l 12 Parties, Tr.unions

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LESSON 12 POLITICAL PARTIES AND TRADE UNIONS

The existence in Britain of organized political parties each laying its own

policies before the electorate has led to well-developed political divisions in

Parliament. The party system has existed in one form or another since the

seventeenth century, and began to assume its modern shape towards the

end of the nineteenth century. Whenever there is a general election (or aby-election) the parties may put up candidates for election. The electorate

then indicates, by its choice of candidate at the poll on election day, which

of the opposing policies it would like to see put into effect. The candidate

who polls the most votes is elected: an absolute majority is not required.

Such an electoral system is called the majority system, which is

unrepresentative and undemocratic because it gives predominance to the

most powerful parties the Conservative and Labour parties. These parties

as a rule control Parliament. In this context there is a two-party system

in Britain. The Conservative and Labour parties share power, they control

the state mechanism, only these two parties have access to the

management of the state, though in reality there exist other parties.

However, in recent years new trends are becoming more noticeable. These

changes which occurred under the pressure of the working people,

disappointed with the existing state mechanism, make it more complicated

for the two main parties to dominate the political scene. A reflection of thetendency is the fact that more votes are given to the other political parties.

The modern party system in Britain is a result of the Industrial Revolu-

tion which took place in the eighteenth and early nineteenth centuries, the

emergence of new classes on the political scene the capitalists and

working class, the organized political struggle of the working class. The

Industrial Revolution brought into being the industrial proletariat and

with it the fight for civil and political rights, trade-union organization andthe right to vote. Under such conditions the ruling-classes found it

necessary to create political organizations which were intended to defend

their class interests. This in its turn led to the emergence of the

Conservative and Liberal parties in the nineteenth century as parties of the

propertied classes.

By the end of the nineteenth century, both major political parties had become

organized on a nationwide basis with election agents, constituency

organizations and a London headquarters. In Parliament, the two-party

system which had been emerging from the end of the eighteenth century was

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given formal acknowledgement when the House of Commons was rebuilt

after a fire destroyed the old one in 1834. A new chamber was provided

with two sets of benches, one for an administration party, one for an

opposition party. Political struggle led to the formation of the Labour party

in 1900 and to the foundation of the Communist party in 1920.

The Conservative party. The Conservative party of Great Britain (the officialname The National Union of Conservative and Unionist Associations) was

officially organized in 1867 on the basis of political groups of the English

landed aristocracy. The origins of the party go down to the 17th century,

when it was called the Tory party. The Tories (formed in 1679) staunchly

supported the claims of monarchy. 'Tory' was initially a derogatory

nickname, meaning an Irish bandit. In the course of its evolution in the 19th

century the Conservative party became the main party of British top monopoly

capital. It is also supported by the top military clique and bureaucracy, partially

by bourgeois intellectuals, the well-paid employees and the labour

aristocracy. Supported and financed by the clique of company directors,

aristocrats, big business politicians the party is an advocate of capitalism and

inperialism, openly defending capitalist exploitation at home and abroad. Its

home policy is aimed at the limitation of trade union rights, prohibition of

strikes, suppression of basic rights of the working class. The foreign policy of

the Conservatives is likewise motivated by the interests of the British rulingclass.

The Conservative party has no official permanent programme. On the eve of

general elections the party issues a pre-election manifesto which states the

main aspects of the home and foreign policies of the future Conservative

government if the party wins the elections. However, it is necessary to

emphasize the point that there is always a great gap between the pre-election

promises and their actual implementation when the party comes to power.Being a party of 'big business' the party always reduces state allocations for

social security, gives priority to private enterprise by slashing funds for the

nationalized sector of the economy, introduces taxation profitable for the big

companies. The activity of the party is marked by further offensive of the

monopolies on the social and economic rights of the working people, the

anti-trade union measures, violations of basic human rights, especially in

Northern Ireland.

Structurally the party consists of 650 local associations, each one covering an

electoral constituency. One should remember that the House of Commons is

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formed by the deputies who have won majority in each of the 650 consti-

tuencies of Great Britain.

The Conservative party has no official membership, no membership cards

and party dues. Formally the highest organ in the party is the annual conference.

However, actual power is concentrated in the hands of the leader of the party.

The leader is not elected by the annual conference, but by the MPs sitting inParliament on behalf of the Conservative party the so-called parliamentary

party. The leader personally appoints the holders of the key positions in the

central office. The decisions of the annual party conference and of the various

organs of the party (the executive organ of the party in between the party

conferences) are conveyed to the leader so that he may be kept constantly

aware of the moods and opinions of the party members, but the leader is in

no way bound by these resolutions. Pronouncements of party policy are the

responsibilities of the leader. The leader may not even attend the annual

conference except to deliver a speech at the end of the conference which is not

open to discussion. Thus the relations between the ordinary members and the

party leadership can only be described as undemocratic. The party

issues its own paperNewsletter, the official journals of the party are Time

and Tide, Politics Today. However, one should remember that the majority

of the British press supports the Conservative party. The papers and journals

are owned by the big monopolies.The former Liberal party. The Liberal party of Great Britain existed since

1832, though it was finally organized in 1877. The history of this party is closely

associated with the Whig party, which emerged in 1679. Initially the Whigs

voiced the interests of the financial and the trading bourgeoisie. The party was

opposed to the policy of Charles II who tried to restore the absolute powers

of monarchy after the bourgeois revolution (164060). The Whig leaders

headed by the Earl of Shaftesbury and his followers in the Green Ribbon clubattempted to exclude Charles's Catholic brother, later James II, from

succession to the throne. As a result, they became associated with the

cause of the opponents of the regime and the defence of the liberties of the

subject and parliament against the threat of monarchical absolutism. The term

'Whig', from 'whiggamore (cattle-drover), began as a term of abuse used by

opponents. In the nineteenth century the Whigs served as a nucleus in the

formation of the Liberal party. The middle and petty bourgeois intellectuals

formed the social basis of the party.

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Before the First World War it was second only to the Conservatives in political

and social influence. Quite often did the Liberals hold office. However, due

to the intensification of class struggle and a split among the Liberals the

party's influence declined. Having suffered several defeats at the parliamentary

elections in the twenties the party could not restore its former prestige. To a

great degree the newly formed Labour party won the votes of the formerLiberal supporters.

The results of the general elections of 1979 and 1983 indicated a marked

growth of influence of the Liberals, though in 1987 they suffered a setback.

They formed an alliance with the Social Democratic party which emerged in

1981 as a result of a split in the Labour party. In 1988 the Liberals and Social

Democrats formed a united party under the name the Social-Liberal Democratic

party or just the Democrats. This event highlighted the formation of a new

political party in Great Britain which claimed to have a membership of about

one hundred thousand supporters. The party was set to take a centrist stand

in the political spectrum of Great Britain. Its political platform remains vague

reflecting a diversity of views of the members of the two former parties. In the

political system of Great Britain the Democrats hope to fill the gap which exists

between the Conservatives and Labourites. The Labour party. The Labour

party was established in 1900 on the initiative of the trade unions and several

socialist organizations (the Independent Labour party, the Fabian Society andSocial-Democratic Federation). The main aim was to win working class

representation in Parliament. This was initially reflected in the name of the

party Labour Representation Committee. In 1906 this Committee officially

adopted the title of the Labour party. The Labour party is a classical party of

social-democratic reformism. Up to 1918 the party had no clear-cut

programme. Though the Labour party proclaims that socialism is its aim, its

concept of socialism is anti-Marxist. In all the years of the Labour party'sexistence, the conflict between working class politics and the policies of the

leadership, reflected in the struggle between right and left in the movement, has

always been inherent in the Labour party.

The Labour party has always been an association of different class elements

the working class and groups of the petty bourgeoisie. The working class

mass organizations, the trade unions provided the main body of the

membership and the finance. The reformist politicians in alliance with the

right-wing trade union leaders formed the right-wing leadership. The party

has no long term political programme which would determine the final aims

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and means to achieve them. Instead the party endorses current political issues

containing measures, which the future Labour government intends to

implement if the party takes office as a result of a majority in the general

elections. The home policy of the Labour party is based on the principles of

reformism. However, the Labour party politicians acknowledge the necessity of

carrying out limited socio-economic reforms. In this context they favourednationalization of the economy (i. e. greater state control of the economy), a

state-run health and educational system, some improvements in social security,

better housing, etc. In foreign policy the Labour party leadership firmly

supports NATO, military, political and economic cooperation with the

USA. At the same time the Labour party politicians display flexibility and in

their policy statements support peace, detente, arms control, an

improvement of relations with the Soviet Union and other socialist states.

The most important development in British politics in recent years has been

the growing strength of the militant section of the labour movement

reflected in the growing influence of the left wing in the Labour party.

Under the pressure of the left-wing positive changes were introduced

concerning the election of the leader of the party and the selection of

Labour MPs. If in the past the leader of the Labour party was elected by

members of the so-called Parliamentary Labour party (that is Labour MPs),

now according to the new rules, the leader of the party is elected by a collegeof electors including representatives of three bodies the trade unions, local

organizations and the Labour Parliamentary party. These rules provided wider

opportunities for the rank-and-file members (in the trade unions, local

organizations of the party) to have a greater say in the election of the leader

and in the nomination of candidates of the Labour party to represent it in

Parliament. The positive changes in the constitution of the party carried

out under the pressure of the working class infuriated the right-wingmembers. In protest some right-wing politicians left the Labour party in 1981

and formed another party known as the Social-Democratic party (SDP). The

latter formed an alliance with the Liberal party and the two parties acted

together in one bloc in the elections of 1983 and 1987. In 1988 the two parties

finally merged together under the name the Social-Liberal Democratic party.

The split in the Labour party revealed new important developments in the

labour movement. There are about 7.3 mln members in the Labour party, of

which over 600 thousand are individual members and more than six million

collective members. The latter as members of trade unions, cooperative

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organizations and other institutions which are incorporated in the Labour

party automatically become its members. Local party organizations which

exist in most of the electoral constituencies form the basis of the party. The

annual conference which elects the National Executive with 25 members is

the highest organ of the party. The Executive is responsible for the everyday

affairs of the party outside Parliament. The leader of the party, his deputy, thetreasurer, the Chairman of the party and the general secretary are all

members of the National Executive. Debates at annual Labour party

conferences are mainly based on resolutions or policy statements from the

Executive, and resolutions from the local organizations of the party.

Resolutions from trade unions are generally few in number. As has been

noted there is a constant struggle between the right and left wings in the

party. The general trend is such that the right wing has a majority among the

members of the Parliamentary party, whereas the left wing exerts greater

influence in the National Executive. The Labour party is a member of the

Socialist International (an international organization which unites socialist

and social-democratic parties). The headquarters of this organization is

situated in London. The Labour party politicians strive to play a leading role

in this world organization. Between the two World Wars the Labour party

grew to supplant the Liberals as the major opposition to the Conservatives,

they formed minority governments in 19234 and 192931, and came topower under Clement Attlee in the landslide victory of 1945. In the post-war

period the Labour party was in office in 194551, 196470, 19749. When

in opposition, the party elects by secret ballot the 'shadow cabinet' to guide

the activity of the Labour faction in the House of Commons. The 'shadow

cabinet' includes the leading politicians of the Labour party. The Labour

party issues its weekly paperLabour News. As regards some minority

parties which are represented in Parliament one should note that theinterwar years saw the establishment of the Welsh Nationalist Party (1925),

which voices the interests of the Welsh population, and the Scottish

Nationalists (1934). After 1945 further minority parties were born, such as

the extremely reactionary, anti-immigrant National Front, and the con-

servationist Ecology Party.

Trade Unions. In nearly all industries and occupations some workers (and

in some industries nearly all workers) are organized into trade unions.

They have grown up gradually and independently over many years and,

consequently, their form and organization vary considerably, as do their

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traditions. Trade unions may be organized either by occupation (for

example, they may recruit clerks or fitters wherever employed) or by

industry. Some are based on a combination of both principles. In the past in

some firms membership of the relevant trade union was required by

agreement between the employer and union ('closed shops'). This principle

was abolished by the Conservative government. The total membership ofBritish trade unions is 11.1 million. There are about 480 unions, but

nearly 80 per cent of all trade unionists were in the 26 largest unions, each

with a membership of 100,000 or over, while only 0.6 per cent were in the

263 smallest unions with under 1,000 members each. In Britain the national

centre of the trade union movement is the Trades Union Congress (TUG),

which was founded in 1868. The TUC's objects are to promote the

interests of the affiliated organizations and to improve the economic and

social conditions of working people. Its affiliated membership comprises

108 trade unions which together represent about 10 mln work-people. The

TUG deals with all general questions which concern trade unions both

nationally and internationally and gives assistance on questions relating to

particular trades or industries. The annual Congress convenes in September

to discuss matters of concern to trade unionists and to employees in

general. It elects a General Council which represents it between Congresses

and is responsible for carrying out Congress decisions watching economicand social developments, providing educational and advisory services to

unions and presenting to the government the trade union viewpoint on

economic, social and industrial issues. When the Conservative party came

to power in 1979 it, in full conformity with the interests of 'big business'

began to carry out an anti-working class policy aimed at neutralizing trade

union activities. Within this context the Conservative government passed

through Parliament two employment acts in 1980 and 1982 and in 1984 theanti-trades union act. These acts were an open challenge to the whole trade

union movement. According to the first two acts political strikes were

banned, as well as solidarity strikes. Picketing was also limited. The 'closed

shop' principle which required that all workers at a plant or enterprise

should be trade union members was also abolished. The latter was

intended to hinder trade union activity. The 1984 Trades Union Act

gave the government a free hand to intervene in the internal life of trade

unions. The Act demanded a secret ballot by mail of every trade unionist

on matters related to starting or prolonging a strike. Such a move was

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intended to break up trade union solidarity and nullify decisions taken by

general meetings of trade unionists. Another act was set to deprive the

workers of elementary labour rights, in particular, it entails prohibiting

financial support rendered by one union to another involved in a labour

dispute. The 119th Trades Union Congress held in 1987 unanimously

condemned the moves of the Tory government stating that with theiradoption labour conditions in Britain would become inferior to those

existing in other West-European countries. Despite such adverse conditions

aggravated by a hostile political, economic and psychological climate

created by the capitalist mass media and mass unemployment the trade

unions vigorously reject government policies and are bent to challenge the

onslaught of the monopolies and the Tory government.

GOVERNMENT

Parliamentary government based on the party system has been

established in Britain over the past 100 years. Even as recently as the early

nineteenth century there was no clear-cut division in the House of

Commons along modern party lines.

Lords Commons British government.

The party which wins most seats (but not necessarily most votes) at a general

election, or which has the support of a majority of the members in the House

of Commons, usually forms the government. On occasions when no partysucceeds Government in winning an overall majority of seats, a minority

Government or a coalition may be formed. The leader of the majority party

is appointed Prime Minster by the Sovereign, and all other ministers are

appointed by the Queen on the recommendation of the Prime Minister. The

majority of ministers are members of the Commons, although the

Government is represented by some ministers in the Lords. The composition

of the Government can vary both in the number of ministers and in thetitles of some offices. The leading position in the Cabinet came naturally

to be associated with the Treasury, and the name 'Prime Minister' was

first applied to those who held office as Lord Treasurer or, after 1714,

First Lord (commissioner) of the Treasury. The Treasury had, as it still

has, a predominant part in the Government for the simple reason that it

controlled the national purse. Hence the Prime Minister today is also, by

tradition, First Lord of the Treasury and Minister for the Civil Service.

The head of the Government became known as the Prime Minister during

the eighteenth century, though the monarchs provided the key to

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executive power. Since the late nineteenth century the Prime Minister has

normally been the leader of the party with a majority in the House of

Commons. The monarch's role in government is virtually limited to

acting on the advice of ministers.

The Prime Minister informs the Queen of the general business of the Govern-

ment, presides over the Cabinet, and is responsible for the allocation offunctions among ministers. The Prime Minister's other responsibilities include

recommending to the Queen a number of important appointments.

Recommendations are likewise made of the award of many civil honours

and distinctions, etc.

Ministers in charge of Government departments, who are usually in the

Cabinet, are known as 'Secretaries of State' or 'Ministers', or may have a

traditional title, as in the case of the Chancellor of the Exchequer, the

Postmaster General, the President of the Board of Trade. All these are

known as departmental ministers.

The holders of various traditional offices, namely the Lord President of the

Council, the Chancellor of the Duchy of Lancaster, the Lord Privy Seal, the

Paymaster General (and from time to time Ministers without Portfolio), may

have few or no departmental duties and are thus available to perform any

special duties the Prime Minister may wish to give them. The Lord

President of the Council, for example, is responsible for coordinating thepresentation of information on government policies, and the Lord Privy Seal

is responsible for the day-to-day administration of the Civil Service.

The Lord Chancellor (the Speaker of the House of Lords) holds a special

position, being a minister with departmental functions and also head of the

judiciary in England and Wales.

Ministers of State (non-departmental) work with ministers in charge of

departments with responsibility for specific functions, and are sometimesgiven courtesy titles which reflect these particular functions. More than one

may work in a department.

Junior ministers (generally Parliamentary Secretaries or Under-Secretaries

of State) share in parliamentary and departmental duties. They may also

be given responsibility, directly under the departmental minister, for specific

aspects of the department's work.

The largest minority party becomes the official opposition, with its own

leader and its own 'shadow cabinet' whose members act as spokesmen on

the subjects for which government ministers have responsibility. The

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members of any other party support or oppose the Government according

to their party policy being debated at any given time. The Government has

the major share in controlling and arranging the business of the House. As

the initiator of policy, it dictates what action it wishes Parliament to take.

A modern British Government consists of over ninety people, of whom about

thirty are heads of departments, and the rest are their assistants. Untilquite. Paymaster General Secretary to the Treasury Minister of Agriculture,

Fisheries and Food Lord Chancellor Prime Secretary of State for

Employment Secretary of State for Energy Cabinet

Ministers chosen from both Houses of Parliament by the

Prime Minister Secretary of State for Industry Secretary of State for Trade;

Chancellor of the Duchy of Lancaster Chancellor of the Exchequer; Secretary

of State for Wales Secretary of State for Social Services ; Lord President of the

Council and Leader of the House of Lords;Secretary of Stale for Defence

Secretary of State for Scotland

Secretary of State for Education and Science

Secretary of State for Foreign and Commonwealth Affairs (Foreign Secretary);

Secretary of State for the .Environment

Secretary of State for the Home Department (Home Secretary)

Lord Privy Seal Secretary ol State for Northern Ireland The Cabinet.

recent times all the heads of departments were included in the Cabinet,but when their number rose some of the less important heads of

departments were not included in the Cabinet. The Prime Minister decides

whom to include. The Cabinet is composed of about 20 ministers and may

include departmental and non-departmental ministers. The prime ministers

may make changes in the size of their Cabinet and may create new

ministries or make other changes. The Cabinet formed by Margaret

Thatcher in 1979 consisted of 22 persons including herself. The origins ofthe Cabinet can be traced back to the informal conferences which the

monarch held with leading ministers, independently of the Privy Council,

during the seventeenth century. After the Sovereign's withdrawal from an

active role in politics in the eighteenth century,, and the development of

organized political parties the Cabinet assumed its modern form.

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AN Antrim AR Armagh B Borders BD Bedford

BE Berkshire IOW BK Buckinghamshire K

C Central Hertford Humberside Hereford

& Worcester Isle of Wight Kent Lothian Lancashire LondonderryLeicestershire Lincoln Merseyside Mid Glamorgan Northumberlan Norfolk

Nottinghamshir Northampton N.Yorkshire Orkney Oxfordshire Powys

Strathclyde Salop

5. Glamorgan Shetland Somerset Surrey Staffordshire Suffolk S.Yorkshire

Tayside Tyne & Wear Tyrone Warwick W. Glamorgan Western Isles W.

Midlands W.Sussex Wiltshire CA Cambridgeshire CH Cheshire

CL Clwyd CO Cornwall CU Cumbria CV Cleveland

D Durham DE Derbyshire DG Dumfries (Galloway

DO Down DR Dorset DV Devon DY Dyfed

E Essex ES E. Sussex F Fife FE Fermanagh

G Grampian GC Gloucester GL Greater London

GM Greater Manchestei GT Gwent GW Gwynedd H Highland

G Aberdeen Stonehaveru /'Perth, A\loa Ki" Stirling Omagh . TV

VFE , Enniskjller Hunting IT/ CA Northamoton Cambr

The Cabinet as such is not recognized by any formal law, and it has no formalpowers but only real powers. It takes the effective decisions about what is to be

done. Its major functions are: the final determination of policies, the supreme

control of government and the coordination of government departments. More

and more power is concentrated in the hands of the Cabinet, where the decisive

role belongs to the Prime Minster, who in fact determines the general political

line of this body. The Cabinet defends and encourages the activity of

monopolies and big business, does everything to restrain and suppress theworking-class movement.

Administratively the United Kingdom is divided into 72 counties (1974) and

over 80 city-counties. The latter are situated on the territory of the counties,

but are administratively independent. The County Council is the most

important unit of local government. It is in charge of the county as a whole.

Nobody can plan anything shopping centres, factories, parks, etc., without

the permission of the County Council. Its other responsibilities include: local

roads, transport, the police, the fire service, education, etc.

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Each county is divided into districts of between 60,000 and 100,000 people.

The District Councils are responsible for housing, keeping the district clean,

inspecting the food shops, employing the dustmen, etc.

County and District Councils are run by part-time unpaid councillors, who

are elected in the same way as MPs. Most of them represent a political party,

and the government is not pleased if the opposition party gets control of themajority of local councils. The councillors appoint from among themselves the

committees, who run the different departments. They also appoint paid full-time

officials. The head of each county council and district council is appointed

every year by the councillors. Some districts have the ceremonial title of

borough, or city. In boroughs and cities the chairman is normally known as

the Mayor (in the City of London and certain other large cities, he or she is

known as the Lord Mayor).

The money the councils need comes from the rates, a local tax paid by all

owners of houses or land. The amount paid depends on the value of the

property. The councils also get a grant from the Treasury. The government

never refuses to give this grant because it disapproves of a council's politics,

but it may hesitate if it feels the money is being spent unwisely. Local

councils normally have a finance committee to keep their financial policy

under constant review.

Progress Test Questions and AssignmentsWhen did the party system emerge in Britain?

What contributed to the domination of the two largest parties in Britain?

Comment on the new observed tendencies in the political life of

contemporary

Britain as regards the activities of other parties.

1 232 State System 4

Expand on the role, platform, influence, policies and structure of the mainpolitical parties of Britain.

Give a detailed account of the role and structure of the trade unions in Britain

today.

Outline the composition of the Government referring to the main functions

of the

Prime Minister and other ministers. What is meant by 'official opposition'?

Describe the origin, development and present-day character of the Cabinet,

examining

the reasons for the growth of its powers.

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Discuss the administrative divisions of the United Kingdom, the structure of

the local

government and its major functions.

Write an essay on the dominating role of the two largest parties in Britain.

n the

The first requirement for an understanding of contemporary economic andsocial life is a clear view of the relation between events and the ideas which

interpret them... Economic, like other social life, does not conform to a

simple and coherent pattern .

/.K, Galbraith

THE PLACE OF BRITAIN IN THE WORLD ECONOMY

W ithin the system of contemporary Great Britain has lost its former position

as the leading industrial nation of the world. A pioneer in the Industrial

Revolution, the former 'world workshop', Britain today is fifth in size of

its gross domestic product (GDP) and twenty-third in terms of GDP per head

among the capitalist countries of the world. As a result of World War I the

country lost its monopoly in world trade. Today Britain accounts for only 5

6 per cent of world trade among capitalist countries.

After World War II Britain lost its colonial empire. In this respect British

imperialism was deprived of its most important advantages the profits

and superprofits which it derived from its former colonial possessions. Asregards the rate of development of state monopoly capitalism the country

continued to lag behind its main capitalist rivals.

After World War II Britain experienced an accelerated growth of monopolies

and their subsequent mergers. The export of capital abroad continues to

be a major factor in its development. In terms of foreign investment Britain

was second only to the United States. However, unlike the past the bulk of

foreign investments is directed not to the extracting industries of herformer colonies but mainly to the manufacturing industries of West

European countries. The most significant change in Britain's trading

patterns took place after 1973 when the country joined the European

Economic Community. Between 1972 and 1980 the proportion of Britain's

exports going to the Commonwealth countries (former possessions of Great

Britain) fell from 18 per cent to 12 per cent while that going to other

Community countries rose from 31 per cent to 43 per cent. Moreover, this

tendency continues to grow.

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The monopolies in the country lay special emphasis on the development

of such branches of the manufacturing and chemical industries which require

high-skilled labour. Manufacturing and other production industries, facing

strong competition in overseas markets from newly industrialized as well as

from other developed capitalist countries, have undergone considerable

reorganization to improve competitiveness. A number of industries such asaerospace, chemicals, oil, gas, electronics, biotechnology have gained

strength while textiles and some other traditional industries, including steel

and shipbuilding, have contracted. As the development of the new industries

does not compensate the decline of the traditional old industries there is a

marked growth of mass unemployment in the country.

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. There are some nationalized

industries, accounting for about 3.8 per cent of all employees, while the

nationalized sector as a whole accounts for about 5.7 per cent of GDP.

Part of public transport, the power industry, the coal mines, some steel,

manufacturing plants are managed by the state. The atomic industry is also

within the public sector. 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

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.In the 1980s earnings from invisibles comprised about 35 per cent of Britain's

earnings. The contribution made by invisibles is largely a reflection of

Britain's position as a major financial centre of the capitalist world. The

financial institutions of the City of London provide worldwide 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. Middle

and small-scale holdings give the bulk of the agricultural produce. These

holders rent the land and employ agricultural workers. Technological

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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 ofservices. The share of industry in the GDP is 11 times more than that of

agriculture. The general location of industry has changed little in recent

years. As before, four-fifths of industrial and agricultural production is

concentrated in England. Simultaneously, in the national outlying regions

of Wales, Scotland and Northern Ireland the rate and level of the

development of industry, as well as the average earnings of the population

are obviously lower than in England. In the postwar years this gap between

England and the outlying regions has increased, because of the decline of the

traditional industries such as coal-mining, ferrous metallurgy, textiles, which

are heavily concentrated ia Scotland, Wales and Northern Ireland.

Special regional development programmes were formulated for the so-called

'depressed' regions, however, these plans were implemented (at a very slow

pace. Despite government policies there has been a marked growth of

concentration of industry in the traditional industrial regions, especially in

South-East England, because the South has the advantages for the location ofmodern industry. The coastal areas have also experienced a growth of

industry, as well as the small towns. In planning the new towns the aim is

to relieve the over-populated areas and to spread the people and industry

more evenly. Thus the pattern, especially in the South-East, is characterized

by the growth of so-called satellite towns which are closely connected with

the main city of the region or the metropolis. Eventually, as a result of this

development the conurbations also grow in size.Progress Test Questions and Assignments

What is Britain's place in the world capitalist economy as regards her

GDP? Name the two most important features of British imperalism

Give a brief account of the changes which have taken place in the country

after World War II.

How would you explain the reasons of the growth of mass unemployment?

Relate the social structure of British agriculture.

Give a brief account of the shifts in specialization of industry.

CHIEF INDUSTRIES

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As in other developed countries, manufacturing plays a vital role in the

economy, as well as energy production.

The first public supply ofelectricity 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. Electricity is mainly

generated by conventional steam power stations, gas turbines and oilengines (about 80 per cent). Nuclear plants make up about 18 per cent of

the electricity generated, while the share of hydro-electric plants is only a

little more than 1 per cent. 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. In electricity production (300,000 million

kilowatt hours) Britain is far behind the United States of America and

Japan whereas the gap between the Federal Republic of Germany and

Britain is comparatively smaller. Much attention is being paid to the

development of nuclear power. In 1956 the country's first large-scale

nuclear power station, at Calder Hall (Cumbria), began to supply

electricity to the national grid. The latter began to operate in the 1930s.

There are 20 nuclear power stations in operation which feed electricity to the

national grid. Manufacturingplays a vital role in the British economy. It

accounts for some 24 per cent of the GDP; about 24 per cent of theemployed labour force is engaged in manufacturing; 75 per cent of the

visible exports of the state consists of manufactured or semi-manufactured

goods. Recently there has been an accelerated growth of progressive sectors

of the engineering and chemical industries, whereas the traditional industries

of the economy such as ferrous metallurgy, mechanical engineering, ship-

building, textiles and related industries have suffered a decline. This has

been reflected in the exports of the country: growth in output and exportswas strongest in chemicals and electrical, electronic and instrument

engineering.

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, which exerted every effort to reduce the extent of state

ownership of industry. Margaret Thatcher's policy of privatization

stimulated the development of private enterprise in industry: 57 per cent of

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engineering, metals and vehicle manufacturing was controlled by the largest

companies.

In general the British industry, manufacturing included, is facing serious

difficulties. Tough foreign competition on the world markets adds up to these

difficulties.

Metals (iron, steel and non-ferrous industry). Although Britain's largestmanufacturing industry is the iron and steel industry, aluminium and other

non-ferrous metals are also important products. Once the world's greatest

producer of steel, today the annual output is 15 million tonnes well behind the

USA, Japan, the Federal Republic of Germany, France and Italy, and that

of pig-ir'on about 10 million tonnes. The main steel producing areas are

Yorkshire and Humberside (35 per cent of crude steel output), Wales

(26 per cent), the Northern region (16 per cent), Scotland (11 per cent) and

the West Midlands (5 per cent). High quality ores are imported from

Canada, Sweden, Brazil, South Africa, Australia, Venezuela and other

countries. With the growing dependence on imported ores, coastal locations

of the steel industry were developed. Moreover, these developments took

place at the expense of some inland centres. Nevertheless, some like

Sheffield have retained their existence by concentrating on high grade

alloy steels made by the electric arc process.

Britain's non-ferrous metal processing and fabricating industry is one ofthe largest in Western Europe. Its major products are aluminium,

secondary refined copper, lead and primary zinc. More than half of the

industry was concentrated in the Midlands. Other centres include South

Wales, London. Tyneside and Avonmouth, where a zinc smelter of some

100,000 tonnes capacity operates.

BRANCHES OF MANUFACTURING INDUSTRY

Ferrous metallurgy

Non-lerrous metallurgy

Machine-building and metal-working

Chemical

Oil-refining

Woodwork

Paper-making and printing

Pottery and glass-work

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Textile

Clothing

Footwear

Food

Miscellaneous

Tyneside NewcastleSunderland Teesport

ENTRES OF MANUFACTURING IDUSTRY

lumber of employed, thousand) 500-700

MERSEYSIDE Liverpool over 1.000

Immingham150-200

'Grimsby300-400

'Sheffield 100-150

fANCHlSTER 150-200

Nottingham 50-75

Leicester 75-100

Cheste Stoke-on-Trent Norwich's

Peterborough ^B^fln

Great-Yarmouth Chellenha Gloucester Milford-Haven

l 12 Parties, Tr.unions

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