Trade and Commerce 1947 - 67 - Post War Reconstruction Flashcards
Relationship with the colonies till the 1960s?
- Important to the british
- UK reserves limited in int. trade after WW2 - relied on Empire - or Commonwealth
% of imports from Commonwealth 1954? vs Western Europe?
Commonwealth = 48% - £1,634million
W. Europe = 24% - £818 million
% of exports to Commonwealth 1954? vs W. Europe?
Commonwealth = 48% - £1,333 million
W. Europe = 28% = £776 million
How much trade was with Commonwealth in the 1950s?
1/2
What % of overseas GB Investment went to commonwealth in 1956?
58%
When did economic relationship with commonwealth become less important?
1960s
Who did Britain turn to instead of Empire 1960s?
Western Europe and USA
Why did this shift occur?
Europe was developing rapidly and Britain saw they could benefit - proximity less travel time and no tariffs
In 1965, what % of British imports came from Commonwealth?
29.8% - decrease from 48% in 1954
What % of exports went to Commonwealth in 1965?
28% - a decrease from 48% in 1954
% of exports to Europe in 1965?
32.5% - 4.5% more then commonwealth
compared to 28% to Commonwealth in same year -
Why did Britain become torn between trade and commerce with Empire and Europe?
They still trusted Empire to provide but trade with Commonwealth rapidly decreased from 1954 - exports to europe more then to commonwealth by 4.5% - signifies shift away from empire for economic benefit
What kind of commercial goods became more profitable and favoured Europe?
Manufactured goods over raw materials (timber, cocoa, sugar, wool) - favoured industrialized Europe
When did GB confirm shift to Europe by joining the European Economic Community?
1973 - had tried to enter before in 1967
What happened to the pound sterling in 1967?
Its value decreased - devaluation
Who devalued the sterling currency`?
Harold Wilson - Labour PM
What did this do to the exchange rate between pound and dollar?
Lowered it to $2.40 per pound (from $2.80)
By how much was the value cut by? in percentage?
14%
What was this devaluation designed to do?
Cut UK deficit by making exports cheaper
How did this negatively impact UK economy?
Destroyed the sterling area - once a sign of British international influence - weakened britain’s economic position
Post War Reconstruction: 1947 - 67 - who was the main supplier of commodities?
USA
What economic challenges for GB arose after WW2?
They needed to earn dollars and build foreign exchange reserves
How did the UK react to this need?
Continued rationing - cut cost of food imports to save money
prioritised industrial production for exports to earn money
tried developing colonies particularly in Africa to build foreign reserves
Development of Colonies: what act was passed in 1940 and 45?
Colonial Development Act
What did the development acts of 1940 and 45 aim to do?
Expand agricultural practice and production, promote technology
What was established in 1948 to aid colonial development?
Colonial Development Cooperation
What was this body organised to do?
Organise colonial development projects and develop colonies ability to self sustain through developing industry, trade and agriculture
What area saw the biggest economic growth between 1946 and 56?
Asia in exports - £624 million increase from 1946 to 56 (Malaya, Burma)
Colonial Development schemes - was the Tanganyika groundnut scheme 1948 an overall success or failure?
Overall failure - abandoned in 1951 and cost £49million
Why was the Groundnut scheme set up?
There was a global shortage of cooking oil after WW2, and GB thought they could benefit by exporting it
What did Britain invest in the Groundnut sheme?
Tractors, equipement, railway, 5 million was to be cleared
Why did the scheme fail?
The terrain was difficult to farm, local attitudes and farming traditions were not taken into account
Where was one colonial development scheme successful?
Malaya - rubber production
Contributed to hard currency pool
- explains GB resistance to Malayan independence and aggressive attacks on communist insurgency 1948
