Monday 27 June 2016

Wonkbook: The world's losers are revolting, and Brexit is only the beginning

Sponsored by American Cancer Society Cancer Action Network | By Matt O'Brien THE world has enjoyed an unprecedented run of peace, prosperity and cooperation the last 25 years, but now that might be over. At least when it comes to those last two. That, more than anything else, is what Britain's vote to leave the European Union means. A British exit, or Brexit, will make …
 
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By Matt O'Brien

THE world has enjoyed an unprecedented run of peace, prosperity and cooperation the last 25 years, but now that might be over. At least when it comes to those last two.

That, more than anything else, is what Britain's vote to leave the European Union means. A British exit, or Brexit, will make the country poorer in the short run, perhaps in the long run too, and might drag the rest of Europe down with it. That's because Britain is essentially ripping up its free trade deal with the rest of Europe. But of far greater concern than just dollars and cents is that this is the most significant setback in Europe's 60-year quest for "ever closer union," and the most shocking success for the new nationalism sweeping the Western world.

Brexit, in other words, is the end of the end of history.

That, of course, was Francis Fukuyama's famous idea that, with the end of the Cold War, capitalist democracy had not only defeated communism, but also every other ideology. It was supposed to be, as he wrote, the "final form of human government." And insofar as democracies tended to work together, this implied the future would be one where competition wouldn't lead to conflict, but would rather replace it. Tariffs would come down, money would move across borders to where it was needed most, and workers would too. This meant, then, that governments weren't the only ones that would become more alike. People would as well. They'd stop being citizens and chauvinists, and become consumers and cosmopolitans. You'd have nation-states without the nationalism.

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For a while, this seemed true enough. Democracy spread, war lessened and economies opened up. In turn, international groups like the European Union and World Trade Organization codified it all. As any Mumbai taxi driver could have told you, the world really was a Thomas Friedman book.

Or at least it looked that way.

Read the rest on Wonkblog.


 

Map of the day

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