Protectionism concept. Protectionist policy
Protectionism - economic patronage of the state, manifested in the protection of the domestic market of the country from the penetration of foreign goods, as well as in the promotion of exports in foreign markets.
It aims to stimulate development and protect it from foreign competition through tariff and non-tariff regulation.
In the context of the intensifying process, the task of developing an adequate protectionist policy in order to increase the competitiveness of Russian goods on the international and national markets becomes extremely important. Activation of state policy in certain areas will allow domestic enterprises to adapt faster and more efficiently to the post-crisis conditions of the global economy.
In different periods of history, state economic policy has been leaning in the direction of freedom of trade, then in the direction of protectionism, never, however, taking any of the extreme forms. However absolutely open economy, in the process of functioning of which the movement of goods, labor, technologies and across national borders would take place without restrictions, no state had and does not have... In any country, the government regulates the international circulation of resources. The openness of the economy presupposes the priority consideration of national economic interests.
The dilemma of which is better - protectionism, which makes it possible to develop national industries, or freedom of trade, which allows direct comparisons of national production costs with international ones - are the subject of centuries-old discussion of economists and politicians. In the 1950s and 1960s, the international economy was characterized by a departure from protectionism towards increased liberalization and freedom of foreign trade. Since the early 1970s the opposite tendency appeared - countries began to fence themselves off from each other increasingly sophisticated tariff and especially non-tariff barriers, protecting your home market from foreign competition.
The protectionist policy pursues the following goals:- permanent protection from foreign competition strategic sectors of the domestic economy (for example, agriculture), in the event of damage to which the country would be vulnerable to war;
- temporary protection relatively newly established industries domestic economies until they are strong enough to compete successfully with similar industries in other countries;
- responding to protectionist policies by trading partners.
- selective protectionism - protection from a specific product, or protection from a specific state;
- sectoral protectionism - the protection of a certain industry (primarily agriculture within the framework of agricultural protectionism);
- collective protectionism - mutual protection of several countries united in a union;
- hidden protectionism - protection using non-customs methods, including methods of domestic economic policy.
Contemporary protectionist policies
The states, pursuing a protectionist policy, use customs-tariff and non-tariff restrictions. The main task of the government in the field of international trade is help exporters to export as much of their products as possibleby making their products more competitive in the international market, and restrict imports by lowering the competitiveness of foreign goods in the domestic market... Some of the methods of state regulation are aimed at protecting the domestic market from foreign competition and are primarily related to imports. Another group of methods, respectively, has as its purpose to force export.
The classification of tariff and non-tariff instruments of protectionism policy is presented in Table. 1.
Table 1. Classification of trade policy instruments.
Methods |
Trade Policy Instrument |
Regulate mainly |
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Tariff |
Customs duties |
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Tariff quota |
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quantitative |
Quotas |
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Licensing |
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Voluntary restrictions |
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State procurements |
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Content requirement |
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local components |
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Technical barriers |
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Taxes and fees |
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financial |
Export subsidies |
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Export crediting |
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In accordance with the decision of the EurAsEc Customs Union Commission, from January 1, 2010 in the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, a unified commodity nomenclature of foreign economic activity of the customs union (TN VED CU) and a Unified Customs Tariff were introduced.
Meanwhile, there are a number of specific problems associated with tariffs. Thus, the tariff rate may turn out to be so high that it may cut off imports altogether. From here the problem of finding the optimal tariff levelensuring the maximization of national economic well-being. The average level of tariff rates is currently 11%. Is it a little or a lot? The weighted average level of import customs tariffs fell from 40-50% in the late 1940s. up to 3-5% at present. Due to the fact that Russia is going to join the WTO, 11% is only the first step towards reducing tariff regulation.
Over the past decades the role of customs tariffs has noticeably weakened... However, the degree of state influence on international trade did not decrease, but, on the contrary, increased due to the expansion use of non-tariff restrictions... The system of non-tariff regulation adopted in developed countries works most effectively. According to experts, more than 50 methods of non-tariff regulation are used... These include technical regulations, sanitary standards, a complex system, government procurement, etc.
In the Concept of long-term socio-economic development of the Russian Federation until 2020 it is written: "The goal of state policy is to create conditions for increasing the competitiveness of the economy." Tasks solved by the Russian government on key development issues, including increasing national competitiveness, can be supplemented and refined based on an analysis of the country's position in world rankings. Studying the opinion of international experts allows us to identify the existing opportunities and limitations for, look at the main problems of the country's development from different points of view.
low government debt (this is largely due to the favorable external economic situation in the commodity markets)
Wide range of bank loans
Higher education and training, 45
The quality of education in mathematics and science, the quality of the education system, the number of people with additional education
Training of employees, availability of specialized research services, quality of the school of managers, accessibility of the Internet
Innovation, 57
The number of researchers and engineers, the quality of research and development institutes, the costs of companies for research and development (R&D)
Use of advanced technologies at the government level, cooperation between higher education and production, opportunities for the development and implementation of innovations
Healthcare and primary education, 60
Impact of HIV / AIDS and malaria on business, quality of primary education
Life expectancy, incidence of tuberculosis, primary education costs, proportion of schoolchildren among school-age children, infant mortality
Infrastructure, 65
Number of places of railway transport, quality of railway infrastructure, length of telephone lines
Road quality, quality of infrastructure, quality of aviation infrastructure, quality of power supply, quality of ports
The competitiveness of the economy of the Russian Federation at this stage of development is lower than that of developed economies and even some. In this regard, there is a danger that Russia may take a place globally that does not reflect its true potential, and both, and turn into a supplier of resources for industrialized countries. Meanwhile, this process can be influenced by protecting domestic production and the competitive environment through a policy of protectionism.
So, the following areas are currently relevant for government policy and government support:
- ... In 2009, the State Duma approved in the third reading the draft laws constituting the second antimonopoly package of laws. Amendments to the Federal Law "On Competition" are aimed at further protecting national producers and developing competition in Russia, toughening sanctions for violating antimonopoly legislation, as well as improving existing provisions. Antimonopoly regulation should be aimed at improving legislation in relation to natural monopolies, as well as increasing the efficiency of the Federal Antimonopoly Service.
- Customs and tariff regulation: introduction of new technologies of customs administration within the framework of the Customs Union-2010, focus on reducing the weighted average customs tariff.
- Non-tariff regulation: expanding the use of non-tariff regulation methods that are implemented within the framework of administrative management, in particular, support for the export of high-tech products, services and technologies.
- Innovative development... In the long term, especially in the context of the depletion of the efficiency potential by other factors, innovations will acquire an exceptional value for raising the standards and quality of life of the population. The innovation policy presupposes the creation of conditions for increasing the innovative activity of Russian companies and the share of investments directed to the introduction of qualitatively new products and technological processes.
- Small and Medium Business Support... As part of the administrative reform, it is planned to reduce administrative barriers, reduce the list of licensed activities, and simplify the registration procedure.
- Formation of an investment-attractive environment, reduction of the total tax burden on business entities. In the long term (2020), tax policy is aimed at reduction of Russian tax revenues to 33% of GDP.
In the context of Russia's inclusion in world economic processes, the regulatory function of the state acquires particular importance for solving problems related to the formation of a competitive environment, with structural restructuring, creating conditions for economic growth and increasing the competitiveness of the national economy.
The most important areas of protectionism should now become increasing the role of non-tariff restrictions and the selective nature of protectionist measures: not domestic production as a whole is protected, but individual industries. Protectionist measures are increasingly being introduced as an element of structural policies aimed at adapting national producers to the ongoing changes in the global economy.
The role and significance of protectionism in today's economic conditions continues to be significant. The state protective policy will allow the national economy to adapt faster and more effectively to the conditions of the global economy.
Foreign trade policy of states
Foreign trade policy Is a set of measures on the part of the state to regulate trade relations and relations with other countries, optimizing the country's participation in the international division of labor. The main directions of the state's foreign trade policy are protectionism and free trade (Fig. 3.3).
Fig 3.3. Foreign trade policy and its instruments
Traditional protectionism - it is the theory and practice of foreign trade regulation aimed at protecting economic entities of the national economy from foreign competition.
In practice, protectionism has been developing and applied since the beginning of international trade relations. In the XX century. especially strong influence of protectionism was observed in the period between the two world wars. This practice will continue, presumably, in the 21st century as well, as a specific measure to protect the economic entities of the national economy.
The external manifestation of protectionism is a positive trade balance, i.e. the excess of the value of exports over the value of imports, which serves as the basis for the preservation of protectionist trends.
In a developing national economy, protectionist measures are necessary to protect only emerging and emerging industries under the influence of scientific and technological progress from the competition of efficient foreign firms operating on the world market for a long time.
In addition, protectionist measures have a pronounced social character during periods of formation or structural reorganization of the national industry, when the state needs to protect those professional categories of employees who need retraining in connection with the closure or bankruptcy of national enterprises.
During periods of serious exacerbation of relations between states and increased international tension, protectionist measures are used to preserving national security the state, which is facilitated by the production of all necessary, vital products on its territory.
The main arguments put forward by opponents of protectionism against this theory are as follows.
1. Protectionism is inherent in a certain illogicality: aiming to achieve a positive trade balance, protectionism restrains import operations. This causes a similar reaction from international partners, as a result of which the volume of export operations is curtailed, and the situation does not lead to a positive balance, but to an imbalance in the trade balance.
2. In conditions of protectionism, the sectors of the national economy protected by its barriers lose incentives for development, since the mechanisms of competition are dying out, and the desire for progress and innovation is destroyed by the ability to maintain high levels of income and monopoly privileges.
3. Protectionism has a certain multiplier effect: the technological interconnection between industries leads to the fact that if protectionist protection is introduced for some branches of the technological chain, then it will also be required by the branches technologically related to them. As a result, there is new protectionism, or neoprotectionism.
4. Protectionism damages the economic interests of consumers: the domestic consumer pays more for the goods, and not only for the imported goods subject to customs duties, but also for the goods of the national industry.
5. Under conditions of protectionism, the national economy cannot make optimal use of the advantages of international specialization, since cheaper imported goods cannot enter the country due to the imposed restrictions.
Determined by the specifics of the application, the following types are distinguished protectionism.
1. Industry protectionism, aimed at protecting the emerging and emerging industries and the agricultural sector (branches of the All-Union Communist Party, young branches of scientific and technological revolution and agriculture).
2. Hidden protectionism for the implementation of which the mechanisms of domestic economic policy are used.
3. Selective protectionism, applied to specific mega-entities, goods or services. A variation of it is the "embargo" - a ban on supplies.
4. Integration protectionism, conducted by the countries belonging to the integration association in relation to all other mega-subjects.
The main and most common protectionist measures are tariff (tariffs on exports and imports) and non-tariff barriers.
Import tariffs, or import duty, - it is a measure of protectionism in which the domestic price of imported goods rises above the world price, and the value of the import tariff is added to the world price. The result is a value equal to the world price multiplied by the tariff rate.
Actual level of tariff on imports in the industry – a value reflecting the level of increase in the value added of a unit of production in the industry in the conditions of the functioning of the entire tariff system When the final products of the industry are protected by a higher customs tariff on imports than their intermediate products, then the actual level of the tariff will exceed its nominal level, namely, the level of the rate specified in the customs tariff.
Mechanism export tariffs is a mirror image of the import tariff mechanism.
Customs tariffs are specified by a set of customs duty rates. Customs duty is a tax levied on the import and export of goods and services, based on either quantity or value. In accordance with the specifics of the charge, the following fees are distinguished.
1. Specific customs duties: (tax is charged per unit of taxation).
2. Ad valorem customs duties: (tax is charged as a percentage of the customs value of the taxable object).
3. Combined customs duties , the amount of the tax is established by a combination of taxation methods.
In the practice of world trade and international relations, special opportunistic customs duties are distinguished, which include the following:
1. Anti-dumping customs duties. They are imposed on goods imported at dumping prices. Dumping is the practice of exporting goods at prices significantly lower than those at which the goods are sold on the domestic market. Dumping is applied during periods of cyclical downturns, when it is impossible to sell manufactured products in the domestic market due to a decrease in domestic demand. The producers of the exporting country are experiencing the negative effect of dumping, since it seriously impedes the development of import-competing industries.
2. Countervailing customs duties. Such duties neutralize foreign export subsidies provided by exporting countries to domestic producers.
3. Seasonal customs duties.These include duties imposed on seasonal products, mainly agricultural products. Their validity is limited by the Time of movement of similar goods.
By the nature of the registration, there are autonomous, conventional and preferential customs duties.
Introduction autonomous fees is the result of unilateral decisions of legislative bodies of state power. The specification of their rates is carried out by the relevant ministries (ministries of economy, finance, trade) with subsequent approval by the government.
Introduction conventional fees - the result of bilateral or multilateral agreements. A classic example is the General Agreement on Tariffs and Trade (GATT).
Specific among the customs duties are preferential duties. They are distinguished by both quantitative and qualitative characteristics. Preferential duties always have lower rates within a single tariff system. Such duties are levied on goods and services exported from developing countries.
The main types of non-tariff trade restrictions are anti-dumping measures, export-import quotas, voluntary export restrictions (VER).
Introduction anti-dumping duty should be justified by the protocol of a special commission to establish the fact of dumping and determine the damage from it that threatens domestic producers.
Export-import quotas (contingent) - the most common type of non-tariff trade restrictions. Quotas (contingent) - limitation in quantity or value terms of the volume of products allowed for import or export from the country. In this regard, a distinction is made between import quotas and export quotas.
Under the conditions of tariff restrictions, the quantities of imported and exported goods are not regulated, it is required to pay the tariff rate by quantity, customs value, or a combination thereof. Quotas limit the volume of foreign trade to a certain number of tons, pieces, liters. The state issues licenses for the export or import of a limited amount of products and imposes a ban on unlicensed trade.
Voluntary export restrictions(DEO) is a kind of export quota. Under voluntary export restrictions, exporting countries assume obligations to restrict exports to a specific country. The semblance of voluntariness covers the desire to avoid on the part of partners more serious and harsh protectionist restrictions. In essence, DEA is a necessary measure.
In addition to the three main ones, non-tariff trade restrictions also include varieties of hidden protectionism, under which pre-customs movement of goods is controlled, i.e. the very possibility of participation of goods in import and export. These include sanitary and technical and foreign exchange restrictions on the import of goods.
TO sanitary and technical restrictions their types include:
Mandatory compliance with national standards;
Quality certificates for imported products;
Requirements for specific labeling and packaging of goods;
Requirements for the environmental performance of consumer goods and industrial goods.
Sanitary and technical standards are an expression of the desire of states, within the framework of overcoming customs restrictions, to protect the nation from products that damage the life and well-being of its citizens.
Protectionism
(Protectionism)
Protectionism is a policy of protecting the domestic market from foreign competition
Protectionism, how the policy of protectionism is implemented, what are the methods and consequences of protectionism, non-tariff and trade protection
, definition
Protectionism is protection of the internal market from competing countries by regulating customs and tax barriers, reducing the competition of others countries in comparison with goods of national production. This policy was for the Russian Federation of the XIX-XX centuries. the state it was forced to impose large taxes and customs taxes on foreign-made goods, thereby giving the opportunity to develop the national industry.
Protectionism is protection policy domestic market from foreign competition through a system of certain restrictions. On the one hand, this policy contributes to the development of national production. On the other hand, it can lead to the strengthening of monopolies, stagnation and a decrease in the competitiveness of the economy.
Protectionism - this is of the state, consisting in the targeted protection domestic market from the receipt of foreign-made goods.
Protectionism (from Lat. protectio - cover, patronage) is state policy aimed at protecting the domestic market, on the one hand, and actively encouraging the entry of national companies into foreign markets, on the other.
Protectionism (French protectionnisme, from Latin ptotectio - protection, patronage) - this iseconomic policy state aimed at supporting the national economy.
Selective protectionism is protection against specific product, or against a specific state.
Industry protectionism is protection of a specific industry.
Collective protectionism is mutual protection of several countries united in a union.
Hidden protectionism isprotectionism through non-customs methods.
Local protectionism isprotectionism of products and services of local companies.
Green protectionism isprotectionism through environmental law.
Corrupt protectionism iswhen statesmen act in the interests not of the mass voter, but of organized bureaucratic and financial groups.
Implementation of protectionism
Protectionism is carried out using trade and political barriers that protect against the import of foreign goods, reduce their competitiveness in comparison with goods national production. For patronage characterized by financial incentives for the national economy, stimulation of the export of goods. Lenin emphasized the connection between protectionism and a certain historical structure of the social economy, with the interests of the ruling class in this system, which is supported by the government: "... the question of patronage and freedom of trade is a question between businessmen (sometimes between businessmen different countries, sometimes between different factions businessmen country) "
The nature of the patronage and, accordingly, the means of trade politicians (prohibition of import, rates duties and structure dutiess, quantitative restrictions, etc.) varied depending on the total economic policyheld in a particular era. In the initial accumulation of capital and the emergence of capitalist relations, theorists and practitioners of patronage became mercantilists (see Mercantilism), who demanded that the state authorities protect domestic industry from foreign competition... protectionism was widespread in France (the protectionist tariffs of 1664 and 1667 by Colbert), the Austrian monarchy, many German states, Russian Federation - for the first time under Peter I. Customs protection played an important role in the development of manufactory and factory industry... Napoleonic patronage France led an economic struggle with England (see Continental Blockade, 1806-14). The era of pre-monopoly capitalism is characterized by "defensive" protectionism in most countries of Western Europe and the United States, aimed at protecting the national industry from more developed industry England, which carried out (from the 40s of the 19th century) politics "freedom trade"(see Free Trading). An in-depth analysis of patronage and free trade were given in their works by K. Marx and F. Engels. For period outgrowth capitalism the monopolistic stage is characterized by "offensive" protectionism, which protects from foreign competition not weak industries industry, and the most developed, highly monopolized. Its goal is to conquer the outside markets... Obtaining monopoly profits inside the country makes it possible to sell goods on external markets at low, dumping prices.
The modern protectionism of the developed capitalist states expresses primarily the interests of large national and international monopolies. Capture, division and redistribution of markets for goods and capital constitute its main content. It is carried out with the help of a complex system of state-monopoly measures that control and regulate foreign trade. Strengthening the internationalization of capitalist production and the further development of state-monopoly capitalism lead to the fact that, along with the traditional methods of border regulation, the use of domestic economic and administrative levers for protectionist purposes, as well as monetary and financial and monetary funds, restricting the use of foreign goods, is growing. An integral part of modern patronage is agrarian protectionism (arose during the global agrarian crisis of the late 19th century), which protects the interests of national monopolies.
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The development of capitalist integration processes has led to the emergence of a kind of "collective" patronage, which is carried out with the help of concerted actions of groups of developed capitalist countries. An example is the foreign trade policy of the Common Market countries (see European Economic Community). A feature of modern patronage is the adaptation of the trade policy of the capitalist states to the new situation in the world. The protectionism of developing countries is fundamentally different. Their foreign economic policy is aimed at protecting the emerging industries national economy from expansion by the imperialist powers. This protectionism contributes to the achievement of economic independence for young sovereign states.
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Protectionist measures
It is carried out through the introduction of a set of direct and indirect restrictions on imports - customs tariffs, contingency, non-tariff barriers, currency restrictions, compensation duties, internal taxes dutiess, a special regime of public procurement, "voluntary" restrictions exporting etc. The most important features of the import patronage of developed capitalist countries at the present time are the increasing role of non-tariff restrictions and the selective nature of protectionist measures - not domestic production as a whole is protected, but individual industries. Protectionist measures are increasingly being introduced as an element of structural policy aimed at adapting national producers to the shifts taking place in the global economy. Development of integration processes led to the emergence of "collective patronage" - the formation of closed groupings practicing protection of their markets from the goods of countries that are not part of this integration association of enterprises.
In economic theory, one of the main arguments of patronage is the criticism of the theory of foreign trade from the standpoint of protecting national welfare, which follows directly from the analysis of gains and losses. Profit from the use of export and import duties can be counter-duty to production and consumer losses arising from the distortion of the motives of behavior of both producers and consumers. However, such a case is also possible when profit from improving the terms of trade after the introduction of foreign trade taxes exceeds the losses from it. The main prerequisite for improving the terms of trade from the introduction of the duty is the presence of a market authorities, i.e. the ability of one or a group of sellers (buyers) in a country to influence prices exporting and / or prices import.
Pressure or policies and / or administrative restrictions exerted by government or political circles aimed at strengthening the position of domestic producers in comparison with foreign ones (as opposed to free trade policies). Typical areas of protectionist activity include raising market prices for foreign goods, reducing costs for domestic producers, or restricting foreign producers' access to domestic market of goods. Protectionism is driven by considerations of national security, the need for redistribution income in favor of disadvantaged groups of the population, dependence of tariffs on econ. potential; preservation of jobs, protection of new sectors of the economy, side effects on other sectors of the economy, maintaining a long-term trade policy, mutual income and alignment of "starting positions" and trade interests. The main means of patronage include duties, quotas, restrictions on duties of an administrative nature, subsidies and foreign exchange. Tariffs are the ones that are levied on goods imported into a country from abroad. Highest value customs tariffs USA reached in the XX century. after the adoption of the Smoot-Holi tariffs in 1930.
Quotas - quantitative restrictions on sales for importers in the domestic market for a certain period time. Recently, it has become common practice to conclude trade agreements or voluntary export restrictions. An example is the 1980 Agreement between USA and Japan on automobiles. Administrative restrictions are often included in the Customs Code. One form of such restrictions is the introduction of product standards. The provision of subsidies is sometimes associated with the industry or the export activity of the industry. These subsidies were received by the US shipbuilding industry and included credit programs, special tax incentives, and direct subsidies. Currency control restricts access to foreign currency required to purchase foreign goods. may be regulated by a central bank that purchases foreign currency in the national currency.
Haufbauer, Berliner and old man Elliot (in 1986) conducted research related to costs policy of protectionism in the United States in 31 cases, when the turnover exceeded 100 million dollars. and the United States applied protectionist restrictions. Based on the results, annual losses consumers exceeded $ 100 million in all cases except six. Largest losses - $ 27 billion per year - were associated with patronage. in relation to the textile industry. Considerable losses suffered consumers also in connection with the protectionist measures against carbon steel (6.8 billion dollars), car (0.8 billion dollars) and dairy products (5.5 billion dollars). First of all, domestic producers were the winners, although foreigners also received significant profits. The cumulative losses to consumers are enormous. In 1982, the Company econ. A cooperation and development study analyzed the pros and cons of protectionist policies in OECD countries. The results show that expenses far outweigh the winnings.
History of protectionism
Originated in the era of primitive accumulation capital in Europe (XVI-XVIII centuries). The theoretical foundations were developed by mercantilists who associate the welfare of the state exclusively with the active balance of foreign trade. Subsequently, it began to give way to the principle of free trade. Justification is given in the works of the classics of political economy A. Smith and D. Ricardo. In modern conditions, the dominant trend is the liberalization of foreign trade, although some elements of patronage, especially in the field of protecting agriculture, remain to this day.
It is carried out with the help of trade and political barriers that protect the domestic market from the import of foreign goods, reduce their competitiveness in comparison with nationally produced goods. Patronage is characterized by financial encouragement of the national economy, stimulation of the export of goods. Lenin emphasized the connection between patronage and a certain historical structure of the social economy, with the interests of the dominant class in this system, which relies on government support: “... the question of patronage and freedom of trade is a question between businessmen (sometimes between businessmen from different countries between various fractions of businessmen of a given country) "
Protectionism is
The nature of patronage and, accordingly, the means of trade policy (prohibition of imports, duty rates and the structure of tariffs, the number of duty restrictions, etc.) changed depending on the general economic policy pursued in a particular era. IN the period of the initial accumulation of capital and the emergence of capitalist relations, theorists and practitioners of protectionism were mercantilists, who demanded from the state authorities protecting the domestic industry from foreign competition. Protectionism was widespread during France (protectionist tariffs of 1664 and 1667 by Colbert), the Austrian monarchy, many German states, in Russian Federation - for the first time under Peter I. Customs protection played an important role in the development of the manufacturing and factory industries. Under the sign of Protectionism, Napoleonic waged an economic struggle against Britain
The era of pre-monopoly capitalism is characterized by "defensive" protectionism in most Western countries. Europe and the USA, aimed at protecting the national industry from the more developed industry of Britain, which (from the 40s of the 19th century) pursued a policy of "free trade". K. Marx and F. Engels gave a deep analysis of patronage and free trade in their works. For the period of capitalism growing into the monopoly stage, "offensive" protectionism is characteristic, which protects not weak industries from foreign competition, but the most developed, highly monopolized ones. Its goal is to conquer foreign markets. Obtaining monopoly profits inside the country makes it possible to sell goods in foreign markets at low, dumping prices
The modern protectionism of the developed capitalist states expresses primarily the interests of large national and international monopolies. The seizure, division and redistribution of markets for goods and capital are its main content. It is carried out with the help of a complex system of state-monopoly measures that control and regulate foreign trade. The strengthening of the internationalization of capitalist production and the further development of state-monopoly capitalism lead to the fact that, along with the traditional methods of border regulation, the use of domestic economic and administrative levers for protectionist purposes, as well as monetary and financial and monetary means, restricting the use of foreign goods, is growing. An integral part of modern protectionism is agrarian protectionism (arose during the world agrarian crisis late 19th century), defending the interests of national monopolies.
Development processes capitalist integration led to the emergence of a kind of "collective" protectionism, which is carried out through the concerted actions of groups of developed capitalist countries. An example is the foreign trade policy of the Common Market countries. A feature of modern patronage is the adaptation of the trade policy of the capitalist states to the new situation in the world.
The protectionism of developing countries is fundamentally different. Their foreign economic policy is aimed at protecting the emerging sectors of the national economy from expansion by the imperialist powers. This Protectionism promotes the economic independence of young sovereign states.
Disadvantages of protectionist policies
The disadvantages of protectionist policies are as follows.
Protectionism undermines the foundations of national production in the long run, as it eases the pressure from the global market to develop entrepreneurial initiative. Routine, unwillingness to part with the acquired privileges and the received benefits according to the position take the upper hand over the desire for progress, innovations. The determination to surround oneself with protectionist barriers is often determined not by national economic interests, but by the pressure of powerful private interests lobbied by political and parliamentary circles.
Protectionism is harmful from the point of view of the consumer, whom it forces to overpay for the goods and services he needs, and not only for imported goods that are subject to customs tax, but also for the subject of trade with the national customs tax, the release and sale of which are associated with a non-competitive pricing system.
Protectionism creates a chain reaction, because after protecting some industries, sooner or later, others will need to be protected.
Fencing national industries from foreign competition drives them ultimately into a protectionist trap, because if crutches were issued to strengthen such industries, then it is quite difficult to remove them without risk collapse. Thus, protectionism introduced as a temporary measure may become an integral attribute of long-term national economic policy.
Patronage policies intensify interstate rivalry and pose a potential threat to international stability and security. It weakens the bonds of interdependence between countries, restrains the development and deepening of the international division of labor, specialization and cooperation of production, generating at the same time enmity and distrust towards each other.
Protectionism is
Benefits of a protective policy
The socio-political advantages of patronage are as follows.
In maintaining the state security of the country, which in case of abandoning protectionist measures will be threatened by the narrow specialization of the economy. The latter exposes countries to high at risk not only in the event of war, but also in periods of aggravation of international relations. Therefore, the country should develop its strategic types of production, primarily agriculture and food industry, as well as industries necessary for national defense (some types of chemical industry, etc.). This is a compelling argument, especially when it comes to agriculture.
In defending higher living standards and higher wages in richer countries in their competition with countries where living standards are significantly lower.
In the possibility of preserving with its help some social classes and types of activity (for example, the peasantry, traditional national crafts), to prevent depression and recession (for example, in the coal industry, etc.).
In the possibility of achieving certain political goals in relations with other states. International economic sanctions against the USSR, which followed after the introduction of troops into Afghanistan, pursued the goal of ending military action and non-interference in the internal affairs of this country; the sanctions against Serbia were one of the instruments of pressure on it to change its course towards Bosnia.
The economic arguments in defense of protectionist measures, which have a rational kernel, boil down mainly to considerations of maximizing the real income achieved through their application.
The first argument is that with the help of import duties, the country can improve the terms of trade and increase the economic gain in terms of duties. However, this is possible only in a situation where the demand for a product is more elastic than it, and then the price increase will fall mainly on the manufacturer, and the profit from the duty will replenish the state budget. In addition, the duty of this measure is necessary in order to:
The exporting country did not have the opportunity to enter other markets for its product;
Its factors of production could not be used to money issue alternative goods;
The decline in export earnings in the exporting countries had no impact on demand on these goods in the importing country, which introduces a new tariff.
The second argument is that protectionist measures protect industry at the stage of its inception and growth. The third economic argument in defense of patronage is its role in raising the level of employment national resources.
However, the success of such a policy is unlikely if it is used not by one country, but by several. Stimulating own exporting by reducing import from other countries would sooner or later create a deadlock, as it would mean the termination of all trade.
The fourth argument in favor of patronage concerns an attempt to mitigate a crisis in industries experiencing economic difficulties. Significant changes in supply and demand in both the domestic and foreign markets can deliver a tangible blow to a number of industries.
National protectionism
The existence of states opposing each other sets the task of ensuring national interests, including through protectionist measures, for national governments.
The main task of the state in the field of international trade is to help exporters export as much of their products as possible, making their goods more competitive in the world market and limiting imports, making foreign goods less competitive in the domestic market. Therefore, some of the methods of state regulation are aimed at protecting the domestic market from foreign competitors and therefore relates primarily to imports. Another part of the methods has as its task the formation of the export.
Means of regulating foreign trade can take various forms, including both directly affecting the price of a product (tariffs, taxes, excise and other charges, etc.), and limiting the value or quantity of an incoming product (quantitative restrictions, licenses, “voluntary »Export restrictions, etc.).
The most common means are customs tariffs, the purposes of which are to obtain additional financial resources (usually for developing countries), regulate foreign trade flows (more typical for developed countries), or protect national producers (mainly in labor-intensive industries).
That is why it is important to assess the effectiveness of customs taxation, to give a general description of customs taxes, and also to analyze customs tariffs and customs taxable product items.
Among the numerous arguments in favor of the introduction of restrictions in general and customs and tariff protection in particular, the provision on the need to protect the emerging national industry is used. The meaning of the protection of the created industry is as follows. It is argued that the country has a comparative advantage in the production of a product, however, due to a lack of knowledge and a small initial volume of production, the industry cannot start it release... Therefore, temporary protection is needed as the industry is in its infancy. It is difficult to assume that the newly created industry can withstand the competition on an equal footing with the developed production of another country. Once the industry is able to reach a "mature" or "developed" level, to ensure mass production, protection can be removed.
The challenge, however, is to select an industry that truly needs protection and has a comparative advantage. In the opposite case, the wrong development of certain industries and significant losses for society caused by the support of ineffective industries are possible. The protected industry usually retains the backwardness of production for a long time, its development is delayed, it becomes a burden for society, and production efficiency decreases. In fact, very often tariffs do not protect “young” industries, but, on the contrary, just old ones, which are losing their competitiveness. Whether or not protection is introduced depends on the importance of the industry for the country's economy and on the political strength of the stakeholders. In the conditions of the modern Russian Federation, most of the old operating industries turn out to be uncompetitive in comparison with foreign manufacturers. They are protected. The main argument here is the threat of a decline in production. This, for example, explained the increase in duties on imports to the Russian Federation of foreign car at the second half duty 1993
In accordance with the definitions existing in customs practice, patronage is understood as a given country that seeks to protect its domestic market from the penetration of imports in the interests of developing domestic production and protecting domestic businessmen from foreign competition. Protectionism is carried out both by increasing the rates of import customs duties and by means of non-tariff measures of foreign economic customs duties.
The renowned economist Edwin J. Dolan understands patronage as any government measure aimed at protecting the country's industry from competition. Over the past four decades, the volume of world trade has increased dramatically. However, in addition to traditional tariffs, the so-called "neo-protectionism" arose, which led to the introduction of additional restrictions on world trade. Neoprotectionism uses economic mechanisms as diverse as “orderly trade contract"And" voluntary export restrictions ". Such agreements are often concluded under direct “forceful pressure”, backed up by the threat of high tariffs or import quotas.
Modern protectionism is concentrated in relatively narrow areas. In the relations of developed countries with each other, these are the fields of agriculture, textiles, clothing and steel. In the trade of developed countries with developing countries - these are manufactured goods to developing countries. In the trade of developing countries with each other, these are traditional export goods.
In the Russian Federation, discussions about the advantages and disadvantages of patronage and free trade began in the early 1990s. World experience speaks in favor of opening the domestic market for foreign goods, which shows that protection from competition in itself often leads to the development of industries that are not able to compete on the world market. However, in the current situation in the national economy, this thesis is only partially true. It can be opposed by another statement: the purposeful industrial policy of the state has taken on such proportions that it is impossible to give examples that would confirm that competitive industries arise exclusively by the laws of the market.
The idea of \u200b\u200bfree trade is based on the need to eliminate customs and other barriers to the movement of goods between countries. The case for free trade is based on economic analysis showing the gains from trade liberalization both for individual countries and for the entire world economy.
However, Professor N.N. Back in 1924, Shaposhnikov wrote that "free trade is the ideal of the future, but at the present time it is beneficial only for the country that has managed to outstrip other countries in its economic development." The essence of this statement is fully consistent with the current state of the economy of the Russian Federation. At present, it is not possible to remove any protectionist barriers to the development of foreign trade, otherwise the country has the prospect of becoming a colony of countries with a developed market economy.
Therefore, the arguments in favor of free trade are not always justified and even less applicable to our economic situation. In favor of maintaining protectionist measures in the near future, the following arguments can be made:
The need to ensure the economic security of the country;
The specifics of individual regions and the need for their support of protectionist measures by the state;
In the context of a decline in production, maintaining the work places;
In the face of economic collapse, protectionist customs measures will prevent the country from becoming an economic appendage of the developed countries of the world;
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Naturally, the listed arguments in defense of patronage are more related to the current economic situation in our country.
The customs tariff is a fundamental instrument of protectionist policy. Customs and tariff regulation is a set of customs and tariff measures that are used as a national trade and political toolkit for regulating foreign trade.
Interaction of protectionism and free trade in public policy
Free trade (English free trade) is direction in economic theory, politics and economic practice, proclaiming freedom of trade and non-interference of the state in the private sector of society.
Foreign trade of any state, as a rule, is based on mutual benefits. However, mutual benefit in foreign trade is not only a balance of export and import operations, but also a much broader problem of implementing a certain strategy of foreign economic relations of a particular country, which is always in unity with other economic relations. Although there are cases when foreign economic relations develop spontaneously, taking shape "de facto" as a result of spontaneous, poorly coordinated actions. A more preferable situation is considered in which foreign trade activity carries out one or another strategy consciously.
The choice of a national foreign economic strategy is significantly influenced by both the general economic situation in the country and trends in the world economy, given the modern rapid internationalization of world economic relations, the expansion of world trade in goods and services, the development of international entrepreneurship, the growth in the number and increase in the scope of TNCs. Under such circumstances, the macroeconomic strategy of economic growth of the nation state is strongly influenced by an external factor determined by the role of foreign economic relations in the economic policy of the state. It is quite obvious that national foreign economic regulation cannot but experience, for example, the influence of such problems of modern world economyas aggravation of competition in the world market, growing imbalance of payments, huge external debt of many countries, economic and political instability in Eastern Europe, and above all in the countries of the former USSR.
The action of these factors gives rise to constant interaction in the foreign trade policy of national states of two trends: liberalism and patronage. Protectionism is a government policy aimed at protecting the domestic market from competitors, and often at capturing foreign markets. In contrast, the policy of liberalization (free trade) aims to open the domestic market to foreign goods, capital, labor, thereby increasing competition in the domestic market. And protectionism primarily reflects the reaction of certain states to changes in the international division of labor, to events taking place in international economic relations. The history of international economic relations since the 19th century. indicates that for international trade was characterized by the alternation of periods of liberalism and patronage. So, the period from the second half of the XIX century. before wars 1914-1918 characterized by the dominance of free-trade policy and determined by the dominance of England as a great industrial and trading nation in the world market. It was during this period that the Navigation Acts were canceled and law on cereals (1866), concluded trade and diplomatic agreements between Napoleon and England, which included the article "On the most favored nation" (1860). The interwar period (1920-1939) was characterized by increased patronage throughout the world. So, in 1921, Britain adopted a customs law "On the protection of industry" and are signed with the countries of the British Commonwealth of the so-called Ottawa agreementsestablishing imperial preferences. The United States increased customs tariffs in 1922 and then in 1930. France has been following a contingent policy since 1931. The Republic of Germany increasingly began to pursue a policy of turning to autarky.
After the end of World War II world economy gradually embarked on a path leading to greater freedom of trade. In 1948, under the auspices of the United Nations, company GATT, serving as a discussion institution international trade and contributed to the reduction and consolidation of customs taxes. The solution of these problems was facilitated by the creation of a customs tax community in the West and the emergence of the Customs Union within its framework, as well as the creation of the European Free Trade Association (1960). The adoption by the US Congress, at Kennedy's request, of the Trade Development Act (1962) gave the US President the right to negotiate with foreign states on the conclusion of agreements on significant tariff reductions. The Kennedy Round has become one of the most comprehensive multilateral trade treaties at the international level. It ended in 1967 with the conclusion of important agreements providing for the reduction of customs duties by 35-40% within 5 years. Subsequent Tokyo customs fees also contributed to trade liberalization.
Protectionism is
In the 80s and 90s. In the general course of the liberalization of world trade in the foreign trade policy of the leading Western countries, elements of patronage associated with the aggravation of international competition began to appear again. Despite the accomplishment of the GATT work on the liberalization of world trade, international trade remains one of the main directions of state regulation of the national economy.
The forms and methods of state regulation of foreign trade of individual states are largely the same, they have been worked out by long-term international practice, however, there are significant differences in the mechanisms of their use, depending on the prevalence of free-trade, liberal, or protectionist orientation.
The free trade model is inherently close to the policy of monetarism within a particular national economic system. It assumes that the market (world market) itself will be able to do much better than any other regulator in solving the problems of balancing and mutually beneficial trade operations. For countries with economies in transition, the world market will ensure the integration of their national economies into the world economy and ensure the use of world scientific and technological achievements for the effective development of their national economy. State regulation in this case is carried out by methods of predominantly tariff regulation and measures that encourage the flow of goods and capital into the country.
Indeed, free trade fosters competition in domestic markets, forces enterprises to innovate by providing a wider choice of goods for consumers, and enables firms to fully exploit comparative advantages and achieve economies of scale. Moreover, free trade unleashes dynamic forces that seek to sustain economic growth by encouraging improvement and innovation, while protectionism increasingly inhibits these forces over time.
Free trade policy benefits every country, although not every country to the same extent and not all population groups. In the importing country, the gain arises from the fact that the profits of consumers exceed the losses of producers, and in the exporting country, the general increase in welfare is due to the gains of producers, while consumers suffer losses. In the case of trade liberalization in the short term, a decrease in employment may occur due to a decrease in incentives for the development of both import-substituting industries and, possibly, industries that are not directly involved in foreign trade, but which will be affected by the liberalization process. And even a sharp increase in employment in the export sector will not be able to immediately compensate for its decline in other sectors. Enterprises export sectors may not keep pace with absorbing labor released from other sectors, for example, due to delays in new investment or slow professional reorientation and limited labor mobility.
The implementation of the free-trade model in its pure form for transition economies is difficult due to a number of circumstances. First of all, because the post-socialist countries enter into competition on the world market in conditions that are obviously unequal in relation to developed countries, most sectors of transition economies to one degree or another lag behind the level of development of the corresponding sectors in highly developed countries. The most primitive sectors - agriculture, mining and primary processing of raw materials and energy carriers - may be able to survive here. Developed countries could "stifle" these industries too, but they either do not have the appropriate natural resources and are interested in using them, or they prefer not to use "dirty technologies" on their territories. The experience of implementing this model in some developing countries has shown that the result of such a strategy is the preservation of the dependent position of national economies, the outflow of investments and qualified personnel.
Of course, there is an opportunity to first strengthen at least some branches of production, bringing them up to the level of the requirements of the world market. But in the process of pulling up, it would be necessary to protect them from their more powerful rivals at the moment, and this is already an attempt on the sacred and unshakable principles of free competition and free trade. The experience of the "Asian tigers" and the Chilean economy of the Pinochet era does not confirm the implementation of the free-trade model in its purest form. For example, the formal free-trade of the Pinochet economy actually implied support from the state, primarily investments related to scientific and technological progress, as well as a policy of endless loans from Western creditors. As a result, the economy of the Republic of Chile made a step forward in technical re-equipment, but received a huge external one. As for the countries of the Pacific Rim, which managed to make a breakthrough in their economic development, here the free trade model existed rather as an ideological sign. In fact, a purposeful development of the economy was carried out under the protection of protectionist measures. Support measures extended to the creation of their own industry and post-industrial areas, such as education, capable of competing on equal terms in the world market. At the same time, the weakening of patronage, expressed in these countries in the creation of equal conditions for importers and exporters, in the reduction of restrictions on foreign trade and the use of the price mechanism instead of arbitrary decisions of the bureaucratic apparatus, inevitably led to an increase in GDP growth rates, which was the result of a reallocation of resources in favor of more efficient types of production. Growth size GDP in this case, it depends both on the very nature of the reforms being carried out and on the scale of the redistribution of resources. Thus, in the countries of the Asia-Pacific region, the growth GDP amounted to 5-6%, and the growth of foreign trade 9-10% per year. At the same time, these indicators were achieved after the start of economic reforms in the countries of this region, and one of the reforms was the liberalization of foreign trade.
Protectionism in Russia
Already in the 17th century, when private manufactories had just appeared and the all-Russian market began to take shape, Tsar Alexei Mikhailovich began to protect Russian merchants from external competition. His Trade Regulations (1653) imposed a higher tax on foreign business activities than those charged to Russians. In 1667, at the petition of the "Moscow state of merchants" who complained of insults from "visiting foreigners", the "Novotorgovy Charter" was published. He did not allow foreigners to trade everywhere, not at all times and not all types of goods.
During the reign of Peter I in 1719, Russia completely abandoned the state monopoly on all goods. A few years later, a customs tariff was adopted. It was protective in nature. Low export tariffs were set. The amount of the duty on goods imported into the Russian Federation directly depended on the level of development of the issue of securities of additional duty in the state. If the ability to meet the demand for this product due to domestic production was high, then the duties were set high. In 1726, the volume of Russian exports was two times the duty, higher than the volume of merchandise imports. This was the policy of patronage in the Russian Federation.
This policy was continued by Peter, who helped the domestic industry as best he could. The Petrovsky customs tariff of 1724 significantly limited imports. But Russian manufacturers could bring the tools and materials they needed duty-free from abroad. Moreover, the treasury provided subsidies to breeders, helped with raw materials and labor, and finally, just built enterprises "Turnkey", and then transferred (did not sell, namely transferred, and free of charge) to individuals.
Peter's successors acted in the same spirit. If some ruler weakened the patronage of businessmen and lowered duties on the import of foreign goods, then life sooner or later forced him to betray the duty. Or he left an unkind memory in his descendants. For example, like Anna Ioannovna, whose customs tariff of 1731 significantly relaxed the conditions for the import of foreign products. But Elizabeth and Catherine II supported Russian industry. The customs tariffs of 1757, 1766 and 1782, issued under these empresses, set high duties on foreign goods, the analogues of which were produced in the Russian Federation. And the import of taxes from them (, linen, leather) was not allowed at all.
Protectionism is
Alexander I went even further. The "Regulations on natural trade for 1811 in the ports of the White, Baltic, Black and Azov seas and along the entire western land border" (1810), published under him, prohibited the import of all (yes, yes, exactly all!) Finished industrial products into the Russian Federation ... But it was allowed to import duty-free. True, in the tariff of 1819, Alexander removed all these restrictions and established low customs taxes. However, already in 1822, he was supposed to return to the policy of protectionism, which was continued by his brother, Nicholas I. Both brothers, Alexander and Nikolai, surrounded industrial activity with extraordinary honor. For the development and improvement of production, they awarded merchants with orders and medals. The prestigious titles of Manufacture- and Commerce Advisers were introduced. Since 1829, All-Russian industrial and art exhibitions have been regularly held. The best domestic goods were presented there. Nikolai personally met with the participants in these events, trying to take their opinion into account when developing domestic and foreign policies.
A small example. 1833, May. Emperor invites the participants of the III industrial exhibition not just somewhere, but to his place, to the Winter Palace. There are tables for five hundred people. The Tsar did not disdain to seat one of the merchants next to him. It was a manufactory advisor, a cloth manufacturer Ivan Nazarovich Rybnikov. Throughout lunch, Nikolai enthusiastically discussed the needs of Russian industry. Tellingly, Rybnikov first of all started talking about import duties. The tsar and the merchant quickly agreed that they should be further increased, which would be beneficial "for the fatherland and all estates in the state." An effective measure to encourage domestic production, used by all emperors - from Alexander I to Nicholas II - there were state orders. Back in 1811, Alexander I ordered to use only those sealing wax and paper made in the Russian Federation in public places. And in the future, purchases of any products for state needs were primarily carried out from Russian businessmen.
Heavy industry was surrounded by special care in the Imperial Russian Federation. Private enterprises in this industry received generous loans from the state. If the owner of the plant got into a mess, the treasury did not allow the enterprise to perish and acquired it. This happened, for example, with the famous steel plant of engineer Obukhov.
With visible support from the state, private organization in the era of Alexander II covered the European Russian Federation with a dense network of railways. The scale of railway construction was so great that Russian heavy industry could not satisfy all of its needs. Therefore, in 1868, duties on steam locomotives and rolling stock were abolished, duties on and duties were reduced. But as soon as the main railways entered the sling duty taxation began to rise again.
Alexander III already pursued a policy of pronounced patronage. He increased import duties in 1881, 1882, 1884, 1885, 1886. In 1889, his finance minister, Vyshnegrposti, carried out a reform of railway tariffs, which led to an even greater rise in the cost of imports. Carriage of goods from borders and ports to the center of the Russian Federation now cost significantly more than transporting goods in the opposite direction. The culmination of the protectionism policy of the domestic industry was the customs tariff of 1891. He set super-high import duties: from 33 to 100% of the product price. And for some products and that bopdutyspan\u003e
The result was not long in coming. In the 1890s, Russian industry experienced a tremendous boom. Thanks to the tireless cares of the tsar-father, this frail child grew stronger and matured. But any grown-up child sooner or later begins to burden parental care. The same thing happened with Russian capital. Moreover, Alexander III sometimes stroked him against the fur. What was it worth one worker of the 1880s!
The 1882 law restricted the use of child and female labor (so beneficial to the factory owners!). The law of 1886 strictly defined the procedure for issuing wages, collection of fines, hiring and dismissal of workers. To oversee the implementation of these decisions, a special "factory inspection" was established, which caused a real commotion among the capitalists.
The autocracy sought to regulate not only the relationship between businessmen and workers, but also other important areas of company activity. For example, the acquisition of real estate by them. And the very establishment of any joint-stock company (JSC), according to the law of 1836, required a special government permit (by approving the charter). Extraction of minerals ("mining industry") was especially strictly controlled. This national economy was under the jurisdiction of the Mining Department and was regulated by the Mining Regulations. The businessmen considered this document outdated, as did the entire mining company. They considered the preservation of the system of mountainous districts (which were under the watchful control of the state) and "possessional" (conditional) land tenure as a symbol of inertia in this area (primarily in the Urals). Lands on the ownership right could not be alienated from the plant to which they were assigned, which, of course, seriously limited the owner's freedom. As the magazine "Industry and Trade" complained in 1913, "The Urals are still sealed for the application of industrial energy by their own right."
The newspaper mouthpiece of businessmen was also dissatisfied with the fact that the treasury, being the largest landowner, determined the development of its subsoil by private individuals with very strict requirements for them. "Having furnished their bosom such prohibitions, the treasury itself hardly explores them and develops very poorly, ”the magazine complained. However, when the state nevertheless developed deposits and was engaged in economic activities, this also caused discontent among the authors of "industry and trade", and the entrepreneurial elite as a whole. Her sentiments were expressed by the chairman of the Council of Congresses of Industry and Trade Representatives N.S. Avdakov, who unequivocally spoke in favor of transferring the state-owned mining industry to private hands.
Protectionism is
In general, the mining owners have accumulated many complaints about the economic policy of the autocracy. But, of course, what irritated them the most was the government control over entrepreneurial activities for the development of underground subsoil... In this regard, "industry and trade" wrote: "Anyone who tried to show industrial initiative knows that every case in our country is shrouded in a dense network of permissive - or, rather, prohibitive - system - a system associated with endless red tape, with going through the courts , with interdepartmental circular irresponsibility, turning, in the end, the industrialist into a ingratiating intercessor. "
Two troubles of world trade: protectionism and restrictive measures:
Protectionism is
The reasons for resentment against the state were not only among the miners, but also among businessmen belonging to the discriminated national and religious minorities. First of all, we are talking about the Jews. The Pale of Settlement limited their residence to the western provinces. True, since 1860 they could enroll in merchant guilds in all localities of the Russian Federation and obtain a residence permit there. However, since 1882, they were forbidden to own land and other real estate in rural areas (i.e. outside cities), regardless of whether they were within the Pale of Settlement or not. And this greatly impeded their business activity. Moreover, these restrictions also applied to foreigners of the Jewish faith. And from 1887 this prohibition extended to all foreigners and all foreign firms. True, only in the border regions (Kingdom of Poland, Belarus, Volhynia, the Baltic States, Bessarabia, the Caucasus, Turkestan, the Far East). But this is precisely where foreign entrepreneurs have sought most often. So the foreigner also had reason to wish for a regime change in the Russian Federation. Merchants-Old Believers who wanted religious freedom for their fellow believers can also be ranked among the dissatisfied. Finally, one more circumstance must be taken into account. At the beginning of the twentieth century, the first merchant generation began to enter life, who graduated from gymnasiums and higher educational institutions. Oppositional moods prevailed among the students there. Therefore, the merchant's offspring, having received a higher education, often acquired a skeptical and hostile attitude towards the authorities, atypical for their fathers and grandfathers, and a sympathetic attitude towards the opponents of autocracy.
Protectionism is
Taking into account all of the above, we will no longer be surprised that, despite the tsarist concern for industry, some businessmen in 1901-1905. financed opposition campaigns and supported calls to curtail autocracy. True, the stormy year of 1905 nevertheless sobered most business people. They appreciated the fact that the autocracy, fighting the revolution, was able to protect their property and security. This led to the loyalty of the majority of the bourgeoisie to the state in 1905-1909. However, the excesses of the revolution were gradually forgotten, and the tight control of the authorities in the economic sphere became increasingly irritating. Ceased to suit the bourgeoisie and the government's financial policy. Businessmen wanted to reduce the tax burden that had increased after the Russo-Japanese War and the Revolution. To be honest, it wasn't that big. About or value added tax then and never heard of. There was not even income tax. But even a small increase in taxes increased the initial cost of production, and in Russian conditions this was fraught with collapse. On the other hand, the business community demanded an increase in government spending on the renovation of the infrastructure necessary for business development (ports, communication lines). Indeed, for a private trader, these costs were unaffordable. And in response, Finance Minister Kokovtsov spoke about the need to live within our means and maintain a balance of the budget.
But when Count Kokovtsov lost his post (as well as the prime minister's chair) in 1914, this did not bring relief to the Russian capitalists. The "renewed course" of the next chairman of the Council of Ministers Goremykin and Minister of Finance Bark was expressed in an even greater strengthening of state intervention in the economy. The businessmen's cup of patience was filled with the publication of the Rules on April 18, 1914, which limited the rights of joint-stock companies to acquire land. On May 6, 1914, the newspaper "Morning of the Russian Federation", owned by the famous Moscow capitalist old believer Ryabushinsky, wrote: “We are at the limit of the possible. The impossible goes further. "
However, the representatives of the mining and light industry grumbled about it. Captains of heavy industry, as a rule, showed loyalty to the autocracy, including in the last years of its existence (during the First World War). Not surprising. Heavy industry has always been in a privileged position, especially during the World War. Naturally, during this period, heavy industry enterprises were loaded with government orders. In addition, they had priority access to energy resources, and their workers received armor from being drafted to the front.
The mining industry (primarily fuel producers) is a completely different matter. After the outbreak of the First World War, the sword of Damocles of government requisitions and state distribution of their products hung over them. The light industry also found itself in an unenviable position in the first war year. Due to government opposition, businessmen working for the "civilian market" did not receive sufficient access to production resources (fuel, raw material, which went to state military needs), nor to military orders. In addition, industrialists suffered heavy losses because of the conscription of their workers into the army. All this contributed to the growth of opposition sentiments among the captains of the light industry (mainly the Old Believers, headed by P.P. Ryabushinsky).
At the end of May 1915, Ryabushinsky's newspaper "Morning of the Russian Federation" put forward the slogan "mobilization of industry" (in fact, the transfer of all enterprises to the category of defense enterprises). This meant that workers would be attached to their factories (in other words, they would avoid being sent to the front), and businessmen would receive military orders and favorable conditions for their implementation. At the request of the leaders of the light industry in Moscow (and in particular P.P. Ryabushinsky), the question of "mobilization" was raised bluntly at the IX Congress of Industry and Trade Representatives (May 26-29, 1915) and supported by its participants.
The tsarist government went to meet the business community. Ryabushinsky's initiative to "mobilize industry" was embodied in the creation of "military-industrial committees." These were nongovernmental companies controlled by the capitalists. They distributed orders of the military department between private enterprises. For Ryabushinsky and his associates, the military-industrial committees were important not only from the point of view of their economic profit, but also as a political springboard for an attack on power. The famous Old Believer capitalist dreamed of uniting all businessmen in union to fight the autocracy. However, he did not succeed. For kings heavy industry the break with the state was disastrous. Therefore, they not only did not join the enemies of the regime, but created their own firm, loyal to the government. In February 1916, they convened the I Congress of representatives of the metalworking industry, the chairman of the Council of which was the right-wing Octobrist A.D. Protopopov. Soon he was close to the royal family, and in September 1916 he was appointed head of the Ministry of Internal Affairs.
As for the miners, in 1916 they took a neutral position. They did not make loud statements and defiantly shunned politicians. Well, and the Moscow captains of light industry in 1916 began to form an entrepreneurial business combination oppositional character. In the second half of March 1916, the manufacturers P.P. Ryabushinsky and A.I. Konovalov began mailing letters addressed to large capitalists from different cities with an invitation to join the "commercial and industrial the union».
It turned out, however, that even in Moscow many industrialists are very wary of attempts to draw them into opposition activities. This was shown by a preliminary meeting on the firm of the Trade and Industrial Union, held by the merchant S.N. Tretyakov. Most of the invited businessmen simply did not show up for the meeting. Those who came, by data police, “preferred to listen, avoiding expressing their attitude to the idea business associations", And" it was quite obvious that the political motives of this trust do not arouse much enthusiasm. " The general mood, according to the police agent, was expressed by the publisher I.D. Sytin, who said: "The commercial and industrial class is not averse to uniting, forming into a powerful all-Russian company, but he does not have the slightest desire to go along with the intelligentsia in this regard." At the same time, Sytin expressed concern that "the merger of enterprises will come to their own head, the merger of enterprises against their own interests." Speaking about the relationship between the opposition intelligentsia and businessmen, he said: "They have some tasks, we have others."
Financial vocabulary
PROTECTIONISM - (protectionism) The view that restricting international trade is a desirable policy. Its purpose may be to prevent unemployment or loss of production capacity in industries threatened by imports, to promote ... Economic Dictionary
Protectionism - (protectionism) Protection, patronage (patronage system in trade). The theory or practice of restricting trade between countries in favor of domestic producers by setting tariffs, quotas, or (most often used in our ... ... Political science. Vocabulary.
protectionism - (socio-psychological aspect) (from Lat. protectio cover) mercenary patronage provided to someone by a person or group of persons in power. P. leads to the emergence of a privileged circle of people, the cultivation of conformism, ... ... Great Psychological Encyclopedia - (protectionism) State policy that involves the use of import duties, quotas and other restrictions in order to protect national entrepreneurs from foreign competition. Before resorting to such a policy, governments ... ... Business Glossary
protectionism - patronage. Ant. obstruction Dictionary of Russian synonyms. protectionism n., number of synonyms: 1 overprotectionism (1) ... Synonym dictionary
Protectionism - - state policy aimed at supporting domestic producers by restricting imports. There are several options for pursuing protectionist policies. First, this is the introduction of import duties on goods and services. ... ... Banking Encyclopedia More We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this. OK
Protectionism
Protectionism - the policy of protecting the domestic market from foreign competition through a system of certain restrictions: import and export duties, subsidies and other measures. This policy contributes to the development of national production.
In economic theory, protectionist doctrine is the opposite of free trade doctrine - free trade, a controversy between these two doctrines that has continued since the days of Adam Smith. Protectionists criticize the doctrine of free trade in terms of growth in national production, employment and improvement in demographics. Opponents of protectionism criticize it from the standpoint of free enterprise and consumer protection.
The widespread transition to the policy of protectionism began in continental Europe at the end of the 19th century, after a protracted economic depression of the 1870s and 1880s. After that, the depression ended, and rapid industrial growth began in all countries that followed this policy. In the United States, protectionist policies were most actively pursued between the end of the Civil War (1865) and the end of World War II (1945), but implicitly continued until the late 1960s. In Western Europe, a widespread transition to a tough protectionist policy occurred at the beginning of the Great Depression (1929-1930). This policy continued until the end of the 1960s, when, in accordance with the decisions of the so-called. In the Kennedy Round, the United States and Western European countries carried out a coordinated liberalization of their foreign trade.
Views and arguments for protectionism
Protectionism is seen as a policy that stimulates economic growth in general, as well as industrial growth and the growth of the welfare of the country pursuing such a policy. The theory of protectionism claims that the greatest effect is achieved: 1) with the uniform application of import and export duties, subsidies and taxes in relation to all entities, without any exceptions; 2) with an increase in the size of duties and subsidies as the depth of processing increases and with the complete abolition of duties on imported raw materials; 3) with the continuous imposition of import duties on all goods and products, either already produced in the country, or those whose production, in principle, it makes sense to develop (as a rule, in the amount of at least 25-30%, but not at a level that is prohibitive for any competing imports); 4) upon refusal from customs taxation of imports of goods, the production of which is impossible or impractical (for example, bananas in the north of Europe).
Proponents of protectionism argue that the countries of Europe and North America were able to carry out their industrialization in the XVIII-XIX centuries. mainly due to protectionist policies. They point out that all periods of rapid industrial growth in these countries coincided with periods of protectionism, including a new leap in economic development that occurred in Western countries in the middle of the 20th century. (creation of "welfare states"). In addition, they argue, like the mercantilists of the 17th and 18th centuries, that protectionism promotes higher birth rates and faster natural population growth.
Criticism of protectionism
Critics of protectionism usually point out that customs duties increase the value of imported goods domestically, which could hurt consumers. In addition, the threat of monopolization is an important argument against protectionism: protection from external competition can help monopolists establish complete control over the internal market. An example is the rapid monopolization of industry in Germany and Russia in the late 19th - early 20th centuries, which took place in the context of their protectionist policies.
Some economists are trying to develop a neutral view of protectionism, free trade, considering their impact on the growth of national welfare through the analysis of gains and losses. In their opinion, the benefits from the application of export and import duties can be opposed to production and consumer losses arising from the distortion of the motives of behavior of both producers and consumers. However, it is also possible that the benefits from improving the terms of trade after the introduction of foreign trade taxes exceeds the losses from it. The main prerequisite for improving the terms of trade from the introduction of a duty is the country's market power, that is, the ability of one or a group of sellers (buyers) in the country to influence export prices and / or import prices.
Quotes
If England has been free-trading for 50 years in our time, then we must not forget that for 200 years there was intensified protectionism in it, the beginning of which was laid by the navigation act (1651), that it still surpasses other countries in industrial and commercial development, which grew on the basis of protectionism.
The founders of all kinds of industrial affairs receive their first goods at a higher price than enterprises that have already strengthened themselves, gained experience and paid off the initial costs, can sell them. Such matured enterprises, owning capital and credit, easily stop the beginnings of rivalry, which is reviving in other countries, reducing prices or even selling goods temporarily at a loss. A lot of well-known data testifies to this.
Articles
- W. Stolper, P. Samuelson - "Protectionism and Real Wages"
- Vladimir Popov - "China: Technology of an Economic Miracle"
- Economic protectionist policies: pros and cons
- Arguments "for" and "against" protectionism on the example of the Customs Union of Belarus, Kazakhstan and Russia
Links
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Definitions | Balance of payments · Current account (country balance) · Trade balance (country balance) · Capital account · Foreign exchange reserves · Comparative advantages · Absolute advantage · International division of labor · Import substitution · International trade (export countries · import countries ) Economic integration |
Organizations and politics in trade |
World Trade Organization International Monetary Fund World Bank International Trade Center Trade Bloc Free Trade Zone Customs Union Trade Barriers Import Quota Tariff |
Economics schools | Free Trading Net Balance Salamanca Mercantilism Protectionism |
Related Topics | Sales Globalization Outsourcing Trade Fairness and Fair Trade |
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See what "Protectionism" is in other dictionaries:
A protective duty system designed to support domestic production. Dictionary of foreign words included in the Russian language. Chudinov AN, 1910. PROTECTIONISM system of patronage. duties, i.e. high taxation of foreign ... ... Dictionary of foreign words of the Russian language
The economic policy of the state, which consists in the purposeful protection of the domestic market from the flow of foreign-made goods. It is carried out through the introduction of a set of direct and indirect restrictions on the import of customs ... ... Financial vocabulary
- (protectionism) The view that restricting international trade is a desirable policy. Its purpose may be to prevent unemployment or loss of production capacity in industries threatened by imports, to promote ... Economic Dictionary
- (protectionism) Protection, patronage (patronage system in trade). The theory or practice of restricting trade between countries in favor of domestic producers by setting tariffs, quotas, or (most often used in our ... ... Political science. Vocabulary.
protectionism - (socio-psychological aspect) (from Lat. protectio cover) mercenary patronage provided to someone by a person or group of persons in power. P. leads to the emergence of a privileged circle of people, the cultivation of conformism, ... ... Great psychological encyclopedia
1) the economic policy of the state aimed at protecting the national economy from foreign competition. It is implemented through financial incentives for domestic industry, export promotion, import restrictions. For ... ... Big Encyclopedic Dictionary
protectionism - a, m. protectionnisme m. lat. protectio protection, cover. 1. The economic policy of bourgeois countries, associated with the protection of domestic industry and agriculture from foreign competition and with the capture of foreign markets. System ... Historical Dictionary of Russian Gallicisms
Protectionism (English protectionism from Latin protectio - cover, protection, patronage) - the economic policy of the state to protect the internal market from foreign competition. In the narrow sense, protectionism is understood as a customs policy pursued in order to restrict or prevent goods of foreign origin from entering the domestic market.
In a broad sense, protectionism is provided by a system of measures aimed at protecting the interests of national producers, as well as encouraging and stimulating national production. Customs policy is only part of this system.
Protectionism is carried out by individual states or their economic associations (for example, in relation to third countries when importing agricultural products), that is, so-called collective protectionism can take place. If national production as a whole is protected from foreign competition, such a policy is called total protectionism. If it concerns certain sectors of the national economy, protectionism is called selective, or selective. A special case of the latter is agrarian protectionism.
Protectionism has a long historical tradition. It appeared in the 17th century in Europe, when nation-states, relying on the concept, sought to achieve a positive balance primarily by means of limitation. A new surge of protectionism occurred in the 19th century as a counterbalance to the supporters of free trade policies. The concept of protecting young industries was particularly popular at that time. XX century up to the 80s. marked by a clear predominance of protectionism. Until the 50s. very strong protectionism prevailed, in the 50-70s. there was a significant weakening, especially in the practice of developed countries, in the 70-80s, protectionism intensified again. In the 90s, the offensive against protectionism, associated primarily with activity, intensified.
Historically, there is a constant confrontation between the concepts and practices of protectionism, on the one hand, and free trade, on the other, as two antipodes. By weakening international competition through protectionism, the state simultaneously weakens incentives for development, lower production costs, and improved product quality. The national consumer pays more for the purchased goods. Therefore, periods of protectionism are inevitably replaced by periods of weakening or free trade.
There are several options for pursuing protectionist policies.
First, this is an introduction to goods and services. Sometimes their size can reach prohibitive values, when the import of an item becomes economically impractical.
Second, an introduction. So, in 1980, a trade agreement was concluded between Japan and the United States, which limited the number of cars imported into America.
Thirdly, the approval of standards and regulations that do not meet the products sold on the international market. An example is the Russian SES norms for poultry meat imported from the United States.
Fourth, direct government support for domestic producers. For example, in a number of European countries, farmers receive.
All measures of customs regulation serve as instruments of protectionism: tariff (customs duties) and non-tariff (licensing, quotas, “voluntary” export restrictions, sanitary, epidemiological, environmental control standards, technical standards, etc.). The role of individual protectionist instruments is currently changing dramatically. High, i.e. protectionist, customs duties, quantitative restrictions, which traditionally occupied the main place in the arsenal of open protectionism, according to WTO decisions, cannot be applied by most countries of the world (except for developing countries and countries with economies in transition) to protect certain industries. More veiled instruments of sanitary and technical control come to the fore, that is, open protectionism is replaced by indirect ones.
Protectionism is the view that restricting international trade is a desirable policy. Its purpose may be to prevent or lose productive capacity in industries threatened by imports, to promote forms of industrial development that affect the domestic distribution of income, or improve a country's terms of trade by exploiting its international monopoly position.
Some politicians use protectionist measures for their own good, while others who disapprove of protectionism continue to support it because they cannot afford to lose votes or financial support from those who demand it.
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