Economy - overview: /
The UK, a leading trading power and financial center, is one of the quintet of trillion dollar economies of Western Europe. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labour force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Output recovered in 2004, to 3.2% growth, but fell in 2005, to 1.7%. Despite slower growth, the economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low. The relatively good economic performance has complicated the BLAIR government's efforts to make a case for Britain to join the European Economic and Monetary Union (EMU). Critics point out that the economy is doing well outside of EMU, and public opinion polls show a majority of Britons are opposed to the euro. Meantime, the government has been speeding up the improvement of education, transport, and health services, at a cost in higher taxes and a widening public deficit.
GDP (purchasing power parity): /
$1.83 trillion (2005 est.)
GDP (official exchange rate): /
$2.228 trillion (2005 est.)
GDP - real growth rate: /
1.8% (2005 est.)
GDP - per capita (PPP): /
$30,300 (2005 est.)
GDP - composition by sector: /
agriculture: 0.5%
industry: 23.7%
services: 75.8% (2005 est.)
Labour force: /
30.07 million (2005 est.)
Labour force - by occupation: /
agriculture: 1.5%
industry: 19.1%
services: 79.5% (2004)
Unemployment rate: /
4.7% (2005 est.)
Population below poverty line: /
17% (2002 est.)
Household income or consumption by percentage share: /
lowest 10%: 2.1%
highest 10%: 28.5% (1999)
Distribution of family income - Gini index: /
36.8 (1999)
Inflation rate (consumer prices): /
2.1% (2005 est.)
Investment (gross fixed): /
16.6% of GDP (2005 est.)
Budget: /
revenues: $881.4 billion
expenditures: $951 billion; including capital expenditures of $NA (2005 est.)
Public debt: /
43.1% of GDP (2005 est.)
Agriculture - products: /
cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fish
Industries: /
machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer goods
Industrial production growth rate: /
-1.9% (2005 est.)
Electricity - production: /
369.9 billion kWh (2003)
Electricity - consumption: /
346.1 billion kWh (2003)
Electricity - exports: /
3 billion kWh (2003)
Electricity - imports: /
5.1 billion kWh (2003)
Oil - production: /
2.393 million bbl/day (2003 est.)
Oil - consumption: /
1.722 million bbl/day (2003 est.)
Oil - exports: /
1.498 million bbl/day (2001)
Oil - imports: /
1.084 million bbl/day (2003)
Oil - proved reserves: /
4.5 billion bbl (31 December 2004)
Natural gas - production: /
102.8 billion cu m (2003 est.)
Natural gas - consumption: /
95.15 billion cu m (2003 est.)
Natural gas - exports: /
15.75 billion cu m (2001 est.)
Natural gas - imports: /
2.7 billion cu m (2001 est.)
Natural gas - proved reserves: /
628.6 billion cu m (31 December 2004)
Current account balance: /
-$57.61 billion (2005 est.)
Exports: /
$372.7 billion f.o.b. (2005 est.)
Exports - commodities: /
manufactured goods, fuels, chemicals; food, beverages, tobacco
Exports - partners: /
US 15.1%, Germany 10.5%, France 8.9%, Ireland 7.3%, Netherlands 5.5%, Belgium 5%, Spain 4.4% (2005)
Imports: /
$483.7 billion f.o.b. (2005 est.)
Imports - commodities: /
manufactured goods, machinery, fuels; foodstuffs
Imports - partners: /
Germany 12.8%, US 8.7%, France 7.1%, Netherlands 6.6%, China 5%, Norway 4.7%, Belgium 4.6%, Italy 4% (2005)
Reserves of foreign exchange and gold: /
$48.66 billion (2005 est.)
Debt - external: /
$7.107 trillion (30 June 2005)
Economic aid - donor: /
ODA, $7.9 billion (2004)
Currency (code): /
British pound (GBP)
Exchange rates: /
British pounds per US dollar - 0.55 (2005), 0.5462 (2004), 0.6125 (2003), 0.6672 (2002), 0.6947 (2001)
Fiscal year: /
6 April - 5 April
Communications / United Kingdom
Telephones - main lines in use: /
32.943 million (2005)
Telephones - mobile cellular: /
61.091 million (2004)
Internet hosts: /
4,688,307 (2005)
Internet users: /
37.8 million (2005)
THE ROLE OF THE FDI
The UK is a particularly interesting case to take, being second most important host of foreign direct investment (FDI) after the US, with an 11 per cent share of the global inward FDI stock, United Nations (1997). As a result, foreign multinationals play an important role in the economy.
Inward FDI stock as a % of gross domestic product
YEAR / UK / EU / WORLD1980 / 12 / 6 / 5
1985 / 14 / 8 / 6
1990 / 22 / 11 / 8
1996 / 21 / 13 / 11
MOTIVATION
The literature of the FDI suggests that firms become MNEs to fully explore intrinsic competitive advantages such as ownership of better technology,(eg see Kindleberger, 1969 etc).
This in turn leads to the belief that foreign firms may not be able to fully internalise these advantages and therefore their presence leads to spillovers to the domestic firms. The expectation of such benefits from the presence of foreign MNEs explain the increasing competition among governments to attract inward investment by providing a range of incentives to these firms such as tax allowances, duty drawbacks, investment allowances, grant in aid and so on.
THE UK IN QUESTION AND THE EU
Concerning its foreign policy, the United Kingdom has three aspects:
• European construction,
• The Atlantic world and
• The Commonwealth
One can say that the United Kingdom has a report a little more distanced with European construction than of other Member States of the EU. It is true that the United Kingdom always has marks at will D being a bridge between EU and the United States (especially true since September 11 and also for the war in Iraq) that to influence the behaviour of the USA, which is not concretizes.
But it is not in so far as the United Kingdom can be to regard as important within the EU, indeed one cannot reduce the policy has a simple tagging along of the USA for various reasons like the fact that the first minister Tony Blair remainder implies in the European construction industry and because of its engagement in the great total stakes.
For example, in 2005, the United Kingdom was the president of G8, and had to be concentrated on two principal files, like to know the climatic change and the development aid in particular in Africa, and had also to take part with France had much in international initiatives (Convention on the environment, international penal court, more recently Convention of UNESCO on cultural diversity).
Moreover, this same year, the United Kingdom was President of the European Union and was certain successes in spite of a beginning somewhat to criticize because of its inactions. Successes to gain by the United Kingdom as a President are for example: confirmation of the opening of the negotiations of adhesion with Turkey and Croatia on October 3 and recognition of the statute of candidate to the ARYM, adoption of several legislative texts (reform of the OCM sweetens, directing Reach, retention of the data).
Nevertheless, the British public opinion expresses reserves with an European integration more led to the exit of the last European elections of the June 10,2004, 44 British deputies belong from now on to parties “Eurosceptics” even anti-Europeans, 34 affiliated against with parties favorable to Europe.
HISTORY OFF ITS RELATIONSHIP TO THE HAVE
The first demonstration of European co-operation is instituted by the European Coal and Steel Community (ECSC), founded on April 18,1951 by six countries: Belgium, France, Luxembourg, Italy, Netherlands and the Federal Republic of Germany. Then, the creation of the EEC by the same countries in 1957.
The United Kingdom, not convinced by the texts proposed by the EEC, creates in 1960, a concurrent association, named the European Free Trade Association (EFTA) to which adhered seven countries: Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom.
In 1970, the EEC wished harmonization of the economic structures and the policies nationals, but the United Kingdom opposes to it, just like the unification monetary.
The U.K. and Attitude about the New Constitution
After having chairs the European Union, Tony Blair , said that the participation of the United Kingdom in the European Constitution was the best means of improving the relations between the United Kingdom and the European Union.
According to studies of opinion, the citizens want to be consulted, chiefs of government refuse there.
It is the case in the United Kingdom where, in spite of the surveys which indicate that three British out of four want a referendum on the European Constitution, Tony Blair judges that that is “not necessary” since the text will be only one “exercise of grooming” of the existing European treaties.
According to Tony Blair, the failure of the European Constitution holds its explanation of share insulation of all the large European deputies, i.e each one between them think has its personal advantages and not with the advantages at the European level. Tony Blair has same declares: Whereas the problems of the citizens are done increasingly pressing, we are locked up in a tower of ivory and we discuss subjects which the ordinary citizen does not understand instead of adopting courageous political reforms and decisive changes”. That is why he thinks it is necessary to re-examine the European Constitution, while affirming in Europe has 25 cannot function with the current governmental rules. For him, the Europe must adopt a world position and to become aware of universalization or then, it will fail.
S.W.O.T. OF PRESENT WASTE POLICY IN UK
STRENGTHS· United Kingdom can use the energie of the modern incinerators to produce some electricity
· The recycling of the paper in the United Kingdom became popular during the 90s. Approximately 40 % of papers resulting from domestic waste is at present recycled
· The United Kingdom reuses approximately a third of its glass
· The United Kingdom has a rate of recycling about 60 % for the iron and the steel. / WEAKNESSES
· United Kingdom buries its dechets which decompose and which the liberation of the methane in considerable quantity provokes.
· The burned waste libert a big quantity of energy, the dioxide of carbonne and the other dangerous atmospheric pollutants.
· The United Kingdom has rates of recycling of plastics of only 5 %
OPPORTUNITIES
· To put the waste in containers limit the distribution of the lixiviat
· United Kingdom has at present factories of anaérobie digestion who have to propagate in the biggest number because they produce some useful methane for the electricity.
· Projects of compost (in which dechets serves as fertilizer for the ground) are set up to help United Kingdom has to affect its purpose to recycle and fertilize 25 % of its domestic waste. / THREATS
· The methane released by the waste is a powerful greenhouse gas which contributes to the reheating of the earth
· The fluids of lixiviat formed by the decomposition of the waste can infiltrate into grounds and into geologic strata so surrounding and polluting subterranean waters thus the drinking water
IMPLEMENTATION OF THE DIRECTIVE IN THE UK
In order to implement the Packaging and Packaging Waste Directive the UK was first required to determine:
1. how to initiate the required increase in recycling;
2. who should be held responsible for delivering this objective; and
3. what mechanisms are needed to ensure sufficient recycling capacity to
reprocess its waste
After consulting industry, the government concluded that the responsibility of a recovery and recycling system should be chared among members of the packaging chain and that economic instruments should be developed to support this system.
The system would work in accordance with the polluter-pays principle, while allowing industy to create a cost effective recycling system.
These considerations led to the introduction of the Packaging (Essential Requirements) Regulations (1998) and the Producer Responsibility Obligations (Packaging Waste) Regulations (1997). The former are enforced by Trading Standards Departments of Local Authorities and designed to ensure that packaging is minimised and that it is capable of being recovered and recycled. The latter are enforced by the Environment Agency (EA) in England/Wales, the Northern Ireland Environment and Heritage Service in Northern Ireland and the Scottish Environment Protection Agency (SEPA) in Scotland and intended to ensure that packaging waste is actually recycled and recovered.
The Packaging & Packaging Waste Directive - 'The Packaging Directive' - is concerned with minimising the creation of packaging waste material and promotes energy recovery, re-use and recycling of packaging. The Packaging Directive covers all packaging placed on the market within the EU, and all packaging waste - whether disposed of at industrial or commercial sites, or from private homes. The Packaging Directive has been transposed into UK domestic law by two sets of Regulations and responsibility for these is split between the Department for the Environment, Food and Rural Affairs (Defra) and the Department of Trade and Industry (DTI) as follows: DTI leads on single market aspects of the Directive, EU negotiations and the Packaging (Essential Requirements) Regulations 2003 (as amended). Defra leads on all other aspects of domestic implementation - including the setting of recycling and recovery targets - through the Producer Responsibility Obligation (Packaging Waste) Regulations 2005.