The Decline of the Empire and the Economic 'Decline' of Britain

In the 1950s and 1960s, decolonization coincided with the ‘goldenage’ of British capitalism, with record rises in popularliving standards. Economic historians have understandably usedthis coincidence to suggest that by this period the BritishEmpire was no longer offering substantial economic benefitsto the mass of the metropolitan population. Yet there were linksbetween economic performance and the decline of the Empire.First, despite the good performance, profoundly pessimistic‘declinist’ accounts of British society and theeconomy abounded in the early 1960s, and these had a major impacton policy formation. A key underpinning for such accounts wasthe ‘culture of decline’ intimately linked withthe loss of imperial status. Secondly, while it has become acommonplace of discussion of post-war Britain to assume thatreversing ‘decline’ and modernizing the economyrequired a re-orientation of policy away from the Empire andCommonwealth towards Europe, such a reorientation was not aconstant feature of modernization strategies. Indeed, a centralfeature of the initial period of Wilsonian ‘modernization’after 1964 was its attempt to use closer links with the Commonwealthto achieve this objective.