“UK departure is an attack on the Globalisation Project”
The departure of the UK from the European Union (EU) has dealt a debilitating blow to the EU and left major global markets in a state of shock. Global markets have become so interlinked with complex correlations; some of which are beyond immediate perception.
The EU is China’s second biggest trading bock and is the U.S.A largest trading block. The EU is one of the largest markets for South Africa. Therefore, any chaos in the EU has the potential to affect these major trading blocks which in turn can affect other economies with remote direct connectedness with the EU.
The departure of the UK leaves behind a fragmented common market. There is a valid fear that this departure can ignite emotions in other EU member states to re-evaluate their position in the EU and vote to depart as well; ultimately leading to a spiral of events that can weaken demand for goods and services and thus affect other economies in a global economy that is still weak. Should this happen, China, the USA, South Africa and other markets with direct correlations with the EU can get negatively affected. The Chinese economy is still struggling and can get knock off effects which in turn can affect Africa.
According to research, China, the EU and the USA are the top three destinations for exports from Africa. The implication for this relationship is that economic growth in these economic giants has a bearing on Africa’s prospects.
Conversely, challenges in any of these economic giants can spur headwinds for African economies thereby slowing economic growth.
It is for these reasons that Energy Forum Zambia wishes to express its deep concerns at the departure of the UK from the EU. The UK is a very big player and as such, its decision to depart from a common market cannot be taken lightly.
Fragmentation is not better than the power of integration. The vote to leave a well-integrated market has come at a wrong time and is an attack on the globalisation project. Furthermore, it has left many wondering whether the voters who voted to leave fully understand how the world is changing and how hard it is for any nation with global ambitions to go it alone.
Johnstone Chikwanda (PhD Cand.)
Energy Forum Zambia Chairperson
Johnstone, this article is looking into the future accurately. Just like the Britons didn’t see it coming Africans can’t perceive it coming. I just hate those days when you start your paragraph blaming opposition parties instead of opposing Current weaknesses. We’ll done today ýu indeed sound like a candidate for doctoral thesis.
Mr. EFZ Chairperson,
LOL- If LT has reported correctly, I am surprised that Energy Forum Zambia is still at the stage of “wishing to express its deep concern at BREXIT” this late. Merely expressing deep concern is NOT a solution, and most definitely not a strategy to finding a future solution.
vodka chagwa wrungu will be more confused now.Take a little whisky and injure us the Zambians…VIVA HH 2016