Source: https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-3-1-the-economic-impact-of-ww2

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# The Economic Impact of WW2

History: AQA A Level The British Empire, topic 4.3.1

## 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](https://image-v2.cdn.app.senecalearning.com/2018-08/02ef53bf-61c7-4582-8554-69e19c305063/money-investment-.jpg)

- 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](https://image-v2.cdn.app.senecalearning.com/2018-09/60432ff1-00d8-4f87-a4d1-078e7c9ec74f/business-export-shipping-container-.jpg)

- 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?](https://image-v2.cdn.app.senecalearning.com/2018-09/5938ae7b-dcec-40ea-a7b0-7a05b913ece2/increase-graph-up-arrow-.png)

- 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.

## Test yourself on The Economic Impact of WW2

- Which country did Britain NOT create the EFTA (European Free Trade Association) with in 1960?

[Practise this topic for free](https://app.senecalearning.com/classroom/course/4dd48474-7381-4a8b-8d47-f52ec6b25dfd/section/92620aec-43bc-411c-9220-a2409d9ae0ac/session)

- Previous topic: [4.2.4 International Relations 1947-1967](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-2-4-international-relations-1947-1967.md)
- Next topic: [4.4.1 Colonial Administrators: Cohen & Arden-Clarke](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-4-1-colonial-administrators-cohen-and-arden-clarke.md)

## History: AQA A Level The British Empire contents

### 1 High Water Mark of the British Empire, 1857-1914
- 1.1 Development of Imperialism, 1857-1890
  - [1.1.1 Empires over Time](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-1-empires-over-time.md)
  - [1.1.2 Key Questions About Empires](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-2-key-questions-about-empires.md)
  - [1.1.3 Expansion into Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-3-expansion-into-africa.md)
  - [1.1.4 History of Egypt](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-4-history-of-egypt.md)
  - [1.1.5 Control of Egypt](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-5-control-of-egypt.md)
  - [1.1.6 Control of Sudan](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-1-6-control-of-sudan.md)
- 1.2 Imperial & Colonial Policy, 1857-1890
  - [1.2.1 The British Empire & India](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-1-the-british-empire-and-india.md)
  - [1.2.2 The British Raj](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-2-the-british-raj.md)
  - [1.2.3 International Relations with other Powers](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-3-international-relations-with-other-powers.md)
  - [1.2.4 Scramble for Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-4-scramble-for-africa.md)
  - [1.2.5 The Informal Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-2-5-the-informal-empire.md)
- 1.3 Trade & Commerce, 1857-1890
  - [1.3.1 Trade & Commerce in the Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-3-1-trade-and-commerce-in-the-empire.md)
  - [1.3.2 Infrastructure of Trade & Commerce](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-3-2-infrastructure-of-trade-and-commerce.md)
  - [1.3.3 Products of Trade & Commerce](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-3-3-products-of-trade-and-commerce.md)
- 1.4 Attitudes Towards the Empire, 1857-1890
  - [1.4.1 Explorers](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-4-1-explorers.md)
  - [1.4.2 Missionaries](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-4-2-missionaries.md)
  - [1.4.3 Traders & Colonial Administrators](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-4-3-traders-and-colonial-administrators.md)
  - [1.4.4 Government Attitudes Towards Imperialism](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-4-4-government-attitudes-towards-imperialism.md)
- 1.5 Relations with Indigenous Peoples, 1857-1890
  - [1.5.1 Relations with India](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-5-1-relations-with-india.md)
  - [1.5.2 Relations with South Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-5-2-relations-with-south-africa.md)
  - [1.5.3 British-Boer Relations](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/1-5-3-british-boer-relations.md)

### 2 Imperial Consolidation & Liberal Rule, 1890-1914
- 2.1 Consolidation & Expansion in Africa, 1890-1914
  - [2.1.1 Consolidation & Expansion into Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-1-1-consolidation-and-expansion-into-africa.md)
  - [2.1.2 Consolidation & Expansion in South Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-1-2-consolidation-and-expansion-in-south-africa.md)
  - [2.1.3 Historical Interpretations: Expansion into Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-1-3-historical-interpretations-expansion-into-africa.md)
- 2.2 Imperial & Colonial Policy, 1890-1914
  - [2.2.1 Policy in India](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-2-1-policy-in-india.md)
  - [2.2.2 Policy in Egypt](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-2-2-policy-in-egypt.md)
  - [2.2.3 Native Policy in Colonies](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-2-3-native-policy-in-colonies.md)
  - [2.2.4 International Relations with Other Powers](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-2-4-international-relations-with-other-powers.md)
- 2.3 Trade & Commerce, 1890-1914
  - [2.3.1 The Benefits of Trade](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-3-1-the-benefits-of-trade.md)
  - [2.3.2 Costs of the Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-3-2-costs-of-the-empire.md)
  - [2.3.3 Debates Over Trade](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-3-3-debates-over-trade.md)
- 2.4 Attitudes Towards the Empire, 1890-1914
  - [2.4.1 Key Administrators - Chamberlain & Rhodes](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-1-key-administrators-chamberlain-and-rhodes.md)
  - [2.4.2 Key Administrators - Baring & Milner](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-2-key-administrators-baring-and-milner.md)
  - [2.4.3 Key Administrators - Curzon](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-3-key-administrators-curzon.md)
  - [2.4.4 Government Attitudes to the Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-4-government-attitudes-to-the-empire.md)
  - [2.4.5 National Efficiency & the Boer War](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-5-national-efficiency-and-the-boer-war.md)
  - [2.4.6 Popular Attitudes Towards Imperialism](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-4-6-popular-attitudes-towards-imperialism.md)
- 2.5 Relations with Indigenous Peoples, 1890-1914
  - [2.5.1 Challenges in India](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-1-challenges-in-india.md)
  - [2.5.2 Challenges in Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-2-challenges-in-africa.md)
  - [2.5.3 Challenges in South Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-3-challenges-in-south-africa.md)
  - [2.5.4 Historical Interpretations of the Boer War](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-4-historical-interpretations-of-the-boer-war.md)
  - [2.5.5 Relations & Business with Iran](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/2-5-5-relations-and-business-with-iran.md)

### 3 Imperialism Challenged, 1914-1967
- 3.1 Expansion & Contraction of Empire, 1914-1947
  - [3.1.1 Impact of WW1](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-1-1-impact-of-ww1.md)
  - [3.1.2 Palestine](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-1-2-palestine.md)
  - [3.1.3 Ireland & WW1](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-1-3-ireland-and-ww1.md)
  - [3.1.4 Impact of WW2 on the British Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-1-4-impact-of-ww2-on-the-british-empire.md)
- 3.2 Colonial Policy & Administration, 1914-1947
  - [3.2.1 Administration in India & Palestine](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-2-1-administration-in-india-and-palestine.md)
  - [3.2.2 Administration in Iraq & the Dominions](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-2-2-administration-in-iraq-and-the-dominions.md)
  - [3.2.3 Imperial Defence](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-2-3-imperial-defence.md)
- 3.3 Trade, Commerce & Economic Impact of War
  - [3.3.1 Economic Impact of WW1](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-3-1-economic-impact-of-ww1.md)
  - [3.3.2 Inter-War Trade & Commerce](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-3-2-inter-war-trade-and-commerce.md)
  - [3.3.3 Economic Impact of WW2](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-3-3-economic-impact-of-ww2.md)
- 3.4 Attitudes Towards the Empire, 1890-1914
  - [3.4.1 Colonial Administrators](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-1-colonial-administrators.md)
  - [3.4.2 Trusteeship](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-2-trusteeship.md)
  - [3.4.3 Gandhi](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-3-gandhi.md)
  - [3.4.4 Montagu, Haig & Linlithgow](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-4-montagu-haig-and-linlithgow.md)
  - [3.4.5 Cameron, Mitchell, Cohen & Furse - African Admins](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-5-cameron-mitchell-cohen-and-furse-african-admins.md)
  - [3.4.6 Imperialist Ideals](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-4-6-imperialist-ideals.md)
- 3.5 Relations with Indigenous Peoples, 1914-1947
  - [3.5.1 Ireland & India 1914-1947](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-5-1-ireland-and-india-1914-1947.md)
  - [3.5.2 The Middle East and Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/3-5-2-the-middle-east-and-africa.md)

### 4 The Wind of Change, 1947-1967
- 4.1 Decolonisation in Africa & Asia, 1947-1967
  - [4.1.1 Reasons for Decolonisation](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-1-1-reasons-for-decolonisation.md)
  - [4.1.2 Decolonisation in East & West Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-1-2-decolonisation-in-east-and-west-africa.md)
  - [4.1.3 Decolonisation in Central & South Africa](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-1-3-decolonisation-in-central-and-south-africa.md)
  - [4.1.4 Decolonisation in Asia](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-1-4-decolonisation-in-asia.md)
- 4.2 Colonial Policy & Administration, 1947-1967
  - [4.2.1 Relations & Business with Iran after WW2](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-2-1-relations-and-business-with-iran-after-ww2.md)
  - [4.2.2 The 'Winds of Change'](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-2-2-the-winds-of-change.md)
  - [4.2.3 The Suez Canal Crisis - 1956](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-2-3-the-suez-canal-crisis-1956.md)
  - [4.2.4 International Relations 1947-1967](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-2-4-international-relations-1947-1967.md)
- 4.3 Trade & Commerce, 1947-1967
  - [4.3.1 The Economic Impact of WW2](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-3-1-the-economic-impact-of-ww2.md)
- 4.4 Attitudes Towards the Empire, 1947-1967
  - [4.4.1 Colonial Administrators: Cohen & Arden-Clarke](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-4-1-colonial-administrators-cohen-and-arden-clarke.md)
  - [4.4.2 Local Leaders in the Independence Movement](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-4-2-local-leaders-in-the-independence-movement.md)
  - [4.4.3 Pan-Africanism in Nationalism](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-4-3-pan-africanism-in-nationalism.md)
- 4.5 Post-Colonial Ties, 1947-1967
  - [4.5.1 Windrush & Immigration](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-5-1-windrush-and-immigration.md)
  - [4.5.2 Commonwealth Immigrants Act](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-5-2-commonwealth-immigrants-act.md)
  - [4.5.3 Residual Impact of the Empire](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-5-3-residual-impact-of-the-empire.md)
- 4.6 Relations with Indigenous Peoples, 1947-1967
  - [4.6.1 Challenges to Colonial Rule Post 1947](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-6-1-challenges-to-colonial-rule-post-1947.md)
  - [4.6.2 Kenya & the Mau Mau Uprising](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-6-2-kenya-and-the-mau-mau-uprising.md)
  - [4.6.3 Nigeria & Rhodesia](https://senecalearning.com/en-gb/revision-notes/a-level/history/aqa/4-6-3-nigeria-and-rhodesia.md)