Britain's Economic Evolution: From Industrial Revolution Glory to Modern Challenges

1. 1840年代完成了工业革命，以骄人的成绩确立了世界工业霸主的地位。（1851年伦敦世界博览会召开-“水晶宫”，工业革命成果展示。）英国在1850 年，英国生产了全世界金属制品、棉织品和铁产量的一半，煤产量占全球的2/3。 其他如造船业、铁路修筑都居世界首位。1860 年，英国工业品占全球的40-50% ，欧洲工业品的55-60%. 1870年，英国钢产量仍占世界产量一半。 1860年，英国对外贸易占世界贸易总40%。英镑成为国际货币（今天仍然是主要国际货币，硬通货）。伦敦成为最主要世界金融中心之一，一直到今天众多金融交易指标世界第一（国家主权债务，企业债务，黄金交易等）。

2. British Economy: relative decline from the 19th to the 21st century: world economic hegemony to the fifth largest economy • Britain was the largest economy before the 1890’s, accounting for 1/3 of the world manufactured goods, half of the world coal and iron, half its cotton (Egypt, India, South Africa). • Britain was overtaken by the U.S. and Germany at the end of 19th and early 20th in terms of industrial output and GNP (gross national product). • In terms of per capita GDP, Britain fell behind the U.S .(in 1900), Germany (early 20th century), France (1950’s )and Italy (in 1960’s) and by many other European and Mid-Eastern countries in the late 20th century.

3. Reasons for its economic decline • The collapse of the British empire • Huge losses/damages in the two world wars (high war debts ) • Huge military expenditures (many overseas military bases and troops) • Insufficient industrial investment(cold war, military spending, welfare spending, poor growth, higher return on profit overseas)

4. British Economy in the late 20th century • 1970’s saw a bad period of the British economy. Oil shock resulting from oil embargo by OPEC countries. result: stagflation: stagnation (no or slow economic development) + inflation (price hikes for products and services, 25%) • Mrs. Thatcher : economic reform- recovery, but higher employment. • Major measures: Spending cut, tax reform, foreign exchange freed, privatization of state companies, economic deregulation, restriction of labor strikes.

5. In spite of relative decline of its economy, Britain is still a very developed country • Britain is still the 5th largest economy(2.8 trillion USD) while its territory size is the 75th and its population is 22nd largest population(2015 World Bank statistics). • British per capital GDP ranks 29th in the world, about USD 41,000 in 2015(ppp, IMF estimation). China: ~USD 8,400 in 2015，(14,000 in PPP, IMF estimation). • A member of G-7 and G-20, EU, OECD, the British Commonwealth of Nations. • One of the largest (3rd) investors overseas and the largest Direct Foreign Investment recipient in Europe(ranking 3rd or 4th in the world). • One of the largest importers of manufactured goods and raw materials(1/5).

6. Britain boasts many of the world Global Fortune 500 companies（data released in July, 2016, 34 in total; ranking 5th ), after US(134), China(131), Japan(79), Germany(45), and ahead of France(29); and many world renowned brands and companies such as Burberry, Unilever, BA and BP, HSBC A major exporter of services(only after the US, in particularly financial services and education) and industrialized commodities- Airbus planes, luxurious cars, Land Rover and Royce-Rolls. London: financial center, IB Pound(one of the most valuable currency 1P=1.25 USD): important foreign exchange reserve currency and currency for international payment.

8. The current economic situation • The British economy is based on the Anglo-Saxon model, focusing on the principles of • private ownership, • free market economy: liberalization (laisser-faire) • profit motive • low taxation and • Low regulation • Free trade-globalization

9. Largest sector of Economy: service industries (tertiary industries) • The British service sector, however, has grown substantially, and now makes up about 73% of GDP. • The service sector of the United Kingdom is dominated by financial services, especially in banking and insurance. London is one of the world's largest financial centres with the London Stock Exchange, the London International Financial Futures and Options Exchange, and the Lloyd's of London insurance market all based in the city. The Scottish capital, Edinburgh also has a large financial sector, the sixth largest in Europe. • Tourism is very important to the British economy. With over 27 million tourists a year, the United Kingdom is ranked as the sixth major tourist destination in the world. • Other tertiary industries: Retailing, shipping, international trade, education, etc.

10. Secondary Industries • The British manufacturing sector, however, has greatly diminished since World War II, still a significant part of the economy, one-sixth of national output in 2003. • The Aerospace Industry (ABC: major players in the future aerospace industry) • machine tools, industrial equipment, scientific equipment, shipbuilding (latest aircraft carriers: Elizabeth & Prince Charles ), motor vehicles and parts, electronic machinery, computers, processed metals, chemical products, coal mining, oil production, paper, food processing, textiles, clothing and other consumer goods.

11. The British motor industry is a significant part of this sector, although all large-volume producers are now foreign-owned (Opel, Volkswagen, Toyota, Honda, Peugot, Nissan, Ford, GM, BMW, Rover , Rolls-Royce). • Civil and defence aircraft production is led by the United Kingdom‘s largest aerospace firm, BAE Systems (Harrier, Jaguar,) Concord, and the pan-European consortium known as Airbus (2nd largest producer of jumbo passenger jets). Rolls-Royceholds a major share of the global aerospace engines market. • The chemical and pharmaceutical industry is also strong in the UK, with the world’s second and third largest pharmaceutical firms (GlaxoSmithKline 葛兰素史克and AstraZeneca阿斯利康公司, respectively) being based in the UK. • Food & drink: Diageo(largest producer of spirits and beer) whiskey, Cadbury: largest producer of confectionary now bought by US Kraft Company; SAB Miller, beer manufacturer.

12. http://www.ftchinese.com/story/001068572?page=2 孙正义的秘密赌局：软银收购ARM的前前后后

13. Primary Industries: • Large percentage of arable land, but high labor renders products uncompetitive enough • Chief farm produce: wheat, barley, oats, potatoes, sugar beets, beef, dairy, and fishes(fish and chip, the most well-known British dish- in North Sea). • <2% labor force, ~58% of the food needed. • Highly mechanized and efficient. • Advanced technology and farm machinery

14. Agriculture: small but highly productiveEnergy production: one of largest energy producers and exporters • Britain is an industrialized country, but its agriculture remains important. The country is not very large, but nearly 80% of its land area or about 30 million acres, can be used for agriculture. There are about 243,500 farming units which directly employ about 2% of the total population. The average total area of fulltime holdings is about 287 acres. More than 60% of the farming units belong to the farmers who use them. Britain’s agriculture is highly mechanized and there are over half a million tractors and some 60,000 harvesters.

15. Currency & Banks • The currency of the UK is pound sterling, represented by the symbol £. Before Feb. 15, 1971, 1£=20 shillings, 1 shilling=12 pence. After that date, 1 £=100 pence. • Nickle coins: 50 p, 10p, 5p; bronze coins: 2p, 1p and ½ p. • Notes: £1, £5, £10, £20, 50 . • The Bank of England is the central bank and is responsible for issuing currency, although banks in Scotland and Northern Ireland retain the right to issue their own notes, subject to retaining enough Bank of England notes in reserve to cover the issue. • The UK chose not to join the Euro on that currency's launch, although the government has pledged to hold a public referendum for deciding membership if "five economic tests" are met. Currently UK public opinion is against the notion. • Control over the economy is exercised by the Chancellor of the Exchequer (currently), but the Prime Minister (currently David Cameron), is First Lord of the Treasury（第一国库大臣 ）, with the Chancellor of the Exchequer being Second Lord.

16. The coins

18. Fortune Global 500-UK companies and top brands What do you know about the well-known British brands and companies, and products?

19. Global Fortune 500 in 2015英国占了34家公司，最大公司为英国石油，排名全球第十；

22. Interbrand Most Valuable brands in 2016 (UK)

23. 在18世纪英国经历了工业革命后,迅速成为世界上最强大的国家,英国从17世纪—19世纪末,这期间经济实力足以抗衡全世界,军事方面,陆军居世界第一,它的皇家海军更为强大,有着当时最先进的武器,让全世界的国家都胆颤心惊,被世界各国称为“海上霸主”军舰称为“无敌军舰”,也是世界上最强.空军也很厉害.工业最发达,英国当时是世界上第一个工业国家,自第一次世界大战后,英国也是世界上第一个走出世界经济危机的国家.火车,潜艇,战列舰,战斗机,超音速战斗机,喷火式战斗机,驱逐舰,坦克,雷达等都是英国发明的.在19世纪,它的文明达到了顶峰,全世界3/1的都是英国的殖民地,是当时世界上殖民地最多的国家.也被称为“殖民帝国”.英国是西方列强之首,帝国主义国家的“领头羊”—最强大的.是世界上第一强国.但自第二次世界大战之后,英国就迅速地从世界帝国顶峰上滑下来,但现在21世纪英国的辉煌终究过去了,可它还是世界一流强国,目前经济居世界第六位,海军第三位,空军也是第三位

24. http://data.worldbank.org/data-catalog/GDP-ranking-table • http://www.economywatch.com/economic-statistics/economic-indicators/GDP_Per_Capita_PPP_US_Dollars/ http://www.fortunechina.com/fortune500/c/2016-07/20/content_266955.htm http://www.maigoo.com/news/466616.html http://www.fortunechina.com/search/company/country/%e8%8b%b1%e5%9b%bd http://www.fortunechina.com/search/f500beta/search.do?facetAction=a%23year%232016&facetStr=country%23%E6%89%80%E5%B1%9E%E5%9B%BD%E5%AE%B6%23%E7%BE%8E%E5%9B%BD%3Btype%23%E6%89%80%E5%B1%9E%E6%A6%9C%E5%8D%95%23%E4%B8%96%E7%95%8C500%E5%BC%BA%3B&curPage=1&sort=1&key= http://news.163.com/16/1011/14/C33SB71F000181NC.html http://tech.qq.com/a/20160208/022815.htm http://interbrand.com/best-brands/best-global-brands/2016/