By the time of Queen Victoria's death in 1901, other nations, including the United States and Germany, had developed their own industries; the United Kingdom's comparative economic advantage had lessened, and the ambitions of its rivals had grown.

The losses and destruction of World War I, the depression of the 1930s, and decades of relatively slow growth eroded the United Kingdom's preeminent international position of the previous century.

Britain's control over its empire loosened during the interwar period. Ireland, with the exception of six northern counties, gained independence from the United Kingdom in 1921. Nationalism became stronger in other parts of the empire, particularly in India and Egypt.

The Anglo-Irish Treaty of 1921 established the Irish Free State, which subsequently left the Commonwealth and became a republic after World War II. Six northern, predominantly Protestant, Irish counties have remained part of the United Kingdom.

In 1926, the United Kingdom, completing a process begun a century earlier, granted Australia, Canada, and New Zealand complete autonomy within the empire. They became charter members of the British Commonwealth of Nations (now known as the Commonwealth), an informal but closely-knit association that succeeded the empire.

Beginning with the independence of India and Pakistan in 1947, the remainder of the British Empire was almost completely dismantled. Today, most of Britain's former colonies belong to the Commonwealth, almost all of them as independent members.

There are, however, 13 former British colonies--including Bermuda, Gibraltar, the Falkland Islands, and others--which have elected to continue their political links with London and are known as United Kingdom Overseas Territories.

Although often marked by economic and political nationalism, the Commonwealth offers the United Kingdom a voice in matters concerning many developing countries. In addition, the Commonwealth helps preserve many institutions deriving from British experience and models, such as parliamentary democracy, in those countries.