THE INDUSTIRAL REVOLUTION

“One of the most obvious differences between pre-industrial and modern industrial societies is the greatly diminished relative role of agriculture in the latter.” (Cameron, 161). In fact, the industrial progress led to the rise in the secondary sector, which led to the increases in the labor force employed and the output.

The industrial revolution first occurred in Britain, then in the rest of the British Isles. Britain, being “the first industrial nation”, became a leader of Europe on the economic spectrum.

FYI: At the end of Napoleonic Wars, Britain was producing about one-quarter of the total world industrial production!

The Industrial Revolution is important to the British economic progress because of the various inventions introduced during the time period. These inventions helped increase productivity, thus boosting the economy. Below are just some of the important machines invented during that time period.

1. James Hargreaves’ spinning jenny revolutionized the textile industry.

Figure 3. The Spinning Jenny.

2. Richard Arkwright’s water frame made it easier to supply power to the machines.
3. Edmund Cartwright’s power loom introduced easier mechanical weaving.
4. James Watt’s engine was the first step toward railway transportation.

Transportation was an important aspect of the industrial revolution. The coalmines were responsible for the first railways in Britain. However, the railways were highly inefficient until George Stephenson invented a steam engine in 1813.

Figure 4. The inventor of this first efficient locomotive used commercially, the Rocket, was awarded 500 pounds for his invention.

FYI: The first railway was laid between the cities of Stockton and Darlington in 1822.

Figure 5. The grand opening of the first railway, Stockton-Darlington.

Figure 6. Liverpool-Manchester is considered the first commercial railway line.

COLONIAL POWER

Commercial interests dictated the growth of the Empire.

FYI: Did you know that, in the 16^th century, England was a poor country, lacking the wealth of Portugal and Spain?

In the 17^th century English realized the huge commercial potential of overseas acquisitions.

“Since I support the free trade, it was a great joy for me to know that the union of England with Scotland in 1707 created the largest free trade area then existing”.

The first successful British colony was Jamestown, Virginia. The Empire was gradually built over the next two centuries as the British established colonies and trading posts in many parts of the world as well as capturing them from other European empire builders.

Private companies led the way in establishing new colonies. The best-known example was the East India Company.

Figure 7. Established in 1600 by Queen Elizabeth, East India Company enjoyed a monopoly over the East Indies trade until 1783.

The so-called “Triangular Trade” was also established. British ships took British goods to Africa, which were exchanged for slaves, taken to America, where rum, sugar and cotton were then delivered back to Britain. Although slave trading became illegal in 1807, the Empire was already relying on its industrial strength. However, by then, the British Empire became the richest and most powerful nation in the world.

“For all my life I have demonstrated the advantages of free trade.

The free trade policy promoted by Britain in the 1840s bears fruit, for the next 70 years, Britain had experiences such an economic growth that made the nation the world’s wealthiest industrial power”.

By the late 19^th century, Great Britain was annexing countries for reasons of national prestige rather than solely for commercial gain.

FYI: The British Empire, at its largest at the end of World War I, controlled over 25% of the world’s population and area.

THE DECLINE OF THE EMPIRE

Many historians trace the decline of the Empire to the 1870s, when the first signs of the decline became visible.

“Let me list some of the reasons for the decline of the British Empire. First, slow moving aggregates such as the competition in world export markets and performance in invention and especially innovation after the industrial revolution. Second, the diffusion of technology. Thirdly, uncompetitive and cumbersome industries such as shipbuilding and coal mining, where the technological improvements are slow.”

The reason why Britain could no longer be the leader among the European powers was her geographical factor. “It is not surprising that, in view of the vast resources and rapid population growth of the United States and Russia, it is not surprising that they would eventually overtake the small island nation…” (Cameron, 224).

The British monetary primacy was also coming to an end. Before World War I, the major aspect of British primacy was the use of the international gold standard, occasionally interpreted as the sterling standard. However, the Bank of England had to borrow heavily to help the “Bank of France during the Franco-Prussian War.” (Kindleberger, 137).

“The assertion began to be heard in the United States that New York was destined to oust London as the central market of the world” (quoted in ibid., from Noyes, 1938, p. 178)

“I hope Britain would cooperate with Germany in resisting the Americanization of the world. We must steer clear of cooperation with the United States, managing our monetary standard independently.”

Another theory of British decline goes back to the empirical roles Britain had to play. “…from 1895 to 1905, critical questions of trade, finance, the Royal Navy, and military defense of India plagued the British government.” (Friedberg, 56)

In fact, strained by the expenses of the Boer War, a question was posed of whether “Britain should or could continue to protect its world empire or should give up the defense of Canada…” (Kindleberger, 141).

In 1867, Canada became a dominion, followed by Australia, New Zealand and South Africa. In 1931, the Statute of Westminster established the word “dominion” as synonymous with complete independence.

“Laissez faire theories of Adam Smith shall not prevail. It is evident by the decline in the British industry. In the 19^th century, it received little guidance from government, except from military and admiralty orders.”

“To conclude, let me say that I would also blame the backwardness of our educational system as well as the lack of the entrepreneurial abilities for the decline of England. The Sun has, unfortunately, set on the British Empire.”

Figure 8. World War II caused great devastation, especially in London. The war-devastated Britain struggled to keep its economy afloat.

GREAT BRITAIN TODAY

By the beginning of the 20^th century, Britain began to suffer increasing competition in both trade and manufacturing. Now, the United Kingdom is a world leader in only a few areas, such as luxury goods, defense equipment and chemical products. North Sea oil productions and services have become much more important. However, the region does suffer persistent problems of high unemployment. Although London has become a principal money market, it has some problems of its own. The City, the main financial district in the heart of London, is struggling to maintain its international position, being faced with competition from Tokyo, Frankfurt and New York.

Figure 9. The British pound still remains one of the strongest currencies in the world, even in comparison to a US $.

However, even after the overall decline, hastened by the great destruction and expense of the two World Wars and the breakup of the British Empire, Great Britain still remains a major player on the European economic arena. It is the largest investor abroad, particularly in the United States. Foreign money flow into the nation from abroad, particularly Japan. The economy is transforming to the services from the manufacturing industries.

May be, the Sun did not set on the British Empire after all…

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