“The Labour Party is in a state of utter collapse,” Thomas Wright declared in a conversation with other Brookings scholars about the U.K. vote to leave the EU and the shock waves that the so-called “Brexit” has already set off. Economists Homi Kharas and Aaron Klein highlighted the effect Brexit has and will have on developing economies and the U.S. economy, while Fiona Hill spoke to how Russia sees the outcome. Uncertainty looms over nearly every aspect of the unprecedented British exit from the EU, as the British chose sovereignty over wealth in the recent referendum that has wide-reaching political and economic implications. Visit the event’s page to get full video, and see what Brookings scholars have been saying and writing about Brexit.
Here are video highlights from the event.
“Right off the bat we’ve lost $2 billion of aid”
Homi Kharas, senior fellow and deputy director of the Global Economy and Development program, speaks about the short term economic impacts that are already observable in global markets after the Brexit vote and the implications for developing economies around the world in the short to long term future.
“The world is poorer as a result of Brexit and the U.K.’s choice”
Aaron Klein, fellow and policy director of the Initiative on Business and Public Policy, analyzes the potential economic impact Brexit could have on the American economy and global markets going forward, as the U.K. is projected to leave the EU and reclaim a considerable amount of sovereignty while sacrificing their formerly very strong currency.
“The Leave campaign found themselves in an incredibly important position, but with no actual plan”
Thomas Wright, fellow and director of the Project on International Order and Strategy, describes the facets of uncertainty that the British, Europeans, and citizens around the world are faced with following the Brexit vote and the unprecedented process of separation of the U.K. from the EU.
“The places that voted to leave are predominantly the least diverse parts of the country”
Fiona Hill, senior fellow and director of the Center on the U.S. and Europe, describes the discrepancies in voter turn-out and demographics around the U.K. that led to the win for the leave vote in the U.K.-EU referendum, despite Northern Ireland and Scotland voting to stay.
“[Putin] could see a lot of upsides and downsides for Russia”
Hill addresses the responses coming from the EU’s eastern neighbor, Russia, where uncertainty is flourishing as it is in the West about the implications Brexit will have for the economy, security, and alliance structures.
Watch the full event below: