By Will Childs and Grayson Moniz

In June 2016, the United Kingdom voted to depart from the European Union, a monumental decision known as Brexit. Although their actual departure would not happen until January 2020, it immediately disrupted the nation’s political and financial spheres. The UK had existed and functioned within an integrated European framework for several decades, benefiting from free movement, ease of trade, and coordinated economic governance. Brexit symbolized political segregation from the rest of the EU and a major shift in the nation’s economic proceedings. This structural realignment catalyzed major change in the nation, predominantly through two vital macroeconomic indicators: inflation and unemployment. 

Prior to Brexit, the UK had a relatively stable economy. The Bank of England was responsible for low inflation and a decline in unemployment after the financial crisis of 2008. The decision to depart from the EU shocked the nation’s economy. The pound sterling declined immediately after the votes had been finalized and fell to a 31-year low compared to the US dollar [8]. The falling exchange rate made imports more expensive, raising prices for the consumer and elevating inflation [7]. While the headline unemployment was relatively unaffected by Brexit, labor market dynamics faced growing instability. Specifically in sectors like agriculture, hospitality, and healthcare, which rely on EU workers, shortages became predominant [4]. Additionally, new immigration rules and trade frictions made hiring and production more complicated for producers. 

Continue reading →

By Will Childs and Grayson Moniz

Throughout the 20th century, the economic proceedings of the Soviet Union were entirely under the jurisdiction of the government. They controlled the nation’s employment, production, and distribution. Most of the nation’s output was dedicated to industrial production and manufacturing at extremely high rates, rather than consumer goods. As a socialist nation, job security was virtually guaranteed, and unemployment was not a quantifiable issue. However, mass employment hindered the productivity and efficiency of the labor force and plagued the economy throughout the nation’s final years. When the Soviet Union collapsed in 1991, it resulted in an unprecedented economic crisis, reflected in massive contractions of GDP and skyrocketing unemployment [1].

Grigorii Khanin’s “Economic Growth in the 1980s,” featured in The Disintegration of the Soviet Economic System (1992) provides valuable context for the conditions that predated the massive recession of the 1990s. He discovered that the nation had many underlying inefficiencies and stagnations that the economy endured prior to 1991, such as the over-centralization of production combined with slow technological innovation (compared to the United States). These factors directly contributed to the eventual dissolution of the union. Khanin’s analysis essentially highlights how certain deep-rooted issues made the USSR’s economy particularly vulnerable to both internal and external pressures.

Continue reading →

By Marie Frati and Emalee Ro

Prior to the discovery of oil, Nigeria depended heavily on agricultural exports to supply its economy. Its major exports were cash crops, groundnut, hide, cocoa, coffee, and palm oil (Okotie, 72). Agriculture provided employment for about 30% of the population, and accounted for around 80% of Nigerian export earnings (Okotie, 72). Now, however, the share of agricultural products in total exports is approximately 5.01%, compared to 70% in 1960. While it was once known for its agricultural contributions to the international market, Nigeria is now a net importer of food. Something else–oil–has taken agriculture’s place.

In 1956, Shell-BP discovered commercially viable oil. Crude oil production began soon after that, resulting in over 847,000 tons of crude oil exported in 1960. Over the last four decades, the oil sector has on average accounted for over 90% of total export earnings and over 30% of Nigeria’s GDP (Aigheyisi, 31). Nigeria is currently Africa’s largest oil producer and a significant global oil exporter, with most of its oil going to Asia, Europe, and South America. The discovery of crude oil has had a substantial impact on the economic structure of Nigeria.  Continue reading →