To all seeming our government, headed by G. Brown, continues to consider artlessly that it has discovered a new economic paradigm, in which this country should develop services-based economy as the best formula for our economic success, but in which manufacturing plays a lesser role than before. In this relation I cannot but agree with Sir John Rose, chief executive of Rolls-Royce, who, answering recent questions from our MPs about future of manufacturing in the UK (FT.com), said that to take this approach is harmful! I believe the problem about a country basing its economy only on services is that it becomes very vulnerable to any economic recession. Especially if you take into account that it has already started in the USA! And this country is so dependable from all processes in US economy!
Thus, having a mixed economy, in which both manufacturing and services are equally important, gives a stronger base for Great Britain, because it insulates this country against such negative changes in economy as mega billionth deficit in trade of industrial goods, job displacement together with the collapse of numerous our well-known trade marks in world’s market.
But unfortunately, all these negative tendencies have already taken place in our economy thanks to Brown’s bungling running of British national economy. Now it leads to lowering rates of our economic growth and rates of increase in national income! Nevertheless Brown’s Cabinet continues to drive up share of such economic areas as, for example, financial services instead of raising share of manufacturing in our economy. See for yourself! According to estimates by the Global Insight consultancy 14% of UK gross domestic product is accounted for by manufacturing, with 68% from services, while in the case of Germany the comparable figures are 21% and 61%!
If our present government really wants to see GB as a strong and economically developed country, it should be more willing to support UK manufacturing and formulate, at last, own economic strategy, differing from US one. Our government should stop be frightened to have own economic programs, which would provide a sense of the outcomes it would like to see from its activity rather than current Brown’s playing to the gallery!