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Lessons from Brexit2016-08-31Hit:1221

Lessons from Brexit

Due to Brexit, stock markets have been fluctuating globally. Some even say that 2,440 trillion (KRW) evaporated just in one day, right after the Brexit.

When the United Kingdom (UK) leaves the European Unions (EU), it will have a huge impact on a global scale. In this turbulence, in is necessary to act rationally rather than emotionally. The political leaders of the two parties in the UK are trying to cooperate, and this includes the Prime Minister. Political leaders in neighboring countries are trying to maintain a status-quo relationship with the UK, including the Germany and the US.

When these global leaders say that they will try their best to maintain close ties with the UK, it is not just lip service. Although many global experts made dire predictions, a dramatic world economic fall down will not happen. The prospect of losing tremendous amounts of money is too much of an exaggeration. The real economy will not be affected that much. As long as individual investors don’t sell then they will not lose, and the lost amount will soon repaid when tomorrow’s price goes up.

The fact that the UK left the EU does not necessarily mean it is totally out from the Europe.  Indeed, the UK is geographically, culturally, and mentally rooted in Europe.  The international political environment surrounding the UK may not change easily. In a practical wise way, the relationship between the UK and the EU will essentially be the same as in the past. Only a few administrative tasks and further negotiation will be well enough at this stage. Likewise, the relationship between the UK and Korea will not change dramatically.

Rather, the real meaning of Brexit is the genuine power from grassroots democracy. The ones who argue against Brexit were the top elite politicians, academics, and professionals in diverse fields. They say it is important to embrace refugees and to argue for a global free trade, however, the costs entailed were high – unemployment and low wages were the burden of the general public. We can guess that’s how most UK citizens might have felt, from the results of the recent national poll.

In all, the results of the poll are sensible when examined from the view of the public. Without against for the Brexit, their actual lives will be more at a negative circumstance. (I don’t know what this means!)However, right after the poll, as political leaders and the general public in the UK tried to find harmony as a great nation, we can also look at the power of the UK’s democracy again. 

Contact : Lee, Sohyun ( sohyun.c.lee@kaist.ac.kr )