Economic policy of Margaret Thatcher.

Introduction. one

Historiography. 2

The economic development of Great Britain in the 70s - 90s. XX century. four

The origins of Margaret Thatcher's economic policy. four

Economic reforms Margaret Thatcher. 6

Theory of monetarism. 6

Actions of the government of M. Thatcher in the field of economy. 7

End of Margaret Thatcher as Prime Minister of Great Britain. 13

The historical role of Margaret Thatcher's economic policy. fifteen

Conclusion. 19

Literature. twenty

Introduction.

Margaret Thatcher (b. 1925) - Prime Minister of Great Britain in 1979 - 1990 She is rightfully considered one of the political leaders of the century. In many ways, she surpassed her famous male colleagues, there were legends about her colossal performance, for almost 12 years, voters trusted her with the highest post in the country.

Relevance of the topic.

Margaret Thatcher came to power in 1979 on a wave of British dissatisfaction with the ineffective Labor policies of the 1970s. The economic situation in Britain was disastrous. Norman Stone, a close adviser to Margaret Thatcher in the 1980s, writes: “The most striking symbol of that era was the heaps of garbage on the streets of the largest cities in the country, around which hungry rats scurried. To visitors from Europe, especially from Germany, it seemed that they were entering some third world country ... Such was the sad ending of the post-war era.” By 1990, the situation in the UK had improved significantly. Stone puts it this way: "The country has shown a resilience that has surprised the British themselves." The role of Margaret Thatcher in this amazing renaissance cannot be overestimated. Her ideas and their persistent implementation helped the UK get out of the crisis and solve many problematic issues.

In the modern world, especially in Russia, the issue of government in the context of an acute economic crisis has been and remains relevant. The study of world experience, the analysis of various models of economic development, with a general trend towards globalization of the economy, seems to be a necessary condition for promoting a successful economic policy in the state. From this point of view, the path of economic development proposed by Margaret Thatcher cannot fail to attract attention.

aim This work is to analyze the main features of Margaret Thatcher's economic policy in their historical context.

To achieve this goal, we have set the following tasks:

§ Analyze the main changes in the UK economy made by Margaret Thatcher;

§ Consider specific results of its activities;

§ Consider how the activities of Margaret Thatcher are assessed in a historical aspect.

Historiography.

Margaret Thatcher left a deep mark on British and world history. Numerous studies are devoted to Thatcherism itself as a political and historical phenomenon, as well as to its individual manifestations in the domestic and foreign policy spheres. Works of both British and domestic researchers are devoted to the development of this topic, among which the leading place is occupied by the studies of S. P. Peregudov, K. S. Gadzhiev, S. Madzoevsky, D. Marsh and R. Rhodes, S. Paynter, D. Regan , P. Senker, and others. Interesting are the data published by witnesses of historical events - Russian diplomat V. I. Popov and American journalist Chris Ogden who personally met M. Thatcher. Finally, one cannot fail to mention the book by Margaret Thatcher herself, The Art of Government. Strategies for a Changing World”, reaffirming her views as a conservative politician. Let us dwell on the books that were the main sources of this work.

In the work of S.P. Peregudov “Thatcher and Thatcherism” (M., 1996), there is also an image of the outstanding personality of M. Thatcher, and an analysis of the phenomenon of “Thatcherism”, the fundamental element of which was the right-wing conservatism of the traditionalist persuasion. Peregudov emphasizes that this political model was established even before Thatcher came to power, but only the "iron lady" was able to start implementing it. According to the source, the strength of British conservatism, as well as the British political system, lies in the fact that they give rise to leaders of the type of Thatcher, who, if necessary, turn to unconventional methods that can ensure the further development and strengthening of British traditions.

Margaret Thatcher's The Art of Government. Strategies for a Changing World” can be divided into four large blocks of questions. First, it is a summing up of a bygone era - reflections on the lessons of the Cold War, the past and present role of the United States. Secondly, an assessment of the development paths of Russia, China, India and the countries of the Far and Middle East. Thirdly, the threats posed to the world by instability in the Balkans, rogue states, Islamic extremism and international terrorism, as well as strategies to counter them. And, finally, the process of integration in Europe, fraught with the danger of an imperceptible expansion of the power of international institutions to the detriment of the independence of nation-states. The system of views that are presented and consistently defended in the book, Margaret Thatcher herself succinctly calls "conservatism".

Chris Ogden in Margaret Thatcher. A woman in power: a portrait of a man and politics "(M., 1992) describes Thatcher's biography in sufficient detail, trying to explain her desire for politics, worldview and character by the traditions that have developed in her family, the political and economic situation in England and others, it would seem completely random , factors. The main task of the author is to tell about Margaret Thatcher not as a harsh politician, but as an ordinary woman who managed to overcome many difficulties, striving for her goal, to create the image of a strong, strong-willed woman who hides her problems, worries and fears under the mask of the almighty, fearless and always going only forward "iron lady". The source talks about Thatcher's personal life, her childhood years and emotions hidden from strangers.

I., a prominent Russian diplomat, who for a number of years was the USSR ambassador to England, used personal meetings and conversations with M. Thatcher in London and Moscow, as well as the memoirs of Thatcher herself recently published in England to write the book “Margaret Thatcher: a man and a politician. The view of a Soviet diplomat ”(M., 2000). The source characterizes in detail the personality of the "iron lady" and the events that accompanied her in the political arena. Analyzing the economic situation in Great Britain and its changes under Margaret Thatcher, the author uses statistical data. These data indicate that the stereotype of "destruction of the social sphere" under Thatcher is not entirely true. Under Thatcher, pensions increased, incomes of working Englishmen, the number of homeowners and the number of shareholders increased significantly. However, the author also demonstrates the inflexibility of Thatcher's policy, her intentions to bring everything to the intended conclusion, not being satisfied with half-measures and compromises.

The economic development of Great Britain in the 70s - 90s. XX century

The origins of Margaret Thatcher's economic policy

The 20th century is a time of historical events that took place both in individual countries and captured entire continents, which influenced the whole world. Mankind found itself in the face of global political and economic processes, ups and downs and crises and was looking for new ways to solve previously unknown problems. One of these problems was the economic crisis of 1974-1975. This one occupies a special place in the general chain of cyclic crises of overproduction. It coincided with a surge in inflation, which led to a break in the existing structure of domestic prices, made it difficult to get a loan, and slowed down the way out of the crisis. All this was superimposed by the energy crisis, which led to the disruption of traditional ties in the world market, complicated the normal course of export-import operations, and destabilized the entire sphere of financial and credit relations. The rapid rise in oil prices stimulated changes in the sectoral structure of the economy. The development of new energy-saving technologies received a powerful impetus.

As a result of the violation of international currency exchange and the growing inconsistency of the principles of the Bretton Woods monetary system with new conditions, its foundations were called into question. Already at the turn of the 60s - 70s, the purchasing power of the dollar decreased markedly. In the Western community, distrust of the dollar as the main means of payment began to grow rapidly. In 1972-1973. The US government devalued the dollar twice. In March 1973, in Paris, the leading countries of the West and Japan signed an agreement on the introduction of "floating" exchange rates, and in 1976 the IMF abolished the official price of gold. It was only in the second half of the 1980s that a more or less satisfactory formula for relations in this area was worked out.

The economic problems of the 1970s became especially urgent against the backdrop of the scientific and technological revolution (S&T), which was gaining momentum and acquiring the features of a permanent process. The main content of this new phase in the development of scientific and technological revolution was the mass computerization of production, the introduction of computers in the most diverse areas of production and management. This gave impetus to the beginning of a complex process of economic restructuring and the gradual transition of the entire Western civilization into a new phase, which was dubbed the "post-industrial" or "information" society. The development of automation, informatics and their distribution to all spheres of economic activity had an indirect, but not less significant impact on all aspects of the evolution of human civilization. First of all, the processes of internationalization of the entire economic life have noticeably accelerated. The gigantic concentration in the production and financial sphere, characteristic of the entire 20th century, at that time made a qualitative leap: Transnational corporations (TNCs) began to determine the face of the Western economy. In the first half of the 80s, TNCs already accounted for 60% of foreign trade and 80% of developments in the field of new technologies. TNCs every day more and more realistically claim to be the basis of the entire economic life of the West.

Economic crisis of 1974-1975 played an important role in the profound transformation of the Western economy. This was a very painful process, especially at the first stage (the second half of the 70s), accompanied by large social costs: an increase in unemployment, an increase in the cost of living, an increase in the number of people knocked out of their usual life track by these changes, etc. In the 80s In the early 1900s, perestroika began to pay off, especially in the USA, England, and the FRG. The introduction of the latest technologies has contributed to a significant leap in productivity. The new conditions required fresh conceptual solutions concerning the development of methods adequate to the needs of the day for regulating socio-economic processes. The former Keynesian method of solving these problems has ceased to suit the ruling elite of the leading Western countries. The traditional Keynesian prescriptions of increased government spending, tax cuts, and cheaper credit resulted in permanent inflation and ever-increasing budget deficits. Criticism of Keynesianism in the mid-70s acquired a frontal character. A new conservative concept of economic regulation was gradually taking shape, the most prominent representative of which at the political level was M. Thatcher.

To solve the economic problems facing the UK in 1979, of which inflation was the most acute. The Thatcher government adopted the economic doctrine of monetarism. The economic doctrine of monetarism has been popular since the early 60s, when its author Milton Friedman published the book Capitalism and Freedom. The essence of this theory, as it is interpreted by the English press, is that the cause of inflation lies in the increase in the growth rate of the amount of money in circulation over the growth rate of the economic product. This ratio can be influenced by political will, because the government has the technical ability to control the issuance of money in circulation and, as a result, can reduce this difference. The second important side of the theory of monetarism consists of the position that economic policy should not limit the freedom of action of entrepreneurs, interference in the mechanism of capitalism is not necessary and can only lead to a decrease in productivity. The first trials awaited Margaret Thatcher already during the discussion of her radical program at an open session of Parliament and during the discussion of the new state budget, which provided for a sharp reduction in state property, a significant cut in appropriations for industry, education, health, energy, transport, housing construction, assistance to cities, decisive measures to limit the activity of trade unions. On the other hand, another feature of the government's program was the reduction of the tax rate, especially on large profits. At the same time, the value-added tax increased, excise taxes on the consumption of cigars, alcoholic beverages, and gasoline increased. All these measures made the new budget extremely unpopular, which led to an unprecedented drop in the government's rating. At the same time, the pound rose, reaching its peak in 1981.

This led to a drop in industrial exports, production and a sharp drop in industrial employment. But this did not frighten M. Thatcher and her associates. Her budget was to play the role of a "cold shower". But the results were disastrous. In the next two and a half years, thousands of firms went bankrupt, industrial production fell by 9%, the army of unemployed grew by 1.5 million people. As critics from the Labor camp noted, "Thatcher caused more economic damage than the Nazi bombs." At the beginning of 1981, unemployment reached 10% of the country's able-bodied population. This was the highest rate since the Great Depression of 1929-1933. The premier was under pressure to persuade her to increase taxation, increase government spending and thus stop the continuous increase in unemployment, that is, turn around 180 degrees. At one time, Wilson, and Heath, and Callaghan went for it, but Thatcher survived. “Come back if you want. A woman cannot be brought back,” she said. This phrase became the unofficial motto of her government. Attacks on Thatcher in Parliament intensified, but this only strengthened her spirit. “I stand in front of them and think: “Well, Maggie! Let's! Rely only on yourself! Nobody can help you! And I love it." First of all, of course, they blamed the Laborites. They were charged with the fact that the Labor government of D. Callaghan left the Conservatives a legacy of millions of unemployment, without doing anything to undermine its foundations. “We all hate unemployment, and we all remember that it was the previous leadership that increased it to such a large extent,” Thatcher said in Parliament. She cited the failure of the venerable gentleman (James Callaghan) and his respectful friends to eradicate the roots of unemployment when they were in government as the main reason for the rise in unemployment. Both the English youth and the English old turned out to be “guilty” in the growth of unemployment: young people - because the number of secondary school graduates increased, the elderly - because they do not want to retire (because it became difficult to live on it).

Women also got it, who suddenly wanted to work and thereby increased the number of unemployed. “More women want to work, and we must create more jobs to stop the rise in unemployment,” said the prime minister. In general, in her opinion, all the British should: they do not want to retrain, they do not want to move from those places where there is no work to areas where there is an excess of jobs. “People are not capable of moving, even for relatively short distances, to find labor mobility. If people today do not want to move around, as their parents did, the economy cannot develop.” Realizing that all this is unconvincing, conservative propaganda applied another argument: we should not talk about how many people cannot find work, but about how many English people work. "Most of the British continue to work," consoled the leaders of the Conservative Party. “One in eight Britons is unemployed, that's a lot, but seven continue to work,” the prime minister reassured voters. To justify the rise in unemployment, the government also cited the argument that unemployment is typical for all countries of the Western world and even for individual socialist countries, that unemployment, although an evil, is an inevitable evil. One of the ministers of the British government even said: “It is the Laborites who are artificially inflating the problem, in fact, the British are already accustomed to unemployment and believe that they cannot do without it.” In general, the Conservatives, emphasizing the universal nature of unemployment, avoided reminding that in England unemployment was much higher than in other countries. The government, along with this, tried to assure the people that it was taking measures to increase employment. The Thatcher cabinet felt a frank dislike for the nationalization of companies. The English researcher cites a speech by one of the ministers of the Conservative government, but did not want to identify himself. He said: “We are fed up with nationalized industries. They bring us huge losses. Trade unions operate in them, they are spoiled. There is almost nothing that can be done about them, so we are more and more pestering the idea that we need to get rid of them. The government decided to appoint significant and tough businessmen McGregor and King as heads of the largest nationalized companies British Steel, British Cole, British Airlines, who were tasked with preparing the denationalization of these companies and their return to the private sector. By 1983, the sale of shares of British Petroleum, British Eurospace and others was organized - a total of eight largest companies. The government's profit from this amounted to 1.8 billion. pounds. Privatization was one of the forms of reorganization of the public sector. Its main goal was to revive competition. The second goal is closely related to the first and consists of increasing the efficiency of industry, since climate change in the market should have stimulated more free actions of management, a greater interest in the results of the work of workers and employees. The third goal of privatization was the reduction of budget expenditure items. The fourth goal was to attract investors interested in the end result of labor and the creation of "people's capitalism".

A similar goal was pursued by the creation of joint ventures and the restructuring of nationalized industries, the creation of several companies, perhaps even state-owned ones, that could compete with each other. So, by conducting privatization, the government wanted to reduce the state budget deficit, to corporatize the population, and to increase the competitiveness of enterprises. About 40% of the enterprises nationalized in 1945-1979 were given to private hands. The share of shares was repurchased by workers and employees of corporations. The Conservatives claimed that this made them directly involved in the management of the enterprise. But it wasn't quite like that. Firstly, most of the shares were bought out by big business, which provided him with real control over these enterprises, and secondly, many ordinary Englishmen who bought the shares then quickly sold them.

Thus, the number of individual owners of shares in British Eurospace has been reduced by a factor of three in two years. The number of individual shareholders rose from 2 million in 1979 to 9.2 million in 1987, and in 1990 the figure was 11 million, surpassing the number of union members for the first time. Most of the new owners of the shares purchased them from privatized companies, some of which were sold at discounted prices (British Telecom shares). This has largely become a factor in the democratization of ownership. More than 2 / 3 of the public sector was given into the hands of private individuals, cooperative enterprises. 1981 The UK government sold to private owners the shares of 18 large industrial companies with a total capital of 14 billion pounds. Opportunities were extended for employees to acquire shares in the enterprises where they worked. Tax incentives were provided for the purchase of shares up to a certain amount. Individual firms were bought out by their own employees. Moreover, it should be noted that the demand for privatization shares significantly exceeded the number of these shares. When British Gas shares appeared on the market in December 1986, they received 4.5 million applications, 4 times more than the shares themselves were issued. The number of applications for privatization certificates of Rolls-Royce aircraft engine companies (1987) exceeded the number of shares by almost 10 times. Such a sharp increase in demand for shares of privatized companies is explained, firstly, by the fact that the Thatcher government took measures to simplifying the procedure for acquiring shares; secondly, the government in most cases of privatization allowed the payment in installments. Thus, people with a serious condition got a real chance to purchase shares. Workers and employees of privatized companies enjoyed additional privileges.

When, for example, British News was privatized, each employee was entitled to 52 free shares and another 1,481 shares at a 10% discount on the tax price. 130 thousand employees of "British Gas" became the owners of the shares. A number of tax breaks were also introduced, which stimulated the interest of small proprietors. By the end of 1987, 4/5 of all employees of privatized companies owned their shares. On the other hand, it should be noted that 54% of the shares belonged to the 1% of the richest shareholders. The denationalization of state-owned enterprises was also justified by the fact that significant expenditures were directed to the social sphere, and this led to significant losses in the competition with private enterprises, and hindered the expanded reproduction of capital. After privatization, the shares of almost all companies rose in price. British Telecom has increased its revenues by almost 30% in three years in the private sector. Moreover, the injection of private capital into the state industry was only one of the weighty factors. No less, and in the opinion of the British journalist D. Bruce - Gardin, restrictions on the privileged position of state monopolies were even more important. The 1980 Transportation Act removed British Rail from the sole right to decide the issue of transporting passengers. At the same time, the government retained a "special" stake in a number of companies so that they would not fall under the control of foreign shareholders. Special audits and monitoring institutions were also created to ensure that privatized companies provide demand and services to the population. One of the most important measures taken by the Thatcher government was the privatization of housing, since in the early 1980s the bulk of the urban population rented housing from the city government. The housing sector was unprofitable, so its maintenance was a heavy burden on local budgets, and ultimately on the state.

The Tory New Deal led to a revival of business activity, accelerated the modernization of the country's economic structure. The British economy grew in the 80s 3-4% faster than in other leading Western countries, with the possible exception of Japan. At the same time, in the 1980s, the growth rates of consumer prices slowed down. In 1988 they were 4.9%, while in 1979 they were 13.6%. It should, however, be noted that the processes of privatization and the spread of the number of shareholders, although they covered a significant part of society, had their opponents as well, since, according to experts, the majority of the population of the country, even in Britain itself, remained unaware of how the British economy. It was this ignorance that explained why a significant part of society treated the processes of privatization and mass corporatization with a certain caution, and sometimes even hostility. M. Thatcher considered the only way to overcome such bias to involve the British in this process as soon as possible in order to really demonstrate to them the advantages of private property over state property, since it was direct participation in the activities of a particular company that not only made it possible to increase the financial interests of each owner, but also brought him closer to understanding the real processes of economic life of both the country as a whole and a particular enterprise. As Thatcher later noted in her memoirs, privatization itself did not solve any of the problems, it only revealed hidden problems that needed to be addressed immediately. Monopolies or quasi-monopolies that were privatized required state support and regulation of their activities. It was necessary to instill confidence in them, to remove the preconceived fear of market difficulties, the brutality of competition and the unpredictability of consumers. “Support for state-owned and privatized companies,” the ex-premier notes, “are completely different things,” since in the first case the government was forced to engage in functions that were not inherent to it, in the rest, the government transferred a significant part of the responsibility to the private sector, creating conditions for its decent functioning and ensuring against the surprises of the "free market".

The successes of Thatcherism in the conditions of Great Britain testified to the ability of the capitalist system to transform and adapt to new socio-economic conditions. The main directions for the implementation of structural changes in the country's economy remained in the 90s, despite the "compression" of the socio-cultural potential of society. Before the end of his term in office of the first government, Thatcher managed to overcome the economic downturn. Gross national product fell 5% between the first half of 1979 and the low point of the recession, the first half of 1981. Since 1982, an annual increase in production begins, and since 1983 - an increase in employment. Subsequently, the growth of industrial production steadily picked up pace and in 1988 the GNP was 21% higher than in 1979 and almost 27% higher than in 1981. A real improvement in the investment climate took place in the mid-1980s, after which investment began to grow rapidly. In 1983, British imports of manufactured goods exceeded exports for the first time in peacetime. The service sector grew, a positive balance of payments was achieved by unprecedented incomes and trade in non-industrial goods.

The coming to power in 1979 of M. Thatcher marked a completely new economic program for England, based on the neo-conservative concept, characteristic of state regulation in developed countries. The government relied on free enterprise, personal initiative, individualism and the rejection of strict state regulation of the economy. At the heart of reforming the methods of state regulation of the economy were the ideas of economic liberalism, free enterprise, personal initiative, which imply a reduction in the regulatory function of the state and an increase in the importance of market mechanisms.

An important direction of M. Thatcher's economic policy was denationalization. The economy of England was characterized by a high degree of nationalization. State-owned enterprises produced in 1979 10% of GDP. The absence of competition in the public sector or the threat of bankruptcy did not stimulate the growth of production efficiency.

The government has embarked on a large-scale denationalization of state-owned enterprises. Rich oil fields, radioactive isotope production plants, a national shipping company, coal mines, telecommunications, and gas, steel, and electric power industries were sold to private firms. For the period 1984-1987. 1/3 of state property in industry was privatized. Privatization has led to a significant increase in the number of shareholders and the number of shareholders in the UK ranked second in the world.

The changes also affected the remaining state-owned companies. Simultaneously with the granting of greater economic independence, these enterprises became completely autonomous financially. Such companies were no longer in an artificial favorable climate, prices were completely determined by market conditions. The share of public investment in the British economy has sharply declined. In the early 90s. it was only 25% against 50% characteristic of the previous period.

A certain place in the process of denationalization was occupied by the privatization of housing, which was rented from local authorities. The maintenance of such houses increased the costs of local budgets, and a law was passed under which local governments could sell houses at reduced prices to tenants.

An important direction of M. Thatcher's economic policy was the development of small and medium-sized businesses, increasing their economic independence. Small and medium business has become a new force in the economic structure of the UK. Small and medium-sized well-equipped firms could respond quickly and flexibly to changing market conditions, unlike large corporations. In addition, this part of the enterprises successfully supplemented the production at large associations, often working on their orders.

The main direction of fiscal policy was to reduce public spending. There was a reduction in the number of government officials and the overall level of costs for the maintenance of the state apparatus. A constituent element of the reduction in public spending was the reduction of budget expenditures for social purposes and tight control over the level of wages.

As a result of changes in tax legislation, the income tax rate was reduced and tax incentives for private business increased. The income tax rate of the largest corporations was successively reduced first to 50% and then to 35%. Entrepreneurs' contributions to social insurance funds for employed labor were abolished. At the same time, indirect taxation increased. The rate of value added tax increased (from 8 to 15%), which was imposed on a wide range of essential goods, as well as household services and medical care. The share of indirect taxes in budget revenues increased from 34% in 1979 to 39% in 1981.

The anti-inflationary policy was implemented on the basis of reducing loans provided by the state to the private sector, controlling the growth rate of the money supply, raising the interest rate, and reducing the size of the state apparatus.

The reforms of this period also affected foreign economic activity. In 1980, all restrictions on the export of capital were lifted. In the early 80s. the average annual size of foreign economic investment of private capital averaged 35 billion pounds. Art. The main part of British capital was exported to the developed industrial countries. At the same time, foreign capital investment in the British economy was encouraged.

Much attention was paid to the rationalization of production. Programs were implemented for the technical reconstruction and modernization of electrical engineering, the textile industry and a number of other industries. Most of the investments were directed to the replacement and modernization of equipment, the introduction of new energy and resource-saving technologies. The largest increase in capital investments was in the automotive industry, in the chemical, printing and pulp and paper industries. At the same time, a high level of spending on R&D in the military field remained.

The growth of employment in the economy led to a decrease in unemployment. If in 1987 9.8% of the labor force was unemployed, then in 1989 - 6.8%. To reduce the number of unemployed, a program of vocational training was developed for them. Its implementation made possible the retraining and further employment of about 600 thousand people.

An important element of economic growth was the consumer demand of the population and private investment, the positive dynamics of which was associated with an increase in the availability of credit. As a result, both the consumer spending of the population, especially on durable consumer goods, and the scale of private capital investment, the largest increase in which took place in the automotive, pulp and paper and printing industries, increased.

As a result of the ongoing economic policy, the rate of economic growth in the 80s. averaged 3-4% per year, which exceeded similar figures in other countries. Labor productivity growth averaged 2.5% per year, second only to Japan. The return on capital, which characterizes the efficiency of the use of fixed capital, has also increased. England was the only developed country, except Japan, where this indicator had a positive trend compared to the 1970s. The inflation rate dropped from 16% in 1980 to 4% in 1983.

In the 1979 elections, the Conservatives received 13.7 million votes, and the Laborites 11.5 million. For the first time, a woman became the new leader of the Conservatives, Margaret Thatcher (born in 1925).

M. Thatcher showed herself to be a staunch supporter of conservative views, a man with a firm and unyielding character, for which the British nicknamed her "Iron Lady". She came to power with a clear program of action, and began to persistently implement it. M. Thatcher enjoyed great prestige both in England and in the world under her leadership, the Conservative Party won the elections in 1983 and 1987, and the “Iron Lady” headed the government for eleven and a half years in a row. Some biographers refer to her reign as the "Thatcher era".

The Prime Minister's program did not contain fundamentally new provisions in comparison with the traditional concept of the British Tories. She only adapted it to the modern era and brought it to its logical end. The main provisions put forward by M. Thatcher and called "Thatcherism" are as follows:

· The driving force behind every prosperous economy is private enterprise. The basis of the political course of the authorities is "freedom, opportunities for all, support for the entrepreneurial spirit, democracy of owners."

· State intervention in private life is reduced to a minimum, it should in no case fetter private initiative.

· All able-bodied citizens provide for themselves. The state and charitable organizations provide support only to the disabled and those who, through no fault of their own, are deprived of the opportunity to work. Based on this, state social programs should be abandoned or reduced to a minimum.

· The state should have a balanced, deficit-free budget. The most important part of it is taxes, which the entire population must pay in accordance with their incomes. It is necessary to strictly observe the regime of economy and reduce costs.

· Trade unions have the right to protect the interests of workers through legal means without prejudice to the interests of others. Therefore the right to strike. Which are detrimental to society should be limited.

M. Thatcher proceeded from the fact that she should have a strong army and navy and improve her nuclear weapons. In foreign policy, she considered relations with the United States and compliance with NATO obligations to be a priority, and opposed the acceleration of integration processes.

The economic situation was extremely difficult. Thatcher advocated the so-called. "savings", which was expressed in the reduction of unemployment benefits, other social programs. As a result, the strike movement intensified again.

Referring to the unprofitability of many public sector enterprises, the government is denationalizing the economy on a large scale. The majority of enterprises in the oil and aerospace industries, as well as air transport, have passed to private owners. The scope of privatization expanded rapidly. In a few years of "Thatcherism" more than two-thirds of the enterprises of the public sector passed to private owners or collectives of enterprises being privatized. At the same time, more than a million municipal apartments were sold. More than 60% of the country's residents have become owners of their own homes. This led to an increase in the number of owners and a strengthening of the Tory social base.

To strengthen the competitiveness of British industry, the government began to invest heavily in its re-equipment on the basis of the achievements of the scientific and technological revolution, encouraged entrepreneurs who developed the latest industries and stimulated the growth of labor productivity. “Thatcherism”, which had stalled in the early years, began to bear tangible results. From 1982 to 1087, economic growth rates were the highest in Western Europe. The number of unemployed and the scale of inflation declined.

During the post-war years, a large number of foreigners immigrated to England, mainly residents of the former British colonies - Bangladesh, India, Pakistan, etc. The growth in the number of immigrants gave rise to racist sentiments unusual for England in the past: clashes took place between the British and immigrants, the right-wing press led a hostile campaign against the “colored”. The Thatcher government did not act against the racists, but passed laws through parliament that limited the quota for the entry of foreigners into England.

For a long time there has been a dispute between England and Argentina over the ownership of the Falkland (Malvinas) Islands in the South Atlantic, not far from the coast of South America. Historically, the rights to them belonged to Argentina, but the British colonized them long ago, the small population living there spoke English and had no desire to come under the control of the British military junta. The junta, hoping to raise its prestige in the eyes of the Argentines, in May 1982 landed troops on the islands and raised the Argentine flag over them.

M. Thatcher, who pursued a tough line of defense of trade, economic and military-political interests, reacted very decisively to the actions of Argentina. Regardless of costs, she sent warships, marines and aircraft to the islands. The Argentine garrison capitulated. secured the Falkland Islands and established a military base there. These actions contributed to the growth of the authority of the conservative party and its leader.

But the period of rapid economic growth and relative prosperity in England turned out to be very short. Since the beginning of the 90s. the economic situation began to worsen, the old illnesses returned - the budget deficit, inflation, unemployment increased by 9% in 1990. The indignation of the people was caused by a new poll tax, the same for everyone, regardless of income, which was imposed on all residents of the country over 18 years old. The introduction of this tax led to mass protests, often ending in clashes with the police. The situation in Ulster also escalated. The pace of economic development slowed down.

The popularity of the ruling party was falling. Moreover, disagreements intensified in its leadership, primarily on the issue of European integration: M. Thatcher slowed down the process of its development, and many ministers considered it necessary to support the position of G. Kohl and F. Mitterrand.

All these circumstances caused Thatcher's resignation in November 1990. On the recommendation of his predecessor, John Major, who previously held the post of Minister of Finance, became the leader of the Conservative Party and became prime minister.

Major was the youngest prime minister. Upon coming to power, he abolished the unpopular poll tax and promised to "make a turn towards greater satisfaction of the socio-economic demands of the British." At the same time, Major announced that the main tasks of his government are to strengthen property rights, continue the process of privatization of state-owned companies, and increase tax incentives for entrepreneurs.

Contrary to the predictions of sociologists, in the parliamentary elections in April 1992, the absolute majority of seats in the House of Commons were again won by the Conservatives. For the first time in 170 years, the same party has won elections four times in a row. John Major remained prime minister.

However, the Tories failed to bring their record to five. The economic situation in the country continued to deteriorate: the pace of development slowed down, unemployment increased. The lack of state social programs caused extreme discontent among the people. Inflation increased, and the pound sterling lost its prestige as the most stable currency in the world, more and more losing ground to the dollar. The government was forced to devalue it. Although Major tried to slow down some of Thatcher's most drastic measures, the general deterioration of the economy, conflict with trade unions, primarily with miners, becoming dependent on the United States and failures in resolving the Ulster conflict led to the defeat of the Conservatives in the 1997 elections. Labor came to power , whose leader Tony Blair headed the government and is the prime minister at the moment.

Margaret Thatcher, for the first time in British history of this century, managed to interrupt the swings of the traditional two-party pendulum of Conservatives and Labor being in power for such a long time. She served as prime minister for a total of 11 years. These years were not easy in the life of the UK. The country managed to get out of a rather dangerous socio-economic crisis, when England was called the "sick man of Europe", to strengthen its position among the most developed states of the capitalist world. The international prestige of Great Britain has grown, its role in world affairs has increased.

The term "Thatcherism" has firmly established itself in British political life. This term characterizes certain political, ideological and moral principles that Margaret Thatcher pursued or tried to implement, as well as her specific leadership style.

The political philosophy of Thatcherism is not without interest. It is based on several elements. This is an apologetics of free enterprise, personal initiative. At the same time, Thatcher considers the main incentive to be direct material gain, the desire to "arrange life as best as possible for yourself and your family." According to her, she thus "appeals to the best that is inherent in human nature."

The question of the motivation of human activity is one of the central ones in the philosophy of Thatcherism. “There is nothing wrong with creating wealth, only a passion for money for the sake of money is condemnable,” says Thatcher L.V. Kaminskaya, “Margaret Thatcher: the essence of politics”, Respublika publishing house, Moscow, 1996, p. 94. Her philosophy is openly anti-egalitarian. “The pursuit of equality is a mirage. Opportunities mean nothing if behind them is not the right to inequality, the freedom to stand out from everyone "L. V. Kaminskaya," Margaret Thatcher: the essence of politics ", publishing house" Respublika ", Moscow, 1996, p. 95.

The defense of free enterprise, calls for the liberation of the individual from the fetters of "state bureaucracy" are born in polemics with the British Laborites as part of a general strategy for attacking socialism. “The state should not dominate people’s lives, should not penetrate into all its aspects, replacing personal responsibility” L.P. Kravchenko, “Who is who in the world of politics”, Poltiizdat publishing house, Moscow, 1990, p. 67.

To understand Thatcher's worldview, one must, it seems, bear in mind that she herself, unlike most of her predecessors, does not belong to the British establishment. She comes from the petty bourgeoisie. This largely explains the fact that an important element of the concept of Thatcherism was the “return to Victorian moral values” proclaimed by her: respect for the family and religion, law and order, thrift, accuracy, diligence, the primacy of the right of the individual.

Thatcher quite accurately captured the mood of certain sections of society, advocating that a “strong personality” be at the head of the country, which could restore Britain to its former greatness and restore “proper order” in the country. It is characteristic, for example, that in the sphere of public morality, the strengthening of law and order, Thatcher not only did not weaken the role of the state, but also significantly strengthened it. During her tenure, several important new laws were passed to expand the powers of the courts and the police, and immigration laws were tightened.

Thatcher's economic course was based on a monetarist concept that gave priority to reducing inflation by curbing the growth of the money supply and issuing it in such a volume that would be in direct proportion to output and the rate of interest. Monetary regulation is the main lever of influence on the economic situation. The Thatcher government consistently carried out the restructuring of the tax system. The reduction of taxation, according to its plan, should encourage business activity, increase the turnover of capital.

Margaret Thatcher vigorously and decisively broke the system of state corporations that had developed in the country. The privatization of the socialized sector is one of the main elements of the restructuring of the economy carried out by her. In conversations, including with our economists, she repeatedly noted the inflexibility of state-owned enterprises, their belated response to the ever-changing needs of the market. Because these businesses, she said, were state-sponsored, they didn't have to worry about their survival. At the same time, Thatcher said more than once that an important task of the government is to create the most favorable conditions for private business, which has the right to seek higher profits, subject to full responsibility for the results of its own activities. A feature of Thatcher's version of privatization is the wide sale of shares to small owners. Such a line, she noted, makes it possible to introduce a mass of ordinary Englishmen to the philosophy of possessiveness, and, therefore, in political terms, to strengthen the base of their support for the conservatives.

But all this does not mean that the policy of Thatcher and her government did not encounter significant difficulties. For example, in the social area, the creation of market competition in the healthcare sector, and in education reforms, there was a clear tendency to divide society into people of the “first” and “second” grade. It was in these matters that Thatcher crossed the line of social maneuvering. English voters were not ready for the restructuring of society on the principle of "every man for himself." This was reflected in the processes that ultimately forced Thatcher to resign from the leadership of the party. Of course, one must also take into account the rigidity of Thatcher's line in solving budgetary issues in the European Union, which put London at risk of isolation in the community. She caused a real revolt in the ranks of her party, opposing the full participation of Great Britain in the European monetary system (it was planned to introduce a common currency throughout Europe). The methods of resolving issues in government gave reason to interpret Thatcher's style as authoritarian, as a departure from "the art of British classical diplomacy."