United Kingdom
In-depth PESTLE Insights
Publication Date: May 2010
OVERVIEW Catalyst
This profile analyzes the political, economic, social, technological, legal and environmental structure in the United Kingdom. Each of the PESTLE factors is explored on four parameters: current strengths, current challenges, future prospects and future risks.
Summary
Key findings
Strong democratic system, but the threat from terrorism continues to be high The UK adheres to a democratic, parliamentary system of governance known as the Westminster system. The structure of the administration ensures that there is an adequate separation of powers between the executive branch, led by the prime minister, the bicameral legislature and the judiciary, and that there is a system of checks and balances in place. As the governance indicators illustrate, the UK is one of the most successful nations in terms of the application of rule of law, control of corruption, government effectiveness and regulatory quality. Furthermore, according to the World Bank 's governance indicators for 2008, the country was given a high percentile rank of 94.3 on government effectiveness. The heavy involvement of the UK in the war on terror in Afghanistan and Iraq seems to have had some negative consequences. The threat of terrorism is being taken more seriously than before. The July 7, 2005 bombings in London brought the capital to a standstill. The public threats issued by various Islamic fundamentalist groups such as al-Qaeda are a clear indication of the constant danger that they pose. Foiled terrorist attacks have also served to put the government and the public on edge. In March 2010, the UK 's intelligence and security service has said that terror threats linked to Pakistan continues to be the primary area of concern. Sluggish growth in the economy The country attained a high growth rate of 2.8% in 2007, but economic deceleration began in 2008 and the GDP growth rate fell