On June 23rd Britons decided to defy the advice of their government, economists, and allies to vote exit from European Union. A move analysts believe will scar the country for decades and diminish its global outlook. For some unrealizable ambition Britain shunned what it has always stood for- Liberalism, the creed that promotes economic openness. Britain has long championed the argument for free trade and globalization. Its decade long noise has been about denouncing nationalist forces and protectionist trade but the sudden revoke of its regional trade deal resonate a defeat for the liberal world order that underpinned the West’s prosperity.
The Brexiteers led by Boris Johnson the former mayor of London, campaigned for freedom to regain Britain’s sovereign destiny and now, it has succeeded in ushering Britain into a new divided politics that will be defined along the line of isolationism, culture and uncertainty. The pompous bureaucrats will lead UK boldly into the unknown and find alternative means to maximize wealth after rejecting the institution that buys nearly half of its exports. The risks that will accompany Brexit have been carefully weighed by historians, economists and political scientists and the outcome is believed to be disastrous not just to Britain but the world.
European Union- a club of countries that has effectively helped keep peace in Europe for half a century will heavily feel the brunt of losing one of its biggest members and contributors. Needless to say, Euro will have problem finding stability and competing favorably in the money market. The euro-zone economies will weaken against its counterpart economy in America and Asia. A 10% drop in Euro days after the referendum is a taste of what to come.
The Brexit vote will surely have colossal effect on regional pact. Doubt will begin to sum-up as to how effective it can truly be to facilitate trade deals and effective border migration. Brexit might signal the beginning of the collapse of international economic agreements; a worry to the world economy.
Britain itself will enter into a divisive phase starting from its internal politics. Indeed, the referendum shows a kingdom that is no longer united. Decisions will now have to be made along age, class and geography line. The outcome of the referendum has fuelled the fear of secession of Scotland, isolation of Britain, poorer economy and a Britain that will be less influential in history book. President Obama appropriately said: “a Brexit will put UK at the end of the queue’’.