In Wake of Brexit Vote, Here's What British, EU Leaders Need to Do Next
How to move forward, given the British vote for Brexit?
In an opinion article last week in The Wall Street Journal, former U.S. Secretary of State Henry Kissinger, former U.S. Secretary of State, laid out the opportunities that exist in spite of the Brexit result if the leaders of Britain and Europe, "return, at least partially, to their historical role as shapers of international order."
The problems these leaders face are the centrifugal forces that are working to pull the world away from international order, and these forces are connected with populist efforts to focus discussions upon issues of national sovereignty and away from global unity.
Europe has faced these centrifugal forces for centuries as national competition overwhelmed any effort to bring the European people together. The efforts since 1945 that have included Britain, Europe and the U.S., and have resulted in the "historical achievements" of the past 70 must be remembered.
Success comes from turning outward, sacrificing immediate rewards by sharing resources with others, and by building things together.
Kissinger regrets that "the willingness to sacrifice is weakening," stating, "A society reluctant to accept this verity stagnates and, over the decades, consumes its substance."
In other words, by turning inward and focusing just on itself, a country sees its resources dry up. The populists and other defeatists who concentrate on the ability of a country to achieve isolation and keep all its resources for itself end up doing nothing more than impoverishing their nation. The populists focus on "immediate" rewards and this is where their political strength comes from.
And, there is enough disenchantment in the world today, enough inequality, enough people left behind in the fast-moving, fast-changing, and fast-innovating world to give leaders who can exploit these discontents a chance at power.
These forces must be challenged, and Kissinger argues that this is why Great Britain, Europe and the U.S. must move ahead to bolster the special Atlantic partnership that has built "one of the greatest achievements of the past century."
But, such an effort is going to be difficult and all parties of the partnership are going to have to step up and fulfill their responsibilities. The interesting thing is that Brexit and its consequences are in reality forcing some nations to step up and take on greater responsibilities in the evolving situation.
For one, Great Britain must now step up and show some real insight and real leadership in the new role it is assuming relative to the European Union. Wolfgang Munchau writes in the Financial Times:
"My advice to the Remainers is to get over it. You lost the battle a long time ago. The best course of action is to accept the result, and try to influence the negotiations in a constructive spirit. When this is over, Britain and the EU will need to be on speaking terms. They will remain partners in NATO, the Group of Seven leading economies and the Group of 20. And both will find that there are bigger problems in the world than their mutual relationship."
Second, Germany is going to have to step up in a new way. Frank-Walter Steinmeier writes in Foreign Affairs,
"Germany's relative economic strength and its cautious approach to the use of force have persisted as the regional and global environment has undergone radical change. Germany's partnership with the United States and its integration into the EU have been the main pillars of its foreign policy. But as the United States and the EU have stumbled, Germany has held its ground and emerged as a major power, largely by default. ...
"Germany has not aspired to this status. But circumstances have forced it into a central role....preserving that union and sharing the burden of leadership are Germany's top priorities. Until the EU develops the ability to play a stronger role on the world stage, Germany will try its best to hold as much ground as possible -- in the interests of all of Europe."
And the U.S. is being asked to play a big role, although significantly different from the past, in the economic, financial, and military evolution of the new global environment.
For one, I have written about the evolving role of the Federal Reserve in the world monetary system while others have written about the different role that the U.S. will play in global politics and in the changing military arrangement.
Mr. Kissinger writes, however, "the American role needs to be redefined to a new kind of leadership, moving from dominance to persuasion."
The historical fact is that globalization cannot be stopped. From time to time, globalization has been slowed down, but it has never completely halted. Especially since the advent of modern printing in the 15th century, information has spread, trade has spread and immigration has spread.
The 21st century will be no different. As Mr. Kissinger writes, leaders in Britain, Europe and the U.S. need to look at the changing world as a series of opportunities to contribute to this historical trend. They must assume their "historical role as shapers of international order."
See full Brexit coverage here.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.