Economics 1947-1967

Question 1

What did the Colonial Development and Welfare Act 1945 do?

Answer 1

Increased available aid to over £120 million over 10 years

Question 2

When was the Colonial Development Corporation introduced?

Answer 2

1948

Question 3

What did the Colonial Development Corporation do?

Answer 3

co-ordinated major projects, developed self sustainable agriculture, industry and trade

Question 4

How much did the 1948 Tanganyika Groundnut Scheme cost?

Answer 4

£49 million

Question 5

When was the Karbia Dam built in North Rhodesia?

Answer 5

1949

Question 6

What post war investment was established in Kenya in 1946?

Answer 6

Kenya Tea Development Authority

Question 7

What was the direct effect of the successful post war colonial developments?

Answer 7

Directly affected Colonial Policy
e.g Malaya (improved rubber production essential $ earner so GB fought the communist insurgency and delayed independence)

Question 8

At the start of the 1950’s what percentage of the workforce was employed by British manufacturing?

Answer 8

40%

Question 9

What fraction of global manufacturing exports was Britain responsible for at the start of the 1950s?

Answer 9

1/4

Question 10

Between 1955 and 1969 how much had prices increased by?

Answer 10

63%

Question 11

Between 1955 and 1969 how much had wages increased by?

Answer 11

130%

Question 12

How many homes were built every year in the 1950’s and 1960s?

Answer 12

over 200,000

Question 13

Why did Britain’s main competitors rapidly overtake Britain in productivity in the 1960’s?

Answer 13

-Lack of Willingness/ ability of GB producers to innovate
-Poor relations between trade unions and the government
-Lack of Government investment in infrastructure (too focused on building a welfare state)

Question 14

What happened in the 1960’s due to the decline in competitiveness, combined with a rise in consumer demand?

Answer 14

Britain’s trade deficit increased and the value of the £ weakened

Question 15

In 1958 what percentage of GB overseas investment was still in imperial companies or government?

Answer 15

58%

Question 16

In 1946 what percentage of British exports went to the commonwealth?

Answer 16

46.1%

Question 17

By 1965 what percentage of British exports went to the commonwealth?

Answer 17

27.9%

Question 18

How did the Western European economy recover so quickly?

Answer 18

• Marshalle Aid and US investment and trade
  -Post-war takeover of liberal democracies moved further away from protectionism
• Scientific and technological advances accelerated new and improving industries
  (By the late 1950’s W Europe was enjoying full employment, high growth rates just as Britain had a decade earlier)

Question 19

When did the European Economic Community form?

Answer 19

1957

Question 20

The Conservative government resisted joining the EEC in 1957 and instead chose to rely on …..

Answer 20

traditional base of own “common market”

Question 21

What years did GB apply for EEC membership?

Answer 21

1963 and 1967

Question 22

In what year was the sterling devaluation?

Answer 22

1967
(destroyed “sterling area”)

Question 23

When did GB join the EEC?

Answer 23

1973

Question 24

Why was the Sterling Devaluation in 1967 so significant?

Answer 24

-Often referred to as the key moment that proved GB relative economic decline
-Devaluation reduces the cost of exports, so countries are more likely to buy British, however there is an increase in the cost if imports so domestic consumers more likely to buy British= exports increase and imports decrease
=Reduced trade deficits

Question 25

What happened in June 1967?

Answer 25

Six Day war in middle east which majorly disrupts trade

Question 26

What was the percentage of devaluation against the dollar in November 1967?

Answer 26

14%

Question 27

What was the status of GB economy by 1967?

Answer 27

Devaluation clear proof that Gb and £ no longer as economically powerful as before WW11
but despite the economic decline evident in the 1960s, Gb still in a more prominent position in global economic system because of legacy of Imperial Wealth than any other nations of similar size