The economy - one of the largest in the world - is no longer manufacturing but services-based, with e-commerce of growing significance. The City of London is a global financial centre.

Many of the country's people have never been richer, but a recent international study says the UK has the second highest child poverty rate in the European Union.

OVERVIEW

The country has not yet adopted the euro currency and the debate continues over when, and indeed whether, it will do so. The government has said that a series of economic criteria must be met before a referendum on the issue is held.

After decades of violent conflict in Northern Ireland, the Good Friday agreement of 1998, which led to a new assembly with devolved powers, brought hope of a lasting peace. While there has been progress, there are continuing arguments over arms decommissioning and alleged paramilitary activity. Tension between the unionist and nationalist communities still simmers.

 The assembly was suspended in autumn 2002 when a row erupted over allegations about IRA activities. Elections were held in late 2003 but the deadlock continues and the assembly has yet to reconvene.

In recent years the United Kingdom has made significant moves on devolution of powers to Scotland and Wales as well. The Scottish Parliament in Edinburgh and the National Assembly for Wales in Cardiff opened in 1999, and the possibility of devolution for the English regions has also been discussed.

The United Kingdom is home to a multicultural population, partly as the legacy of empire. There are more Asian restaurants in many towns than there are burger bars and a former government minister has described a popular variety of curry as "Britain's true national dish".

The UK has been at the forefront of youth culture since the heyday of the Beatles and Rolling Stones in the 1960s.

It has a rich literary heritage encompassing the works of Englishman William Shakespeare, Scot Robert Burns, Welshman Dylan Thomas and Northern Irishman Seamus Heaney. Traditional music has deep roots across the UK which has also produced classical composers from Henry Purcell in the Baroque period to Benjamin Britten in the 20th century.

FACTS

• Population: 59.6 million (National Statistics, 2003)
• Capital: London Area: 242,514 sq km (93,638 sq miles)
• Major language: English
• Major religion: Christianity
• Life expectancy: 76 years (men), 81 years (women)(UN)
• Monetary unit: 1 pound sterling = 100 pence
• Main exports: Manufactured goods, chemicals, foodstuffs
• GNI per capita: US $28,350 (World Bank, 2003)
• Internet domain: .uk
• International dialling code: +44

LEADERS

Head of state: Queen Elizabeth II

Prime minister: Tony Blair

Tony Blair became prime minister in May 1997 when he led the Labour Party back into government after 18 years in opposition. He won a second resounding electoral victory in June 2001 and is now seeking a third term in office. Prime Minister Tony Blair Mr Blair defines his politics as "the third way".

His social democracy recognises that free-market capitalism has virtues, but he says that it also emphasises the role of the state in developing social justice and equality.

Mr Blair has been an unflinching supporter of the US-led campaign against international terrorism. Following 11 September, British forces were involved in operations in Afghanistan.

As the focus shifted to Baghdad, Mr Blair remained energetic in his diplomatic efforts but was also firm in insisting that Iraq risked war unless it complied with UN Security Council Resolution 1441 relating to weapons of mass destruction.

In the end, his government joined that of the USA in launching military strikes against Iraq without UN approval and despite domestic public disquiet and unease within his own party.

Eighteen months later, the Iraq Survey Group (ISG) concluded that there had been no weapons of mass destruction in Iraq for some time before the war and British intelligence withdrew a controversial claim that Saddam Hussein could have used WMD with 45 minutes notice.

Mr Blair acknowledged that the intelligence had been flawed but denied having misrepresented it in making the case for war.

With campaigning under way for a general election on 5 May 2005, the war and its aftermath remain in the headlines.

The 2001 campaign highlighted a public perception that there is not enough government investment in health care and education.

Performance in these areas is likely to be a key issue at the next election.

• Chancellor of the exchequer: Gordon Brown
• Foreign secretary: Jack Straw
• Home secretary: Charles Clarke
• Defence secretary: Geoff Hoon

MEDIA

The UK has a strong tradition of public-service broadcasting and an international reputation for creative programme-making. The fledgling BBC began daily radio broadcasts in 1922 and quickly came to play a pivotal role in national life.

 The Empire Service - the forerunner of the BBC World Service - established a reputation worldwide. The BBC is funded by a licence fee, which all households with a TV set must pay.

BBC Broadcasting House, a London landmark History of the BBC Commercial TV began in 1955 with the launch of ITV. Commercial radio was introduced in the 1970s, although ship-based pirate radio stations flourished in the 1960s before being outlawed.

Hundreds of privately-owned radio and TV stations now compete with the BBC for listeners and viewers.

Home-grown soap operas have long topped the TV ratings, and British viewers keenly follow the ups and downs of life in east London's Albert Square, the setting for the BBC's EastEnders, and Coronation Street - ITV's soap about northern-English working-class life.

Programmes which catapult ordinary people into the public eye - known as reality TV - are enjoying a wave of popularity. The UK's main TV networks now face strong competition from digital satellite and cable TV, which offer scores of channels.

Digital terrestrial TV carries a smaller number of free-to-view channels. Digital radio (DAB) has had a slower start, but the BBC and commercial operators provide digital-only radio services. Britain's media regulator has set a timetable for a switchover from analogue to digital TV broadcasting; it hopes to turn off the analogue TV signal in 2012.

The British media are free and able to report on all aspects of British life. The variety of publications on sale reflects the full spectrum of political opinion, as well as the British public's voracious appetite for newspapers.

In 2004 the BBC was criticised in a high-level inquiry into the suicide of a scientist involved in a row over a BBC radio report. The item claimed that the government had embellished its case for war in Iraq.

The inquiry exonerated the government and said the most serious claims in the BBC report were unfounded. The corporation subsequently introduced new complaints procedures and guidelines for journalists.

The press

• Daily Telegraph - broadsheet
• Financial Times - daily business broadsheet
• The Guardian - daily broadsheet
• The Independent - daily, former broadsheet
• The Times - daily, former broadsheet
• The Sun - daily tabloid
• The Mirror - daily tabloid
• The Scotsman - daily, former broadsheet
• The Daily Mail - tabloid
• The Daily Express - daily tabloid

Television

• BBC TV - operates BBC1, BBC2 and digital services including BBC News 24
• BBC World - commercially-funded international news channel
• ITV - major commercial network, organised around regional franchises
• Channel 4 - commercially funded but publicly owned national station
• five - national commercial channel
• Independent Television News (ITN) - supplier of news to ITV, Channel 4
• British Sky Broadcasting (BSkyB) - operator of digital satellite TV platform and provider of film, entertainment channels and 24-hour news channel Sky News

Radio

• BBC Radio - national services include new-music station Radio 1, adult music station Radio 2, cultural network Radio 3, flagship speech station Radio 4 and news and sport station Five Live
• BBC Radio Scotland
• BBC Radio nan Gaidheal - Gaelic-language station for Scotland
• BBC Radio Ulster - for Northern Ireland
• BBC Radio Wales
• BBC Radio Cymru - Welsh-language
• BBC Asian Network - for Asian communities in the UK
• BBC World Service - major international broadcaster, heard worldwide via shortwave and increasingly on FM relays, programmes in more than 40 languages
• Virgin Radio - national commercial pop and rock station
• Talk Sport - national commercial sports station
• Classic FM - national commercial classical music station

News agency

The Press Association