Economics and Empire

• How much did WW1 cost Britain

  £ 35 billion
• How much money was borrowed from the USA in WW1

  £ 4 billion
• How much did India contribute in WW2 (£)

  £ 146 million
• Canada benefited from WW1 by becoming an industrial power whilst developing relations the USA, boosting the feeling of national identity and increasing the idea of independence.
• Australia and New Zealand were exporters of food that relied heavily on the British market and were hit hard during WW1 through the disruption of trade.
• In the 1920's there was growing competition from the boom in America and Japan's textile industry.
• The Great Depression caused a collapse in international trade and forced Britain of the gold standard again.

  During this period greater emphasis was placed on the Empire for trade and supports to help Britain's financial crisis.
• The Empire helped to soften the blow of the Great Depression.
• WW2 hit Britain harder than WW1, in part because it was weaker going to war in 1939 than in 1914.
• What percentage of Britain's merchant fleet was lost during WW2

  54% -massively disrupted trade
• The loss of colonies from Japan from 1942 disrupted trade by cutting off supplies of raw materials.
• 1/3 of overseas investments were sold and Britain borrowed heavily from the USA in the form of the 'Lend Lease' during WW2
• Challenges from August 1945 onwards:

  • In August 1945 the USA ended the 'Lend Lease'. John Keynes was able to negotiate a massive US loan but the conditions were tough.
  • The costs of re-establishing itself as a world power exceeded the potential economic benefits.
  • Malaya's rubber and tin industries could command international markets and were seen as crucial to Britain's revival.
• 1913- exports to the world: £ 525 million, to Empire: £ 195 million

  1934- exports to the world: £ 378 million, to Empire: £ 166 million
• 1913- imports from world: £ 769 million, from Empire: £ 191 million

  1934- imports from world: £ 727 million, from Empire: £ 257 million
• Did WW1 force Britain of the gold standard true of false?

  True