The policy of protectionism. What does state protectionism apply to?

Every state that wants to exist must take care of the economic component of life. One of the most important mechanisms is protectionism.

What is protectionism?

This is the name of the economic patronage of the state, which manifests itself in the fact that the domestic market of its country is protected from the import of foreign goods into it. Also, export promotion is promoted by increasing the competitiveness of products in foreign markets. With a competent policy, this translates into economic growth.

But there is also a negative state protectionism. Its importance in the economy can change to the diametrically opposite, if unceremoniously pull the blanket over, as this will cause reciprocal actions on the part of other countries.

Why is the policy of protectionism carried out?

Its task is to stimulate the development of the national economy, as well as to protect against foreign competition through non-tariff methods. With the strengthening of the process of global globalization, it is extremely important to develop an adequate protectionist policy in order to increase the competitiveness of goods on the domestic and foreign markets. With active and rational actions, the state policy of protectionism for the enterprise will allow them to adapt effectively and quickly to the changing conditions for the development of the world economy.

What does history tell us?

In different periods, state entities constantly changed their directions of economic policy. They moved then to free trade, then to protectionism. True, not a single state policy of protectionism has never taken a radical form anywhere. So, for an absolutely open economy, it is necessary that there is movement of goods, technologies, capital and labor without any restrictions. And this state of affairs has its own nuances, because of which nothing like this was organized. Therefore, absolute state protectionism is something from the realm of fantasy. Now any government regulates the turnover of resources in their country. Despite the fact that the declaration of openness of the economy is massive, in fact, they cover up the rather artful protectionism of state economic interests.

Dilemma

A significant theoretical task is the choice: what is better - protectionism or freedom of trade. So, the first advantage is that it allows us to develop the national industry. Freedom of trade can boast that national costs are compared with international ones. And the end of the edge is not visible debate about what is better.

If we consider the development of this dilemma, then it should be noted that until the early 1970s the countries of the world gradually switched to supporting free trade and intensified liberalization. But from that moment the opposite tendency is fixed. Thus, states are fenced off from others by means of sophisticated tariffs and various barriers, protecting their economies from foreign competition.

Types of protection

What is the goal of the various states, turning to protectionism? On the features allow you to judge the types of protection. In total, there are two:

1. Real-time protection. Used for fencing off from foreign competition industries, which are of strategic importance to the domestic economy (agriculture, military industry), is of significant importance in critical situations (for example, war).
2. Temporary protection. It is used to fence off the growth that was recently created, until they become so stable that they will be able to compete successfully with similar spheres of other states.

Also, appropriate measures can be taken if trade partners have introduced certain protectionist restrictions on their part. Clear state protectionism is a measure that almost always involves a response. A kind of output can be propaganda to buy domestic products without activating any restrictions.

Forms of protectionism

In what form can it exist? There are four forms:

1. Selective protectionism. Implies protection from a particular product / state.
2. Industry protectionism. This includes the protection of a certain sphere of economic life (for example, the rural economy).
3. Collective protectionism. This is understood as the mutual protection of several countries, which are united in an alliance.
4. Hidden protectionism. It is understood as protection, during which non-customs methods are used, including those that stimulate the domestic producer.

Modern Protectionism

It implies non-tariff and customs-tariff restrictions. The main task of the government in the field of international trade is to help exporters sell products on foreign markets by increasing their competitiveness, as well as restricting imports using means to reduce the attractiveness of foreign goods on the territory of the country. At the same time, most of the methods of regulation are concerned with the regulation of imports. The rest is forcing exports.

Speaking about tariff restrictions, it should be said that there are only customs duties and quotas. This is all that applies to measures of state protectionism and does not hide anyone. All of them are focused on regulating imports. But non-tariff restrictions apply to measures of state protectionism. It is understood as quoting, licensing, public procurement, various requirements for the presence of local components, technical fees, taxes and fees for non-residents, dumping, subsidies and export credit. This implies the measures of state protectionism. Refers to them and a number of smaller components, but due to the rarity of application and specificity, they will be omitted in the framework of this article. By the way, we can say that the measures of state protectionism include the introduction of sanctions against other countries. But this is a specific issue, there is no unified opinion on which.

State protectionism in Russia: current state of affairs and development prospects

According to the customs tariff regulation, it should be noted that the introduction of new technologies that allow for improved administration and monitoring of the situation. In the non-tariff field, the use of specific methods within management is expanding. At the same time, there is an orientation towards the export of high-tech services, goods and technologies.

In the long term, innovative development is important. Especially its value grows with the gradual exhaustion of the potential of efficiency of other factors. Innovative policy should assume the creation of conditions under which the growing activity and the share of investments will grow, which is aimed at the introduction of new quality products and processes. In the end result, this will be of exceptional importance in the issue of improving the quality of life of the population.

It is important to meet the needs of people is to support small and medium-sized businesses. Here you can work to reduce the number of administrative barriers, simplify the documentary processes (registration and closure of the enterprise), reduce the list of activities that require a license. In the end, it is necessary to create an investment-attractive environment. Not least by reducing the aggregate tax burden on business entities. In the meantime, one can not say that this aspect relates to measures of state protectionism.