Economic Impact of WW2

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The Economic Impact of WW2

Britain and its Empire's economy suffered during WW2.

The economic impact of WW2 on Britain

On the home front, rationing would persist in Britain until 1954. Lots of buildings, homes, and factories were destroyed by the Luftwaffe's bombing.
Britain’s economic position was severely weakened by World War Two.
After World War Two, Britain's Debt to GDP ratio had risen from 110% to 240%.
To fund the war effort, Britain had been forced to sell all of its overseas assets. The most notable was Courtauld's American Viscose Corporation, which was sold in a firesale for half of its true value.
The British had accumulated huge debts to the United States because of the war effort and lend-lease (borrowing munitions from America during the war).

The trading impact of WW2 on Britain

Keynes, a famous British economist expected the UK to have a Balance of Payments deficit of $9bn after the war (this would be worth $135bn today).
Britain's balance of payments problems led to a dollar shortage that forced them to introduce quotas on imports.
The dollar shortage and balance of payments problems encouraged trade with Europe over the USA.
However, Neal (2004) says that Britain's desire to keep preferential trade agreements with its colonies separated Britain "economically & politically from both US & Europe".
In 1949, the government was forced to devalue the currency from £1 = $4.03 to £1 = $2.80.

Economic impact of WW2 on the Empire

During World War 2, German U-boats attacked British sea traffic. 11.7 million tonnes of shipping was sunk by German submarines.
In Asia, Japan had captured Singapore, Malaya, and many other British territories.

The Empire after WW2

Britain faced a balance of payments crisis and debt crisis after World War 2.
At the same time, nationalist movements in most colonies were resisting British control.
The Colonial Welfare Acts of 1940 and 1945 allocated £120 million to economic development in the colonies.

1High Water Mark of the British Empire, 1857-1914

1.1Development 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

1.2Imperial & 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

1.3Trade & Commerce, 1857-1890

1.3.1Trade & Commerce in the Empire

1.3.2Infrastructure of Trade & Commerce

1.3.3Products of Trade & Commerce

1.4Attitudes Towards the Empire, 1857-1890

1.4.1Explorers

1.4.2Missionaries

1.4.3Traders & Colonial Administrators

1.4.4Government Attitudes Towards Imperialism

1.5Relations with Indigenous Peoples, 1857-1890

1.5.1Relations with India

1.5.2Relations with South Africa

1.5.3British-Boer Relations

2Imperial Consolidation & Liberal Rule, 1890-1914

2.1Consolidation & 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

2.2Imperial & 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

2.3Trade & Commerce, 1890-1914

2.3.1The Benefits of Trade

2.3.2Costs of the Empire

2.3.3Debates Over Trade

2.4Attitudes 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

2.5Relations 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

3Imperialism Challenged, 1914-1967

3.1Expansion & 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

3.2Colonial Policy & Administration, 1914-1947

3.2.1Administration in India & Palestine

3.2.2Administration in Iraq & the Dominions

3.2.3Imperial Defence

3.3Trade, Commerce & Economic Impact of War

3.3.1Economic Impact of WW1

3.3.2Inter-War Trade & Commerce

3.3.3Economic Impact of WW2

3.4Attitudes 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

3.5Relations with Indigenous Peoples, 1914-1947

3.5.1Ireland & India 1914-1947

3.5.2The Middle East and Africa

4The Wind of Change, 1947-1967

4.1Decolonisation 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

4.2Colonial 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

4.3Trade & Commerce, 1947-1967

4.3.1The Economic Impact of WW2

4.4Attitudes 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

4.5Post-Colonial Ties, 1947-1967

4.5.1Windrush & Immigration

4.5.2Commonwealth Immigrants Act

4.5.3Residual Impact of the Empire

4.6Relations 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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