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BVI in an uncertain world after Brexit

Benito Wheatley

Benito Wheatley

By Benito Wheatley (Director of the BVI London Office)

The United Kingdom (UK) vote to leave the European Union (EU) is a game changer in International Relations.

Britain’s withdrawal from the EU will have far-reaching implications for Europe and beyond and create a more uncertain international environment in which the British Virgin Islands (BVI) must operate.

The EU will lose one of its most influential members in world affairs.

The UK is presently the fifth largest economy in the world, a Member of both the G20 and G7, a Permanent Member of the UN Security Council and a leading state in the Commonwealth of Nations.

Britain’s exit will certainly weaken EU influence in the world and make Britain less influential in Europe and globally.

Brexit is another blow to efforts to maintain international stability following the global financial crisis in 2008-09.

Looking ahead, a confluence of international political, economic and social issues and events risks further undermining the stability of the world system.

Britain’s negotiations with the EU on the terms of its exit are expected to drag on at least through 2018 which will weigh heavily on international financial markets and the stability of the euro and pound, and test the coherence of the EU.

Europe also continues to bear the weight of refugees fleeing conflict and turmoil in the Middle East and North Africa.

In the developing world, emerging markets have largely lost their economic lustre.

China’s economy has significantly slowed down, although India’s growth has accelerated.

Tension also continues to build in the South China Sea over the competing maritime claims of China, Vietnam and the Philippines.

Russia remains under United States (US) and EU sanctions over Ukraine, while Brazil, South Africa and Nigeria continue to be plagued by systemic corruption.

Cuba and the US have re-established diplomatic and commercial ties, but Venezuela is on the verge of economic collapse and political upheaval.

Syria, Iraq, Libya and Yemen remain mired in civil strife with limited prospects for peace and stability.

In the environmental arena, global warming will continue to cause stronger and more frequent storms, sea level rise, desertification and other negative impacts of climate change.

The world economy is also projected to continue to slow down through 2017 on a weaker expansion of international trade than initially forecast.

A new international leadership will be tasked with managing these and other issues in the years ahead.

In late 2016, a new Secretary General of the United Nations (UN) will be appointed and the US and Britain will have new political leaders by the end of the year.

In 2017, France and Germany could also have new political leadership depending on the outcome of their national elections.

Small states whose open economies and fragile environments are the most vulnerable to external shocks will have to be even more vigilant than during last year’s international climate change negotiations in order to protect their economic and environmental interests.

In all of this, the BVI must continue to strengthen its global position as an International Finance Centre (IFC) and tourism destination, while developing new industries and sectors, to ensure its economic success through the coming period of uncertainty.

This article was posted in its entirety as received by bvinews.com. This media house does not correct any spelling or grammatical error within press releases and commentaries. The views expressed therein are not necessarily those of bvinews.com, its sponsors or advertisers.

13 Comments

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  1. Candy says:

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    All stuff thats in the press already Benito!
    Just give us a heads up on the new industries and sectors you talk about. Don’t see anything happening from this end.

  2. small man them! says:

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    I have little idea of what Mr. Wheatley is saying, can some one please break it down for me, as how will all that effect the bvi, I don’t know, so I am asking? will we loose our financial services, please again break it down for me, thanks!

    • Eye spell says:

      Like or Dislike: Thumb up 4 Thumb down 2

      No we won’t lose our financial services business although the type of business we get is changing. This is affecting global markets and the uncertainty affects investment – an example is the British Pound becoming worth less as people buy the Japanese Yen as an investment as it is considered safer. The outcome for the VI is that the tourists have less money to spend, and the financial services industry needs to expand into other markets and services or revenue will reduce and we will have less money in our pockets!!

      Hope that helps

      • the rock says:

        Like or Dislike: Thumb up 0 Thumb down 0

        it did thank you very much!

      • Hmm says:

        Like or Dislike: Thumb up 3 Thumb down 0

        Except there’s no chance of the British pound becoming worthless. Britain is not a developing country. It’s the 5th largest economy in the world. Fluctuations in the market is not new. And Britons saying that they no longer wish to be part of that economic block isnt the end of the world nor is it the end of Britain. There is a lot of talk about this from lots of people who before June 23 had not given a thought to the EU or how it operates. One cannot speak of detriment unless he is knowledgeable about benefits in and what being in the EU involves.the biggest financial crisis (2007_8) occurred while UK was part of Eu. Just saying…

    • small man them says:

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      Thank you, it helped a great deal!

  3. Dim Sum says:

    Well-loved. Like or Dislike: Thumb up 9 Thumb down 0

    Mr. Wholewheat what are the (estimated) direct financial implications to the BVI in your opinion? Seems like you have stated the obvious without putting any ‘cheese on the cracker’. England will rebound from all this media and 0.1%ers that are fueling the hysteria! What were the ramifications when the Nordic states left and how are they fairing today – post EU exit? The Soros’ and Bransons’ of the world hate the power shift from the elitists to the people – but hey the world is a circle!

  4. Breaking News says:

    Like or Dislike: Thumb up 1 Thumb down 0

    And it appears that there will be even more international instability with these airport attacks. View link: http://www.msn.com/en-us/news/world/turkish-officials-suspect-suicide-bomber-in-istanbul-airport-blast-cnn-turk/ar-AAhJukV?ocid=ansmsnnews11

  5. You don't say... says:

    Like or Dislike: Thumb up 0 Thumb down 0

    Even Done Deal buddy catching hell in the international front. View link: http://www.msn.com/en-us/money/companies/richard-branson-says-virgin-has-lost-third-of-value-after-brexit/ar-AAhIP8F?ocid=ansmsnmoney11

  6. UK resident says:

    Like or Dislike: Thumb up 1 Thumb down 0

    Britain deciding to no longer be a part of the EU isnt the end of the world. Being in the European Union didnt prevent the global financial crisis of 2007-08. It didn’t prevent the numerous terror attacks in the EU. So what is all that about? Everyone has an opinion or prediction but had not given any thought to the EU or how it works. Much less BVI relations with EU. (This is not directed at Benito). It is just amazing that so many want to know what it will mean once UK is out but have no clue what it means to be in (perhaps other than freedom of movement).

  7. smaat says:

    Like or Dislike: Thumb up 1 Thumb down 1

    UK just dropped to 6 in world economy ranking. California took it.

  8. Rudy says:

    Like or Dislike: Thumb up 3 Thumb down 0

    Lousy article. No specifics of Brexit’s impact upon BVI.

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