Showing posts with label manufacturing. Show all posts
Showing posts with label manufacturing. Show all posts

Thursday, March 28, 2019

The Great American Interchange and the Great European Shortchange

By George ILIEV
Brexit Metaphor No 160   

Until three million years ago, North America (including Mexico and Central America) was separate from South America and there was an ocean in the middle. Then around three million yeas ago the Isthmus of Panama rose up from the sea floor and created a land bridge linking the two continents: a phenomenon known as the Great American Interchange.  After that the New World was never the same again. Many northern species, including jaguars, pumas, llamas and a tonne of other animals invaded the South and thrived. But only three South American species moved north and spread out in any large numbers (the armadillo, the opossum and the porcupine). The reason for this discrepancy was that northern animals had had millions of years to evolve and acclimatise to tropical conditions in Mexico and Central America, which had served as a nursery for their southern expansion. On the other hand, southern animals had only lived in the tropics so the northern plains and mountains were not a possible habitat for them.

The creation of the EU is a similar story of competition among economic and social species: a Great European Interchange. The Common Market served as a training ground for the global expansion of the most competitive European companies: Airbus, German carmakers, a few pharmaceutical firms and the banks and funds of the City of London. These companies became the jaguars and the pumas of the corporate world. On the other hand, freedom of movement exposed to trans-continental competition European blue-collar workers who hadn't acclimatised to globalisation. These workers, just like the South American species, became the losers from the Great European Interchange. Their sidelining ultimately led to Brexit and to the other (lesser) anti-EU social movements on the continent, as the EU for them felt more like "a Great European Shortchange." In Britain former prime minister Gordon Brown set up a shortlived Migration Impact Fund at the end of his rule in an attempt to mitigate the consequences of globalisation for manufacturing workers. Unfortunately, this fund was closed by the next British prime minister, David Cameron, who took over from 2010. Cameron didn't see the writing on the wall until it was too late - which cost him losing the ill-fated EU referendum in 2016.

There was one key difference between the Great American Interchange and the Great European Shortchange. Three million years ago, the different species in the Americas could only vote with their feet. In present-day Europe, all people can vote in elections and referendums, so leaving behind a large segment of the population feeling shortchanged was never going to be a successful recipe for cohesive political and economic development.

The Great American Interchange (Source: Wikipedia)
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Notes:
1. Timeline: This article is part of a series of original #BrexitMetaphors published daily. A total of 160 have been posted so far and one more Brexit Metaphor remains to be published until the originally planned Brexit date of March 29, 2019.
2. Disclosure: The author has a master's degree in European Integration. He also thinks he knows a bit about business, economics, entrepreneurship, China, history, geography, nature, science and Rubik Cubes.
3. Invitation: If you'd like to contribute to the debate, please leave a comment below or re-tweet the blogpost link.
4. Sign-up: I would be thrilled if you signed up to receive my blog daily by entering your email address in the blank in the top right-hand corner of this page.
5. Thank you for being here!

Monday, February 25, 2019

In European version of hell, Britain may switch to manufacturing

By George ILIEV
Brexit Metaphor No 129 

There is a joke about the European versions of heaven and hell. 

In the European version of heaven:
a) the British are the police;
b) the French are the cooks;
c) the Germans are the mechanics;
d) the Italians are the lovers;
e) and the Swiss make everything run on time.

In the European version of hell:
a) the British are the cooks;
b) the French are the mechanics;
c) the Germans are the police;
d) the Swiss are the lovers;
e) and the Italians make everything run on time.

Britain, France and Germany take each other's place in the heaven-and-hell merry-go-round / musical chairs (police, cooks and mechanics). But might Brexit actually disturb the existing fine balance in national specialisations: 
a) services in the UK; 
b) lifestyle and luxury goods in France; 
c) manufacturing for Germany?

If Britain's dominant services inudstry (financial, professional services, etc.) suffers as a result of Brexit, would Britain then be able to start focusing more on manufacturing? And what repercussions might this have on the competitiveness of the German manufacturing exports model?

Fresco of hell (Source: Wikipedia)
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Notes:
1. Timeline: This article is part of a series of original #BrexitMetaphors published daily. A total of 129 have been posted so far and another 32 Brexit Metaphors will be published every day until the planned Brexit date of March 29, 2019.
2. Disclosure: The author has a master's degree in European Integration. He also thinks he knows a bit about business, economics, entrepreneurship, China, history, geography, nature, science and Rubik Cubes.
3. Invitation: If you'd like to contribute to the debate, please leave a comment below or re-tweet the blogpost link.
4. Sign-up: I would be thrilled if you signed up to receive my blog daily by entering your email address in the blank in the top right-hand corner of this page.
5. Thank you for being here!

King Henry VIII and PM BoJo 500 years later

By George ILIEV Brexit Metaphor No 169 It’s 5 years today since the 2016 Brexit referendum - since king BoJo cut off Britain from Europe. We...