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Brexit and development: how will developing countries be affected?

Briefing/policy papers

Written by Dirk Willem te Velde, Maximiliano Mendez-Parra, Phyllis Papadavid

This briefing discusses the actual and potential economic impact of Brexit on developing countries. Brexit will have major implications for developing countries, whether or not the UK actually leaves the EU. Different countries will be affected in different ways, depending on how the UK exits. There are mostly negative effects for developing countries, but some positive ones too:

  • In the short-term, the threat of Brexit has led to currency and stock market fluctuations, which have not spared emerging markets¬† and poorer countries.
  • The long-term effects depend on UK trade deals, any changes to aid allocation, new global collaborations, financial markets and the way in which migration and remittances are maintained.

Policies at various levels can help to mitigate the shock or mitigate the impact of the shock.

Dirk Willem te Velde, Phyllis Papadavid and Maximiliano Mendez-Parra