Regional groups may see Brexit as cautionary tale

Subject

Prospects for regional groups post-Brexit.

Significance

The June 23 referendum vote in the United Kingdom in favour of exiting the EU (Brexit), and the rise of Republican presidential candidate Donald Trump, have turned attention to concerns over globalisation. This includes issues of identity and sovereignty, but particularly free trade at a time of economic stagnation, and fears of industries -- and by extension jobs -- moving abroad or perceptions of migrants taking local jobs. This raises the question whether resistance to regional integration, and globalisation more generally, is growing.

Impacts

• Brexit may strengthen the case for preserving greater national sovereignty over increased institution-based integration.
• New forms of integration -- such as China's 'One Belt, One Road' initiative -- will become more significant.
• Brexit highlights the need to address underlying problems such as growing inequality and diverging interests between elites and publics.