Economy
of
United Kingdom
The United Kingdom has the sixth-largest economy in the world, has the second-largest economy in the European Union, and is a major international trading power. A highly developed, diversified, market-based economy with extensive social welfare services provides most residents with a high standard of living.
The United Kingdom’s economy continues to recover from turmoil in the financial markets. It entered a recession in the third quarter of 2008 and exited recession in the fourth quarter of 2009. The final quarter of 2010 saw the economy contract again by 0.5% over the quarter, but this has been largely attributed to higher temporary factors, and growth resumed in the first quarter of 2011. In response to the financial crisis, the British Government implemented a wide-ranging stability and recovery plan that included a fiscal stimulus package, bank recapitalization, and credit stimulus schemes. Extraordinary monetary policy measures, including very low interest rates (0.5%) and a quantitative easing program, remain in place. Despite this, domestic demand remains weak and unemployment has yet to return to pre-recession levels, standing at 7.7% in April 2011. However, the Conservative-Liberal Democrat coalition government that took power in May 2010 has initiated a 5-year austerity program, which aims to lower the U.K.’s budget deficit from over 11% of GDP in 2010 to near 1% by 2015.
As a leading international financial center, London was severely impacted by the financial crisis in 2008. U.K. banks laid off thousands of workers and scaled back their international operations during the crisis, although many are now rehiring. Two U.K. banks, Northern Rock and Bradford & Bingley, were nationalized, and the British Government took significant shares in the Royal Bank of Scotland and Lloyds Banking Group. In June 2011, the U.K. announced plans to re-privatize Northern Rock. In spite of the damage caused by the financial crisis, London’s financial exports contribute greatly to the United Kingdom’s gross domestic product and will continue to do so. Over 1 million people in the U.K. work in financial services, nearly 4% of total U.K. employment. About one-third are employed in London. The U.K.’s financial services industry contributed £124 billion ($200 billion) to U.K. GDP in 2009, accounting for 10% of total economic output. London is a global leader in emissions trading, a center for Islamic banking, and home to the Alternative Investment Market (AIM).
GDP (at current market prices; International Monetary Fund (IMF), 2010): $2.247 trillion.
Annual growth rate (IMF, 2010): +1.25%.
Per capita GDP (at current market prices; IMF, 2010): $36,120.
Natural resources: Coal, oil, natural gas, tin, limestone, iron ore, salt, clay, chalk, gypsum, lead, silica.
Agriculture (0.8% of GDP; U.K. Office for National Statistics (ONS), 2009): Products--cereals, oilseed, potatoes, vegetables, cattle, sheep, poultry, fish.
Industry (15.9% of GDP; ONS, 2009): Types--steel, heavy engineering and metal manufacturing, textiles, motor vehicles and aircraft, construction (23.8% of GDP), electronics, chemicals.
Services (83.3% of GDP; ONS, 2009): Types--financial, business, distribution, transport, communication, hospitality.
Trade (at current prices, 2010 exchange rates; ONS, 2010): Exports of goods and services--$664.3 billion. Major goods exports--manufactured goods, fuels, chemicals, food, beverages, tobacco. Major export markets--U.S., European Union. Imports of goods and services--$740.8 billion. Major goods imports--manufactured goods, machinery, fuels, foodstuffs. Major import suppliers--U.S., European Union, and China.
Geography
of
United Kingdom
Area: 243,000 sq. km. (93,000 sq. mi.); slightly smaller than Oregon.
Cities: Capital--London (metropolitan pop. about 7.56 million). Other cities--Birmingham, Glasgow, Leeds, Sheffield, Liverpool, Bradford, Manchester, Edinburgh, Bristol, Belfast.
Terrain: 30% arable, 50% meadow and pasture, 12% waste or urban, 7% forested, 1% inland water.
Land use: 25% arable, 46% meadows and pastures, 10% forests and woodland, 19% other.
Climate: Generally mild and temperate; weather is subject to frequent changes but to few extremes of temperature.
Government
of
United Kingdom
The United Kingdom does not have a written constitution. The equivalent body of law is based on statute, common law, and "traditional rights." Changes may come about formally through new acts of Parliament, informally through the acceptance of new practices and usage, or by judicial precedents. Although Parliament has the theoretical power to make or repeal any law, in actual practice the weight of 700 years of tradition restrains arbitrary actions.
Executive power rests nominally with the monarch but actually is exercised by a committee of ministers (cabinet) traditionally selected from among the members of the House of Commons and, to a lesser extent, the House of Lords. The prime minister is normally the leader of the largest party in the Commons, and the government is dependent on its support.
Parliament represents the entire country. It legislates for the entire country in matters that are not devolved to the legislatures in Scotland, Wales, and Northern Ireland, such as foreign policy, energy policy, immigration and border control, and monetary policy. The devolved legislatures in Scotland, Northern Ireland, and Wales have varying degrees of legislative authority over other matters. England does not have its own separate legislative body and Parliament can therefore legislate in all fields for England. As of May 2010, the maximum parliamentary term was 5 years, and the prime minister could ask the monarch to dissolve Parliament and call a general election at any time. Following the May 6, 2010 election, however, the newly-formed Conservative-Liberal Democrat coalition government announced plans to institute fixed 5-year Parliament terms, in which the only way to remove a government between elections would be a vote of no confidence with the support of 55% of members of Parliament (MPs). This proposed legislation has not yet been enacted. The focus of legislative power is the 650-member House of Commons, which has sole jurisdiction over finance. The House of Lords, although shorn of most of its powers, can still review, amend, or delay temporarily any bills except those relating to the budget. The House of Lords has more time than the House of Commons to pursue one of its more important functions--debating public issues. In 1999, the government removed the automatic right of hereditary peers to hold seats in the House of Lords. The current house consists of appointed life peers who hold their seats for life and 92 hereditary peers who will hold their seats only until final reforms have been agreed upon and implemented. The judiciary is independent of the legislative and executive branches but cannot review the constitutionality of legislation.
Following approval of referenda by Scottish and Welsh voters in 1997, the British Government established a Scottish Parliament and a Welsh Assembly, both of which were launched in 1999. Scotland, Wales, and Northern Ireland now each have legislative and executive bodies that legislate on and administer many matters, though there is significant variation in the extent of powers enjoyed by each of the devolved governments. The devolved governments have taken over many of the functions previously performed by the Scottish, Welsh, and Northern Ireland offices, whose primary purpose now is to coordinate between Westminster and the devolved administrations and to represent their interests in non-devolved matters. Scotland has always maintained different systems of law (Scots Law), education, local government, judiciary, and national church (the Church of Scotland instead of the Church of England).
Northern Ireland had its own Parliament and prime minister from 1921 to 1973, when the British Government imposed direct rule in order to deal with the deteriorating political and security situation. From 1973, the Secretary of State for Northern Ireland, based in London, was responsible for the region, including efforts to resolve the issues that lay behind the "the troubles."
By the mid-1990s, gestures toward peace encouraged by successive British and Irish governments and by President Bill Clinton began to open the door for restored local government in Northern Ireland. A Provisional Irish Republican Army (PIRA) cease-fire and nearly 2 years of multiparty negotiations, led by former U.S. Senator George Mitchell, resulted in the Belfast Agreement (also known as the Good Friday Agreement) of April 10, 1998, which was subsequently approved by majorities in both Northern Ireland and the Republic of Ireland. Key elements of the agreement include devolved government, a commitment of the parties to work toward "total disarmament of all paramilitary organizations," police reform, and enhanced mechanisms to guarantee human rights and equal opportunity. The Good Friday Agreement also called for formal cooperation between the Northern Ireland institutions and the Government of the Republic of Ireland, and it established the British-Irish Council, which includes representatives of the British and Irish Governments as well as the devolved Governments of Northern Ireland, Scotland, and Wales. Devolved government was reestablished in Northern Ireland in December 1999, although certain key functions, such as policing and justice powers, remained under Westminster control.
The Good Friday Agreement provides for a 108-member elected Assembly, overseen by a 12-minister Executive Committee (cabinet) in which unionists and nationalists share leadership responsibility. Northern Ireland elects 18 representatives to the Westminster Parliament in London. However, the five Sinn Fein members of Parliament, who won seats in the last election, follow an abstentionist policy in which they refuse to take their seats, although they do maintain offices and perform constituency services. Progress has been made on each of the key elements of the Good Friday Agreement. Most notably, a new, more-representative police service has been instituted, and PIRA and the other main republican and loyalist paramilitary groups have decommissioned their weapons. However, a small number of splinter republican groups continue to oppose the peace process and engage in violence, particularly against the police, U.K. military, and the justice sector. Disagreements over the implementation of elements of the agreement and allegations about PIRA's continued engagement in paramilitary activity troubled the peace process for several years. In October 2002, Northern Ireland's devolved institutions were suspended amid allegations of IRA intelligence gathering at Stormont, the seat of Northern Ireland's government. Assembly elections scheduled for May 2003 were postponed. Elections were held in November 2003, but the Assembly remained suspended. Finally, in 2007, the parties signed the St. Andrews Agreement, which paved the way for the Northern Ireland Government to stand up and for the devolution of powers to Belfast to occur. Responsibility for police and justice issues in Northern Ireland were the last component of devolution to take place; the transfer of these powers from London to Belfast occurred on April 12, 2010, having been provided for by the signing of the Hillsborough Agreement on February 4, 2010. The United States remains firmly committed to the peace process in Northern Ireland and to the full implementation of the Good Friday Agreement and subsequent agreements, which it views as the best means to ensure lasting peace. The United States has condemned all acts of terrorism and violence, perpetrated by any group.
The United States also is committed to Northern Ireland's economic development, and appointed an Economic Envoy for Northern Ireland in September 2009 to work with the Northern Ireland Government and private sectors in fostering new opportunities for trade and investment. The United States has also been a strong supporter of the International Fund for Ireland, which provides grants and loans to businesses to improve the economy, redress inequalities of employment opportunity, and improve cross-border business and community ties.
Principal Government Officials
Head of State--Queen Elizabeth II
Prime Minister (Head of Government)--David Cameron (Conservative Party)
Deputy Prime Minister--Nick Clegg (Liberal Democrat Party)
Secretary of State for Foreign and Commonwealth Affairs--William Hague
Ambassador to the U.S.--Nigel Sheinwald
Ambassador to the UN--Mark Lyall Grant
The United Kingdom maintains an embassy in the United States at 3100 Massachusetts Ave. NW, Washington, DC 20008 (tel. 202-588-6500; fax 202-588-7870).
POLITICAL CONDITIONS
The Labour government that had been in power since 1997, first under Prime Minister Tony Blair and then under his successor, Gordon Brown, lost its majority in the House of Commons in the May 6, 2010 election. For the first time since 1974, however, no party was able to win a full majority in the Commons, which led to several days of intense negotiations between the Conservatives (Tories), who won the most seats, and the Liberal Democrats (Lib Dems), who placed third in number of seats won. On May 11, when it became clear that Labour would be unable to form a government, Prime Minister Gordon Brown resigned, and David Cameron became the new Prime Minister. Cameron subsequently announced a formal coalition with the Liberal Democrats, which would ensure Liberal Democrat support for a Conservative-led government in exchange for five Liberal Democrat cabinet seats and policy compromises. As part of the coalition deal, Liberal Democrat leader Nick Clegg became the Deputy Prime Minister. The Conservative-Liberal Democrat coalition has a 78-seat majority in the House of Commons, and the Labour Party forms the opposition. Gordon Brown resigned as Labour leader on May 11, and was succeeded by Ed Miliband in a September 2010 Labour party election.
Type: Constitutional monarchy.
Constitution: Unwritten; partly statutes, partly common law and practice.
Branches: Executive--monarch (head of state), prime minister (head of government), cabinet. Legislative--bicameral Parliament: House of Commons, House of Lords; Scottish Parliament, Welsh Assembly, and Northern Ireland Assembly. Judicial--magistrates' courts, county courts, high courts, appellate courts, House of Lords, Supreme Court.
Subdivisions: Scotland, Wales, Northern Ireland (municipalities, counties, and parliamentary constituencies).
Political parties: Conservative, Labour, Liberal Democrats, UK Independence Party, British National Party, Green Party; also, in Scotland--Scottish National Party. Wales--Plaid Cymru (Party of Wales). Northern Ireland--Ulster Unionist Party, Social Democratic and Labour Party, Democratic Unionist Party, Sinn Fein, Alliance Party, Progressive Unionist Party.
Suffrage: British subjects and citizens of other Commonwealth countries and the Irish Republic resident in the U.K., at 18.
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History
of
United Kingdom
The Roman invasion of Britain in 55 BC and most of Britain's subsequent incorporation into the Roman Empire stimulated development and brought more active contacts with the rest of Europe. As Rome's strength declined, the country again was exposed to invasion--including the pivotal incursions of the Angles, Saxons, and Jutes in the fifth and sixth centuries AD--up to the Norman conquest in 1066. Norman rule effectively ensured Britain's safety from further intrusions; certain institutions, which remain characteristic of Britain, could develop. Among these are a political, administrative, cultural, and economic center in London; a separate but established church; a system of common law; distinctive and distinguished university education; and representative government.
Union
Both Wales and Scotland were independent kingdoms that resisted English rule. The English conquest of Wales succeeded in 1282 under Edward I, and the Statute of Rhuddlan established English rule 2 years later. To appease the Welsh, Edward's son (later Edward II), who had been born in Wales, was made Prince of Wales in 1301. The tradition of bestowing this title on the eldest son of the British Monarch continues today. An act of 1536 completed the political and administrative union of England and Wales.
While maintaining separate parliaments, England and Scotland were ruled under one crown beginning in 1603, when James VI of Scotland succeeded his cousin Elizabeth I as James I of England. In the ensuing 100 years, strong religious and political differences divided the kingdoms. Finally, in 1707, England and Scotland were unified as Great Britain, sharing a single Parliament at Westminster.
Ireland's invasion by the Anglo-Normans in 1170 led to centuries of strife. Successive English kings sought to conquer Ireland. In the early 17th century, large-scale settlement of the north from Scotland and England began. After its defeat, Ireland was subjected, with varying degrees of success, to control and regulation by Britain.
The legislative union of Great Britain and Ireland was completed on January 1, 1801, under the name of the United Kingdom. However, armed struggle for independence continued sporadically into the 20th century. The Anglo-Irish Treaty of 1921 established the Irish Free State, which subsequently left the Commonwealth and became a republic after World War II. Six northern, predominantly Protestant, Irish counties have remained part of the United Kingdom.
British Expansion and Empire
Begun initially to support William the Conqueror's (c. 1029-1087) holdings in France, Britain's policy of active involvement in continental European affairs endured for several hundred years. By the end of the 14th century, foreign trade, originally based on wool exports to Europe, had emerged as a cornerstone of national policy.
The foundations of sea power were gradually laid to protect English trade and open up new routes. Defeat of the Spanish Armada in 1588 firmly established England as a major sea power. Thereafter, its interests outside Europe grew steadily. Attracted by the spice trade, English mercantile interests spread first to the Far East. In search of an alternate route to the Spice Islands, John Cabot reached the North American continent in 1498. Sir Walter Raleigh organized the first, short-lived colony in Virginia in 1584, and permanent English settlement began in 1607 at Jamestown, Virginia. During the next two centuries, Britain extended its influence abroad and consolidated its political development at home.
Great Britain's industrial revolution greatly strengthened its ability to oppose Napoleonic France. By the end of the Napoleonic Wars in 1815, the United Kingdom was the foremost European power, and its navy ruled the seas. Peace in Europe allowed the British to focus their interests on more remote parts of the world, and, during this period, the British Empire reached its zenith. British colonial expansion reached its height largely during the reign of Queen Victoria (1837-1901). Queen Victoria's reign witnessed the spread of British technology, commerce, language, and government throughout the British Empire, which, at its greatest extent, encompassed roughly one-fifth to one-quarter of the world's area and population. British colonies contributed to the United Kingdom's extraordinary economic growth and strengthened its voice in world affairs. Even as the United Kingdom extended its imperial reach overseas, it continued to develop and broaden its democratic institutions at home.
20th Century
By the time of Queen Victoria's death in 1901, other nations, including the United States and Germany, had developed their own industries; the United Kingdom's comparative economic advantage had lessened, and the ambitions of its rivals had grown. The losses and destruction of World War I, the depression of the 1930s, and decades of relatively slow growth eroded the United Kingdom's preeminent international position of the previous century.
Britain's control over its empire loosened during the interwar period. Ireland, with the exception of six northern counties, gained independence from the United Kingdom in 1921. Nationalism became stronger in other parts of the empire, particularly in India and Egypt.
In 1926, the United Kingdom, completing a process begun a century earlier, granted Australia, Canada, and New Zealand complete autonomy within the empire. They became charter members of the British Commonwealth of Nations (now known as the Commonwealth), an informal but closely-knit association that succeeded the empire. Beginning with the independence of India and Pakistan in 1947, the remainder of the British Empire was almost completely dismantled. Today, most of Britain's former colonies belong to the Commonwealth, almost all of them as independent members. There are, however, 13 former British colonies--including Bermuda, Gibraltar, the Falkland Islands, and others--which have elected to continue their political links with London and are known as British Overseas Territories.
Although often marked by economic and political nationalism, the Commonwealth offers the United Kingdom a voice in matters concerning many developing countries. In addition, the Commonwealth helps preserve many institutions deriving from British experience and models, such as parliamentary democracy, in those countries.
People
of
United Kingdom
The United Kingdom's population in 2011 surpassed 62 million. Its overall population density is one of the highest in the world. Almost one-third of the population lives in England's prosperous and fertile southeast and is predominantly urban and suburban--with about 8.615 million in the capital of London, which remains the largest city in Europe. The United Kingdom's high literacy rate (99%) is attributable to universal public education introduced for the primary level in 1870 and secondary level in 1900. Education is mandatory from ages 5 through 16. The Church of England and the Church of Scotland are the official churches in their respective parts of the country, but most religions found in the world are represented in the United Kingdom.
A group of islands close to continental Europe, the British Isles have been subject to many invasions and migrations, especially from Scandinavia and the continent, including Roman occupation for several centuries. Contemporary Britons are descended mainly from the varied ethnic stocks that settled there before the 11th century. The pre-Celtic, Celtic, Roman, Anglo-Saxon, and Norse influences were blended in Britain under the Normans, Scandinavian Vikings who had lived in Northern France. Although Celtic languages persist in Wales, Scotland, and Northern Ireland, the predominant language is English, which is primarily a blend of Anglo-Saxon and Norman French.
Nationality: Noun--Briton(s). Adjective--British.
Population (July 2011 est.): 62,698,362.
Annual population growth rate (2011 est.): 0.557%.
Major ethnic groups (2001 census): White 92.1% (of which English 83.6%, Scottish 8.6%, Welsh 4.9%, Northern Irish 2.9%), black 2%, Indian 1.8%, Pakistani 1.3%, mixed 1.2%, other 1.6%.
Major religions (2001 census): Christian (Anglican, Roman Catholic, Presbyterian, Methodist) 71.6%, Muslim 2.7%, Hindu 1%, other 1.6%, unspecified or none 23.1%.
Major languages: English, Welsh, Irish Gaelic, Scottish Gaelic.
Education: Years compulsory--12. Attendance--nearly 100%. Literacy--99%.
Health: Infant mortality rate--4.62 deaths/1,000 live births. Life expectancy (2011 est.)--males 77.95 years; females 82.25 years; total 80.05 years.
Work force (2009, 31.25 million): Services 80.4%; industry 18.2%; agriculture 1.4%.