Isolationists are gaining ground worldwide. From worries about losing
jobs to concerns about the erosion of social values and cultural norms,
disengagement and retreat from the international stage is seen as a
viable solution to the looming challenges ahead.
The most glaring fact is that Britain and the United States are at
the forefront of seeing withdrawal as an answer to problems facing a
rapidly evolving world.
But far from offering any longer-term solutions to the real worries
of losing out to international competition, the isolationists are at a
real risk of losing their political, military and social and economic
power.
With Brexit, non-EU countries are reassessing how they continue to do
business in Europe, as Britain can no longer remain their gateway to
Europe.
Never mind that for countries like Japan, Britain had been their base
in Europe. Corporations including Toyota and Hitachi created over
140,000 jobs across UK as a result.
But while Brexit supporters have touted that leaving the European
Union will enhance British economic competitiveness, such signs have yet
to emerge.
In fact, the IMF predicted in October that Britain’s GDP growth will
fall to 1.1% in 2017, compared to 2.2% growth in 2015. This is a direct
result of Brexit and inspire of the British pound’s depreciation.
With even the staunchest of U.S. and British allies frustrated by
their retreat, those supporters are already beginning to take matters
into their own hands.
But the real cost of London’s
isolationist policy may well be that it has shaken the foundations of
relations over the decades that spills out well beyond the economic
realm.
The intense national debates within Britain
ahead of the referendum underscored the unexpected strength of the
anti-trade, anti-globalization and ultimately, anti-foreigner stance of
many voters.
With popular sentiment becoming more
insular, Britain’s reliability as an ally in diplomacy and in security
issues has come into question. the concerns are thus not just limited to
trade relations with Europe and beyond.
Moreover,
confidence in a Britain that has the will and the wherewithal to be a
leader in addressing transnational issues, not least to ensure global
economic stability, has faltered as well.
In short, the
Brexit referendum that supposedly was to make Britain stronger has
actually weakened its position on the global stage, at least in the near
term.
Still, Britain is not alone in paying a price
for its strategic isolationism. International disillusionment with the
United States has also begun, especially as Washington continues to shy
away from a global trade deal that it has been instrumental in crafting.
The
economic merits of signing on to the Trans-Pacific Partnership aside,
the fact that the United States could walk out of a negotiation at the
eleventh hour, that it had been an integral part of puts U.S.
credibility on the line.
As governments of the 11 other
TPP member countries are pushing hard to have the deal ratified by
their legislators, the fact that both U.S. presidential candidates are
united in rejecting the TPP – at least as it currently stands – has been
alarming.
In particular, blaming foreign competition
for a growing income divide in the United States can hardly be seen as
encouraging for overseas investors. At best, such “reasoning” is a wild
stretch of the truth.
The trend to blame outsiders for
many U.S. economic woes, when domestic reforms and reinvestment into
projects, especially infrastructure, could do much to spur growth, has
been alarming.
Like Britain, the United States
continues to enjoy much international goodwill as a global leader in
promoting democracy and free markets that it can continue to draw upon.
Yet,
as public opinion in both countries continue to support greater
protectionist measures and scaling back on global commitments, that
goodwill may whittle down far more rapidly than expected.
Read moew: How the United States and UK Risk Their Global Goodwill - The Globalist
