Title: POST-WAR BRITAIN
1POST-WAR BRITAIN
2- Post-war Britain
- The Loss of Empire
- a. India
- b. Egypt
- The Search for Economic Well-Being
- Conservative Rule
- Industrial Decline
- The Thatcher Revolution
- Attempts at Peace in Ireland
- Conservative Decline and the Rise of New Labour
- Labours Return to Power
- Labours Second Term
- Labours Third Term
3Post-War Reconstruction
- The immediate post-war period was one of severe
privation. More than 4 million houses had been
destroyed or badly damaged the result was an
acute shortage of housing, especially after
soldiers returned from the war. Commodity
shortages meant the continuation of wartime
rationing. Rationing also had to be extended to
include items that had not been rationed during
the war. - For the first time since the 18th century,
Britain became a debtor nation. The loans it had
taken out from foreign nations to finance the war
exceeded the money it could raise in taxes and
other revenues. Without U.S. and Canadian aid,
Britain would have defaulted on its considerable
debts. Even so, the flood of wealth out of the
country was considerable. The winter of 1947 was
probably the lowest economic point of the
century. Fuel shortages, gas rationing,
inadequate food and shelter, and one of the
coldest seasons on record all added to the
nations problems. Unemployment reached 2.3
million, and the monetary crisis worsened.
4- On the political scene, to the surprise of the
world, Churchill was swept out of office when his
Conservative Party lost to the Labour Party in
the elections of 1945. The Labour government
relaxed restrictions on trade unions and embarked
upon a program of nationalization. This program
resulted in government ownership of the Bank of
England and of the coal, electricity, and gas
industries. The government consolidated the
railroads into British Rail and the airlines into
British Overseas Airways Company (BOAC). The most
controversial takeovers were the iron and steel
industries, which were profitable private
enterprises. The government immediately
encountered the difficulties of effectively
running complicated industries, many of which
were badly in need of modernization. Efforts to
make these businesses profitable and competitive
in the international market were hampered by
outdated equipment and inadequate facilities. - In 1948 the most far-reaching of Britains social
welfare programs was established. The National
Insurance Act of 1946 consolidated benefits
involving maternity, unemployment, disability,
old age, and death. The National Health Service,
set up in 1948, provided free medical service for
Britons. British socialists now boasted that
citizens were cared for from cradle to grave.
However, the price tag for both programs was far
greater than anyone had anticipated, and the
government immediately cut back on some services.
5The Loss of Empire
- After the war, Britain still played an important
role in international affairs. In 1945 it became
a permanent member of the Security Council of the
United Nations. (The United Nations, or UN, is an
international organization of countries that was
founded in 1945 to promote world peace and
cooperation.) As a member of the UN, Britain
served as one of the countries that continued to
occupy and rebuild Germany. The new Labour
government attempted to maintain Britains role
as a world power by supporting a large overseas
military presence in both the British colonies
and Europe and by continuing a high level of
military spending. - Tensions grew between Communist nations under the
leadership of the USSR and capitalist countries
led by the United States. Britain developed its
own nuclear weapons and cooperated closely with
the United States in a policy that relied on
using the threat of nuclear attack to discourage
aggression by potential enemies. For many
Britons, the USSR replaced Germany as the
national enemy.
6India
- In India a movement for independence had been
gathering momentum for decades. Although the
British concluded that they could no longer rule
in India, they did not feel that they could
simply abandon their centuries-old ties. India
was religiously divided, and the two largest
groupsHindus and Muslimswere increasingly
antagonistic toward each other. The attempt to
create one dominion of India was undermined by
the demand of the Muslims for their own separate
state. - After the war, the Labour government abandoned
efforts to mediate the conflict and resolved to
end the British presence in India as quickly as
possible. The government opposed colonialism and
felt little political attachment to India. The
costs of continued peacekeeping were also keenly
felt at a time when there was rationing at home.
A heroic effort by the last governor-general of
India, Louis Mountbatten, created what appeared
to be a workable division between largely Hindu
India and Muslim Pakistan, which has since split
into the nations of Pakistan and Bangladesh. The
British withdrawal in 1948 resulted in increased
religious tensions and a terrible civil war. The
civil war resulted in the deaths of between
250,000 and 500,000 people, among them Gandhi,
who was assassinated by a Hindu extremist opposed
to the division of India. The abandonment of
India was a blow to British prestige and the
beginning of the total disintegration of the
empire.
7Mohandas Gandhi
Mohandas Gandhi Indian nationalist leader
Mohandas Gandhi spent his life campaigning for
human rights in India. His strategy was to use a
combination of passive resistance to and no
cooperation with the British, who ruled India.
Gandhi said his techniques were inspired by the
Russian writer Leo Tolstoy, by American writer
Henry David Thoreau, and by the teachings of
Jesus Christ. In 1947 Gandhis pacifist efforts
brought an end to British rule in India.
8Egypt
- The next crisis for the empire occurred in Egypt,
where British domination of the Suez Canal
sustained Britains role as a world trader. Even
before the war, British troops had withdrawn to a
zone around the canal, and Britain had ceased its
once active role in Egyptian government.
Relations were complicated by the creation in
1948 of a Jewish state, Israel, in
British-controlled Palestine. Both Arabs and
Israelis accused the British of taking the
others side, and both wanted Britain out of the
Middle East. - In 1956 Egyptian leader Gamel Abdel Nasser seized
the canal. Britain, with military assistance from
France and Israel, attempted to retake the canal
and almost succeeded in doing so. However, the
United States and the USSR, who were caught
unaware by the Suez crisis, insisted that
British, French, and Israeli forces withdraw from
the canal area. The Suez crisis saw Britain lose
all of its influence in the region and raised at
home the idea that Britain was no longer a great
power.
9- During the 1960s colonies throughout the world
rapidly acquired their independence. In 1961
South Africa withdrew from the Commonwealth after
controversy developed within the Commonwealth
concerning apartheid, South Africas policy of
racial segregation. Other African territories
became self-governing states and joined the
Commonwealth of Nations. Ghana, Nigeria, Uganda,
and Kenyaall large African states under British
controldeveloped into republics and adopted
British forms of parliamentary government, law,
and finances. - The Commonwealth provided an international sphere
of influence for Britain during world crises and
remained an important economic union. Although
Britain was no longer a superpower, the countrys
traditional role in Africa and the Middle East
made it an obvious mediator of conflict. London
remained the financial center of choice for
petroleum-rich states as well as the educational
center for the sons of the ruling elite in the
former colonies. The Commonwealth tied together
the member nations by automatically granting
British citizenship to citizens of Commonwealth
countries, a policy that ended in 1983. British
emigration to the former colonies of Canada,
Australia, and New Zealand remained a significant
dimension of its population history as did the
even higher immigration into Britain from its
former Asian and African possessions. This
immigration created racial tensions in Britains
largest cities. While the Race Relations Act of
1968 prohibited discrimination, racial violence
increased, especially among youths
10Gamal Abdel Nasser
Gamal Abdel Nasser led a nationalist movement in
1952 that ousted the Egyptian monarchy and
transformed Egypt into a republic. Nasser became
leader of Egypt in 1954 and subsequently
negotiated an end to Britains 72-year occupation
of Egypt. He was president of Egypt from 1956
until his death in 1970. His accomplishments
included the construction of the Aswan High Dam,
the institution of land reforms, a program of
industrialization, and the restoration of
Egyptian self-government. Nasser also pursued
policies of Arab unity and socialism.
11The search for economic well-being
- Conservative rule
- In 1951 the Labour Party lost its majority in
Parliament, and the Conservative Party regained
control. The Conservatives led the nation toward
renewed prosperity. They returned the iron and
steel industries to private ownership, but left
intact the major components of the welfare state.
Tight government control on imports and on
government spending, high rates of income tax for
the wealthy, and investment in new industries
such as automobiles and chemicals finally created
a surplus in British trading accounts. - Private enterprise led the growth of what
was being called the affluent society. The
value of the goods that workers could buy with
their wages rose by 40 percent during the 1950s.
Two symbols of affluencecars and
televisionssoon became so common that the
government undertook a program of motorway
expansion. In addition, private investors created
the first independent television network to
compete with the government-owned British
Broadcasting Corporation (BBC).
12- The accession of young Queen Elizabeth II in 1952
provided a ray of light toward a brighter future,
as did the extraordinary accomplishments of
British sportsmen around the world. In 1953 a
British expedition scaled the worlds highest
mountain, Mount Everest another British
expedition crossed Antarctica and in 1954
British athlete Roger Bannister became the first
person to run a mile in less than four minutes.
In the early 1960s, British popular culture swept
the world. For a time the United Kingdom replaced
the United States as the leader in fashion,
style, and especially music, with popular music
groups such as the Beatles and the Rolling Stones
emerging as the dominant rock groups of the day.
13Industrial decline
- Almost imperceptibly, Britons came to realize
that their nation was in decline during the 1960s
and 1970s. Early recovery from the war led to an
optimism that could not be sustained as other
European countries staged their own revivals.
Despite being severed in two, Germany emerged
once again as an industrial and trading power.
Under the energetic leadership of Charles de
Gaulle, France charted a course of independence
from the United States by refusing to join the
North Atlantic Treaty Organization (NATO), a
defensive organization formed by the United
States and a number of European countries to
counter the military strength of the USSR. - For a time, de Gaulle managed to keep Britain out
of the European Economic Community (now the
European Union), an organization designed to
promote economic integration among European
nations. De Gaulle vetoed Britains membership
applications in 1961 and 1967, largely because of
Britains close ties with the United States.
Britons themselves remained split over closer
ties with the continental powers. It was not
until 1973 that Britain finally became a member
of the European Community.
14- By the mid-1960s Britain was mired in an economic
slowdown. Massive dock strikes in both 1966 and
1967 severely affected British exports. In an
effort to prevent the flow of money out of the
country, the government devalued the currency.
Devaluation lowered the value of British currency
in relation to foreign currency, making it less
expensive for Britain to pay its foreign debts.
It gave a boost to British exports by making
British goods less expensive on the foreign
market. However, it also made imported products
more expensive for British citizens and lowered
international confidence in Britains currency. - Industries in which Britain had been dominant for
centuries were decaying rapidly. Shipbuilding,
textiles, coal, and steel, all of which had been
bywords of Britains Industrial Revolution, were
no longer competitive. Each was beset with low
productivity, high labour costs, and outdated
plants and machinery. Industrial relations
between workers and employers were at an all-time
low, as workers staged hundreds of strikes, work
stoppages, and deliberate slowdowns.
15- Crisis came in 1973 when oil-exporting nations in
the Middle East dramatically cut shipments to
pro-Israeli nations following the Arab-Israeli
War. Oil prices quadrupled, forcing British
industries to use more coal. This was the
opportunity for which miners had waited. Miners
were dissatisfied because they opposed the
governments wage controls as well as the policy
of closing down unprofitable mines at the cost of
miners jobs. Now the miners introduced a ban on
working overtime and finally began an all-out
strike to pressure the government to abandon its
policy of legislating limits on wage increases.
In response, Prime Minister Edward Heath
introduced emergency legislation that limited the
working week to three days and instituted
national electrical power cuts to minimize the
amount of coal used in power plants. - The election of 1974 was fought on whether
government would restrain the unions. The Labour
Party won a narrow majority by promising not to
interfere with the unions. With legal limits
removed, the unions won wage increases. Workers
now had more money to spend, while the amount of
available goods on the market remained the same.
As a result, prices for products began to rise,
and double-digit inflation ensued. Food prices
rose 20 percent in 1973 alone. - Wages and prices spiralled out of control. Only a
supply of oil drilled from the North Sea off the
coast of Scotland saved Britain from a crisis
over the payment of its foreign debts. Even with
the new supply of oil, the government raised
taxes on income and on consumer goods to finance
raises in wages that had been negotiated with
union members in nationalized industries. The
taxes left less and less for reinvestment. In
1979 an arrangement between the Labour Party and
the unions to keep wage demands moderate broke
down, and another round of strikes took place
16The Thatcher revolution
- The Conservatives capitalized on the situation to
win the election in 1979 under their newly chosen
leader, Margaret Thatcher, Britains first female
prime minister. Thatcher was a strident
Conservative, and she was determined not to give
in to the unions or change from the course she
had charted to revive the British economy.
Thatcher based her policy on the theory of
monetarism. This theory involved strictly
controlling the money supply to reduce inflation,
lowering tax rates to encourage investment, and
minimizing government intervention in industry to
remove restrictions on the expansion of
businesses.
17- The Thatcher government began privatizing
industry, relaxing government regulation, and
removing government subsidies. This was strong
medicine and initially led to an even more rapid
decline. By 1981 both interest rates and
unemployment reached post-war highs, and a
growing number of British firms faced bankruptcy.
Pressure mounted to reverse government policy,
and even members of Thatchers own party
threatened to revolt. Thatcher refused to abandon
her policies. - A political crisis was averted only after war
broke out when Argentina invaded the Falkland
Islands, a British dependency in the South
Atlantic that is also claimed by Argentina. The
Falkland War released a mood of defiance in
Britain in the wake of decades of international
setbacks. Following Britains victory in the war,
the Conservatives won a resounding electoral
victory in 1983. However, their 150-seat majority
came almost entirely from the southeast, where
the benefits of monetarism were felt most.
18- The successes of Thatcherism were tempered by the
new social divisions it created. Scotland, Wales,
and northern England all became economic
backwaters their industrial bases were in ruins,
and an entire generation of workers was
unemployed. Moreover, the new wealth that
monetarism createdin the financial industry,
real estate, and technologyled to many displays
of luxury among the newly rich. The new wealth
contrasted sharply with the loss of income
experienced by many inner-city residents and
unemployed middle-aged males. Conservative
support slipped in the polls, and members of the
party revolted against Thatcher, who resigned in
1990.
19Attempts at Peace in Ireland
- In Ireland, the uneasy settlement that had kept
Northern Ireland part of Britain exploded in the
late 1960s. In 1968 Northern Irelands Catholic
minority launched a series of protests against
discrimination in employment and housing. The
protests led to increasing violence between
Catholic and Protestant groups. British troops
were sent to keep the peace in cities such as
Belfast, which had large concentrations of
Catholics among the majority Protestant
population. These troops became the target of
violence, and guerrilla warfare followed.
Beginning in 1973 the Irish Republican Army (IRA)
targeted prominent sites in England, bombing
subway stations, department stores, and tourist
locations.
20- For the next 25 years Catholic and Protestant
paramilitary groups waged a deadly battle.
Catholics fought to create a single Ireland
Protestants fought to maintain union with
Britain. Almost every effort toward peace was
sabotaged by acts of violence by one side or the
other. By the early 1980s, hunger strikes
conducted by IRA prisoners in Northern Ireland
heightened political tensions and fuelled fears
that the provinces moderate Catholics would
become radicalized. These concerns led the
British government to pursue a policy of close
cooperation with the Irish government to achieve
peace in Northern Ireland. In 1985 Thatcher and
Irish prime minister Garret FitzGerald signed the
Anglo-Irish Agreement, which gave Ireland a
consultative role in the administration of
Northern Ireland. - Anglo-Irish cooperation provided fresh momentum
to the peace process, and in 1993 the British and
Irish governments issued a joint peace proposal
called the Downing Street Declarationa document
intended to form the basis for peace
negotiations. In an important breakthrough, the
IRA announced in 1994 that it would suspend its
paramilitary operations in favour of peace talks.
However, British demands that all-party peace
talks could not proceed until the IRA began
disarming were rejected by the IRA, and in 1996
the IRA broke its cease-fire with a renewed
campaign of violence.
21IRA Cease-Fire The Irish Republican Army (IRA),
a paramilitary organization dedicated to fighting
British rule in Ireland, laid down its arms on
August 31, 1994, to promote a peaceful settlement
with Britain. Gerry Adams, head of the IRAs
political arm, Sinn Fein, said the struggle to
end British rule in Ireland had entered a new
phase.
22Conservative Decline and the Rise of New Labour
- Thatchers Conservative successor as prime
minister, John Major, inherited a badly divided
party, a country that had grown tired of
Conservative rule, and a major dispute over the
European Community, which was moving toward
greater integration. In 1991 the major European
powers agreed on the Maastricht Treaty, which
created the European Union (EU) and took the next
steps toward the establishment of a single
economic union. The treaty tied the exchange
rates of European currencies together and
proposed to create a single, unified currency,
the euro, in 1999. It was proposed that monetary
policy follow the lines that had already been
adopted by Britain. However, other aspects of the
EUs social and economic policy were bitterly
opposed by Thatcherite Conservatives as being too
favourable toward labour and too expensive for
the government.
John Major John Major was elected prime minister
of the United Kingdom in 1990 as leader of the
Conservative Party. He served until 1997, when he
was defeated by the Labour Party headed by Tony
Blair.
23- Major worked hard to keep his own party together
and to maintain the loyalty of key ministers.
There was widespread expectation that Labour
would return to power in 1992, but Major
surprised the pollsters and many in his own party
when the Conservatives won re-election. However,
voters soon lost confidence in the Conservatives.
In the following year the governments approval
rating sank to just 18 percent despite strong
economic growth and a new peace initiative in
Northern Ireland. - The loss of the 1992 elections had a profound
impact on the Labour Party. For nearly a decade,
Labour had been attempting to moderate its
policies and distance itself from ties to the
unions. It developed a new platform that would
build upon Britains economic recovery, but that
would also allow a more equitable distribution of
the new wealth that was being created. - In 1994 the Labour Party elected Tony Blair, a
young lawyer, as its leader. Under the title New
Labour, Blair insisted that his party abandon its
nearly century-old commitment to creating a
socialist state. Blair benefited immediately from
a series of scandals involving Conservative
ministers and Members of Parliament. The public
spectacle surrounding Prince Charles and Princess
Diana, whose marital infidelities were openly
discussed on national television and who were
finally divorced in 1996, also hurt the
Conservatives, who were strong supporters of the
monarchy. Despite the continued economic boomby
1996 inflation had nearly disappeared,
unemployment was the lowest in Europe, and growth
the highestLabour led the Conservatives in polls
by a significant margin.
24Labours Return to Power
-
- The general elections of 1997 gave the Labour
Party the greatest landslide victory of the
century and its largest-ever majority of 179
seats in the Parliament. The Conservative Party
suffered its worst electoral defeat of the
century, and John Major resigned as party leader.
As the United Kingdoms youngest prime minister
since the 19th century, Blair seemed to speak for
a new generation and a new Britain.
In 1994 British lawyer Tony Blair became the
leader of the British Labour Party. He worked
extensively to reorganize the party and to
increase its popularity. In 1997 the Labour Party
won a landslide victory in British national
elections, and Blair became prime minister
25- Blair attempted to maintain his centrist approach
to government against the demands of the
traditional Labour constituencies for social
justice and the redistribution of wealth. In a
bold beginning, he made the Bank of England
independent of government. This move was designed
to prevent monetary policy from being affected by
political issues. In addition, he supported
Parliaments decision to reconstitute the ancient
parliaments of Scotland and Wales, giving them
more regional control and political independence.
- Blair also worked closely with Irish prime
minister Bertie Ahern to revive the stalled peace
negotiations in Northern Ireland. In April 1998 a
new peace accord was signed that had strong
backing from the British and Irish governments.
Known as the Good Friday (or Belfast) Agreement,
the accord authorized the creation of a
semiautonomous assembly for Northern Ireland to
replace direct rule of the province by the United
Kingdom. The accord won overwhelming endorsement
from voters in Ireland and Northern Ireland, and
in December 1999 the United Kingdom formally
transferred power to the new provincial assembly.
However, an impasse between Catholic and
Protestant groups over the pace of the Irish
Republican Armys disarmament forced the United
Kingdom to suspend the assembly in February 2000.
Provincial rule was restored in May, but the
disarmament issue remained unresolved and a
source of persistent political tension.
26- Under Blair, the United Kingdom continued to play
an active role in the European Union (EU).
However, Britains strong economy and monetary
policy provided little incentive to accept the
unified European currency, the euro. Blairs
government backed away from its commitment to a
complete economic union with the other EU
countries because of the cost. In addition, the
economic union had always been unpopular with
many Britons. In early 1998 Blair announced a
wait-and-see attitude toward monetary
integration, an attitude that he maintained even
as 11 EU countries officially adopted the euro in
1999. - In another move to modernize and streamline the
government, in November 1999 Blair made good on a
campaign promise to strip many of the hereditary
peers in the House of Lords of their right to sit
and vote in Parliament. The House of Lords Act
eliminated all but 92 of the more than 750 seats
held by hereditary members of Parliaments upper
house.
27Labours Second Term
- The Labour Party won its second consecutive
landslide victory in the June 2001 general
elections, gaining the largest majority ever held
by a British party in its second term. The
elections were an enormous victory for the Labour
Party and the centrist policies of Blair, who won
a second term as prime minister. - Soon after the elections the impasse over the
pace of IRA disarmament again threatened to
derail the peace process in Northern Ireland. The
British government briefly suspended the
provincial assembly on two more occasions in
mid-2001 to prevent the governments collapse.
Blair welcomed an announcement by the IRA in
October that it had begun to disarm, as did key
Protestant leaders, and the assembly resumed
operations the following month. However,
continued conflict among Northern Irelands
political parties led the British government to
reimpose direct rule of the province in 2002.
Following the suspension, Blair and Irish prime
minister Bertie Ahern renewed negotiations in an
effort to restore operations of the provincial
assembly.
28- In the wake of the September 11 attacks on the
United States in 2001, Blair proclaimed that the
United Kingdom would stand shoulder to shoulder
with the United States in the effort to root out
global terrorism. More than 100 British citizens
were among the thousands of people who died in
the attacks. Blair began an intensive round of
diplomatic negotiations that took him to many
European capitals and to a host of Muslim
countriesincluding Egypt, Oman, and Pakistanto
build international support for action against
the terrorists. In October the United Kingdom
sent British forces to participate in the
U.S.-led assault on Afghanistans Taliban regime,
which was accused of harboring terrorists.
Additional British troops were deployed to
Afghanistan in December 2001 and March 2002. - As the conflict in Afghanistan subsided, the
Labour government maintained its strong support
for U.S foreign policy, including a possible
U.S.-led war against the government of Iraqi
leader Saddam Hussein. Blairfollowing the lead
of U.S. president George W. Bushaccused Hussein
of stockpiling weapons of mass destruction and of
posing a serious threat to regional and global
security, and he offered to contribute British
military forces to a preemptive U.S.-led attack
on Iraq. Blairs position put him at odds with
the leaders of many European countries, including
France and Germany, who preferred to work through
the United Nations (UN) to ensure Iraqs
disarmament. Blair als??ÿaced intense o?ÿosition
from many Britons, including members of the
Labour Party, who opposed military action against
Iraq. In March 2003 British forces joined the
U.S.-led invasion of Iraq, despite a failure to
secure a UN resolution explicitly sanctioning the
action. The subsequent failure to find weapons of
mass destruction The Labour Party won its second
consecutive landslide victory in the June 2001
general elections, gaining the largest majority
ever held by a British party in its second term.
The elections were an enormous victory for the
Labour Party and the centrist policies of Blair,
who won a second term as prime minister.
29Labours Third Term
- Labours Third Term
- Blair called a general election in May 2005. The
Labour Party won its first-ever third consecutive
victory, giving Blair a third term as prime
minister. Labour won 356 seats, giving it a solid
but much reduced majority in the 646-seat House
of Commons. Analysts said Labours slimmer
majority reflected voter discontent with Blairs
decision to support the U.S.-led invasion of
Iraq. The Liberal Democrats, who opposed
Britains involvement in the war, increased their
representation in the House of Commons, winning
62 seats. The Conservatives, who waged an
aggressive campaign, picked up 33 seats, bringing
their total to 197.
30- Post-war Britain
- The Loss of Empire
- a. India
- b. Egypt
- The Search for Economic Well-Being
- Conservative Rule
- Industrial Decline
- The Thatcher Revolution
- Attempts at Peace in Ireland
- Conservative Decline and the Rise of New Labour
- Labours Return to Power
- Labours Second Term
- Labours Third Term
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