|
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.
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 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, and the government expects
growth of 2% to 2.5% in 2002. 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). The Prime Minister has
pledged to hold a public referendum if membership meets Chancellor of the
Exchequer BROWN's five economic "tests." Scheduled for assessment
by mid-2003, the tests will determine whether joining EMU would have a
positive effect on British investment, employment, and growth. Critics point
out, however, that the economy is thriving outside of EMU, and they point to
public opinion polls that continue to show a majority of Britons opposed to
the single currency.
|
