Can the world look at the Brexit as a wake-up call?

The world is becoming a complex place and in almost every part of the world great geopolitical blocks are being created. What was once at the heart of an economic and trade project, the European Union (EU) has helped to bring peace and stability to Europe.

2016 has certainly been a year of political upheavals with the election of Donald Trump and the surprising vote for Brexit to leave the European Union.

In a bitterly contested referendum, the UK decided to leave the European Union, soon after which British Prime Minister –David Cameron announced his resignation.

This phenomenon is known by the nickname Brexit, which means the withdrawal of the United Kingdom from the European Kingdom. It is the merging of the words Britain and exit to get Brexit. For many people the message behind the Brexit vote is simple and that is to be a state; be an autocrat.  

 Trump’s political case was very similar to the pro-Brexit campaign that was built on the grievances of people who were left behind by globalization, wistful for a perceived lost moment of national greatness and angry about immigration. Similarly Britain stunned the world by voting for Brexit.

Almost every nation across the world is going to be affected by Brexit and our Indian economy is no exception. The affects of Brexit will be felt in almost every country as EU has agreements with other nations. Already, the financial industry is preparing to move jobs to other financial capitals in anticipation of a messy Brexit. Global giants such as JP Morgan Chase, HSBC and Citigroup will soon carry out plans to shift thousands of jobs to financial centres in the European Union.

According to an economist and senior fellow at Bruegal-a research institute in Brussels, Nicolas Veron  “The fact of setting this clock ticking is significant, because two years for many businesses is enough time for them to adapt, but short enough that they have to start making decisions really quickly.

“People will have to move,” said William Wright, founder and managing director of New Financial, a research institution in London. “There’s no other option.”

Image Author: Valarmurugan

Publisher Name:EQSIS

India is already known to be one of the most lucrative markets in the world for foreign investors, but the affects of Brexit are expected to leave an impact on the Indian economy as well.  Many Indian companies that are already based in Britain may have to shift their business to other parts of the EU. The sectors predicted to be affected the most are IT, Pharma and automobile.

Although Brexit is being seen with baited breath across the world, there are certainly some positive benefits that Indians can look forward to. Brexit is expected to make it easier for Indian students to get scholarships. In addition, with the expected reduction of the pound value, travelling will be a lot easier to the U.K.

The actual mechanism that will make this a reality is Article 50 of the Lisbon Treaty. Article 50 is the plan for any two countries that wishes to exit the EU, allowing them to take two years to agree to the terms of the split.

The current Prime Minister of the UK – Theresa May has already triggered this process, on 29^th March which basically means the U.K. is scheduled to leave on Friday, 29^th May 2019.        

A crisis of globalisation and an indication of growing nationalism in global affairs, Brexit has many geopolitical implications. It fuels the idea of nationalist political movements across Europe and even sharpens the lines of international confrontation and competition.

It does a very good job at marrying traditional British Euroscepticism with the already existing Western disillusionment that began post the 2008-09 financial crisis. The sentiments of people form the crux of these upheavals.

There are many people who think that the Brexit vote is a sign of the sun setting on Europe. In addition to this, it could also be considered be a wake-up call, or it could even be ‘a 1933’ all over again which could set Europe on a path for healthy growth and high employment.

As the world is going through this populist phase at the moment, it can be said that there is a mob quality attached towards current types of voting-patterns across the world.

If and only if national leaders can take the right measures to address the real sentiments of the people and their complaints can there be some sort of hope for change in our society.

Issues which need to be addressed are unemployment, a growing underclass, migration, climate change and energy supply, existential issues, tide of refugees, unhappiness towards Governmental policies, etc.

Politics is playing in major ways across the world and it flows right from the past and looks forward to the future. It looks straight into the eyes of uncertainty but with a burning hope for a prosperous tomorrow. We have to find a solution to a sustainable future, which is inclusive of growth.       

What do you think, can the world look at the Brexit as a wake-up call?