Post-war industrial recovery: lessons from Great Britain

Authors

DOI:

https://doi.org/10.31617/3.2023(131)06

Keywords:

industry, industrial policy, state regulation, import tariffs, export quotas, state aid, Great Britain, post-war recovery.

Abstract

With the onset of Russian military aggression, Ukrainian industrial enterprises found themselves on the brink of survival. Despite sporadic government initiatives, such as providing grants to companies across various processing industries, there is still no clear framework or mechanisms for a state policy to guide the country out of the crisis. This highlights the pressing issue of industrial policy and the search for ways to ensure financial, economic, and social stability, drawing upon the experiences of other countries in overcoming crisis phenomena during challenging times. The aim of the article is to identify the principles and mechanisms of Great Britainʼs industrial policy during post-World War II recovery, with a specific focus on the automobile industry, demonstrating the effectiveness of state decisions. The aim is to draw conclusions that can be applied to Ukraine. The historical and dialectical approaches are used to substantiate the pivotal role of state intervention in industrial development. Statistical, structural-functional, and comparative methods are used to assess the policy outcomes and determine the industryʼs contribution to the post-World War II recovery of Great Britain. The study revealed the factors that contributed to the growth of industrial potential and the transformation of key industries, including the automobile industry, as levers for the post-war economic stabilization in Great Britain. These factors include: high-quality information analysis and expert advisory support for policy decision-making; legal and organizational-institutional support for policy implementation; implementation of regulatory tools for establishing new and reorganizing existing production facilities in designated development areas; setting quotas for goods supply to both domestic and international markets; imposing import tariffs and changes in automobile taxation; providing state support for business research and innovation; encouraging industrial rationalization. Lessons from the British Experience in Ukraine in terms of state industrial policy will contribute to defining realistic goals and objectives for post-war economic recovery and the implementation of long-term business strategies. It will allow for the establishment of a social dialogue with key stakeholders to identify industry drivers and prioritize investment and innovation strategies for accelerated modernization, stabilization, and develop­ment. It will ensure the efficient relocation of existing and the creation of new production facilities for the balanced development of regions. Reproducing this experience will also facilitate the implementation of large-scale projects and the development of high-tech products based on national innovation achieve­ments, enhancing competitiveness in foreign markets, increasing production localization, reducing import dependence, improving the balance of payments, and boosting revenues budgets at all levels.

Author Biography

Oleh KREKHIVSKYI, Secretariat of Cabinet of Ministers of Ukraine 

PhD (Physics and Mathematics), Senior Desk Officer 

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Published

2023-12-22

How to Cite

KREKHIVSKYI О. (2023). Post-war industrial recovery: lessons from Great Britain. Foreign·trade:·economics,·finance,·law, 131(6), 89–111. https://doi.org/10.31617/3.2023(131)06

Issue

Section

WORLD ECONOMY