32. British economy. Chief industries. Trade Unions.

British economy

The British economy is primarily based on private enterprise. However, some industries were nationalized after World War II. This was typical nationali­zation carried out on capitalist lines.

The national economy of Great Britain is vitally dependent on foreign trade. Moreover, this dependence is growing in recent years. About a third of the industrial products of the country is exported. With the loss of the colonies the economy has become extremely vulnerable (уязвимый) to balance-of-payments problems.

The typical pattern of Britain's overseas trade has been a trade deficit (when imports of products exceed in value the exports of the country). This has a negative influence on the development of the country and especially on its finances. However, the trade deficit is often offset by a surplus on so-called invisible trade due to the earnings of the country from international travel, shipping, tourism and financial services.

Agriculture supplies nearly two-thirds of the country's food and employs about 2.5 per cent of Britain's employed labour force. More than two-thirds of the arable land and pastures belong to the landlords. These holders rent the land and employ agricultural workers. Technological progress in agriculture has enhanced class differentiation in agriculture as a result of which more than half of the holders of small-scale farming units were ruined in the last two-three decades.

The structure of the economy has experienced serious changes which are quite common for all developed capitalist countries: there has been a decline in the relative importance of manufacturing and a rise in that of services.

Since the middle 19^th century, when the rapid growth of industry, commerce and shipping was accompanied by Britain’s development as an international trading centre, overseas trade has been of vital importance to the economy.

Chief industries

As in other developed countries, manufacturing plays a vital role in the economy, as well as energy production.

1. Electricity

The first public supply of electricity was in 1881. In 1948 all municipal and private undertakings in Great Britain were acquired under the Electricity Act 1947 and vested in the British Electricity Authority. The conventional steam power stations are numerously located in Midland England and in the South-East. The major hydro-electric power stations are operating in Scotland because of the available water resources.

2. Manufacturing

Manufacturing plays a vital role in the British economy. It accounts for some 24 per cent of the GDP, 24 per cent of the employed labour force is engaged in manufacturing, 75 per cent of the visible exports of the state consists of manufactured or semi-manufactured goods. Most manufacturing is in the hands of private enterprise. The greater parts of the iron and steel and shipbuilding industries are nationalized. These industries are in serious decline not only due to the fall of demand both at home and abroad, but also due to the hostile attitude of the Conservative government. In general the British industry, manufacturing included, is facing serious difficulties. Tough foreign competition on the world markets adds up to these difficulties.

3. Metals

Metals include iron, steel, non-ferrous industry (цветные металлы). The main steel producing areas are Yorkshire and Humberside, Wales (26%), The Northern region (16%), Scotland(11%) and the West Midlands (5%).

3. The mechanical engineering industry

Electronics is one of the most important sectors of British industry, which is developing fast and wide. The Thames valley is a leading area with a major concentration of high technology industries called the ‘Sunrise Strip’. Another area is situated near Cambridge.

3. The motor vehicle is the largest single manufacturing industry in Britain and, in spite of its recent decline, is still a major exporting industry. Britain is a major producer and exporter of agricultural tractors, especially of wheeled tractors. Birmingham and Coventry are major centres of the tractor industry.

4. aerospace industry is one of he largest and comprehensive in Western Europe. The products of the industry include civil and military aircraft, helicopters, aero-engines, guided weapons, hovercraft and space vehicles.

5. the chemical industry

The manufacturing of of all kinds of chemicals is developing intensively and accounts for about 16 %of the British manufacturing exports, placing the country among the major chemical exporting nations of the world. The largest concentration of the heavy chemical industry is in the south of Lancashire, Teesmouth and the West Midlands.

3. The textile industry (in cotton and wool manufacture mainly). The main places are: Lancashire and Yorkshire, Manchester

4. Leather and footwear industry.

The British leather and footwear industries are among the most important industries and Great Britain is the world’s largest exporter of both leather and leather footwear. Its factories re scattered throughout the country, the main regions and centres being Midland England, London, Bristol.

3. The food, drink and tobacco industries are developed all throughout the country.

4. The pottery (гончарный) industry is centred in the Potteries in Shaffordshireand it supplies almost all home needs for domestic and industrial pottery.

5. Paper and board manufacture

Trade unions

The trade unions were formed during the period of the growth and rise of capitalism. They had as their main task the raising of the material and cultural level of the proletariat and the extension of their political rights. The craftsmen were the first to form permanent unions. Miners and cotton textile workers also achieved viable(жизнеспособный) organization. This extension was carried further during the two World Wars. After WWII unionism grew rapidly among white-collar workers. And now there are more than 460 unions of different importance, twenty of the unions have more than 100,000 members each, but others are not very big. Most unions are affiliated to the Labour Party and hand over a small part of their membership subscriptions. The activities of trade unions vary:

1. provision of benefits(выгоды)to member(to insure members against unemployment, ill health, old age).

2. collective bargaining (ведение переговоров)(TU are able to negotiate with employers over wages and working conditions)

3. Industrial action(they may organize strikes or residents to lockouts)

4. political activity(may promote legislation favorable to the interests of their members).

But today TUs play not a progressive but a reactionary role, that’s why they need to be replaced by some sort of fresh organizations.

The majority of TUs are the members of TUC(congress), which was first assembled in 1868. They campaign for a fair deal at work and for social justice at home and abroad. They negotiate in Europe and at home build links with political parties, business, local communities and wider society.