The uk has exp erienced an economic decline since 1945. but this is a relat ive decline rather than an absolute one. Britain is wealthier and more productive than it was in 1945, but since other countries developed more rapidly, it has slid from being the second largest economy to being the sixth 37. causes for the relative decline There are four reasons for the relative economic decline since 1945 Britain had gone heavily into debt in order to finance the war British colonies which used to provide raw materials and big markets gained independence. And the author also believes that Britain was heavily burdened with the huge military expenditure during the process of de-colonization and that Britain also lacked the investment in modern equipment and new products 38. privatization in the 1980s The British economy went through a particularly bad period in the 1970s, with high rates of inflation and devaluation of the currency Therefore, in the 1980s, when the Conservative party under Margaret Thatcher was in power, an extensive programme of privatization was carried out Many state-owned businesses(such as steel, telecom, gas, aerospace) were turned into private companies. The author thinks that privatization was successful in controlling inflation but at the same time unemp loyment rateThe UK has experienced an economic decline since 1945. but this is a relative decline rather than an absolute one. Britain is wealthier and more productive than it was in 1945, but since other countries developed more rapidly, it has slid from being the second largest economy to being the sixth. 37. causes for the relative decline There are four reasons for the relative economic decline since 1945: Britain had gone heavily into debt in order to finance the war; British colonies which used to provide raw materials and big markets gained independence. And the author also believes that Britain was heavily burdened with the huge military expenditure during the process of de-colonization and that Britain also lacked the investment in modern equipment and new products. 38. privatization in the 1980s The British economy went through a particularly bad period in the 1970s, with high rates of inflation and devaluation of the currency. Therefore, in the 1980s, when the Conservative party under Margaret Thatcher was in power, an extensive programme of privatization was carried out. Many state-owned businesses (such as steel, telecom, gas, aerospace) were turned into private companies. The author thinks that privatization was successful in controlling inflation but at the same time unemployment rate