly hard.

Cost of borrowing during the war

Cost of borrowing during the war

The UK's debt rose from £650m at the start of the war to £7.4 billion at the end of the war.
In the 1920s, 44% of government spending was spent on interest payments from the war debts.

The Great Depression

The Great Depression

The Great Depression started in 1929. Banks failed in America, global trade fell across the world and Britain was forced to abandon the Gold Standard exchange rate system.
The global economy only really recovered from the Great Depression when the world began rearming again, preparing to go to war with Hitler and the Germans.

Economic Impact of WW1 on the Empire

Despite the drain on Britain's economy, some areas of the Empire benefitted, gaining control over their own domestic markets.

Impact of WW1 on India

Impact of WW1 on India

India experienced inflation and shortages during the war.
Because Britain's factories were more devoted to the war effort, India's domestic manufacturers benefitted and won a higher market share relative to British manufacturers.

Impact of WW1 on Canada

Impact of WW1 on Canada

Canada benefited from the war. They exported more wheat to Britain and began to export more to the USA given its rising status as a power amid British weakness.

Impact of WW1 on Australia and New Zealand

Impact of WW1 on Australia and New Zealand

Australia and New Zealand were hit hard by the war’s disruption. They relied on the British market for a high percentage of their exports.

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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Imperial Defence

Inter-War Trade & Commerce