Brexit

Is globalisation beginning to end?

For the past few decades, globalisation profoundly altered the course of mankind's history. Technological advancement helped spread goods, services, ideas, wealth, labour and cultural trends beyond the confines of geographical and national borders. The world became a familiar place for all, as nothing ever seemed too foreign to our eyes accustomed to the global view. The locomotive of globalisation was in full motion, with the global village set as the final destination.

As the world grew flatter in various dimensions, populations became increasingly connected. and divided. For one, income inequality has never been more pronounced. Thanks to globalisation, many previously impoverished communities were enriched as opportunities that never existed came banging on their doors. As wealth accumulated, the spoils were split, often unevenly, within and across populations. The able and nimble ones seized the advantages. Leftovers then slowly trickled towards those further down the pecking order. Resources become increasingly concentrated in the hands of a selected few, as globalisation accelerated and accentuated the process. Over time, the rich simply got richer, while the poor, were left further and further behind.

Thus, depending on who you speak to, the globalised world can either be a paradise, or a hell. To entrepreneurs who intend to conquer the global market, globalisation offered endless opportunities and benefits. To those in old Western industrial towns who lost their livelihoods to cheaper labour in the East, globalisation was the monster that ruined their career and future.

Brexit was the culmination of all those trends. The deep fissures that erupted through the vote represented the divide that split the British population into the winners and losers of globalisation. Similar fissures are likely to exist in many other societies. If a global vote on whether one ought to join the global village is held today, the voting pattern would most probably mirror that of the Brexit referendum.

The young, educated elites in London stand to lose the most from Brexit. Among them, bankers have been particularly outspoken about their dislike of the outcome. They fret about their jobs and bonuses. They do not like the idea of having to uproot to another European city. They also fear having to rebuild a career in another industry.

If they need reference from past experience, look no further than their fellow countrymen from the decaying industrial towns that once shouldered the economic prowess of Britain. Many of them became structurally unemployed as the tide of globalisation swept away their livelihoods. They too, once fought to keep their jobs but their efforts were no match for the market dynamics of the global economy. In Brexit, they found their chance to express their plight. They collectively delivered a blow to all those who have been oblivious to the side effects of globalisation. Would the bankers now follow in their footsteps as Brexit looms?

The anti-globalisation genie has been let out of its bottle. Now the world sits on a watershed moment. Will globalisation continue to flatten the world, or would it begin to reverse course, as nationalism and protectionism rear their ugly heads again?

And do not forget, inequality may very well be the Achilles' heel of capitalism.