The United Kingdom has been undergoing comprehensive trade and economic reforms that have shaped its economic position in Europe. Trade and economic reforms are central to social, political, and economic progress thus imperative for sustainable development of a nation.
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Wave of globalization in terms of democracy and economy has compelled the United Kingdom to formulate real-time trade and economic policy reforms to keep abreast with changing trends in Europe and across the world. Economists perceive that formulation and implementation of trade and economic reforms are very tricky because they must be in tandem with current economic development.
Exaggeration complicates the implementation process while under projection results into failure of these reforms Haggard and Webb (1993) argue that, “economic reforms, regardless of their aggregate effects, have distributive consequences, creating benefits for some while imposing hardship and loss on others. Whether reform succeeds and endures can thus hinge on the ability of the government to mobilize political support…” (p. 143).
Thus, the United Kingdom government plays a significant role in the mobilization of political will as part of the efforts that ensure effective formulation and implementation of trade and economic reforms. The United Kingdom government has been advocating for comprehensive trade and economic reforms that will see it recover from the past economic crisis and impending economic turbulence due to unstable capital markets, and unpredictable trends in economy.
In the year 2000, the United Kingdom government participated in the Lisbon European Council, which affirmed that, “the Union has today set a new strategic goal for the next decade: to become the most competitive and dynamic knowledge-based economy in the world capable of sustaining economic growth with more and better jobs and greater social cohesion” (Bernard 2000, p. 3).
The Lisbon affirmation did set stage for series of trade and economic reforms from the year 2000 to 2011 where remarkable development occurred due to successful implementation of the policies. The United Kingdom government-supported reform policies that promote lucrative business environment and creation of more employment opportunities.
Streamlining of capital markets was very essential in ensuring that the business environment becomes lucrative and attracts a great deal of investors in Europe and across the world. Moreover, creation of more employment opportunities had a double effect of increasing purchasing power of the population and maximizing utilization of human resources.
Trade and economic policies are integral indicators of economic development. They depict lucrative relationship between nations and nation’s infrastructural capacity. Trade reform policy in the United Kingdom reflects its lucrative relationship in a liberalized market and portrays its competitive capacity in Europe and across the world.
The major trade reform that has been facing the United Kingdom is liberalization of trade in Europe since many of them still impose restrictions that limit full exploration and exploitation of the lucrative European markets. According to Scott, “if the United Kingdom was to fully liberalize its trade, and resolve technical issues surrounding the move from a customs union to a free trade agreement with the rest of the European Union, then it could realize economic gains” (2005, p.17).
Thus, policies geared towards trade reforms are critical in enhancing competitive capacity of the United Kingdom in European Union markets. On the other hand, economic reforms seek to enhance United Kingdom’s infrastructural capacity as a strong foundation of economic development.
Objective of economic reforms is to ensure equal distribution and maximum utilization of the resources to achieve desired economic development. Therefore, what are the trade and economic policy reform in the United Kingdom from the year 2000 to 2011?
Trade Policy Reform in the United Kingdom
Trade policy reforms are reforms aimed at enhancing and streamlining trading capacity of a nation amidst competitive challenges of the world markets. In the late 20th century, the United Kingdom experienced problems in the trade sector due to issues of Europeanization and globalization that threatened growth of businesses.
To overcome the challenges, the United Kingdom participated in the Lisbon European Council that recommended for the liberalization of European markets to allow effective interaction of businesspersons and free movement of goods. The executive, the House of Lords, and the House of Commons and respective government departments make policies that aim at promoting local trading capacity against threatening influence from international circles.
Trade reforms have significant benefits to the local businesspersons and companies for they protect them against unfair competition from foreign businesspersons and companies. Moreover, the trade reforms promote the United Kingdom’s capacity in world’s markets to gain significant dominance.
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From the year 2000, the United Kingdom has been grappling with trade reform policies that would boost it from economic recovery to economic growth. In the 1990s, the United Kingdom experienced high economic turbulence due to the effects of globalization and Europeanization, which threatened its economic growth.
Modern society exists in a porous world where people, ideas, services, goods and money flow no matter the kind of restrictions the governments impose. Thus, restricting liberalization of trade has been a great challenge for the United Kingdom.
“While politicians remain responsible to a national electorate for economic conditions, these conditions are increasingly influenced by the movement of goods, services, and money across national borders,” (Rose 2005, p. 4). From the year 2000, the United Kingdom government has been formulating policies that target liberalization of European trade.
For example, the Lisbon summit recommended liberalization of trade the Common Agricultural Policy aimed at protecting farm produce and foreign trade policy focused on promoting local goods and services. The government gradually implemented these trade reforms during the last decade.
Economic Policy Reform in the United Kingdom
Economic policy reforms are transformations carried out in various economic factors of a country to enhance economic independence and stability. Usually, there is dependent relationship among countries, which relies on economic stability and capacity. Economic capacity and stability of the United Kingdom is a complex interplay of both national and international forces.
The economic policy reform of the United Kingdom is a product of wide consultation between national legislature and devolved national legislatures of Scotland, Northern Ireland, and Wales. The House of Lords and the House of Commons liaise with respective devolved governments and the members of the public when formulating and implementing policies that are critical in reforming the economic sector of the United Kingdom.
According to the United Kingdom government, “substantial engagement with national parliament and the wider public is critical for the success of policy reforms…all the actions reported in the National Reform programme have been subject to extensive public consultation in Northern Ireland, Scotland, and Wales” (2011, p.12). The government formulates economic policies in conjunction with the relevant ministries such as treasury, central bank, parliament, and other partners in devolved governments.
This ensures that development of the National Reform Programme becomes an inclusive document that supports varied interests of the people. Ultimately, after devolved legislatures of Northern Ireland, Scotland, and Wales have presented their views concerning essential economic and trade reforms, the House Commons and the House of Lords consecutively scrutinize the proposed reforms before adopting them in the National Reform Programme.
The United Kingdom government exists as devolved government made up of central and devolved governments. Its governance entails a Monarch who has executive powers with the advice from the Privy Council, and a Prime Minister who is the head of cabinet and devolved governments of Scotland, Northern Ireland, and Wales.
Central and devolved governments collaborate in the formulation and implementation of trade and economic policies. According to Cline, effective collaboration is very essential for it encourages development of concerted efforts, which provides for equal participation by the devolved governments and thus offer the same platform for economic development (2002, p.4).
The executive and the devolved government delegates participated in the Lisbon European Council and embraced the proposed economic reforms, which are critical in propelling the European Union to achieve dominance in the world against the effects of globalization. In line with the Lisbon European Council recommendations, “the United Kingdom has sought to build on the momentum provided by the Lisbon summit to take forward reform of product and service’s markets by formulating range of policies aimed at encouraging enterprise and innovation” (Gressere 2002, p. 5).
The economic reforms have great benefits to the citizens because they improve their living standards, and to the United Kingdom for they enhance its economic stability and capacity. For example, economic reforms such as creation of employment opportunities, attracting investors, improving of infrastructure, streamlining the education system and regulation of currency through efficient capital markets gave significant economic progress during the last decade.
Problems in Policy Reform
The divergent views of politicians in the devolved government system of the United Kingdom elaborate the conceptualization and execution of trade and economic reforms. It is extremely very hard to harmonize differing reform agendas of Northern Ireland, Scotland, and Wales to come up with the National Reform Programme that satisfies the demands of each devolved government.
Diverse political views at the respective devolved legislatures complicate the formulation of the National Reform Programme by setting high hurdles for the scrutinizing committee at the House of Commons and the House of Lords. If the United Kingdom had no devolved government, bureaucratic process of formulating policies would not be there; thus, policy formulation and implementation would be more efficient and effective.
The House of Lords and the House of Commons would be responsible for formulation and implementation of comprehensive trade and economic reforms. “For most policy reforms, the interests of different groups are easy to identify: the non-tradable goods sector opposes devaluation, firms producing import substitutes balk at trade liberalization, farmers object to cutting agricultural subsidies” (Haggard, & Webb 1993, p. 44).
Due to diverse interests such as votes, money and political orientation, politicians and bureaucrats take sides on crucial reforms, thus stalling formulation and implementation of reforms. The European Union is another impeding challenge that prevents successful formulation and implementation of reform policies in the United Kingdom.
From the year 2000, the United Kingdom has been wrestling with the issue of Europeanization that seemed to restrict liberalization of trade. Although the United Kingdom has made series of steps towards realization of free trade in Europe, it still suffers unfair competition from European countries that threaten its existence in competitive market.
Threatening competition of Europeanization is an inhibiting factor in formulation and implementation of reforms. According to Scott (2005), “reforming the Common Agricultural Policy (CAP) and opening up Europe’s trade policy are often seen in terms of a clash between Britain and France … and that France and Germany have even more to gain from the reform than Britain” (p. 8).
Although the United Kingdom has realized that liberalization of the entire European Union would open up new business opportunities, the other European countries feel threatened by the move and thus reserved in making necessary policies that that enhance liberalization of trade.
The issue of globalization also threatens survival of trade and economic reforms of the United Kingdom because liberalization of trade opens up borders for giant countries like the United States and China. Entrance of such countries leads to stiffer competition in available markets in the United Kingdom and the entire Europe.
Due to this belief, the European Union has impeded liberalization of trade and subsequent embracing of international economic policies by the United Kingdom. Thus, devolved governments, Europeanization and globalization are problems of trade and economic reforms that have been facing the United Kingdom for the last 10 years.
Comparisons and Contrasts
Trade and economic policy reforms are both parameters that indicate economic capacity for development of a country relative to others. For instance, the United Kingdom trade and economic policy reforms reflect the nature of external and internal economic development in the world with challenging issues of globalization.
Trade policy reform is essential for the United Kingdom as it helps it in keeping abreast with increasing pressure of globalization, which has potential effects of either creating benefits or losses depending on the formulation and implementation of policies. On the other hand, economic policy reform focuses on stabilizing internal economy of a country because the United Kingdom has been struggling to create modern infrastructure as a foundation of development.
Moreover, its reforms also focused on creation of employment opportunities as a way of maximizing utilization of human resources and enhancement of purchasing power of its relatively stable population growth rate. According to Faini “increasing investment in physical and human capital, promoting business and innovation, encouraging enterprise and entrepreneurship, and strengthening competition are key priorities for action recommended by the Lisbon report, thus matching closely the European economic reform agenda” (2004, p.10).
These reforms cut across trade and economic policy, meaning that they are inseparable elements of development that require simultaneous formulation and implementation to realize significant and sustainable development. Since the year 2000, the United Kingdom has been grappling with trade and economic reforms as means of economic recovery and development after undergoing economic turbulence during the late 20th century.
Therefore, trade and economic policy reform are critical in ensuring comprehensive development in external and internal economy respectively. While trade reforms focus on tapping international resources, economic reforms target maximization of national reforms for economic growth and development.
Hence, trade and economic reforms are inseparable elements of economic recovery and development, for they are significant parameters that affect economic growth. According to the United Kingdom government, “over the last decade, the United Kingdom economy became seriously unbalanced and heavily indebted, masking a decline in underlying competitiveness …the economy was underpinned by unsustainable growth in private and public sector debt” (2011, p.7).
To alleviate threatening competitive environment due to globalization, the United Kingdom formulated trade and economic policies as part of extensive and innovative reforms geared towards boosting the country to achieve international status in the turbulence world’s markets. To reduce high government deficits, the trade and economic policy reforms play significant roles in alleviating external and internal financial pressures respectively.
The United Kingdom government has noted that unbalanced and unstable economic growth is due to insufficient reforms and poor implementation that has led to high budget deficits in both public and private sectors. Since public and private sectors are highly dependent on trade and economic policies, proper formulation and implementation of the plans is imperative in reforming respective sectors.
Trade reforms boost the United Kingdom competitive capacity in the capital markets and thus attract more investors as well as increasing its market share in Europe and even across the world. According to Allen (1998), trade reforms enhance bilateral relationship that is critical in establishing lucrative relationship that boosts economic recovery and development (1998, p. 6).
For trade reforms to be effective, economic reforms are very essential because it gives the United Kingdom an economic status in the world markets by boosting the strength of euro against other major currencies in the stock market. Weak economy implies weak euro and thus disadvantages the United Kingdom’s ability to dominate in the stock markets and subsequently in world trade.
Thus, there is a significant correlation between trade and economic policies that warrant collective formulation and implementation of the reform policies. Since trade and economic policy reform are critical factors of economic recovery and development, the United Kingdom has been formulating and implementing series of policies for the last ten years.
The objective of the reforms from both trade and economic sectors focused on creation of employment opportunities, enhancement of trade liberalization, maximizing utilization of national resources, improvement of infrastructure, creation of a friendly political environment, reduction of bureaucracy of collaboration with devolved governments and the international community as well implementation of other critical policies.
According to 2020 strategic economic plan, “the government’s economic policy objective is to achieve strong, sustainable and balanced growth that is more evenly shared across the country and between industries. Creating lasting prosperity requires the economy to change and to rebalance…,” (United Kingdom Government 2011, p.4).
The economic change and rebalance seeks to transform economic dependence on unsustainable trade due to unstable markets to creation of stable jobs that will enhance the purchasing power of the people and reciprocate great losses in trade due negative effects of globalization. The Lisbon summit did set the stage of both trade and economic reforms that propelled the United Kingdom in formulation and implementation of policies in attempt to be in tandem with Europeanization and globalization matters of sustainable economic growth.
Both trade and economic policy reforms critically depend on political will because broad consultation at national levels demands that devolved governments of Wales, Northern Ireland and Scotland should reach consensus during formulation and implementation of policies. Hall argues that “policy responds less directly to social and economic conditions than it does to the consequences of past policy … the interests and ideals that policymakers pursue at any moment in time are shaped by ‘policy legacies’ or ‘meaningful reactions to previous policies’” (1997, p.277).
Given that there are historical differences among devolved governments of the United Kingdom, such differences resurface during formulation and implementation of policies as interested parties need great gains out of the negotiations.
Thus, trade and economic policies have political inclination and reflect diverse demands of the politicians and bureaucrats in respective devolved governments. Despite many similarities between trade and economic policy reform, there are significant differences. One of the major differences is the jurisdiction under which they have great influence in economic recovery and development.
Trade reforms target lucrative international relationship in terms of liberalization of the markets, production of standard products and services that have competitive advantage in the market, and regulation of tariffs as means of providing a level ground for healthy competition among European nations as well as major trading partners across the world (Braumm, & Raddatz 2005, p.10).
On the other hand, economic reforms focus on enhancing national economic capacity by creating more employment opportunities, optimal utilization of endowed resources, improving infrastructure, enhancing education programs and protection of consumers to enhance their purchasing powers.
Another difference between trade and economic reforms is the level of policymaking and implementation. Trade reforms require wide consultations ranging from farmers and industries as producers of goods and services, diverse government departments, devolved legislatures and international community.
Since trade is expansive in terms of jurisdiction and compelling effects of globalization, it is critical that policymaking becomes an inclusive process to protect diverse interests of parties involved lest they become disadvantaged due to biased formulation and implementation of policies (Griffith, Harrison, & Simpson 2006, p. 16).
The United Kingdom must engage all interested parties at national and international levels to ensure formulation of comprehensive and sustainable policies that meet required standards. In 2000, the United Kingdom was part of the Lisbon European Council, which deliberated on the issues of trades and economic reforms that charted economic recovery and development policies for European countries.
In contrast, economic reform is a national issue that falls within jurisdiction of the United Kingdom government, and thus subject to laws. Rose argues that “a law binds public officials to organize activities to deliver benefits under specified rules applicable to everyone who is entitled to claim benefit” (2005, p.17). The United Kingdom government liaised with devolved governments of Wales, Scotland and Northern Ireland in coming with real-time policies that would boost economic recovery and development.
The National Reform Programme is a strategic economic reform targeted at improving internal economic environment of the United Kingdom. Moreover, sustainability of reforms differentiates between trade and economic policy reforms. Globalization and Europeanization of economic forces have a significant influence on trade reforms as compared to the economic reforms.
Since the year 2000, there has been remarkable progress in economic reforms such as creation of more employment opportunities, expansion of infrastructure, improvement of education standards, promotion of business environment and creation of efficient capital markets.
These reforms have been relatively stable for a period of ten years making the United Kingdom to stand out as lucrative business hub in Europe. In contrast, trade reforms are relatively unstable and unsustainable because they are subject to changing trade patterns ranging from national to international levels.
According to Bates, the United Kingdom experiences economic instability majorly because world unstable markets do not favour the Common Agricultural Policy, thus demanding member states to still make more compromises in terms of common tariffs and prices of commodities (2010, p. 154). Hence, trade reforms are more challenging to the United Kingdom as compared economic reforms due to nature of fluctuation and jurisdiction of their influence.
Evaluation of Trade Policy
Trade reforms have significant benefits to the economic recovery and development as well as some disadvantages in the United Kingdom. Following the Lisbon European Council in the year 2000, the United Kingdom has made significant economic steps towards stabilizing itself in the turbulent world’s markets.
“The United Kingdom government believes that free and competitive markets, both at national and at the European Union level, are a key precondition for improving economic efficiency, encouraging wealth creation and delivering a better deal for consumers” (Bel, & Fageda 2008, p.45).
Thus, trade reforms geared towards liberalization of trade benefits the government for it offers a platform where it can trade competitively with significant countries such as France, Germany, the United States, and China among other business partners. Formulation of comprehensive trade policies will entrench the United Kingdom in the competitive market environment and make it engage lucratively with giant business partners hence boost its economic status in not only Europe but also in the entire world.
Trade reforms that led to the liberalization of trade in the United Kingdom and beyond as per the recommendation of the Lisbon summit have benefited economic recovery and development during the last ten years. Trade liberalization is very important in promoting production and innovation as factors of sustainable economic development.
Trade liberalization reforms have enabled the United Kingdom to increase its market share not only in Europe but also with other major trading partners across the world. This has seen the United Kingdom expand its trading partners in both developed and developing countries signifying that its borders are open for lucrative business relationship with any willing nation in the world.
According to Freund and Bolaky (2008), “if the UK were to remove its self-imposed barriers to trade and investment with the rest of the world, it would boost its GDP by 0.4 percent, even if none of the EU’s trading partners were to reciprocate in any way” (p.26). In response to Lisbon summit recommendations, the United Kingdom took the initiative of liberalizing its borders, which led to a significant increase in gross domestic product for the last ten years, although challenge has been on how to increase the trends sustainably.
As a measure to liberalization, the United Kingdom has focused on increasing efficiency of capital markets to enhance innovative and friendly business environment for the investors to flood and thus bring significant contribution to the trade and economic revolution. Liberalization of trade is the useful gateway of ensuring that external resources enter the United Kingdom markets and at the same time, its resources find lucrative markets in the world’s markets.
Hence, liberalization of trade is paramount for a country to reap great benefits from lucrative relationships that only become available if free markets exist, hence economic growth. “The UK potentially has more to gain from trade liberalization than the other large EU member states, since it does more of its trade outside the EU than other member states…” (United Kingdom government 2011, p. 18).
Growing gross domestic product reflects the extent of its penetration into the world’s markets and huge investment it has attracted from various parts of the world. Hence, trade reforms have enabled the United Kingdom to gain dominance in the world’s markets and attract great deal of investors.
Differences in tariffs rates and trade barriers are some of the impediments that affect trade reforms in the United Kingdom. Trading partners with the United Kingdom accuse it for hiking tariffs, hence hindering free trade in Europe and across the world. Due to such accusations, trade reforms, according to the Lisbon summit, aimed at ensuring equity and fair imposition of reasonable tariffs across all European countries.
For a period of ten years, the United Kingdom has been keeping abreast with Europeanization and globalization conducting series of relevant trade and economic reforms to achieve a level ground in the world’s markets. According to Walter, “trade openness offers new opportunities for sales but also making available to producers the widest range of inputs at the highest quality and lowest prices” (2004, p.961).
The United Kingdom has been formulating policies diligently with the objective of not only gaining dominance in the world’s markets but also protecting its own consumers and producers from unfair competition. Hence, proper formulation and implementation of trade reforms have markedly increased dominance of the United Kingdom in the international trade. For instance, the United Kingdom is hosting commercial cities that are business hubs for international countries.
Although trade reforms have contributed significantly to the economic recovery and development in the United Kingdom, it has also created some trade difficulties. Liberalization of trade attracted mega-companies and industries that offer stiff competition not only in national markets but also in international markets.
Stiff competition forced uncompetitive businesses in the national levels to shut down since they could not operate productively in an environment of liberalized trade. Liberalization brings about relocation of resources from less competitive businesses to businesses that are more competitive in a free-market environment.
According to the Department for Business Innovation & Skills, (2011) companies with “intermediate levels of productivity are likely to survive on home sales only and their market shares fall, while least productive firms are forced to exit as they start making losses in their home markets without gaining access to foreign markets” (p.5).
Thus, liberalization of trade as an economic reform has severely affected upcoming and small businesses, which has prevented them from surviving in the competitive market of the United Kingdom and Europe. Although trade reforms aim at creating more employment opportunities as one of the objectives, in unstable economies like the one of the United Kingdom, it results into increased unemployment due to increased competitive effects of globalization.
External forces of economy have been the major challenging factors in trade and economic reforms of the United Kingdom in that; free trade requires stringent regulation of trade barriers and tariffs during the process of implementing policies lest globalization forces overwhelm and ruin internal economies. Improper formulation and implementation of trade policies poses great threat of increasing rate of unemployment.
Davis and Thomas argue that “as a result of greater openness, workers may experience job displacement, wage decrease, gross job destruction, and uncertainty through less secure employment and more volatile income” (2009, p.11). Hence, reforms led to destabilization of labour markets and subsequent loss of jobs by many workers, thus increasing unemployment in the United Kingdom.
Evaluation of Economic Policy
Economic reforms of the United Kingdom have both advantages and disadvantages. Since the United Kingdom government has experienced budget deficits in public and private sectors, continued formulation and implementation of policies for the last ten years, has tremendously reversed negative trends of economic growth.
It has been a challenging period for the United Kingdom to move from economic recovery to economic development. Marked transition from economic recovery to economic development was due to effective economic reforms, which the United Kingdom government, together with its devolved governments of Northern Ireland, Wales, and Scotland undertook.
The economic reforms such as creation of more employment opportunities, improvement of infrastructure, enhancement of educational programs, and stabilizing of currency in the stock markets are significant benefits of economic reforms that have taken place for the last ten years. According to Rose, effective mobilization of the endowed resources by the political class has profound effect on economic development of a country (2005, p.19).
The ability of the United Kingdom government to command respective devolved governments bore great benefits in the economic recovery and development. Politicians in Scotland, Northern Ireland, and Wales were able to agree and coordinate effectively with the central government in the formulation and implementation of economic reforms.
The economic reform policy has also improved the relationship between the central government and devolved governments of the United Kingdom. Since formulation and implementation of economic reforms entails broad consultation among devolved legislatures, ministry departments, the House of Commons, and the House of Lords, it has established a friendly political environment that is sensitive to economic reforms.
Currently, due to intensive and extensive consultation for the last ten years in trade and economic reforms, politicians are very responsive to the formulation and implementation of reforms for they are much aware of the economic trends. Hall argues that “the deliberation of public policy takes place within a realm of discourse… policies are made within some system of ideas and standards which is comprehensible and plausible to the actors involved” (1993, p.279).
Politicians and bureaucrats in the United Kingdom have accustomed to policymaking process, and hence the process of formulating and implementing policies is effective. Moreover, public participate in the formulation and implementation of policies by giving their recommendations; thus reform process is inclusive and sensitive to desired changes of the population.
Despite the advantages of economic reforms, it also has disadvantages such as continual restructuring of economic systems and creation of imbalanced economic development. Competitive effects of globalization have been posing great challenges to the United Kingdom as it tried to keep abreast with the ever-changing dynamics of world economy.
Keeping abreast with the dynamics of the world is an expensive process since it entails restructuring of economic systems. “Operational aspects and corporate management setups are being transformed time to time to catch up with the competitors and win the battle, but eventually ends up being a costly process” (Arnold 2008, p.7).
Since 2000, the United Kingdom has been trying to restructure its policies to be in tandem with globalization pressure and is continuing in the restructuring process because world economy is quite unstable. For example, the United Kingdom focuses at keeping its policies to be in tandem with the European Council recommendations and the World Trade Organization standards.
Economic reforms also increase inequality in a country since resources tend to have political inclinations leaving other regions deficient of critical resources. For instance, even though the government may devolve equal resources to respective devolved governments of the United Kingdom, the resources will tend to accumulate in regions with political influence, hence causing skewed distribution of wealth in the country.
Cohen asserts that imbalanced distribution of resources across the United Kingdom is skewed and biased due to political influences from the powerful figures who can influence economic policies (2007, p.32). Therefore, the United Kingdom has been facing great challenge of devolving resources against political forces that have overwhelming influence that affect equitable distribution of resources. For example, distribution of resources favours Wales and Scotland leaving Northern Ireland undeveloped due to political differences.
To cope with problems associated with trade reforms such as increased competition and unemployment, the United Kingdom needs to formulate policies and legislations that are in line with international trade conditions to cushion the country from overwhelming influence of Europeanization and globalization.
Since small companies hardly survive the competition in the free trade environment, the United Kingdom government should ensure that mega-companies do not give unfair competition by regulating their operations and at the same time support local companies to become competitive in the markets.
The United Kingdom government should promote invention and innovation of quality goods and services to meet international standards to be competitive in the world markets. Concerning unemployment, the government has to encourage investors to create more employment opportunities and give priority to the local people.
Restructuring of economic systems and imbalanced distribution of resources are two significant problems associated with economic reforms in the United Kingdom. Keeping abreast with international economies calls for continued restructuring of economic systems, which is not only a very expensive process but also cumbersome.
To avoid incurring more expenses, the United Kingdom needs to formulate long-term economic plans and strategies that will stand the test of time and demand less restructuring in response to global forces of economy. Regarding unbalanced distribution of resources, the United Kingdom government needs to delegate the mandate of allocating resources to the special commission that is independent of any political influence.
The independent commission should scrutinize resource allocation recommendations from the parliament and approve them to ensure that they are not biased and do not have any political inclinations.
Since the year 2000, the United Kingdom has been undertaking trade and economic reforms by formulating and implementing series of policies that have made it recover from economic regression and become set on economic development. Thus, the last decade has been as a daunting journey for the United Kingdom because formulation and implementation of policies that are critical in reforming economy demands great deal of efforts.
During this period, the United Kingdom government has been advocating for comprehensive trade, economic reforms that will see it recover from past economic crisis and impending economic turbulence due to unstable capital markets, and unpredictable economic trends. In 2000, the Lisbon summit provided timely recommendations that did set the platform for successive formulation and implementation of policies up to date.
Trade reforms focused on liberalization of trade in Europe and across the world for it could depict the United Kingdom competitive capacity in the world’s markets. Economic reforms entailed maximization of internal resources, creation of employment opportunities, and enhancement of efficiency of the capital markets and promotion of friendly business environment.
Formulation and implementation of trade and economic policies consisted of long process that involved wide consultation between central government and devolved governments of the United Kingdom. The devolved governments of Scotland, Northern Ireland, and Wales make their recommendations of necessary reforms and forward them to the House of Commons and the House of Lords for scrutiny and adoption in the National Reform Program.
Eventually, the government formulates trade and economic policies in conjunction with the relevant ministries such as treasury, central bank, parliament and other partners in devolved governments and work tirelessly in ensuring that development of the National Reform Programme becomes an inclusive document that supports varied interests of the people.
In spite of wide consultation in the formulation and implementation of policies, the government has been experiencing immense challenges in accommodating for the diverse and opposing views of respective devolved government. Moreover, Europeanization and globalization pressures did not augur well with internal policies that compelling the United Kingdom to constantly update its policies in keeping abreast with the changing dynamics of economy.
Trade and economic policies are parameters that tell economic capacity of nation amidst threatening forces of globalization. Trade and economic policies have a significant relationship in that either is indispensable in carrying out comprehensive economic recovery or development.
Since the year 2000, the United Kingdom has been struggling with trade and economic reforms as means of economic recovery and development after undergoing economic turbulence during the late 20th century. Trade liberalization has been a significant issue that has constantly rocked economic recovery and development, since it requires international consultation unlike economic issue that mainly deals with internal factors of economy.
Globalization factors of economy have been posing great challenges to the United Kingdom as it has been struggling to keep abreast with the ever-changing dynamics of competitive business environment. Therefore, comprehensive trade and economic reforms have significantly boosted economic growth and development in the United Kingdom for last decade and have made it to stand out in Europe as a major international hub of business.
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