The British Isles are situated on the crossroads of sea routes. That helped the British fleet to develop very early in history. In the 17th century, Britain became not only the “workshop of the world” but also “the mistress of the seas.” Her ships carried the products of British industries all over the world and brought back food and raw materials.
Large territories in India, Australia, America, and Africa were under the control of the British Empire. Britain sent soldiers and clerks to these overseas lands to manage its property. Settlers from Britain moved to these new lands in search of opportunities. Some colonies were self-governing or dominions such as Canada, Australia, and New Zealand. Others, like India, Africa, and the West Indies, were ruled by a governor appointed from Britain.
At the height of its prosperity, the British Empire covered one quarter of the earth and included one quarter of the world's population.
At the end of the 19th century, Britain began to lose industrial supremacy to the United States and Germany. British investors exported money to different countries where labor and raw materials were cheaper. The home industry and agriculture were not progressing as quickly, and the colonies began to seek more control over their own affairs. The colonial wars took much money and people from the British Empire.
After the Second World War, many colonies became independent. India, Burma, Pakistan, and several African territories gained independence. Britain lost military strength and faced changes in employment for its population. W. Churchill, the British Prime Minister, said in Parliament in 1952, "Tragic is the sight of the powerful British Empire which has no money to pay the monthly bills."
