Cuba and the 21st Century

Holding the US and Cuban flags together
https://fronteranews.com/news/latam/cuba-may-finally-rejoin-global-economy-can-close-deal/

  As the notion of the normalization of the relations between the U.S. and Cuba begin to progress further along, there has been a host of questions that have arisen, including about how allowing tourists into the country will impact the nation. Currently, the U.S. State Department only allows tourism to Cuba under the following circumstances: family visits; official business of the U.S. government, foreign governments, and certain intergovernmental organizations; journalistic activity; professional research and professional meetings; educational activities; religious activities; public performances, clinics, workshops, athletic and other competitions, and exhibitions; support for the Cuban people; humanitarian projects; activities of private foundations or research or educational institutes; exportation, importation, or transmission of information or informational materials; and certain authorized export transactions.

Cuba, after decades of isolation from a more global economy, has seen rampant poverty and otherwise difficult conditions. Thus, the idea of introducing tourism may inject money into the country to stimulate economic developmen. However, on the reverse side, some fear that introducing tourism into Cuba may lead to desecration of Cuban national monuments, and other cultural disrespect by Western tourists. Regardless, the perspective that tourism gives to the discussion of what the normalization of relations between the two countries will mean both on a micro and macro scale provides a lens into the interactions of culture and tourism in previously seperated nations.

In Cuba there has been a lot of tourism due to the new President and changes of laws in Cuba. As social media has become more popular, so has the uprise in tourism and media attention for Cuba. Cuba is becoming a popular destination for people across the world to visit, which is something new that the people of Cuba are having to adjust to. Many famous celebrities have recently visited Cuba including the Kardashian family, Gisele Bundchen, Karl Lagerfeld, and Vin Diesel. The Kardashians had their annual family vacation to Cuba, which brought a lot of publicity to the area since it is a very popular reality show. Another big event that occurred was the Chanel 2016 Cruise Collection runway show by Karl Lagerfeld. Controversy behind the glamorous vacations and events occurring in Cuba is that it is not portraying the true lifestyle that the Cuban people live. Rep. Ileana  Ros-Lehtinen (R-Fla.) in response to the Kardashian family vacation said, “but playing a role in making Cuba a fun, no-worries destination is nothing but a cruel trick on the Cuban people. The Kardashians are taking lots of selfies in Havana, but are they taking stock of the reality on the streets they walk on?” The issue is that tourists who visit the country do not understand the culture and history that the Cuban people have gone through. The people of Cuba are having a difficult time accepting that the lifestyle they struggle to live in is being seen as glamourous because of the people who travel to Cuba for vacations.

One image that brought particular controversy was an Instagram post of Khloe Kardashian under a monument to Fidel Castro. She posed against a quote cheering for revolution, wearing heels and a silk scarf, under the dictator’s name. Instead of responding to the backlash, she posted another glamorized snapshot, this time of Cuban cars, with the caption “My goal is to expand my mind”. The Kardashians, whose grandparents were survivors of the Armenian Genocide, had shown no sympathy to the Cuban people, instead glamorizing their trip.

Khloe Kardashian under Fidel Castro's name in Cuba
http://www.standard.co.uk/showbiz/celebrity-news/khloe-kardashian-causes-controversy-on-instagam-after-posing-under-fidel-castro-monument-a3241426.html

Music and tourism have been constantly interacting and influencing each other over time, reflecting a reciprocal and developing relationship between the U.S. and Cuba. Early on, the Cuban government, a secular body, was anti-traditional music that involved themes of religion. However, a western conception of and desire for cuban music to be traditional, authentic and separate from the changing tides of time and modernization led to developments in the spheres of both music and tourism. The Cuban government began to capitalize on this American desire in the 1980s with increased tourism. Cubans, in the music world as well as the government, adhered to these forces because they brought money to the economy. The popularity of trovas, public outdoor spaces for live music, began to increase, serving American exocitized notions of what Cuba was, which were also informed by a broader need for authenticity in music and tourism, industries that thrive on the genuine nature of their products and experiences. Cuban street musicians used this to their advantage, helping to “take tourists back in time,” and deliver these unique and genuine experiences, despite a monetary influence relating to tourism holding sway in the background. However, the history of Cuban music goes beyond street performers catering to tourist fantasies. It is also a tradition that has never been as isolated as the West paints it to be. Multiple influences, stemming from African, American, and Spanish styles, merged together to form a uniquely Cuban sound. The rise of Afro-Cuban Jazz reflects these tides of globalization and integration despite relative political isolation. This genre emerged in the mid-twentieth century, led by innovators such as Mario Bauza, who worked with American Jazz legend Dizzy Gillespie, introducing Cuban percussion to American music while adopting sounds of American Jazz into Cuban music. This musical diversity and interaction highlights the complexity of relations between people, culture, and nations that surpass the rigid ideological conflicts that are so often pushed to the forefront. Like the conversations between musicians themselves, the relation between these two countries must be seen as a two-way interaction rather than a Western reform of an “isolated” culture through tourism. We must look at cuba as a nation affected by world influences just like any other countries, in order to normalize relations, as an inaccurate fantastical portrayal will only serve to perpetuate misunderstanding. Hopefully, with the influx of tourism brought by the recently indoctrinated normalization, the dynamic nature of Cuban music will become clearer to tourists, and cultural understanding will begin to take root.

Sources Cited

Afro-Cuban Jazz. (2016). Retrieved October 19, 2016, from http://www.allmusic.com/

http://www.allmusic.com/style/afro-cuban-jazz-ma0000012262

D'Zurilla, Christine. "Kardashians' Havana Visit Is Part of 'a Cruel Trick on the Cuban People,' Congresswoman Says." Los Angeles Times. Web. 20 Oct. 2016. http://www.latimes.com/entertainment/gossip/la-et-mg-kardashians-visit-cuba-20160505-snap-htmlstory.html

Gibson, C., & Connell, J. (2005). Music and tourism: On the road again. Clevedon: Channel View Publications.

https://books.google.com/books?id=bjsb1QSBWPcC&pg=PA141&lpg=PA141&dq=music+and+tourism+in+cuba&source=bl&ots=9VifTG8urG&sig=AUnCSgoy_7_s02VV-ztjAIWs4SM&hl=en&sa=X&ved=0ahUKEwiW7ZqPyOfPAhWIv1QKHdphByAQ6AEIKjAC#v=onepage&q=music%20and%20tourism%20in%20cuba&f=false       

Khloe Kardashian causes controversy on Instagam after ... (n.d.). Retrieved October 24, 2016, from http://www.standard.co.uk/showbiz/celebrity-news/khloe-kardashian-causes-controversy-on-instagam-after-posing-under-fidel-castro-monument-a3241426.html

D'Zurilla, Christine. "Kardashians' Havana Visit Is Part of 'a Cruel Trick on the Cuban People,' Congresswoman Says." Los Angeles Times. Web. 20 Oct. 2016. http://www.latimes.com/entertainment/gossip/la-et-mg-kardashians-visit-cuba-20160505-snap-htmlstory.html

Rodriguez, Andrea, and Michael Weissenstein. "U.S. Culture Already Influences Cuba as Political Ties Resume." The Seattle Times. 13 Aug. 2015. Web. 20 Oct. 2016. http://www.seattletimes.com/nation-world/us-culture-already-influences-cuba-as-political-ties-resume

Refugee Crisis in Africa

Even though the Syrian refugee crisis is the most well known world wide, there are still other people fleeing from their country seeking refuge. Countries in Africa have been struggling with refugee influx from neighboring countries. With limited resources these countries try their best to host as many refugees as possible. South Sudan, Nigeria, and Somalia are three of the most affected countries. With thousands of refugees fleeing these countries through risky paths and having to leave everything behind because of the insecurity. Contributing factors to the state of insecurity include, conflicts becoming violent, emerging violence after a civil war, and unstable governments fighting for power. This lead people to seek asylum.

South Sudan sought independence from Sudan in 1983. South Sudan’s opposing ethnic groups joined forces to fight against their common enemy, Sudan (South Sudan Civil War Explained). Finally, a peace agreement was established in 2005 which stated that South Sudanese had six years to form a political party and so they did, by 2011 they gained independence. But, poor national building lead to the crisis. There are two ethnic groups that form the Sudan People’s Liberation Movement (SPLM), the Dinka and the Nuer. Salva Kiir, who is from the Dinka group, was elected as President and Riek Machar, from the Nuer group, was elected as Vice President. War began because Machar was allegedly planning a coup to overthrow Kiir and while Machar denied it, he also accused Kiir of trying to avoid political opposition. In turn, Kiir arrested eleven party members but Machar was able to escape from Juba, the capital of South Sudan, and openly called for Kiir’s overthrow by December 2013. A few days later South Sudan was divided into two groups, the supporters of Kiir and the supporters of Machar. Machar became the SPLM/A leader in opposition and his group was composed of defectors, ex-government officials and was aided by small militias. People on Machar’s side were tired of Kiir’s dictatorial tendencies. By April 2014, the war spread throughout the country and as a result 10,000 people died (South Sudan Civil War Explained).  During 2014 Sudan, with the help of UNHCR, has been accepting refugees from South Sudan and has been providing assistance for those trying to escape the conflict. The UNHCR has been providing emergency shelter items to refugees (UNHCR). More than 84,000 South Sudanese made their way into Sudan. All refugees went through a registration process and were given identity cards in order for them to have access to assistance and services. By 2015 Sudan hosted more than 322,000 refugees, mostly from South Sudan but also from Eritrea, Chad, Ethiopia, Syria and Central African Republic. As of today, Sudan continues to provide hospitality to asylum seekers and the UNHCR prioritizes itself in providing basic life-saving assistance and protection from kidnapping and human trafficking.

Since 2003, Nigeria, “Africa’s most populous nation, largest economy and biggest oil producer,” has been plagued by the Islamist terrorist group, Boko Haram. Rejecting western influences and initiating violent campaigns, Boko Haram has caused thousands of Nigerians to flee Nigeria for bordering Cameroon and Niger. In 2013, the group kidnapped 276 schoolgirls from their dormitory in Chibok and on June 11, 2013, the United Nations High Commissioner for Refugees (UNHCR) reported the crisis has “forced more than  6,000 mainly women, children, and older people to seek safety in neighboring Niger.” As of August 2016, there are 2,066,783 internally displaced people in Nigeria, 157,000 in Cameroon, 74,800 in Chad, and more than 127,000 in Niger. The refugees who have fled and sought asylum in Cameroon are some 45,000 in a camp equipped to care for 30,000. Boko Haram began attacking Cameroon as well in July, making all Nigerians suspect to Cameroonian officials. Asylum seekers wait outside the Minawao refugee camp in Cameroon, waiting to be granted entrance where they may receive basic essentials. Due to overcrowding in the camp, malnutrition has increased as of October 19, 2016. The rise of Boko Haram in Nigeria caused increased forced migration into neighboring African nations. Nigeria is not only plagued by Boko Haram, but corruption in the government has left what should be a prosperous nation without adequate infrastructure and development and Nigeria is a large center for human trafficking. The government has made strides to prevent trafficking (“enacting in 2003 the Trafficking in Persons (Prohibition) Law Enforcement and Administration Act and establishing the National Agency for the Prohibition of Trafficking in Persons and Other Related Matters”), however, the trafficking has been linked to “underlying social and economic problems.” In May 2013, in the wake of Boko Haram’s kidnapping of the schoolgirls, the Nigerian government declared a state of emergency, but little has been done to stop the militant group or end the migration and displacement of Nigerians.

Following dictator Mohamed Siad Barre’s flee from Somalia in 1991, the country lacked a lasting, and firm government for the next two decades, and it slid into a state of civil war. As there was no government in place, many factions made up of different Somali clans fought to take control of the country, and these conflicts soon became violent. As different factions fought for control of the government, land in Somalia was also important to gaining power, and the conflict spilled out into the country. Areas used for agriculture and livestock were destroyed, resulting in famine, and beginning to push Somali people out of the country. However, many of the people displaced at this point were displaced internally, as they mainly stayed within Somalia. Conflict continued through the 1990’s, leading to more and more Somali people fleeing the country, or simply being displaced to another part of the country. The United States, along with the UN became involved in Somalia in the years 1992-1995, in order to implement peacekeeping in the country. However, after both parties experienced casualties, the U.S. and the UN both pulled out of Somalia by 1995. By 2011, there were multiple attempts to try and stabilize the government, but none succeeded. Somali people fled the country to surrounding places, such as Kenya and Ethiopia, with around 500,000 living in a camp known as Dadaab, in Kenya. Ethiopia has also taken in refugees from Somalia totaling around 250,000 people, as well as Yemen, taking in around 200,000 refugees. It is reported that in certain places, there are three generations of refugees displaced, with very small amounts of people returning to Somalia.

However, there are attempts to return people to Somalia, as the country is continually stabilizing with the help of others. As of October 2015, around 5,000 Somali had returned to Somalia from the Dadaab camps, and another 4,500 people were set up to return to the country. While returning to the country helps lessen the impact of the “crisis,” there is still much work to be done. There is very little in the country in terms of infrastructure, and lots of economic assistance is needed to make sure that the return of these people helps work towards improving the situation within Somalia, according to Adrian Edwards of UNHCR (United Nations High Commissioner for Refugees). Education is another aspect that needs to be addressed. For the displaced Somali people born out of the country, education is necessary for contribution to the country’s rebuilding efforts.

As far as global implications, this issue has lasted over 20 years, without much large scale success until fairly recently. With a lack of support in Somalia, the conflicts can escalate, forcing people back out of the country. As masses of people find themselves in neighboring countries, the new responsibilities put additional pressures on governments and citizens, which could lead to major economic issues.

Caux, H. (2013, June 11). More than 6,000 people flee to Niger from north-east Nigeria (L. Dobbs, Ed.). Retrieved October 22, 2016, from

http://www.unhcr.org/en-us/news/latest/2013/6/51b73c169/6000-people-flee-niger-north-east-nigeria.html?query=nigeria

Clayton, J. (2015, October 16). More support needed for Somali refugees going back home from

Kenya (T. Gaynor, Ed.). Retrieved October 24, 2016, from The UN Refugee Agency website: http://www.unhcr.org/news/latest/2015/10/5621084a9/support-needed-somali-refugees-home-kenya.html

Kindzeka, M. E. (n.d.). Cameroon: Malnutrition Spikes Amid Boko Haram Conflic. Retrieved October 22, 2016, from http://allafrica.com/stories/201610190553.html

Quick facts: What you need to know about the South Sudan ... (2014, September 12). Retrieved October 24, 2016, from https://www.mercycorps.org/articles/south-sudan/quick-facts-what-you-need-know-about-south-sudan-crisis

Mberu, B. U., & Pongou, R. (2010, June 30). Nigeria: Multiple Forms of Mobility in Africa's Demographic Giant. Retrieved October 22, 2016, from http://www.migrationpolicy.org/article/nigeria-multiple-forms-mobility-africas-demographic-giant

Nigeria military advances uncover vast humanitarian needs. (2016, August 19). Retrieved October 22, 2016, from Nigeria military advances uncover vast humanitarian needs http://www.unhcr.org/news/latest/2016/8/57b6dc8d4/nigeria-military-advances-uncover-vast-humanitarian-needs.html?query=nigeria

Rawlence, B. (2015, October 9). The Other Refugee Crisis. The New York Times. Retrieved from http://www.nytimes.com/2015/10/10/opinion/the-other-refugee-crisis.html

Somalia Civil War. (n.d.). Retrieved October 24, 2016, from Globalsecurity.org website: http://www.globalsecurity.org/military/world/war/somalia.htm

Somalia’s famine death toll worse than thought [Newsgroup post]. (2013, May 2). Retrieved from ABC website: http://www.abc.net.au/news/2013-05-03/death-toll-in-somalia-worse-than-thought/4666746?pfmredir=sm

South Sudan Civil War Explained. (2014, July 30). Retrieved October 23, 2016, from https://www.youtube.com/watch?v=QTbUtO3YiRQ

UNHCR Africa. (n.d.). Retrieved October 23, 2016, from http://www.unhcr.org/afr/

Wilhelm, J. P. (2016, June 20). UNHCR report: Worsening refugee situation in Africa ... Retrieved October 24, 2016, from http://www.dw.com/en/unhcr-report-worsening-refugee-situation-in-africa/a-19338619

Elizabeth, Tyler, Hayley, Valeria

Why Was France Targeted?

A common first question many people ask after a terrorist attack has taken place is ‘why did this atrocity happen?’. In the case of ISIS’s recent string of attacks in France, one must look at this issue in both a historical and modern context. France has always been a country wrought with terroristic threats and violence, often seen as a Western power that is considered the “Capital for prostitution and vice”. France has also been an active participant in Middle Eastern affairs even after the loss of its colonies, this included the war for independence in Algeria that killed over 700,000 people and brought protests to France, leading to the massacre of 200 people as well as a large number of their bodies being dumped in the Seine river. It is through this “mélange” of historical conflict and current tension between the French and Muslim communities that we can identify the reasonings behind why some believe these heinous attacks are merited and why France has often been the target of such attacks.

French Imperialism in the Middle East

The beginning of Franco-Muslim tension unsurprisingly began to manifest itself during the Colonial Period. After the fall of the Ottoman Empire at the end of World War I, the region was divided into “mandates” under complete control of the League of Nations. Over the next decade, the population was arbitrarily divided by outside forces in order to satisfy the conditions and terms that Europeans saw fit. The English and the French determined the borders of these newly created states, and in Syria, the French even went so far as to create local semi autonomous states within the confines of the national government.

On October 5, 1918, Amir Faysal Ibn Husayni, field commander of the Arab revolt, claimed an “independent Arab constitutional government with authority over all of Syria” as well as a Syrian Congress in Damascus. France knew that their only option was to either take control of the Faysal government or smother it entirely. Later that month, they called, or rather forced, King Faysal to Paris to discuss mutually beneficial terms with Premier George Clemenceau. The French agreed to recognize partial Syrian independence with Faysal as king if they remained under French control and recognized the independence of Lebanon. This mandate would also require Syria to be dependant on France for all military and economic help, as well as letting them control their foreign policy.

With the change of French governmental control into the hands of Alexandre Millerand in 1920, a new, more unfriendly, relationship developed between France and the Faysal government. The Syrian Congress rejected France’s terms and on March 7th unofficially declared the full independence of Syria, including Lebanon and Palestine as a part of their territory, under the command of its monarch, the “King of the United Syrian Kingdom”. Faysal was coronated the following day and an official Syrian government was established in Damascus. France responded by claiming this declaration “null & void” and refused to recognize Faysal as king; thus marking the start of deteriorating relations between France and Syria.

On July 26, 1920, the French overthrew Faysal and the nationalist government and occupied Damascus. Faysal was deposed and sent into exile, and the French proclaimed that Syria would be held by France from then on. (Fildis, 2011)

Current Strained Relations

While conflict between France and its Muslim communities has been an issue throughout history, tensions still continue to rise even today. France’s intense secularism and Islam’s need to publicly display their faith frequently clash causing disdain for the large population of French Muslims. Radical secularism is deeply embedded in French culture as they fight to keep their culture “one” and the “same” (Power, 2015, p.1).  Since the law of 1905,  France has held a fierce anti-church ideology, labeled laïcité (King, 2004, p.1). The French government condemns any incorporation of church within state matters (King, 2015, p.1). This is inherently different from the ideologies Muslims practices, with Saudi Arabia as a clear contrast to secular France. Many dress in veils, keep facial hair, and take breaks during work to publicly hold prayer (Power, 2015, p.1). France has taken legal action against this public display of faith as in legislation passed by the French Senate; by a vote of 246-1 in 2010 which banned facial coverings including veils, and the traditional Muslim niqab. In 2013, the French Government implemented a Charter For Secularity in School which is a set of guidelines to be taught in classrooms that are meant to keep religions and school separate. Many leaders claim this is a direct attack on their religion. This leaves many French Muslims in a tough position as they feel the impact of the attacks on their country but are also left feeling stigmatized for their religion in comparison to Catholicism. According to the scholar Oliver Roy, a good part the Islamic community is using peaceful, legal proceedings to protest the injustices they experience but the media has focused on the violent acts that have taken place such as the Charlie Hebdo massacre (Power, 2015, p.1).  

The Connection

By assessing the motives behind these attacks, we are able to more fully understand why and for what purpose these events took place. Whether considering the colonial conquest and control of the former Ottoman Empire or the modern tensions that exist between the French and their Muslim population, the reasoning behind some Muslims’ anti-French sentiment is apparent. While tensions between these two groups have existed for over a century, a significant amount of French people have been growing more and more Islamophobic over the past several years in response to these attacks. Both parties are, in effect, adding fuel to each other's fire and perpetuating the hostilities between their people.

Until these issues can be sorted out, and groups that intend to harm innocent civilians, whether they be Western or Islamic, are apprehended, the cycle of hatred and conflict will continue to turn. France, along with many other Western nations, and the Islamic world need to publicly show their unity to bring an end to the senseless violence that has taken so many lives.

Sources

Fildis, Dr. Ayse Tekdal (2011). The Troubles in Syria: Spawned by French Divide and Rule. Middle East Policy Council. Retrieved October 22, 2016, from http://www.mepc.org/journal/middle-east-policy-archives/troubles-syria-spawned-french-divide-and-rule

King, T. (2004, March 20). Secularism in France | Prospect Magazine. Retrieved October 23, 2016, from http://www.prospectmagazine.co.uk/magazine/secularisminfrance

Power, C. (2015, January 8). Why There's Tension Between France and Its Muslim Popualtion. Retrieved from http://time.com/3659241/paris-terror-attack-muslim-islam/

Allen, F. (2016). Why is France the target of so many terrorist atrocities?. The Sun. Retrieved 23 October 2016, from https://www.thesun.co.uk/news/1449033/why-is-france-the-target-of-so-many-terrorist-atrocities/

Engel, P. (2016). Why France has become a prime target for terrorists. Business Insider. Retrieved 23 October 2016, from http://www.businessinsider.com/why-terrorists-target-france-2016-7

Charlie Hebdo attack: Three days of terror - BBC News. (2015, January 14). Retrieved October 24, 2016, from http://www.bbc.com/news/world-europe-30708237

The Law of 1905 | Musée virtuel du Protestantisme. (n.d.). Retrieved October 24, 2016, from http://www.museeprotestant.org/en/notice/the-law-of-1905/

Brexit and its Economic Impact

By Sarah Benewith, Hannah Grayson, Pippa Walton, Gretchen Roderick, & Emma Endres

Brexit, the tumultuous and obscure decision that has gripped all of Europe, stemmed from several complex issues detailed in our first post. The exact consequences of Great Britain’s break with the European Union, especially cultural consequences which will be discussed in a later entry, are still unclear. However, the most damaging effects can and will be seen in the British economy. Britain’s departure from the EU has begun to destabilize the British economy, and may begin to affect other sectors of the economy and other global economies in time.

Since November 1993, the European Union has joined economic forces to strengthen the continent as a whole. One of the key advantages of being part of the EU is the free trade between its members. This free trade agreement has expanded the production capabilities of Europe, allowing products to reach a greater market. The EU has also prevented war by financially connecting many European countries. Another large advantage of joining the EU is removing tariffs from imported goods and in turn exporting goods to a large market for lower prices. In short, members of the EU are better off because they can buy and sell their goods without paying international taxes. It also sets a common tariff for all outside trade, so nations would pay a set tax on outside goods, thereby promoting internal trade (European Union, 2016). By leaving the EU, it is possible that Britain will not enjoy any of these trade benefits going forwards.

The pound continues to fluctuate in comparison to the dollar. 

In fact, after withdrawing from the European Union, certain economic figures have emerged that reveal the potential downfall of Great Britain's decision. The British pound has been valued at around $1.60 against the American dollar for the past 5 years. It currently stands at $1.22 (Rodionova, 2016) and could fall further. After the referendum, Britain immediately began evaluating how trade will function without EU membership. In 2014, the last year with full economic analyses, Britain’s exports were worth $472 billion, and imports were worth $663 billion, resulting in a deficit of $191 billion (Simoes, n.d.). As an island nation, Britain is highly dependent on trade and withdrawing from the EU will undoubtedly raise living costs. The combination of higher tariffs and a reduction in exports means the deficit is likely to grow. Prime Minister Theresa May is currently starting negotiations to analyze withdrawing from the EU, and trade is at the top of the list of economic concerns. If trade begins to falter and the market shrinks, other sectors of the economy will be impacted. Unemployment may already be on the rise: Google’s data analysis shows that people were searching for “jobseekers” insurance, akin to American unemployment insurance, about 50 percent more in July than they were in May (“Straws in the Wind,” 2016). The public has seen the impact of higher costs on employment, and it is reasonable to expect that the effects will only become more severe. The economy was dependent upon European Union connections and freedoms; withdrawal will have drastic changes upon the nature of the British way of life.

FindTheData | Graphiq

Graphiq found in The Independent

International business is another major concern. Many international corporations have investments in UK affairs, which allowed them access to European free trade, previously allotted to the UK through the European Union. China’s investments in the UK alone total over $38 billion (Davies. 2016). No longer having free trade in the United Kingdom will have significant effects on the health of the global economy. The added costs of trade and business evaluations will be felt by British consumers, and eventually consumers outside the UK. The United States and China take the remaining two spots of largest economies in the world, if the combined economies of the European Union are considered an economy. The need to reset trade agreements and investment negotiations could obstruct growth until further clarity is reached; Theresa May has only just begun negotiations, so this clarity may not arise for months. This period of uncertainty will likely decrease confidence in the UK’s economy; these uncertainties will heighten the volatility of the country’s current financial situation and reduce activity from businesses and investors alike (Rosenfeld. 2016).

So, why does all this matter? As we watch these events unfold in the UK, consumers will notice an effect on living costs. Without free trade, the costs of importing and exporting goods will rise, which will hike up the prices that the average consumer needs to pay. Economic tension and trade negotiations could increase interest rates and reduce spending from both consumers and producers. This has a ripple effect. The reduction of spending will increase unemployment and drive the economy into a contractionary or recessionary period. An uncertain financial future drives people to saving, reduced spending and saving, and an overall lack of trust in the economy. Leaving the EU could drive Britain into a recession in a world still recovering from the United States 2008 recession. Soon, this huge change in trade balances may affect consumers all over the globe.

References

Davies, R. (2016, August 9). Chinese investors pump money into the UK, but what big brands do they own? The Guardian. https://www.theguardian.com/business/2016/aug/10/chinese-investors-pump-money-into-the-uk-but-what-big-brands-do-they-own

European Union. (2016). In Funk & Wagnalls New World Encyclopedia. Chicago, IL: World Book.

The EU in Brief (n.d.). europa.eu. Retrieved October 15, 2016 from https://europa.eu/european-union/about-eu/eu-in-brief_en

Rodionova, Z. (2016, October 22). Pound value drops below $1.22 as May faces tough opposition at EU summit. Independent. Retrieved October 21, 2016, from http://www.independent.co.uk/news/business/news/pound-value-dollar-drops-sterling-currency-exchange-theresa-may-eu-summit-a7374336.html

Rosenfeld, E. (2016, June 24). Brexit 101: What just happened and why it’s important for Americans. CNBC.http://www.cnbc.com/2016/06/24/brexit-101-what-just-happened-and-why-its-important-for-americans.html

Simoes, A. (n.d.). OEC - United Kingdom (GBR) Exports, Imports, and Trade. The Observatory of Economic Complexity. Retrieved October 21, 2016, from http://atlas.media.mit.edu/en/profile/country/gbr/