1870 - start of our period
Britain - Greatest Industrial Power
75% of british investment in America's while 6% of british investment was in Africa
Britain mainly trading outside empire and backed a free trade policy
Economic Threat from Germany, France and USA developed due to industrialisation
West Africa - Threat to British trade (Contains Cocoa and Palm Oil)
Led to colonisation of West Africa including these places
South Africa - Gold & Diamonds
India - Profitable cotton & Jute, cheap raw materials, cheap food stuffs to come to britain which equals low wages.
Malaya - Rubber production, cheap raw materials
1902 - Boer War
No significant change as a result of the Boer War.
Joseph Chamberlain wanted imperial protection but was rejected
Suez Canal - Vital economic link as it was the route to india.
1918 - End of WW1
UK in debt to USA
Some colonies formed other trading relations during war - e.g. Canada with USA
With economic diffculties of 1929 - Great depression - britain introduced protectionism
India - Nationalist movement leads to a boycott of british goods which reduces profits from trade with India
Britain buying more from india then selling to India
1945 - End of WW2
Main Turning Point
Britain in greater debt to USA
Britain forced into giving their biggest economic rival, the USA, access to it's imperial markets to pay the debt in Dollars.
Some colonies looked away from Britain for trade due to ww2 - e.g. Australia
Colonies too expensive - not making enough money + cost of troops : Results in decolonisation of India.
In africa - Colonial Development Corporation - Groundnut scheme - tried to make more money but actually lead to failure, increases resentment and leads to nationalism.
Making money from the Gold Coast - Cocoa sold to the USA - gaining dollars to repay the debt.
Malaya - Rubber Plantations - rubber sold to USA for tyres to make dollars to pay the debt.
1956 - Suez Canal crisis
USA block IMF (International Monetary Fund) to Britain to stop them taking colonial action against Egypt (Nasser)
This shows economic weakness of Britain
Macmillians cost benefit analysis - not cost effective to keep colonies in Africa because of cost to run colonies and to look after troops.
Instead, give independance, keep good relations and get neo-colonial profits instead
Britain started to look to Europe for trade links
1973- Britain joined the ECC (European Economic Community)
Still have neo-colonial links such as cocoa from Ghana
Hong Kong- economically profitable as it was the trade hub for the far east