Calculation of the correlation coefficient between the inflow of foreign direct investment and economic growth rates on the example of Great Britain and Hungary. uk england country economy

Peculiarities economic development Great Britain

The United Kingdom of Great Britain and Northern Ireland covers an area of ​​244 thousand square meters. km, population - 59 million people. Most of the inhabitants - 4/5 - live in cities. Since the beginning of the industrial revolution, Great Britain has been one of the leading industrial countries in the world. However, two world wars and the collapse of the empire dealt a heavy blow to the country's economic positions. After the end of World War II, economic recovery took about 40 years. The growth of competitiveness was facilitated by the entry into the European Community in 1973. In the 1980s, mass privatization of previously nationalized industrial enterprises took place. originality British economy and its position in the world economy reflects the peculiarities of the country's development in the past century. Attention is drawn to the discrepancy between the seriously undermined positions of the country in industrial production, international trade and the monetary sphere, on the one hand, and the weakening, but still very strong positions in the export of capital, as well as the continuing role of London as one of the leading financial and commodity- exchange centers. In the global economy, the UK ranks fifth. It accounts for 4.2% of total GDP and 1% of the world's population, and per capita accounts for almost $22,000 of GDP. In terms of industrial production, the UK is in fifth place among developed economies, in terms of foreign investment it is in second place in the world. It still remains one of the largest powers, has a serious influence on the development of international economic and political relations. uk geographic rural industry

Features of economic development. Home distinctive feature The macroeconomic development of the country is that it does not develop on the basis of the principles of the social market economy like Germany or France, but uses the neoliberal, Anglo-Saxon model of development. It is characterized by the predominance of free private enterprise. The share of the private sector in the country's total output exceeds 80%. The private sector provides over 75% of all employment in the country. The policy of the British government provides the most favorable conditions for the development of entrepreneurship. Industry structure economy. The structure of the UK economy is as follows: agriculture, forestry and fisheries - 1.8% of GDP and 2.1% total strength labor resources; industry and construction - 31.4% of GDP and 26.4% of employees; services - 66.8% of GDP and 71.5% of employees. In the latter indicator, the UK surpasses most European countries and is approaching the US. The sectors of financial, insurance, telecommunications and business services demonstrate the greatest dynamism. The role of the manufacturing industry has decreased. Major shifts are taking place in the manufacturing industry itself. The role of new science-intensive industries is growing: chemical (primarily low-tonnage chemistry), electrical engineering, electronics, aerospace, instrumentation, and production of equipment for offshore oil production. In terms of the development of biotechnology, Britain is second only to the United States. Engineering and transport, manufactured goods and chemicals are the UK's main exports. Since the 1970s, oil production has not only reduced the import of petroleum products, but also brought significant profits in trade. British Petroleum is the largest industrial corporation in the UK and ranks second in Europe. Britain carries out 10% of world exports of services - banking, insurance, brokerage, advisory, as well as in the field of computer programming. The UK imports 6 times more manufactured goods than raw materials. The United States is the UK's largest exporter. Seven of the top ten suppliers of goods to the UK are EU countries. The British economy is highly internationalized. Over 15% of its GDP is sold abroad, and the import quota exceeds 20%. The country's economy is characterized by intra-industry specialization with a wide development of detailed and complex technological specialization. Although there are no sharp regional contrasts in the level of development in the country, 10 economic regions are distinguished in it according to the degree of development of productive forces and industrial specialization, features of the formation of the economy, the predominance of established territorial and production relations: South-Eastern (capital), West Midland, East Midland, Lancashire, Yorkshire, North East, North West, Wales, Scotland, Northern Ireland. Foreign economic relations. UK's place in international division labor has changed even compared to the middle of the century. Changes in the structure of the economy were accompanied by significant shifts in the structure of foreign economic relations. The predominant form of the country's participation in world trade is the sale on the foreign market and the import of manufactured products. Due to the increase in the export of North Sea oil, the share of finished products and semi-finished products in commodity exports reached 86%. Machines and vehicles account for 48% of exports. The importance of products from the aerospace, chemical and electronic industries is growing in it, and at the same time, the share of textile goods is decreasing. The involvement in the international circulation of electronic computers is very high, about 90% of the industry's products are exported abroad. More than 70% of the products of the chemical industry, more than half of the instrument-making products are exported. Among the sectors of general engineering with a very high export orientation are tractor building, the production of textile and mining equipment. Great Britain occupies one of the first places in the world in terms of arms exports. Shifts in the commodity structure of foreign trade were accompanied by changes in its geographical direction. By the end of the century - in 1999 - 85% of exports and 82% of imports came from developed countries. In recent decades, there has been a "Europeanization" of Great Britain's foreign trade relations - a process that has especially intensified after its entry into the EU. Share Western Europe in British exports reached 63%, including the EU - almost 59%. The share of this region in imports was 54%. Britain's foreign economic relations have a vast "economic periphery" abroad. Unlike other major European countries, the UK's involvement in international production is much higher than in world trade: the share of British TNCs 146 of the 5000 largest European firms in terms of market capitalization in foreign direct investment is about 2.5 times higher than the country's share in world trade. Unemployment rate in the UK in 2013 is 3.9%. Such data are provided in the message of the National Bureau of Statistics of the country. The unemployment rate in the UK, calculated according to the standards of the International Labor Organization (ILO). The indicator reached its lowest value in more than three years. The minimum wage in Britain is calculated at a minimum living wage and is only 6 pounds 19 pence per hour. With these earnings, you have to pay taxes and make contributions to pension funds. Thus, a fifth of the workers of the United Kingdom were below the poverty line. It is especially difficult for the poorly paid workers of "public catering" and retail: waiters, bartenders and sellers. Little better for security guards, cleaners and social workers caring for the disabled and seriously ill. Most of all living below the poverty line was found in Northern Ireland and Wales - there are 23 percent of them. In London, 570,000 people fell below the subsistence level.

Workaholism and labor efficiency are different concepts. This was clearly confirmed by a recent study by the OECD, which compared the number of working hours per year per citizen and its productivity per hour of work in 36 countries of the world.

In terms of the amount of time spent at work per year, Russia was in fifth place in the world and second in Europe, yielding leadership in both positions to Mexico and Greece. According to analytics, a domestic employee works 1928 hours a year, while the world leader - a Mexican - 2226 hours, and a European (Greek) 2034 hours a year.

But in terms of labor productivity, measured in GDP per hour of work (expressed in $), Russians rank third from the bottom of the OECD list. The economic efficiency of our labor is still one of the lowest in the world - only 25.9 $/hour. Below only the most "hard-working" Mexico - $ 19.5 / hour. But the leader in productivity in Europe and the world is Luxembourg: each working resident of this tiny country produces goods and services for $95.9 per hour.

Recall that the employment rate is defined as the percentage ratio of the number of employed citizens aged 15 to 64 years to the total number of citizens of the same age. Employed, according to the International Labor Organization (ILO), is a person over the age of 15 who is engaged in paid work for at least an hour a week.

We will also show in the ranking the distribution of workers by sectors of the economy within each country, based on international analytics from Rosstat.

1

Iceland

Employment rate - 82%

Gunlaygur Shewing. "H?karlinn tekinn inn"

If you believe the statistical yearbook of Iceland, then in the homeland of the herring and the volcano with the unpronounceable name of Eyjafjallajökull, 77% of the population works in the service sector: sales, service, education, medicine, tourism and banking.

Only 18% of the economically active population participates in the manufacturing sector, mainly building houses and processing fish. The latter belongs to the industry Agriculture where only 5% of Icelanders work.

For a year, one inhabitant of the ice state spends 1706 hours on work. And for every hour he produces services and goods for his country for 48 US dollars.

2

Switzerland

Employment rate - 80%

Ferdinand Hodler. "Reaper"

The Swiss are world famous for their watches, cheeses and chocolate. At the same time, only 20.3% of the population work in the manufacturing sector, and only 3.5% are fond of farming. The bulk of the inhabitants of the Alpine state - 72.5% - give their time to the service sector.

With the accuracy of Swiss watches, it is calculated that one resident spends 1619 hours a year on work, and each of them adds $ 61.1 to the GDP of the Alpine state.

3

Norway

Employment rate - 75%

Jan Ekens. "Laundry on a Winter Day"

In the kingdom of the fjords, 77.5% of workers are engaged in the extraction of profit in the service sector. 20.2% of working Norwegians give their strength to the industrial sector, including oil, minerals and construction, 2.2% - to agriculture and fishing.

In terms of productivity, an hour of hard work by a Norwegian is $88. In a year, one resident of Norway produces 1418 hours.

4

Netherlands

Employment rate - 74%

Adrian van Utrecht. "Fish Shop"

The Dutch are often referred to as the Chinese of Europe for their tireless work ethic. Of the total number of hard-working subjects of His Majesty Willem-Alexander, 2.5% grow tulips, 15.2% make cheese and televisions, and 71.4% provide various services.

For a year, Rembrandt's compatriots spend 1384 hours of their lives on work, producing $ 64.3 per hour for their beloved Holland.

5

Denmark

Peder Severin Kroyer. "Fishermen in Skagen"

According to statistics, the Danes like to work. They are most willing to work in the service sector - 77.6% of the total number of employees. About 19.6% of the population finds themselves in industry, and 2.6% in agriculture.

All this activity enriches the Danish kingdom by $63.3 every hour. Every Dane works 1,430 hours a year.

6

Germany

Employment rate - 73%

Adolf von Menzel. "Rolling Mill"

In the most pedantic country of the European Union, only 1.5% of the total number of German workers grow vegetables and livestock. About 30% of Germans ensure the uninterrupted production of cars, peregrine falcons and Zeiss lenses. 70.3% of the German population is employed in the field of various services.

"Machinists" of the European economic locomotive work 1,393 hours a year. The productivity of an hour of German labor is equal to the production of material goods in the amount of $62.3.

7

Canada

Michelle Vacant. "Symposium"

In the country of maple syrup, only 1.2% of the working population is interested in agriculture; extraction of oil, gas, coal and all grades of ore - 20.9%. Trade, educate, treat, manage and provide other services 78% of Canadians.

Every Canadian spends 1,711 working hours a year to support their country's economy. The efficiency of his work allows you to increase the volume of GDP by $ 50.7 in one hour.

8

Japan

Employment rate - 72%

Asano Takeji "Rice Production"

In Japan, the willingness to die on the job is taken literally and written into the resume. However, daily 4.2% of workaholics in the Land of the Rising Sun risk their lives in agriculture and fishing, 27.3% in the production of cars and computers, 68.5% in offices, shops and restaurants, serving the population and tourists.

Officially, every Japanese gives work 1745 hours of his life a year. In one hour, it increases Japan's economic performance by $41.5.

9

United Kingdom

Employment rate - 71%

Brighton Rivier. "The Old Gardener"

The subjects of the British crown are not used to sitting around: 78.9% of Britons work in the service sector, including trade, education, healthcare and banking. 19% of the able-bodied population of the United Kingdom work in industry and construction. And only 1.2% of the British are engaged in agriculture and fishing.

Every UK employee spends 1,654 hours a year on the job. The productivity of one hour is $50.5.

10

Finland

Eero Jarnefelt. "Burning out the forest for arable land"

In terms of employment, Russia's northern neighbors are "friends" with our country. In terms of efficiency, the Finns have succeeded more than the Russians: one Finn spends 1679 hours a year on work, and for an hour of work he increases GDP by $53.6.

As in previous countries, most of the citizens are employed in the service sector of the economy - 72.7%. 4.1% work in the economic sector, and 22.7% of able-bodied Finns work in the manufacturing sector.

11

Russia

Employment rate - 69%

Ilya Repin "Barge haulers on the Volga"

In comparison with other states, it is easy to see that our country is a real agrarian leader. Of the total number of employed Russians, 7% work in the agricultural sector. 27.8% of compatriots work at steel-rolling machines, coal and oil mining, construction of houses and spaceports. And in the non-manufacturing sector, we lag behind our neighbors in the rating: 65.5% of Russians are employed here.

Recall that each of us works an average of 1928 hours a year. The productivity of an hour in our country is equal to the production of GDP in the amount of $25.9.

Oscar Wilde

It is known that...

45% of non-whites live in London (78% black Africans, 61% black Caribbeans, 54% Bangladeshis). Pakistanis: 19% London, 21% Western Highlands, 20% Yorkshire, 16% North West. The resettlement of the non-white population: England - 9%, Wales, Scotland - 2%, North. Ireland - less than 1%, Highlands - 13%, South East and North West - 8%, Yorkshire and the Humber - 7%

Also...

The English inhabit England, most of Wales and form compact settlements in some areas in the south of Scotland. The Scots inhabit mainly the northwestern regions of the island of Great Britain and the Shetland, Orkney and Hebrides Islands adjacent to their coast. In the mountains of the northwestern part of the island, a peculiar ethnic group lives, preserving its original traditions and culture - the Gaels (highlanders). Welsh - Inhabit Wales.
Sev. Ireland: 500 thousand indigenous inhabitants of the island - the Irish - Catholics, 1 million Anglo-Irish and Scotch-Irish.

Population

Demographic situation
Currently, the country is characterized by low population growth - the result of both the convergence of birth and death rates, and a decrease in the balance of migration. In some years, the increase is negative (with a positive balance of migration). The problems of “nation aging” are connected with low natural growth. In 2002, persons aged 65 and over made up 15.8% of the population. The 2001 census showed that for the first time the number of people over 60 exceeded the number of children under the age of 15.

Average duration life: 76 years - men, 81 years - women. The birth rate (per 1,000 people) is 12.7. Mortality rate (per 1000 people) - 9.1. The average composition of a family is 2 children and parents.

Economically active population of Great Britain. In this area, there is a clear predominance of men over women. If there are 13.6 million employed men, then there are almost 2 times less women - 7.6 million. It should be noted that average age population participating in the economic life of the country is 35-40 years old, but there is a tendency to shift this age to 45-60 years. this is due to the "aging" of the nation.

Royal guard

The Royal Guard (nicknamed "Bearskins" - "bear skins") is the personal guard of the English monarch. In our lives, there is no particular need to fear for the life of a king or queen, and today the guards perform mainly ceremonial duties. However, the traditions of the guards originated about three centuries ago, when the British monarchs really took to the battlefield. The soldiers in the guards regiments were selected very strictly, these were the best parts.

The British Guards Division today consists of two mounted and five infantry regiments. The cavalry is the Life Guards Cavalry Regiment (its uniform is red uniforms, and in winter also red capes) and the Royal Horse Guards Regiment - in blue uniforms and blue capes. Her Majesty's Foot Guards - Coldstream, Grenadier, Scottish, Irish and Welsh. All infantry guardsmen wear high bearskin hats and red coats. That is, it is not easy to distinguish the soldiers of one or another regiment from each other - except perhaps by the location of the buttons on the uniform and the color of the cockade on the hat.

The famous caps of the guards are made from the fur of the North American grizzly bear. The officers' caps are taller and more shiny. The fact is that they are made from the fur of a male, and the caps of privates and non-commissioned officers are made from the fur of a female grizzly (it does not look so impressive).

The United Kingdom of Great Britain and Northern Ireland is a developed country located in the northwestern part of Europe. The form of government in the country is a constitutional monarchy, in which the constitution is replaced by a series of legislative acts. The head of state and her living symbol since 1953 is Queen Elizabeth II. She, together with the bicameral parliament, heads the legislative branch. The executive power in the country is exercised by the Prime Minister, represented by the leader of the ruling party.

The state is separated from the rest of Europe by the English Channel and Pas de Calais, as well as by the North Sea. This arrangement was reflected in the formation of the state and its people, the process of formation of which took many centuries. The state consists of three countries: England, Scotland, Wales and the northern part of Ireland. total area territory is about 250 thousand square meters. km. For four centuries, the state owned numerous colonies.

In the 19th century, the country took a leading position in the production and export of goods. So far, its importance has not weakened due to the rapid growth of a number of other countries: the USA, the USSR, Germany and Japan. Since January 1, 1973, the UK has been part of the European Community, but in 2016 more than half of Britons voted to leave the EU, becoming the first country to leave the community.

Population

According to the Department of Economic and social issues, the population of the state is over 65 million people. Most of them are British, the rest of the population is represented by Scots, Welsh, Cornish, Irish and immigrants from EU countries.

Most of the population speaks English language but there are also local dialects. Religion is represented in the country in several directions. So, the British - profess Anglicanism, the Scots adhere to the Presbyterian Church, and the Irish - Catholic. The most densely populated central part of the country, where the largest and most developed cities are located. The areas with the fewest inhabitants are in Northern Scotland and Central Wales. The average population density of the state is 266.5 people per km2.

The population is predominantly made up of residents between the ages of 15 and 65. It is noteworthy that the number of men and women is equal - about 21 million people. Thus, the population pyramid has a rejuvenating appearance, with a characteristic decrease in the birth rate. The average life expectancy in the UK is 80 years.

UK Industry

For centuries, the industry of England was formed, among other things, at the expense of the resources of the metropolitan countries. With the discovery of oil and gas fields in the North Sea in 1960-70, the economy received a new impetus to development. These minerals are exported and processed. Most oil refineries are located in the southeast of the country. Huge refineries and terminals for the sale of raw materials have been built here. There are many enterprises of the chemical industry. The production of synthetic fibers and plastics, pharmaceutical products is based on science-intensive production during oil refining.

Oil and gas produced in large volumes is exported to other countries and provides its own industry with raw materials and fuel. However, some raw materials are imported from other countries. This is explained by the fact that most of the country's refineries are set up to process heavy oil, and the fields owned by England produce light oil. Of the total volume of oil produced, 106 million tons, or 1/3 of the product, is exported, about 50 million tons are imported into the country. Approximately in the same proportions, gas is imported and exported.

(Asphalt plant in England)

And at present, industry continues to be the leading industry of the state. According to the latest estimates, one sixth of the total population is employed in it. Industry provides a quarter of the country's GNP, which allows the UK to be in 7th place in the world in terms of production. An important place in the structure of industry is occupied by processing and mechanical engineering, thus replacing the country's traditional industries of mining and textile production. Industrial enterprises located mainly in the densely populated center of the state: from London to Lancashire and from West Yorkshire to Gloucestershire.

The structure of the engineering industry is dominated by the production of transport. Moreover, the country is the leader in the world export of trucks. Also significant positions in mechanical engineering are the production of power plants, aircraft, space equipment and office equipment. The largest areas of engineering are located in the West Midland and in the south-eastern part of England.

(The famous thermal power plant in London)

Mining hard coal for centuries provided the country with fuel, second only to the oil industry. Among the countries of the world, the UK ranks 20th in oil production and 16th in gas production due to deposits at the bottom of the North Sea. However, despite this, the country is forced to additionally import resources to provide for industry and its population.

England is among the ten countries producing the largest volumes of iron and steel. For the development of ferrous metallurgy, the country has three necessary conditions: rich deposits of coal, iron ore and limestone. Today, one British Steel corporation provides almost all the country's needs for the product with ferrous metal rolled products. Rare non-ferrous metals are mined on the territory of the island: zirconium, uranium and others used in aircraft and rocket building, nuclear energy. Most of the raw materials are exported to Europe and the USA.

UK agriculture

The natural conditions of the island determine the specifics of the development of agriculture in the regions. Only 2% of the working population of the country is involved in agriculture in the UK. But, despite this, there is a rapid growth and development of agriculture. In addition, local resources, which make up 75%, are enough to provide the population with agricultural products. The state does not need to import barley, oats, potatoes, eggs, milk, pork and poultry.

The main agricultural areas are located in East Anglia. Here, in the east of the country, where the climate is humid and there are many meadows, animal husbandry is also developed. England is the birthplace of the world-famous breeds of large cattle, beef and dairy cattle, pigs, poultry and sheep are raised in the country. England, high-quality dairy and meat products are produced. However, the import of many products, such as butter, shows up to 70% of consumption.

Historically, sheep breeding has developed well on the island, mainly for the production of wool. Today, the industry provides only 1% of the value of the total volume of agricultural products produced in the country. Potatoes, barley and wheat, root crops, including fodder crops, occupy large areas in the east of the country. However, part of the products, up to 25% of the necessary needs, England imports from abroad. Horticulture and horticulture are well developed. With employment of only 1.5% of cultivated land, about 12% of the island's production is produced in orchards and orchards.

Agriculture in England is predominantly farming. After the adoption of a single EU quota system, farmers had to reduce their production volumes. Its prime cost has always been quite high, and without state subsidies, agriculture would have fallen into decay. Therefore, farmers receive tangible state support. After leaving the EU, farmers have a chance to revive the previous volumes of agricultural production.

Individual task
on economics of foreign countries
on the topic:
"Analysis of the dynamics of economic development
Great Britain 1990-2007”

Plan

Introduction 3

General characteristics of the economy 4

Main sectors of the economy 10

Foreign economic relations 15

Conclusion 17

Annex 1 19

References 20

1. Introduction
Great Britain today is a country with a highly developed, strong and independent economy.
The recovery of the British economy after the Second World War took almost forty years. In addition to domestic resources, the recovery process was spurred on by the UK's accession to the European Community in 1973, which contributed to the rise of the country's competitiveness. The UK is now at the forefront of developed countries in terms of production growth, productivity and competitiveness.
The 1980s saw a large-scale privatization of state-owned enterprises that had been nationalized in previous years. The average standard of living has also risen, although there are still divisions between the more prosperous territories of the south-eastern part of the country, including London, and the less wealthy territories of the west and north. Unemployment and inflation levels were gradually reduced, but remained quite high. The country played the role of a world financial leader, which, along with the discovery of natural gas and oil fields in the North Sea, reduced the dependence of the economy on more traditional sources of energy and significantly improved the country's domestic economy and economic policy government.

2. General characteristics of the economy
The United Kingdom of Great Britain and Northern Ireland consists of four major territories: England, Scotland, Wales and Northern Ireland. The area of ​​the country is 244.1 thousand square meters. km. Great Britain is one of the most developed capitalist countries.
The island position at the intersection of international sea and air routes has created favorable conditions for the development of versatile external relations of the country. For a long time, Great Britain was the largest exporter of capital, until the middle of the 20th century. owned the largest colonies in the world.
The UK has limited reserves of natural resources. The main minerals are oil, gas, coal, limestone, etc. But in terms of energy resources, it has the largest reserves in the EU: more than 270 thousand tons of oil are produced annually. According to experts, oil reserves are about 6000 million tons, gas reserves are estimated at about 3.5 trillion. cube m.
The UK GDP is about 1.5 trillion dollars, and the per capita income is about 26-27 thousand dollars a year.
Today the UK is highly developed industrial country and occupies an important place in the world economy. It ranks ninth in the world and fourth or fifth in Western Europe in terms of GDP, and ranks fifth in the world in terms of industrial production. It accounts for 4.2% of total GDP and 1% of the world's population (58 million people). The working-age population makes up almost half of the total UK population. In terms of industrial production, the UK ranks fifth among advanced economies. In terms of foreign investment, the UK ranks second in the world.
The main features of the UK economy are independence, integration into the world economic system, and a moderate level of development.
In our time, Great Britain is one of the largest powers, has a serious influence on the development of international economic and political relations.

The development of the UK economy
Modern features of the structure of the UK economy bear the imprint of the specific features of the development of its economy at different historical stages.
In Great Britain, more intensively than in other countries, there was a process of initial accumulation of capital. In the XVII-XIX centuries. the country actively participated in world trade, had the world's largest fleet, created the largest colonial empire. Already by the middle of the XIX century. it has become a world banker, its share in world industrial output has exceeded 1/2. But in the last quarter of the XIX century. Great Britain lagged behind the United States and Germany in terms of industrial development, and after the First World War became a debtor to the United States.
After World War II, the country's position in the world economy continued to weaken. This was aggravated by the collapse of the colonial empire, although Great Britain managed to maintain economic ties with the former colonies and dominions, forming the Commonwealth.
In the late 1940s and early 1950s, the state took a number of measures to improve the situation in the economy. So, some old industries and industries serving the entire economy were nationalized (coal, ferrous metallurgy, gas, electric power; railway, inland water and air transport, radio and television, as well as the Bank of England); the technical modernization of old industries began.
The state also stimulated the development of new, promising sectors of economic development - automotive, aviation, electrical engineering, and the nuclear industry. In the following decades, in the nationalized industries, there were processes of concentration of capital and monopolization of production, the formation of state-monopoly associations. Massive development of oil and gas fields began.
However, the UK continued to lag behind other leading countries of the world in many economic indicators, including the rate of production growth, the level of labor productivity in industry. Among the reasons are the lack of a fundamental technical reconstruction of the economy, while significant funds were still exported abroad or went to the military sector; the inconsistency of state policy towards industry, the old methods of organizing and managing production also had a negative impact.
In 1973 Great Britain joined the EEC. In terms of time, this almost coincided with the beginning of a series of global economic and structural crises (70-80s), which had a particularly hard effect in the UK, where in some years the unemployment rate exceeded 11%. On the whole, during the 1980s and 1990s, the situation in the UK economy improved, and its lag in growth rates from its main competitors in the capitalist world was largely overcome.
Today, Great Britain is a highly developed industrial power, occupying one of the leading places in the world in terms of industrial production and the cost of Scientific research and development. Major exporter of capital. GDP in 2004 - 1.782 trillion. Doll.; the country's budget in 2004: revenues - 834.9 billion dollars; expenditure part - 896.7 billion dollars; industrial production growth - 0.9%.
Relatively stable position in the economy promotes investment activity in the country. The total volume of accumulated investments amounted to 4.1 trillion. pounds (late 2004). American, Japanese, Canadian, French and German companies remain among the main investors in the British economy.
Model of economic development.
The main feature of the country's macroeconomic development is that the UK has chosen a neoliberal, "Anglo-Saxon" model of development. This model has been functioning since 1979 since the reign of Margaret Thatcher. "Thatcherism" suggests neoconservative reforms in the economy. It is characterized by the predominance of free private enterprise (more than 80% of total production). The private sector provides over 75% of all jobs. The policy of the British government is aimed at creating the most favorable opportunities for the development of private business. However, with a general increase in the living standards of the population in the country, there is a significant polarization of income, when 10% of the population owns 54% of the national wealth. Support for the market mechanism is carried out with the help of: privatization of state property, deregulation - reducing government intervention and reducing government reforms, tax reforms.
After the Laborites came to power in the 1990s, the economic policy of the state is aimed at combining the free market with some regulation of the economy, but without unnecessary regulation from the state.
The social and economic policy of the Laborites, on the one hand, is purely pragmatic and in a number of areas continues the course of its predecessors (M. Thatcher), on the other hand, it reflects the principles of new laborism: a combination of the social values ​​of old laborism with the development of a market economy. In the late 1990s Labor delegated a number of economic management functions to regional authorities. At the same time, market principles are being introduced into the activities of the public sector, privatization of public works and services is being carried out, and the participation of the private sector in solving social problems is expanding.
Deregulation of the economy has become an important direction of economic policy. Many administrative and legal restrictions on business activities were lifted; simplified regulatory procedures. Controls over wages, prices and dividends have been abolished; the labor market has undergone significant deregulation. This policy covered the banking, credit and currency spheres.

Banking system
In terms of concentration of banking capital, the UK has always been one of the first places in the world. Among English commercial banks, for many years the leading role was played by the powerful "Big Five" of London banks: Barclays Bank, Lloyds Bank, Midland Bank, National Bank, Westminster Bank. In 1968, there were mergers within the "big five" - ​​the last two banks merged, which led to an even greater concentration of the country's banking power. The Big Four now account for 92% of all deposits in UK commercial banks.
In the UK, several largest financial groups can be distinguished that control most of the economy - industry, trade, the credit system, etc. The largest financial groups in the UK are approaching in their power the largest financial groups in the United States, and in some industries have even overtaken them. A feature of the financial capital of Great Britain is its wide international connections. Thus, the Morgan-Grenfell banking house is associated with the American financial group Morgan, the Rothschild-Oppenheimer groups, the Anglo-Dutch companies Royal Dutch-Shell and Unilever are international.
Although British banks do not play today the role in the financial and capital markets that belonged to them for many decades of the 20th century, London remains the largest financial center after New York. It holds the leading position in the world in terms of the amount of turnover in the international money and capital markets, having the most efficient money market infrastructure in Europe. London ranks first in terms of the number of foreign banks operating here. Here is the 3rd largest stock exchange in the world in terms of operations (after New York and Tokyo). The London capital market accounts for up to 60% of world trade in foreign shares.
In order to comprehensively assess the benefits and costs of the UK's participation in the euro area, the Ministry of Finance has developed and began to put into practice a special methodology of "five economic tests" to study the goals, conditions and possible consequences of joining the country to the euro area.

3. Main sectors of the economy
A characteristic feature of the UK economy is its high degree of internationalization. Over 18% of its GDP is sold abroad, and the import quota exceeds 20%. Great Britain, which in the last century became the “center” of the international division of labor, is characterized by intra-industry specialization with a wide development of detailed and complex technological specialization. Although there are no sharp regional contrasts in the level of development in the country, 10 economic regions are distinguished in it according to the degree of development of productive forces and industrial specialization, features of the formation of the economy, the predominance of established territorial and production relations: South-East (metropolitan), West Midland, East Midland, Lancashire, Yorkshire, North East, North West, Wales, Scotland, Northern Ireland.
The most developed industry is the service sector. This industry employs 71% of the population and its share in GDP is 66.8%. The share of industry is 31%, and agriculture - 1.8% of GDP.

Industry
Characteristic of the post-war development of the British economy was the increase in the share mechanical engineering in the sectoral structure of industry, the rapid development of its new and emerging industries. The production of electrical equipment and computers is growing, instrument making, aviation and aerospace industries are actively developing. The share of knowledge-intensive industries is growing. At the same time, there is a decrease in the share of old industries - shipbuilding and machine tool building, production of railway equipment, etc.
At present, the role chemical industry. The most rapidly growing production of plastics, petrochemistry, synthetic materials. But despite all this, the UK lags behind others Western countries(USA, Japan, Germany) for the production of many types of chemical products.
There have been changes in energy. In the postwar years, this industry has become one of the fastest growing. Energy development was strongly influenced by the discovery of its own oil and gas fields in the North Sea, the development of which began in 1967, which put the UK in a relatively favorable position compared to other countries during the energy crisis of the 70s.
Now, in the context of a sharp drop in world oil prices, before the British oil industry a new problem arises, since oil production in the North Sea is more expensive than in most other countries. Nuclear power takes a more modest place in the UK than in France and Germany - only 20% of all electricity is produced at nuclear power plants.
coal industry is now in decline. Despite the nationalization of the industry and its reconstruction, after the war, the level of coal production grew at a slow pace, then kept at the same level, then began to decline. Such a drop is associated with an increase in the share of oil, gas and nuclear energy in the country's fuel and energy balance.
Successfully developing food industry. Significantly reduced share light industry . From industries textile industry the production of knitwear and artificial fibers is increasing. The main reasons for the crisis in the textile industry are the aggravation of the problem of sales in the domestic and foreign markets.

Agriculture
Recently, UK agriculture has reduced its position in the production of GDP, but nevertheless it covers most of the country's food needs, is characterized by high productivity and intensity.
Great Britain is a classical land of agricultural capitalism. Its agrarian relations are characterized by the presence of three classes: hired agricultural workers, capitalists (farmers) and landowners (landlords). A significant part of the land is owned by landlords, who themselves do not engage in agricultural production, but lease the land. With the transfer of land directly into the ownership of farmers, the importance of landlordism is reduced. In England, more than 70%, and in Scotland over 90% of agricultural land is in the hands of large farmers, whose farms exceed 60 hectares each. In England there are 27% of such farms, in Wales - 23%, in Scotland - 30%, in Northern Ireland - 18%. It is these farms that provide the main marketable products. On the whole, however, farmers with less than 16 hectares cultivated dominate. The largest farms (over 140 hectares) occupy half of all arable land and produce more than half of agricultural products.
A characteristic feature of the development of agriculture in Great Britain is the growth in the concentration of agricultural capital, the increased penetration of monopolies into this industry, and the merging of agricultural and industrial capital through vertical integration. The growth of specialization of agricultural production, its change towards industrialization led to the emergence of large companies for the production of certain types of agricultural products. This situation has developed primarily in the poultry industry.
High results have been achieved in the efficiency of agricultural production. The average wheat yield is 60-74 centners per hectare.
As a result of the intensification of production, the country has significantly increased the degree of self-sufficiency in products, bringing it today to 80% (in 1980 - 74%). For a whole range of products - wheat, meat, potatoes, milk, meat, vegetables - the country satisfies the demand in the domestic market.
An important role in the development of agriculture was played by the state, which allocated significant funds to increase the competitiveness of the agricultural sector. A policy of accelerated concentration of enterprises was proclaimed through the merger of insufficiently large farms, the liquidation of the smallest unviable farms, and the accelerated development of cooperation in agriculture.
Agricultural production is growing at an average of 3% per year. This is the largest increase among advanced economies.
The main branch of agriculture in the UK is livestock, which makes up about 70% of all its products. Forage crops (beets, barley, oats) occupy a significant place in crop production. In recent years, wheat production has increased, as a result of which domestic needs for it are almost completely satisfied.
In the 80s. there was a reduction in sown areas, the growth of gross crop yields was achieved by increasing yields as a result of the use of a significant amount of fertilizers and good tillage.
The level of mechanization of agricultural work in the UK is quite high. However, extensive mechanization is available mainly to large farmers, who thus achieve a reduction in production costs, primarily saving on labor.
Great Britain has made significant progress in improving the production apparatus, significant structural changes have taken place in its economy. These changes are mainly related to the increasing importance of the non-productive sphere.

Services sector
The service sector provides 66.8% of GDP, employs 71% of the workforce, and credit institutions play a leading role here. London banks account for about 20% of international lending, the UK is home to the world's largest insurance industry (1/5 of the world market).
The most remarkable phenomenon that characterizes the UK economy has been the growth of the service sector. It reflects the increase in real incomes of the population, as well as the ratio between spending on goods and services. Representatives of the financial sector and the entertainment and tourism sector especially benefited. Although some services, such as public transport, laundries and cinemas, have lost income per unit due to a shift towards their own goods such as cars, washing machines and televisions, service sectors that sell and repair these goods have been helped to develop. Other service sectors that saw increased demand include hotels, tourism, retail, finance and leisure. Numerous other sectors that previously held little or no market share have become much more significant. They include the production of computers and software, advertising, market research, exhibitions, presentations and conferences. Recently, the UK has also been actively developing the sector of teaching foreign languages, especially English, secondary and higher education by attracting international students.

4. Foreign economic relations
The export of capital is one of the most important forms of foreign economic relations for Great Britain. In terms of foreign direct investment, the country ranks third in the world after the United States and Japan, while profits from the export of capital are twice as high as merchandise exports.
The main areas for investing English capital abroad are the manufacturing industry (more than 50% of investments), the oil industry (more than 20%), banking and insurance. AT last years the acquisition of real estate abroad, in particular in France, has intensified. In 2003, foreigners, mostly British, invested $10.3 billion in French real estate (15% of house purchases outside major cities).
Great Britain itself has now become an object of investment of foreign capital, chiefly by the monopolies of the USA and Western European countries, while the share of Japan is rapidly increasing. Capital is invested in the most advanced industries and oil production. Nearly 40% of FDI is controlled by US corporations.
Trade in recent years has been growing faster than the economy as a whole. In 2001, the share of wholesale and retail trade in GDP was 12.2%. There are 107 wholesale trade enterprises in the country, employing 1.18 million people. The number of retail trade enterprises exceeds 192 thousand. They employ 2.87 million people. (11% of all employed in the country). The turnover of large trading companies with a wide network of shops and supermarkets is growing at the highest rate. The importance of trade, in which orders are made by mail and via the Internet, is increasing.
The role of foreign trade in the country's economy is great: it exports about 1/4 of its products.
In the structure of imports, the share of food and raw materials has sharply decreased (due to the growth of food self-sufficiency, a decrease in the material intensity of products, a decrease in oil imports, etc.), while the share of finished products has increased four times, to almost 80% (due to the deepening of specialization in the global economy, and a decrease in the competitiveness of a number of British goods).
Traditionally, the bulk of British exports are manufactured goods (approximately 40% of all exports are engineering products, including automatic machine tools, aircraft engines, vehicles, instruments), as well as chemical products. One of the most important changes in the UK's export specialization is its transformation from a coal exporter to a net oil exporter. The country provides about 1/5 of the world's exports of alcoholic beverages (mainly Scotch whisky).
Approximately 80% of all British capital exports go to advanced economies, mainly to Germany and France. At the same time, the volume of Britain's economic ties with third world countries (foreign trade and export of capital) is relatively large.
The largest trading partners of the UK: Germany, USA, France, the Netherlands. The share of EU countries accounts for more than 50% of British exports and imports. Great Britain is one of the five largest partners of Russia (the trade turnover between both parties in 2005 amounted to 9.27 billion pounds). In terms of accumulated foreign investment in the Russian economy in 2004, it ranks fifth after the Netherlands, Luxembourg, Cyprus and Germany.
In 2004, imports amounted to 439.4 billion dollars. The main import items are manufactured goods, machinery, various types of fuel, food. The largest import partners - Germany (13.5%), USA (10.2%), France (8.1%), Netherlands (6.3%), Italy (4.7%) - 2003

5. Conclusion
The peculiarity of the British economy and its position in the world economy reflects the peculiarities of the country's development in the past century.
The evolution of the world positions of Great Britain at the end of the 20th century. cannot be understood without taking into account the differences in interests between different groups of big business. One of the features of economic development that go deep into history is a certain alienation between industrial and banking capital that persisted for a long time. The former monopoly position of the country in the world market contributed to the fact that the industry did not feel the need for large borrowed funds.
For a long time, the activities of a powerful coalition of colonial raw materials companies and financial institutions City. As industrial TNCs strengthened, relying primarily on the export of capital, there was a demarcation of interests in industrial circles as well. The most influential part of them increasingly identified their interests not with national, but with foreign production.
All these circumstances largely led to lower economic growth compared to other developed countries, slow qualitative structural changes in the economy in general and industry in particular.
In the 1980s and 1990s, the economic management mechanism underwent significant changes. First of all, there was its significant decentralization. Britain under the Conservatives pioneered large-scale privatization in the West. At the end of the last decade, Labor transferred a number of economic management functions to regional authorities in Scotland and Wales. Both Conservative and Labor governments actively introduced market principles into the activities of the public sector, carried out the privatization of public works and services, and expanded the participation of the private sector in solving social problems.
In the XX century. Serious shifts have taken place in the structure of exports of services, in which the UK ranks second in the world, second only to the United States. The country receives its main income from the export of business services, including legal and accounting services. The consulting services of British banks in the field of privatization are in great demand. The fastest growing export of computer and information services.
etc.................