As global financial markets convulse in response to British citizens voting to leave the European Union, the stunning outcome of the U.K.'s referendum provides more questions than answers.
The heightened uncertainty, fueled by sudden institutional instability now compounding long-standing economic fragility and financial fluidity, is likely to cause an unprecedented mix of political turmoil, financial volatility and economic damage in the weeks ahead. It also leaves us with seven lessons whose implications extend well beyond Britain.
Socio-political disconnects are everywhere:
The "leave" decision is about much more than a narrow majority of citizens refusing to follow their political leaders. It should be seen as a notable rejection of the political and business elites, as well as "expert opinion." And it also illustrates the regional divides that prevail following a period of low growth, especially growth that has benefited some groups more than others.
Bitter and divisive campaigns are the new normal in national politics:
This bruising campaign fueled and was fed by the broader divisions in the country. As such, for way too many, the Brexit referendum decision ended up boiling down to a gross oversimplification -- one that pitted economic wellbeing versus regaining sovereignty over immigration.
Assumptions from history no longer apply to established parties:
Just like the Republican Party, which has taken a step away from free trade, it was the U.K. Conservatives, among the country's major political parties, that was most deeply divided about the benefits of the world's largest super-free-trade zone.
Anti-establishment and fringe parties can change politics even when they have no chance of gaining power:
Facing the risk of some of his party's base jumping to the U.K. Independence Party ahead of the last general election, Prime Minister David Cameron felt compelled to promise a referendum in order to secure a re-election of the Conservative Party. Little did he realize the size of the gamble he was taking, one that has split his party. Reacting to Thursday's vote, he has announced he is stepping down.
Fringe politics can feed on themselves, including across borders:
Just like the U.K. politics of anger was empowered by the rise of Donald Trump across the Atlantic, the "leave" vote is likely to embolden the anti-establishment movements that have already been gaining traction in much of Europe. And, within the U.K., it is also leading to dissatisfaction in Scotland and Northern Ireland.
Financial markets, and the "wisdom of crowds" that is supposed to underpin them, are not any better at predicting such political outcomes than most people are:
In the run-up to Thursday vote, traders got comfortable with the notion that the "remain" camp would prevail. The resulting multi-day rally in Sterling and equities were subsequently more than wiped out, and in a brutal fashion.
Add "Brexit" to a list of unthinkables that have become reality:
Strange things happen when advanced economies persist in a new normal of protracted low growth and worsening inequality -- things like negative nominal interest rates and the emergence of Donald Trump as the presumptive Republican nominee. And if the U.K.'s decision to leave the EU does not wake up politicians elsewhere, this list will only get longer in the months to come.
The Washington Post
Fri Jun 24 2016
The Brexit vote leaves us with seven lessons whose implications extend well beyond Britain.
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.