4.3.1
The Economic Impact of WW2
Economic Impact of WW2
Economic Impact of WW2
The aftermath of WW2 impacted Britain's economic policies at home and abroad. Despite attempts to continue trading with the Empire, Britain's best trading partners lay in West Europe.
British economy after WW2
British economy after WW2
- 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:GDP had risen from 110% to 240%.
- To fund the war effort, Britain had been forced to sell all of its overseas assets.
- Now Britain was losing its colonies because of the rise of self-governing and nationalist movements.
The EFTA
The EFTA
- In 1958, the EEC was a free trade area including Germany and France. This would later evolve into the European Union.
- In 1960, Britain created the EFTA (European Free Trade Association) with Austria, Portugal, Sweden, Denmark, and Norway as a competitor, but these nations did not really trade much with each other.
- Britain applied to join the EEC but Charles de Gaulle of France vetoed Britain's entry.
- In 1967, Harold Wilson (the Labour Prime Minister) devalued the pound from £1 = $2.80 to £1 = $2.40. This aimed to increase exports, but Britain's manufacturing industries were unproductive and not innovative.
- By 1956, 63% of Britain's imports and 58% of Britain's exports went to Western Europe (Tomlinson, 2004).
Post-war reconstruction?
Post-war reconstruction?
- The Colonial Welfare Acts of 1940 and 1945 allocated £120 million to economic development in the colonies. In 1963, this organisation was renamed the Commonwealth Development Corporation.
- This had early success as the Empire’s exports increased from £319.6 million to £1.5bn in the 10 years from 1946 to 1956.
- However, Britain also spent £49 million on a failed nut farming scheme in Tanganyika, which destroyed the farmland on which it was planned.
1High Water Mark of the British Empire, 1857-1914
1.1Development of Imperialism, 1857-1890
1.2Imperial & Colonial Policy, 1857-1890
1.3Trade & Commerce, 1857-1890
1.4Attitudes Towards the Empire, 1857-1890
1.5Relations with Indigenous Peoples, 1857-1890
2Imperial Consolidation & Liberal Rule, 1890-1914
2.1Consolidation & Expansion in Africa, 1890-1914
2.2Imperial & Colonial Policy, 1890-1914
2.3Trade & Commerce, 1890-1914
2.4Attitudes Towards the Empire, 1890-1914
2.5Relations with Indigenous Peoples, 1890-1914
3Imperialism Challenged, 1914-1967
3.1Expansion & Contraction of Empire, 1914-1947
3.2Colonial Policy & Administration, 1914-1947
3.3Trade, Commerce & Economic Impact of War
3.4Attitudes Towards the Empire, 1890-1914
3.5Relations with Indigenous Peoples, 1914-1947
4The Wind of Change, 1947-1967
4.1Decolonisation in Africa & Asia, 1947-1967
4.2Colonial Policy & Administration, 1947-1967
4.3Trade & Commerce, 1947-1967
4.4Attitudes Towards the Empire, 1947-1967
4.5Post-Colonial Ties, 1947-1967
4.6Relations with Indigenous Peoples, 1947-1967
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1High Water Mark of the British Empire, 1857-1914
1.1Development of Imperialism, 1857-1890
1.2Imperial & Colonial Policy, 1857-1890
1.3Trade & Commerce, 1857-1890
1.4Attitudes Towards the Empire, 1857-1890
1.5Relations with Indigenous Peoples, 1857-1890
2Imperial Consolidation & Liberal Rule, 1890-1914
2.1Consolidation & Expansion in Africa, 1890-1914
2.2Imperial & Colonial Policy, 1890-1914
2.3Trade & Commerce, 1890-1914
2.4Attitudes Towards the Empire, 1890-1914
2.5Relations with Indigenous Peoples, 1890-1914
3Imperialism Challenged, 1914-1967
3.1Expansion & Contraction of Empire, 1914-1947
3.2Colonial Policy & Administration, 1914-1947
3.3Trade, Commerce & Economic Impact of War
3.4Attitudes Towards the Empire, 1890-1914
3.5Relations with Indigenous Peoples, 1914-1947
4The Wind of Change, 1947-1967
4.1Decolonisation in Africa & Asia, 1947-1967
4.2Colonial Policy & Administration, 1947-1967
4.3Trade & Commerce, 1947-1967
4.4Attitudes Towards the Empire, 1947-1967
4.5Post-Colonial Ties, 1947-1967
4.6Relations with Indigenous Peoples, 1947-1967
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