Recognising and Responding to Relative Decline: The Case of Post-War Britain

Abstract

It became increasingly apparent in the 1950s that Britain was in long-term relative economic decline. However, during far-reaching reviews in 1959–1963 of future policy, the Foreign Office and the Treasury could not agree that timely strategic retrenchment would be an appropriate response. Ministers believed that Britain would remain a world Power; the British economy continued to be handicapped by higher levels of defence expenditure than those of other western European Powers; and it took an economic crisis to force a decision to withdraw from east of Suez.