Financial Assistance to British Industry
The past fourteen years have seen a rapid extension of government intervention in industry, frequently though not always involving financial assistance. During the 1950s goverment intervention had been minimal. After the recovery from the payments crisis of 1951 and the recession in the following year, production expanded steadily if comparatively slowly, and the postwar economic crisis appeared to be over. However, since the end of the 1950s there has been increasing dissatisfaction with the economic and industrial performance of Britain relative to that of other countries and, therefore, a new emphasis on policies for promoting economic growth. This motive for government intervention has combined with recurrent and worsening payments crises, and with the intransigance of regional problems, to produce the remarkable history of financial assistance to industry described in this chapter. Each new government since 1959 has carried the interventions further. Meanwhile, the condition of British industry has not appeared to improve, and while there are many other explanations of its difficulties, it is certainly appropriate to inquire about the effects of financial assistance.1
KeywordsFinancial Assistance Public Assistance Development Area Primary Aluminium Aircraft Industry
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Notes and References
- 7.See Nicholas Kaldor, Causes of the Slow Rate of Economic Growth of the United Kingdom (Cambridge: Cambridge University Press, 1966).Google Scholar
- 8.For further discussion of this measure see Manpower Policy in the United Kingdom, OECD Reviews of Manpower and Social Policies, Paris, 1970; and Lloyd Ulman, “Collective Bargaining and Industrial Efficiency”, in Richard E. Caves (ed.), Britain’s Economic Prospects (Washington: Brookings Institution, 1968).Google Scholar
- 20.See Horace J. De Podwin and Barbara Epstein, The British Power Transformer Industry and its Incursions into the United States Market: a Case Study in International Price Discrimination (New York: New York University Graduate School of Business Administration, No. 58–60, August 1969).Google Scholar