What accounts for the fact that Britain was the richest country in Europe in the 1870 - 1914 period?

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What Accounts for the fact that Britain was the richest country in Europe in the 1870 – 1914 period?

“In the half century or so before the 1914 war . . . if any nation had truly made a bid for world power, it was Great Britain. In fact, it had more than made a bid for it. It had achieved it.”. By 1914, Britain was considered as the world’s greatest power; it controlled the world’s largest empire, a fifth of the world’s land surface and a quarter of the world’s population. The British navy was the worlds finest; it was even more powerful and larger than the next two navies combined. In its zenith, Britain was the manufacturing workshop of the world, with one third of all manufactured goods coming from her shores; it produced “two thirds of the worlds coal and half of the world’s cotton, cloth and iron”. From this position, it conducted over one quarter of the worlds trade and in 1914; the registered shipping tonnage was more than the whole world combined. Not only was Britain considered economically rich but also politically and socially, she had one of the world’s highest living standards, healthiest population and most progressive governments.

The period 1870 – 1914 in Britain, conjure images of power and expanding empire, however it was these years, which are associated with the beginning of Britain’s one hundred year decline. This period saw growth in industrial production decrease, as did her share in worlds manufacturing capacity, Germany became the worlds centre of manufactured goods and by 1914 her share in world trade decreased by almost a third of 1870. This period saw Britain ‘caught napping’ whilst the rest of the world was catching up, she had rested on her laurels and did little else aside from watching those laurels begin to wilt. However, although Britain was showing signs of decline this essay shall illustrate that she was still the richest country in Europe and the reasons for this.

In 1870, British businessmen looked back at years of unstained economic expansion. At home, British industry moved into a period of remarkable prosperity where growth had averaged 3-4% per annum; agriculture enjoyed a similar ‘Golden age’ known as high farming and abroad Britannia ruled the seas and the empire brought untold riches to the British homeland. Britain had the world’s most democratically progressive governments and the legislation brought forward by government made British society one of the most dynamic and zestful societies of Europe.

The end of 1914 had truly established Crown imperial; British assets abroad were enormous. The end of the ninetieth century saw incredible growth, with an extra 60 million people and 4.5 million square miles added to the empire. The total land under the Raj, was astounding, the dominions of Canada in the West and Australia in the East, India and much of Africa. Every important point on the globe was coloured pink; the Suez Canal safeguarded trade routes to India, Gibraltar guarded the meditation and the British in Aden controlled the mouth of the Red Sea. Britain controlled all of the seas, the Pacific was controlled through naval bases in Singapore and Hong Kong and islands sprinkled all over it, the Atlantic was controlled from the West Indies, Canada and West Africa and the tips of Africa and south America were safeguarded by colonies in Cape Town and the Falklands respectively. Kuwait, which was added to the empire in 1899, added control of the Middle East. These colonies not only brought enormous prestige but also enabled Britain to own much of the world’s mineral wealth either directly through the empire, as in the tin of Malaya and the diamonds of South Africa, or indirectly through British companies such as British Companies in South America. London was the world’s financial capital and Britain’s overseas investment totalled 40% of the world total. The whole world was under the dominance of Great Britain.

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An example of Britain’s power and wealth, or even brashness is the buy out of the Egyptian share of the Suez Canal in 1875. The khedive of Egypt looked to sell his 44% share in the Suez Canal, the French government whose companies owned the majority of shares were interested. However, before the French could react, Disraeli had promised Egypt ‘£4 million tomorrow’. The deal was successful and Britain became the largest shareholder in the Suez Canal that was so essential to her trade. Disraeli commented ‘the French government has been out-generaled’, this illustrated to the rest of Europe ...

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