At the end of the 19thcentury Great Britain experienced an economic decline, the reasons for which are still controversially discussed among historians. While some stress the changes in the world economy due to the spread of industrialization in the 19th century, others hold the view that serious failings within the domestic economy are the major causes for Britain’s downfall. After a short description of the degree of Britain’s decline before 1914, some of the major reasons for Britain’s relative economic decline will be analyzed and compared. The aim of this paper will be to evaluate the severity of external changes that the British had no control of as well as internal failings within the British economy that contributed to Britain’s relative economic decline. Writing about Britain’s economic decline at the end of the 19thCentury, it is first of all necessary to define in how far one can speak of a ‘decline’. Most historians point out that Britain’s economic decline is only a relative one. They argue that in comparison to Britain’s earlier growth or in relation to the growth of other advanced countries, like e.g. the USA or Germany, one can realize a decline in the economic performance of Great Britain but that in general there was no decline in the last third of the 19thcentury. Alford renders it more precisely by saying that: “British enterprise, it will be argued, did not decline during this period: it remained remarkably constant and inflexible.” In fact Britain’s GDP was still rising between 1870 and 1890 but, like mentioned before; the annual rate of growth was much slower. According to Crouzet Britain achieved a growth rate of 3.1 per cent from 1811 to 1877, while it fell to only 1.6 per cent between 1877 and 1913. That causes historians to differ in terms of the beginning of the decline. Most historians refer to the year 1873 when they talk about the beginning of Britain’s decline while others argue that Britain achieved its most rapid growth in industrial production in the 1820s and 1830s and that the time of Victoria’s accession could therefore be regarded as the true beginning of the relative economic decline. Nevertheless, in this paper the time around 1870 will be regarded as the beginning of Britain’s economic decline since it was between 1870 and 1913 that Britain’s share of the total world industrial production fell from 31.8 per cent to 14 per cent. [...]
Table of Contents
1. Introduction
2. Problems of definition
3. The effects of the spread of industrialization
4. Failings within the domestic industry
4.1. The lack of innovation
4.2. The size and structure of British companies
4.3. Free Trade
5. Conclusion
Research Objectives and Key Topics
The primary objective of this work is to evaluate the causes of Britain's relative economic decline leading up to 1914, specifically analyzing whether this shift was an unavoidable consequence of global industrialization or the result of internal domestic structural failings.
- The debate regarding the definition and timing of Britain's economic decline.
- The impact of global industrialization and the rise of competing powers like Germany and the USA.
- Domestic deficiencies including educational shortcomings, technological stagnation, and a lack of entrepreneurial dynamism.
- The influence of company structures and the role of free trade policies on national competitiveness.
Excerpt from the Book
4.1. The lack of innovation
Besides those external changes there were certainly also failings within the domestic arena that contributed to Britain’s relative economic decline. First of all, the British economy of the late 19th century suffered from a lack of innovation. Having been the first country which achieved its industrialization Britain was, compared to the new industrial countries, equipped with fairly old machinery. Although there was the pressure of innovating and adapting to the new technology available in order to keep its competitiveness, Britain hold on to its traditional production methods. Although it is commonly acknowledged among historians that Great Britain lost its competitiveness in the last third of the 19th century because of missing innovations, reasons for the neglect of new technology are still highly debated.
One hypothesis is Britain’s slow development of a national elementary and secondary education. In public schools as well as in the ancient universities, like Oxford and Cambridge, there was a dominance of classics and a neglect of science. Crouzet holds the view that public schools were not only a means of education but also a possibility to improve one’s social status and become part of the ‘gentlemen’s club’. Therefore, pupils were taught in the old languages like Latin and Greek as well as in religion and sports, rather than science, a fact that shows that there was much more emphasis on character building than on intellect. Some historians, like e.g. Crouzet argue that having been educated in a public school and thus having gained values like tradition and stability, a lot of future entrepreneurs were even suspicious of science.
Summary of Chapters
1. Introduction: Outlines the historical debate regarding Britain's economic decline and defines the paper's focus on analyzing both external global changes and internal structural failings.
2. Problems of definition: Addresses the terminological challenges in identifying the onset of economic decline and examines whether the perceived downturn was truly a decline or merely a slowing of growth compared to other nations.
3. The effects of the spread of industrialization: Discusses how the second industrial revolution shifted global market dynamics, placing Britain at a disadvantage as new competitors emerged with science-based industries.
4. Failings within the domestic industry: Investigates internal factors such as educational flaws, management structures, and trade policies that hindered British adaptation.
4.1. The lack of innovation: Explores the cultural and educational barriers, such as the focus on classics over science, that discouraged technological advancement.
4.2. The size and structure of British companies: Analyzes the prevalence of small, family-run firms and their struggle to compete with large-scale mass production methods found in the USA.
4.3. Free Trade: Examines the long-term impact of Britain's commitment to free trade in contrast to the protectionist policies adopted by rising industrial powers.
5. Conclusion: Summarizes that Britain's decline resulted from an intersection of external market forces and the nation's inability to modernize its domestic economic structure.
Keywords
Economic decline, 19th century, Great Britain, industrialization, internal failings, domestic industry, innovation, education, science-based technology, mass production, free trade, protectionism, entrepreneurial spirit, competition, global market.
Frequently Asked Questions
What is the central focus of this research paper?
The paper examines the reasons behind Great Britain's relative economic decline between the late 19th century and 1914, contrasting external global pressures with internal structural weaknesses.
What are the primary themes analyzed in this work?
The key themes include the impact of international industrialization, the role of education in technological development, the structure of industrial firms, and the economic consequences of free trade policies.
What is the main research question?
The research asks whether Britain's economic downturn was an inevitable outcome of global industrial competition or a manifestation of serious, remediable failings within the British domestic economy.
Which scientific methodology is applied here?
The author employs a historiographical analysis, comparing various economic theories and arguments provided by historians to evaluate the severity and causes of Britain's industrial stagnation.
What is covered in the main body of the text?
The main body details the definitions of economic decline, the challenges posed by the second industrial revolution, the educational and cultural barriers to innovation, and the comparison of British company structures with international counterparts.
Which keywords best characterize this work?
Key terms include economic decline, industrialization, domestic industry, innovation, science-based technology, and international competitiveness.
How did the British educational system contribute to economic issues?
The paper argues that the education system favored classic studies and character building over science and technology, which left entrepreneurs ill-equipped to innovate or understand new industrial methods.
How does the author characterize the role of family-run firms in Britain?
The author notes that while family-run firms were traditional, their often small scale and limited capital made them less competitive compared to the mass production models being established in the United States and Germany.
- Citation du texte
- Nadine Röpke (Auteur), 2004, Was Britain's relative economic decline before 1914 an inevitable consequence of foreign industrialisation or a manifestation of serious failings within the domestic economy?, Munich, GRIN Verlag, https://www.grin.com/document/57446
