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Brexit: Mercantilism and Constructivism
Finally, Britain finalized on a deal to leave the European Union on January 31st 2020 after a series of issues which sought to derail the whole process. However, the significant concern currently has been the development of a British Identity away from the European Union. The development of Britain’s foreign policy has become a significant point of focus, primarily how the country will deal with issues concerning trade and migration. Having been a founding member of the European Union, the British policies have been mainly intertwined with those of the European Union. However, there is a need to understand how the country is going to deal with the presenting challenges. Majority of the trade deals and operational environment within Europe has been subject to European Union guidelines. Therefore, understanding why Brexit occurred based on two major theoretical approaches which are Mercantilism and Constructivism.
Brexit background
The decision by Britain to leave the European Union has always been a point of discussion. This has sought to create an emphasis on the influence of Britain within the European Union. It also includes determining whether Britain will be better off on its own than within the Union. There were various reports which indicated that the European Union was benefiting more from Britain than Britain from the Union. The essential aspects that define the Brexit decision include economics, sovereignty and politics. Brexit was majorly a political decision that was fueled by other factors from an internal level within Britain (Meluš, 615). Assessing the decision from mercantilism and constructivism present different perspectives in explaining the decision. It also offers a context in examining underlying factors that influenced the decisions as well as the likelihood benefits.
From an economic point of view, opponents of the European Union asserted that it was a dysfunctional financial decision. However, it is worth noting that the union has failed on large fronts economically since the recession that occurred in 2008. A significant example that presents an understanding of the situation has been the high rate of unemployment of around 20% in Southern Europe despite the implementation of different systems and policies to help control unemployment and create a balanced trade environment for all states. The living standards of individuals in Southern Europe, where the unemployment rate is around 20% and Germany, where the unemployment rate is under 4% is highly profound (MacShane, 23-28). Europe has stagnated entirely in terms of the economy hence prompting the decision by Britain to focus on its economic aspects alone.
The rate of imported labour in Britain has been tremendous. This has presented the country with the need to focus on the needs of its people rather than the needs of the entire European Union. A significant issue currently within the UK is whether there is enough skill to help in advancing the current companies without massive challenges. The Chartered Institute of Personnel and Development identified that 57% of employers had concerns over Brexit with a better understanding that the move will automatically weaken performance, considering the ability to retain skills (Kaufman, 62). The free business area within the EU has created a different trade understanding considering that any member of the union is free to work and live anywhere among the member countries. The presence of migrant workers has had a detrimental influence on the level of preparedness within the UK force. However, the move has presented a substantial impact on the level of readiness within the UK skill system.
Staying in a stagnated economic environment did not make sense for Britain since it was being considered as a short-sighted decision. Thus Brexit was making a lot of sense from an economic point of view for Britain. Protecting the needs of individuals within the economy provided a robust approach which helped in creating a more diverse system that influence decision making from an economic perspective. The Union was being unable to develop effective policies that would help in shaping the needs and wellbeing of all member countries (Kaufmann,63). Majority of the countries within the Union such as Italy have longstanding debts which have been mainly as a result of the inability of the union to offer better financial, operational policies for member countries.
Sovereignty has been another factor leading to Brexit decision. There is an increasing rate of nationalism across the globe. There is continuing distrust of multinational, trade and defence organizations because countries are unable to have a direct influence on their wellbeing. The organizations that were formed after the second world war have been negatively portrayed as advancing individual goals for specified countries rather than for all stakeholders as mainly assumed (Heisbourg,12). Many individuals who have primarily remained critics of the European Union have identified that agencies under the Union such as the International Monetary fund (IMF) and The North Atlantic Treaty Organization (NATO) do not serve its intended purpose. There has also been an understanding that these organizations have total control over the success of individual states. A country is unable to make any trade deals with a non-EU member without the approval of the body. Britain, over a long time, has felt that its freedom as a sovereign country has been curtailed by the EU (Heisbourg, 23-16).
Brexit decision was a political decision where Britain citizens had a chance to a make decision through a referendum vote on whether to remain part of the union or not with Brexit emerging victorious with a 52% of the citizens voting to withdraw from the Union. The voters rejected both the Labor and conservative parties who had supported the decision to remain within the Union. Majority of Britain residents saw the Brexit as a way to liberate themselves and make informed decisions regarding their wellbeing without seeking approval from the Union (Kaufmann,68). The Brexit decision has had a detrimental influence on companies and financial markets because they were enjoying immunity from the European Union, which presented lower rates for companies within the Union to set up anywhere.
There have also been challenges relating to the application of the Resident Labor Market Labor Tests which have been applied for non-European Union Citizens it might also be an application for European Union citizens. This will increase administration costs as well as implementing different human resource strategies that can help in defining better recruitment systems to help improve the situation (Marangozov, 13). The Resident Labor Market Labor tests require that companies in the UK advertise a vacancy locally within the United Kingdom before recruiting any EU member. This means that the priority is to protect UNK citizens against the increasing rates of unemployment within the United Kingdom. Workers in the UK qualified and with relevant skills can apply for the vacancy and are considered first before making any further determination regarding the appropriate recruit within the EU (Somai, 142).
The application of mercantilism
Mercantilism is an economic theory that was majorly common in Europe from the 16th to the 18th century. The theory promoted government regulation of the economy through augmenting the state power at the expense of rival national powers. In England, this approach was significantly advanced by publicist Thomas Mun. The theory further state that a strong nation must have a large population which would be able to provide enough labour, market and solders based on its level of commitment (Vaggi, 161). There was a focus on regulating human wants, mainly imported luxury, considering that it does not have any positive influence on the country’s economic development rather than diminishing its wealth. Mercantilism, therefore, presented a strong environment for capitalism which emphasized on profit.
The whole ideology of Brexit is greatly influenced by mercantilism considering the reasons that were key in passing the Brexit vote. Many people thought that the influence of Britain as a global leader in the economy had significantly waned within the Union. The Union had developed different processes that played an essential in controlling positive influence within the global economy. An important consideration that was being made at the time was to ensure that Britain regains its global economic status and control its trade at the expense of other countries (Wigell, 136).
There was a greater realization that there were many EU workers in Britain which were at the expense of the local citizens who lacked enough skills because of the preference of ready labour from the European Union. Implementing such policies did not have a positive influence on the development of Britain as a country but rather focusing on promoting the Union at the expense of its people. This explains the reason why Britain citizens did not follow their political parties, the Labor and conservative parties which had campaigned against Brexit (Raza, 69).
The major characteristics of mercantilism include wealth. Mercantilists focused on making the country strong. The strength of a country is defined based on its wealth. It is challenging to be a wealthy nation when operating under the restrictions of a Union. Many individuals, including politicians, had thought of the European Union as having curtailed the growth and development of the country, considering its strength and ability (Enciso, 32).
Development of a strong foreign trade is also a major trait of the mercantilism theory. The balance of trade presents the need for a country to control its policies and decisions. Brexit allows Britain to make its independent foreign policies without seeking approval from the Union. EU members are required to seek permission from the Union when seeking a trade deal with a non-EU member country. Such measures are prohibitive and present a difficult context where a controlling business which makes it difficult in the balance of trade (Weingast, 123). Thomas Mun, who is one of the most significant representatives of the Mercantilist, stressed that foreign trade must be hugely encouraged since it is through this trade that the honour of the Kingdom is preserved. The value of exports should always be higher than imports.
Preservation of internal markets is a crucial aspect that has been greatly advanced under mercantilism. The need to promote change within society is based on having the ability to control local markets. Having been a member of the European Union, Britain was unable to make its own policies regulating its internal markets considering that the country operated an open market for all EU members. Such measures curtail local development which is one f the reasons that the country sought an exit from the Union and have the powers to make decisions with the interests of its population under consideration (Wigell, 141).
Application of constructivism
Constructivism presents an emphasis on the changing aspects of international relations and underlying factors which offer a well-detailed system that can help in promoting change within a given context. This theory identifies that interests of an individual state and international community are socially constructed and not predetermined (Adler-Nissen, 29). The existence of different factors within the economy must be outlined based on the underlying relationships. This means that when a state observes negative interaction within an international context, it has the powers to control the influence and focus on other productive details. The critical decisions that are attained in this case promote change and adoption of specific measures that help change (Kubálková,11).
The European Union, as a multinational body in this context, plays a significant role in controlling the level of trade between member countries and other organizations or Non-EU members. However, it is essential to understand that independent states within the union do not have the power to decide on its sovereign interests. The Brexit decision was aimed at presenting a highly structured system that focuses on building a significant change and the adoption of better choices that influence its development (Somai, 139).
The theory thus highlights that states often choose to respect the identified norms and accepted behaviour rather than violating them. A country must work for the betterment of others rather than prioritizing its own success (Amineh and Hanieh 13). Based on these aspects, the Brexit decision was aimed at advancing self-interest, which is against the tenets of constructivism. The decision to become independent creates a division with other member countries of the EU. However, it is crucial to understand that a country must be able to make informed decisions based on the interest of its people. The British citizens ratified the decision to leave the EU during the referendum vote. This means that the country government did not impose ay decisions on its people but a democratic decision to make a move.
From an economic perspective, growth requires a lot of freedom where a country can be able to make informed decisions that influence its growth system. The ability to present a highly structured system identify the need to adopt positive measures that help share societal engagement. Social relations within an international level must be made with free will. Every country is expected to work concerning the needs of its citizens. It is essential to focus on presenting a highly structured system that offers a well-defined system that focuses on giving a reliable system for economic, social and political change (Amineh and Hanieh, 15).
Supporting workforces through Brexit has become a significant issue that businesses are expected to develop different mechanisms to help in coping with the situation. Supporting workforces, in this case, means implementing better systems that can control any negative influence on their wellbeing, such as loss of employment as a result of a difficult environment to do business (Amineh and Hanieh 15). The measures that are put in place in this context emphasize on the need to help promote a strong operational framework for change and implementation of better measures that encourage change.
Conclusion
The rate of labour outsourcing within Britain has been high, with the majority of those employed in different sectors being citizens from other EU members. Essential services such as the National Health Service has more than 5% of its workforce being non-British citizens but EU members. This raises questions regarding the need for positive adaptive measures that can help in creating a more reliable system for change and development of favourable policies that promote change in human resource management. Uncertainty has been a significant concern across the industry, with EU workers needing reassurance from the government on the status of EU workers working within the system. The assurances that are being defined in this case include the right to work in UK and job security. There have been approximately 70% of employers who are concerned about the wellbeing of their employers since Brexit (Whelan, 43).
Building a strong nation means that a country must be able to make its own decisions and develop international policies that can help protect its citizens by offering a more detailed bargain within the international level. Brexit has created a realization of the need to advance the local labour force, which will help in transforming the British economy (Adler-Nissen,33). The Union was expected to play a central role in improving the economy of members states. Still, many countries within the union have been falling victims to its debt strategy, which does not focus on empowering countries. Therefore the Brexit decision was made based on very strong reasons as explained by these theories.
Works cited
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