The socio-economic impact of Brexit on India, Pakistan and Sri Lanka in times of Corona

Kohnert, Dirk (2012): The socio-economic impact of Brexit on India, Pakistan and Sri Lanka in times of Corona.

Abstract

Following the Brexit, London endorsed a CANZUK union with its former white settler colonies, Canada, Australia and New Zealand. This was meant as valuable alternative to replace lost EU-market access. In contrast, non-white former British dominions – whether big (like India, Pakistan) or small (like Sri Lanka) were left on their own. The Indian Government perceived the Brexit vote initially as rather unfortunate because it would increase global instability and a weakening of the West. Indian multinationals like ‘Tata’, however, which had invested heavily in Britain as their gateway to Europe, saw Brexit as economic risk. Later-on, New Delhi realised also eventual policy advantages in Britain leaving the EU. The Brexit impact on Pakistan’s economy remained low so far. However, Islamabad would be well adviced to formulate separate policies for post Brexit Britain and the remaining EU-27. Sri Lanka’s economic and political ties with the UK, on the other hand, are considerably stronger than with any EU country. Annual trade with the UK amounted to over 10 %. Therefore, Brexit impacted negatively on the Sri Lankan economy. Changes to strengthen economic relations with the UK to overcome post Brexit challenges were imperative. As for the COVID-19 pandemic, it soon became in all three countries not just a health emergency but also a social and economic crisis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Brexit, COVID-19-pandemic, Corona, economic growth, India, Pakistan, Sri Lanka, United Kingdom, international trade, free trade area, customs union, Anglosphere, Asian Studies,
• Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration; F - International Economics > F5 - International Relations, National Security, and International Political Economy > F52 - National Security ; Economic Nationalism; F - International Economics > F6 - Economic Impacts of Globalization > F68 - Policy; I - Health, Education, and Welfare > I1 - Health > I14 - Health and Inequality; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N15 - Asia including Middle East; N - Economic History > N4 - Government, War, Law, International Relations, and Regulation > N40 - General, International, or Comparative; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East; Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z13 - Economic Sociology ; Economic Anthropology ; Social and Economic Stratification

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