United Kingdom Background:
Great Britain, the dominant industrial and maritime power
of the 19th century, played a leading role in developing parliamentary
democracy and in advancing literature and science. At its
zenith, the British Empire stretched over one-fourth of the
earth's surface. The first half of the 20th century saw the
UK's strength seriously depleted in two World Wars. The second
half witnessed the dismantling of the Empire and the UK rebuilding
itself into a modern and prosperous European nation. As one
of five permanent members of the UN Security Council, a founding
member of NATO, and of the Commonwealth, the UK pursues a
global approach to foreign policy; it currently is weighing
the degree of its integration with continental Europe. A member
of the EU, it chose to remain outside the European Monetary
Union for the time being. Constitutional reform is also a
significant issue in the UK. The Scottish Parliament, the
National Assembly for Wales, and the Northern Ireland Assembly
were established in 1999, but the latter is suspended due
to bickering over the peace process.
United Kingdom Economy
Overview:
The UK, a leading trading power and financial center, is one
of the quartet of trillion dollar economies of Western Europe.
Over the past two decades the government has greatly reduced
public ownership and contained the growth of social welfare
programs. Agriculture is intensive, highly mechanized, and
efficient by European standards, producing about 60% of food
needs with only 1% of the labor force. The UK has large coal,
natural gas, and oil reserves; primary energy production accounts
for 10% of GDP, one of the highest shares of any industrial
nation. Services, particularly banking, insurance, and business
services, account by far for the largest proportion of GDP
while industry continues to decline in importance. GDP growth
slipped in 2001-03 as the global downturn, the high value
of the pound, and the bursting of the "new economy"
bubble hurt manufacturing and exports. Still, the economy
is one of the strongest in Europe; inflation, interest rates,
and unemployment remain low. The relatively good economic
performance has complicated the BLAIR government's efforts
to make a case for Britain to join the European Economic and
Monetary Union (EMU). Critics point out, however, that the
economy is doing well outside of EMU, and they point to public
opinion polls that continue to show a majority of Britons
opposed to the euro. Meantime, the government has been speeding
up the improvement of education, transport, and health services,
at a cost in higher taxes. The war in March-April 2003 between
a US-led coalition and Iraq, together with the subsequent
problems of restoring the economy and the polity, involve
a heavy commitment of British military forces.
For more
information please visit:
CIA
World Factbook
