Jordi Bacaria, professor of the Department of Applied Economics at the Autonomous University of Barcelona and director of the Barcelona Center for International Affairs (CIDOB), talked to our students of the degrees in Foreign Trade, Logistics and Global Business about the reasons that led to Brexit, its implications in the world, including Mexico, and possible actions to face it in the future.
Bacaria explained that the Brexit is the result of several unresolved challenges that Europe has had since it began its integration process. The first challenge is the Euro, basically the economic and political crisis that has originated from the recession, the debts of the countries, the bailout of the economies and the austerity policies that have undermined the strength and social support of the European currency.
The second challenge is refugees, a crisis that has polarized opinions in favor and against, because while some see an opportunity to recover an economically active population that provides demographic stability to the future of nations, others, such as those who supported Brexit, see a threat not only of fundamentalist ideas that provoke terrorism, but of profound changes in society that put the status quo and Western culture itself at risk due to the massive arrival of Muslims.
The third challenge, and a direct consequence of the previous two, is Brexit, which has been seen by those who support it as the only solution for England to recover and move away from the crises that Europe is experiencing with the Euro and the refugees, an option supported mainly by those over 5 years of age and with lower educational levels as they perceive their opportunities diminished by globalization; on the contrary, young people and entrepreneurs believe that their future and opportunities lie in integration with Europe.
What to do then with the Brexit? Bacaria explains that while the countries of the Union are looking for England to start the exit process as soon as possible and thus discourage other territories from thinking that leaving is not a good decision, the United Kingdom is looking to extend the process and thus have more room for negotiation and be able to create new agreements that will bring them the greatest benefits. However, analysts agree that, although the United Kingdom and Europe will be able to move forward with the separation, growth and development will be slower than if they were together.
How does this affect Mexico? Although England does not directly have a strong economic relationship with Mexico, there is no doubt that the economic uncertainty generated by this outlook affects the Mexican economy and specifically the value of the peso against other world currencies.
What solutions are proposed? It is not a simple formula, but we must work hard and with a lot of political will to advance European construction, which will strengthen the Euro, establish community visa programs for refugees, fight populism and demagogy and lead international trade treaties.
For young students, having this perspective and analyzing how problems originate and are solved in the world gives them clues to find solutions to Mexico's problems.
