The results of the UK's referendum reflected a split between the wealthier cities, which voted to remain in the EU and the provinces where the Brexit was favored. In London, which provides almost 25% of the UK's GDP, 70% of the population voted to stay in and there was also a majority to remain in the EU in most of the other major cities including Liverpool, Manchester, Cardiff, Newcastle and Bristol, which all contribute a far higher proportion of the GDP than average. 80% of Britain's GDP is produced by the cities where the population voted to remain in the EU.
The exit from the EU will likely hurt the entire UK economy and all its citizens but those living in the poorer provinces will be hurt even more because they are more dependent on budgets from the government. In the UK, as in Israel, money which is created in the big, densely populated and successful cities, finances the shrinking cities and public services to dependent outlying areas, which are mired in poverty and chronic deprivation.
Concocting a campaign from distress
Skilled politicians smell distress, seek blame and concoct an agenda. Thus a campaign was born which presented the UK as being financed by Europe, and suffering from unemployment because of migrants. The fact that Britain is one of the strongest economies in the EU (second only to Germany) means that people move there from throughout Europe to work, but unemployment is low at 4.9% as of March 2016. Only the Czech Republic (4.1%), Germany (4.2%) and Malta (4.3%) have lower unemployment than this while average unemployment in the EU is 8.5%.
But an unemployed person is unemployed even in the UK and economic and cultural distress lead to frustration and stupidity. This is the reality in poorer towns (and not only in the UK) when a young person leaves for the big city with the economic, cultural and educational opportunities and better services that stem from its international connections and status as a cosmopolitan city. Residents of the sinking locations left behind can only be envious to place blame for their situation and be filled with anger. It's always easier to direct that anger to foreigners that have come to England to work whether from Romania, Spain or Greece, that are supported by EU funds and "stealing their wages." It's a catchy message but one that contradicts the facts.
All the mayors of the major and strong European cities that "Globes' has interviewed over the past year, praised the role of immigrants. "They are the fuel that moves development," said berlin Mayor Michael Muller. "Vienna would die without immigration," warned Vienna's Deputy Mayor Brigitta Zilka while Zurich Mayor Corine Mauch said, "The Swiss that don't want immigrants, don't know them." They spoke from experience.
London's new Mayor Sadiq Khan turned directly to his citizens over the weekend and said, "You are bringing the city huge benefits: working hard, paying taxes and contributing to culture and everyday life. The referendum's results won't change those facts. London has a debt of gratitude to you and I welcome your presence here."
Voting against themselves
Europe's prosperous cities owe their momentum of development to the opening of borders, individual mobility, and the flow of knowhow and trade relations that are the essence of the EU. The money created by London (as well as Berlin, Zurich, Vienna, Amsterdam and other cities) finances the public services for citizens living in the provinces in these countries. Leaving the EU means less money in the country, a reduction in global trade activities, and less taxes for the public coffers.
London will suffer from the EU exit but the provinces, which voted in favor of the Brexit will suffer even more. The voters may be foolish but there has been political knavery with the cynical manipulation of the disadvantaged in order to seize power. Thus the disadvantaged were persuaded to support a measure that will weaken them further in the future. The UK referendum was not the first time nor will it be the last that when citizens outside of the mainstream have been cynically exploited.
Published by Globes [online], Israel business news - www.globes-online.com - on June 27, 2016
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