Protectionism- economic patronage of the state, manifested in the protection of the domestic market of its country from the penetration of foreign goods into it, as well as in encouraging the export of the competitiveness of goods in foreign markets.

Sets its task to stimulate the development of the national economy and its protection from foreign competition through tariff and non-tariff regulation.

In the context of the growing process of world globalization, the task of developing an adequate policy of protectionism in order to increase the competitiveness of Russian goods in the international and national markets becomes extremely important. The activation of state policy in certain areas will allow domestic enterprises to quickly and efficiently adapt to the post-crisis conditions of the global economy.

In different periods of history, the state economic policy leaned either towards trade or protectionism, never, however, taking any of the extreme forms. Wherein absolutely open economy, in the process of functioning of which, without restrictions, there would be a movement of goods, labor, technology and capital across national borders, did not have and does not have any state. 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 what is better - protectionism, which makes it possible for the national industry to develop, or ϲʙᴏ trade, which allows you to directly compare national production costs with international ones, has been the subject of a centuries-old discussion of economists and politicians. In the 1950s and 1960s, the international economy was characterized by a move away from protectionism towards increased liberalization and the expansion of foreign trade. Since the early 1970s the reverse trend was countries began to fence themselves off from each other increasingly sophisticated tariff and especially non-tariff barriers, protecting the ϲʙᴏth domestic market from foreign competition.

It is worth saying that the policy of protectionism 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 economy until they are strong enough to compete successfully with similar industries in other countries;
• taking countermeasures in the implementation of protectionist policies by trading partners.

The development of protectionist tendencies makes it possible to single out the following forms of protectionism:

• selective protectionism - protection from a specific product, or protection from a specific state;
• branch protectionism - protection of a certain industry (primarily agriculture within the framework of agrarian protectionism);
• collective protectionism - mutual protection of several countries united in an alliance;
• hidden protectionism - protection using non-customs methods, incl. methods of domestic economic policy.

Modern protectionist politics

States, pursuing a protectionist policy, use customs-tariff and non-tariff restrictions.
It is worth noting that the main task of the government in the field of international trade is help exporters export as many of their products as possible by making their products more competitive in the international market, and limit imports, reducing the competitiveness of foreign goods in the domestic market. Part of the methods of state regulation is aimed at protecting the domestic market from foreign competition and refers primarily to imports. Another group of methods ϲᴏᴏᴛʙᴇᴛϲᴛʙ specifically aims to boost exports.

The classification of tariff and non-tariff instruments of protectionism policy is presented in Table. one.

Table 1. Classification of trade policy instruments.

Methods		Trade Policy Tool	Regulate predominantly
Tariff		Customs duties
		Tariff quota
	quantitative	Quota
		Licensing
		Voluntary restrictions
		State procurements
		Content requirement
		local ingredients
		Note that technical barriers
		Taxes and fees
	financial	Export subsidies
		Export lending

In ϲᴏᴏᴛʙᴇᴛϲᴛʙii with the decision of the EurAsEC Customs Union Commission from January 1, 2010 in the Republic of Belarus, the Republic of Kazakhstan and Russian Federation a unified commodity nomenclature for 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 can block imports altogether. From here the problem of finding the optimal tariff level that ensures the maximization of national economic welfare. The average tariff rate is currently 11%. Little ϶ᴛᴏ or a lot? The weighted average level of import customs tariffs in developed countries decreased 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. At the same time, the degree of influence of the state 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. To them ᴏᴛʜᴏϲᴙt technical norms, sanitary standards, complex system currency control, public procurement, etc.

In the Concept of long-term social economic development RF until 2020 it is written: "The goal of state policy will be to create conditions for increasing the competitiveness of the economy." The tasks being solved by the government of the Russian Federation 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 opinions of international experts makes it possible to identify existing opportunities and limitations for economic growth, to look at the main problems of the country's development from different points of view.

The Global Competitiveness Index is prepared annually by the World Economic Forum based on 110 indicators. In 2010, the Russian Federation fell by 12 points compared to last year (to 63rd place), ahead of Romania, Uruguay and Kazakhstan and behind Montenegro, Turkey and Mexico. Undoubtedly, the global financial crisis has aggravated Russia's position in the global rankings. In the group of BRIC countries, our country, unfortunately, occupies the last 4th place. According to WEF estimates, Russia is in a transitional stage of development from an “efficiency driven economy” to an “innovative economy” (Table 2) in Russia, indicates unrealized opportunities in our country.

Table 2. Stages of economic development based on the global competitiveness ranking in 2009-2010

		Transitional stage 1-2		Transitional stage 2-3
Stage of economic development	Economy driven by factors		Economy driven by efficiency		An economy driven by innovation
GDP per capita (Atlas method)				$9000 — $17000
Description of the mechanism of economic development	Extensive development- exploitation natural resources and cheap labor		Intensive development— improving the efficiency of economic activity; high investment activity		Intensive development - creation of innovative products
Global Competitiveness Index, GCI Aggregate index based on key competitiveness factors
Number of countries by stage of development (133)
Country examples	India Pakistan Tanzania	Saudi Venezuela	Brazil China Ukraine	It is worth saying - Poland Russia	Switzerland Singapore

Undoubtedly, there is a relationship between the level of GDP per capita and the level of competitiveness of the country. Wherein countries with a comparable level of GDP differ significantly in terms of competitiveness. This testifies to the importance of qualitative indicators that make up this index. Conclusion: the growth of welfare and the level of competitiveness of Russia can be ensured even at the current level of per capita GDP, although qualitative indicators of competitiveness are more important.

When analyzing the qualitative characteristics of the Global Competitiveness Index (GCI) in Russia, the following critical indicators were identified: public institutions, infrastructure, the level of development of the financial market and business, technological development and innovation. Comparative analysis Russia's aggregate competitiveness indicators show that 7 out of 12 have values ​​above the global average. Russia occupies the highest place (9th out of 133) in terms of market size. The indicators of public institutions (116th place) and the level of development of the financial market (109th place) will fail. Russia's competitiveness indicators with a level above the world average have both positive and negative characteristics.

Table 3. Characteristics of Russia's competitiveness indicators that are higher than the world average.

	It is worth saying - positive characteristics	Negative characteristics
Market volume, 9
Labor Market Efficiency, 33	Labor productivity, the level of involvement of female labor, hiring and firing practices low level layoff costs	"Grey" salary scheme, stereotyping, difficulty in hiring(acquaintance reception), level / reliability of professional management
Macroeconomic stability, 37	State budget balance, low government debt (largely ϶ᴛᴏ provided by a favorable external economic environment in the commodity markets)	Inflation, wide range of interest rates on 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 workers, accessibility of specialized research services, quality of management school, accessibility of the Internet
Innovation, 57	The number of scientists and engineers, the quality of research institutes, R&D costs of companies	The use of advanced technologies at the government level, cooperation between higher education and production, opportunities for development and innovation
Health and primary education , 60	The level of impact of HIV / AIDS and malaria on business, the quality of primary education	Life expectancy, TB incidence, primary education costs, proportion of schoolchildren among children school age, infant mortality
Infrastructure, 65	Number of railway transport seats, 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 the economies of developed and even a number of developing countries. In connection with this, there is a danger that Russia may take a place in the global world economy that does not reflect its true potential, both in terms of natural resources and scientific and technical, and become 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.

Thus, the following areas are currently relevant for state policy and state support:

• Antitrust regulation. In 2009, the State Duma approved in the third reading the bills constituting the second antimonopoly package of laws. Amendments to the Federal Law "On Competition" are aimed at further protecting the national producer and developing competition in Russia, tightening sanctions for violating antitrust laws, and improving existing provisions. Antimonopoly regulation should be aimed at improving the legislation on natural monopolies, as well as at increasing the efficiency of the work 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 methods of regulation, which 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 when the potential for efficiency is exhausted by other factors, innovations will become of paramount importance for improving the standards and quality of life of the population. The innovation policy involves the creation of conditions for increasing the innovation activity of Russian companies and the share of investments directed to the introduction of qualitatively new products and technological processes.
• Support for SMEs. 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, reducing the total tax burden on business entities. In the long term (2020), tax policy is aimed at reduction of tax revenues of the budget system of the Russian Federation to 33% of GDP.

In the context of Russia's inclusion in the world economic processes, the regulatory function of the state acquires special meaning to solve problems related to the formation of a competitive environment, structural adjustment, creating conditions for economic growth and increasing the competitiveness of the national economy.

It should not be forgotten that the most important areas of protectionism should now be the increasing role of non-tariff restrictions and the selective nature of protectionist measures: it is not domestic production as a whole that is protected, but individual industries. Protectionist measures are increasingly introduced as part of a structural policy aimed at adapting national producers to ongoing changes in the global economy.

The role and importance of protectionism in modern economic conditions continue to be significant. State protective policy will allow the national economy to adapt faster and more efficiently to the conditions of the global economy.

The modern protectionist mechanism is a complex of complementary means that are constantly changing under the influence of, above all, the objective processes of development of productive forces and the interests of the main groups of domestic companies. Among protectionist means there are traditional and relatively new ones, overt and covert, more or less effective from the point of view of the international community, and most importantly, those recognized by it as permissible and inadmissible, the latter also referring to the methods of using these means.

Protectionism is a policy of protecting the domestic market from foreign competition through a system of certain restrictions. On the one hand, such a policy contributes to the development of national production. On the other hand, it can lead to the strengthening of monopolists, stagnation and a decrease in the competitiveness of the economy.

Protectionism policy (protection - protection) is the theory and practice of foreign trade regulation, aimed at protecting the subjects of the national economy from foreign competition. As a theory of foreign economic behavior, protectionism took hold in the 19th century and became the opposite of the policy of free trade.

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 subjects, 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, makes sense to develop (as a rule, at a rate of at least 25-30%, but not at a level that is prohibitive for any competing imports);
• 4) in case of refusal from customs taxation of imports of goods, the production of which is impossible or impractical (for example, bananas in the north of Europe).

The line of protectionism in the Russian customs policy can be seen from the time of the reign of Peter I and up to the beginning of the 20th century. The essence of Russian protectionism was mainly to encourage the export of Russian goods in every possible way, to impose moderate duties on imports of foreign goods not produced in the country, while goods whose production in Russia had been mastered or was already being established, to impose high duties, or generally prohibited from importation.

In a developing national economy, protectionist measures are necessary to protect only new industries that have emerged as a result of scientific and technological progress from the competition of efficient foreign firms that have been operating on the world market for quite a long time. It was under such protection that the formation and development of the national economies of modern developed countries took place.

Protectionism is actively used not only by developing countries, but also by industrialized countries to protect national producers in the face of growing competition.

During periods of serious aggravation of relations between states and increased international tension, protectionist measures are used to preserve the security of the state, which is facilitated by the production on its territory of all necessary, vital products.

IN modern conditions Protectionism exists in various forms. It can be unilateral - aimed at regulating elements of foreign trade without agreement with partners; bilateral, involving the coordination of proposed measures with partners; multilateral, when the views of many countries are taken into account in the development of trade policy.

In the 17th century there were numerous trade and customs duties and fees, which created considerable difficulties in trade, caused dissatisfaction among merchants, and gave rise to popular unrest.

Especially great dissatisfaction among the domestic merchants was caused by the predominance of foreign merchants in domestic markets, the presence of significant benefits for them. The better organized and richer Western European merchant class was a strong competitor to Russian merchants. Foreigners brought to Russia industrial enterprises, trading posts, conducted duty-free trade and had other privileges that they received under Ivan IV. Beginning in 1627, major representatives of the trading world in their collective petitions to the tsar condemned the practice of issuing preferential letters to Western Europeans and drew the attention of the government to the need to protect them from foreign competition, especially the British, in the Russian market. In addition, they asked to simplify and facilitate the customs system in the country, which varied greatly depending on the locality.

In turn, the English merchants, fearing the restriction of benefits, took retaliatory steps: they threatened to break off trade relations with Russia if duties were taken from them. However, the government rejected the demarche of the British and went to meet the wishes of the Russian merchants.

Prominent statesman and diplomat A.L. Ordin-Nashchokin, who was an active supporter of the policy of protectionism and mercantilism and well understood the importance of the development of trade and industry for Russia.

Protectionism is a system of import restrictions, when high customs duties are introduced, the import of certain products is prohibited, and other measures are used to prevent the competition of foreign products with local ones. The policy of protectionism encourages the development of domestic production capable of replacing imported goods.

Thanks to protectionism, an inflated price level is maintained for products protected by high duties. Incentives for technological progress are weakened in industries protected from foreign competition. The illegal import of goods without customs control is on the rise. In addition, the countermeasures of the trading partner countries can cause damage to the national economy that exceeds its gain from customs protection measures.

The first step towards protectionism was the Statutory Customs Charter, adopted in 1653. In accordance with it, the former fractional customs duties (washed, living room, pavement, etc.) were replaced by a single tenth duty. It amounted to 10 money per ruble, or 5% of the purchase price of the goods, and both the seller and the buyer paid it. This greatly simplified the entire system for determining and the procedure for collecting state fees from the sale and purchase and declared amounts of money. If earlier local merchants had an advantage over non-residents in the amount of duties (sometimes twice), now this practice has been abolished. Merchants became equal before the state. Within the European part of Russia, multiple collections of customs duties were canceled, having paid it once, the merchant was exempted from payment in other areas.

These provisions were confirmed in the New Trade Charter of 1667, which reflected the issues of foreign trade, which had a pronounced protectionist character. Foreign merchants were deprived of the right to duty-free trade. They paid 6% of the price of goods and 2% when leaving the border. They were allowed to trade in bulk only in Arkhangelsk and foreign cities. Retail trade within Russia to foreigners was prohibited.

The charter recommended resisting foreign merchants by organizing the storage of Russian merchants, i.e. kind of companies with joint capital. In the opinion of the government, such companies will help keep decent prices for Russian goods and protect Russian merchants from borrowing money from foreigners. The government also tried to establish the Order of Merchant Affairs - as the highest body for managing trade, but this intention remained on paper.

These measures meant the formation of not only the Russian protectionist policy, but also the transition to the formation of a mercantile system. In accordance with the new foreign trade course, high import duties were established, the export of precious metals was prohibited or limited, and the export of goods of domestic manufactories was encouraged, which contributed to the formation of a positive trade balance and the accumulation of revenue in the country's budget. The Riga merchant D. Rodes, who visited Moscow in 1653, noted: “All the regulations of this country are aimed at commerce and bargaining; everyone here, from the highest to the lowest, only thinks, only tries to make money somehow. In this respect, the Russian nation is much more active than all the others put together.

In general, the 17th century, especially the second half, was characterized by some fundamentally new aspects of entrepreneurship, its transition to a qualitatively new level associated with the emergence of early bourgeois traits. And the manifestation was the growth of small-scale and the emergence of large-scale manufacturing industries, the deepening and expansion of the social division of labor, the formation of an all-Russian market, the emergence of a new type of entrepreneur - a wealthy merchant and industrialist, who is trying to combine trade with industry and resist foreign capital. But, despite all these "sprouts of the bourgeoisie", the business class of Russia in the 17th century. did not take shape in the European "third estate" and it did not become a bourgeois country.

There are many reasons, including objective ones, for the protectionist policy of the government. Let's consider the main ones.

First, the reason for government protectionist measures may be the lack of competitiveness of domestic producers of a given country compared to producers in other countries due to uneven economic development. In a market environment, there is a need for state support and protection of some domestic suppliers from foreign ones in order to counteract the growth of unemployment and social tension, especially during the period of restructuring of production in order to increase its efficiency.

The share of 28 developed countries taken together in world GDP is almost 3.6 times, and in exports - 5 times higher than their share in the total world population.

Among developed countries, there are also differences in the ratio of the above indicators. The share of 128 developing countries taken together in world GDP and in exports, on the contrary, is much less than in the total population, almost 2 times and 4 times, respectively. This difference would be even greater if a number of countries approaching developed countries in terms of economic development are excluded from the number of developing countries. The share of China in world GDP is also almost 2 times less than in the total population, and its exports are respectively 8 times less.

Uneven development is inherent in a market economy, both for national economies in general and especially for individual sectors. Therefore, protectionism to a certain extent is an integral element of the economic policy of governments. It is important that protectionism, which is thus objectively necessary, does not become a brake on the development of the economy and the renewal of its structure.

Secondly, an integral part of the industrial policy to stimulate the development of emerging promising industries is often also a temporary restriction on the import of competing products.

Characteristically, the traditional concept of "industrialized countries" disappeared from the traditional terminology of the International Monetary Fund (IMF) in the late 1990s. The IMF reports now include the concept of "advanced economies", which, in addition to the former industrialized countries, include Hong Kong, the Republic of Korea, Singapore, Taiwan and Israel. The listed countries caught up with the leading group of powers in terms of per capita income and a number of other key economic indicators.

In fact, this restriction is fully justified, since it promotes the growth and efficiency of national production. In this way, for example, the industrial potential of Japan was successfully restored and modernized in the first post-war decades. The average level of customs duties in Japan in 1964 exceeded 16% and was higher than in other economically developed countries, both taken together (respectively 11%), and in each of them separately.

Thirdly, the periodic deterioration of the general economic situation in the country due to the cyclical development of a market economy requires the government to take measures to limit access to the domestic market for foreign goods and services in the interests of quickly overcoming the temporary reduction in demand. Therefore, protectionism tends to increase during periods of economic downturn.

Recall that in the mid-70s, the deepest and most protracted post-war economic crisis in the world broke out, accompanied by a significant increase in unemployment in developed countries. According to official data, unemployment for 1972-1976. increased (in %) in the USA from 5.6 to 7.7, Germany - 1.1 to 4.6, Great Britain - from 3.7 to 5.4, etc. As a result, the massive use of protectionist measures began: the number of countries resorting to such measures increased, the number of goods covered by the latter, and their forms became more diverse.

Fourth, episodic balance-of-payments distress calls for rapid import restraints, as does an excessive increase in the share of imports in the consumption of important commodities in terms of national security. Characteristically, the country's high level of self-sufficiency in basic foodstuffs has long been a universally recognized indicator of its foreign policy independence.

Finally, unfair commercial practices of foreign suppliers (sometimes carried out with direct or veiled financial support from the national governments of exporting countries) require anti-import measures to ensure fair competition in the domestic market.

All of the above reasons seem to justify a protectionist policy, since it is aimed at maintaining the normal functioning of the market mechanism within the country in conditions where national economies coexist and closely interact with different efficiency in the world market, when failures occur in this mechanism due to various circumstances, or when internal the market becomes an object of aggression on the part of unscrupulous entrepreneurs using budgetary funds.

An analysis of the causes of protectionist policies shows that there is no clear line between their positive and negative character. The interest of entrepreneurs in one or another trade and political course makes it possible to change it in a direction that is favorable for themselves and unfavorable for domestic consumers and foreign entrepreneurs.

All countries apply some form of import control to develop national production. Protectionism is a wide range of obstacles created by the government to change the flow of international trade. A variety of policy instruments for trade barriers, including tariffs, quotas, subsidies, have historically been used to protect domestic import-competing industries and stimulate exports. Due to economic and political reasons, extreme measures can be used by the state - a complete ban on a certain category of imported goods.

Definition and essence

Government actions and policies that restrict or deter international trade are done to protect local businesses and jobs from foreign competition. For this, typical methods are used: quotas, subsidies, tax cuts for local enterprises. Protectionism is the deliberate protection of the domestic market of one's country from the entry of goods of foreign origin into it. The main objective of such a policy is to revitalize the activity of the national economy and its further protection.

Goals of protectionism

• In the long term, provide protection to strategic industries that, if damaged, would cause irreparable damage to the country (for example, agriculture).
• Temporarily support the development of young sectors of the domestic economy until they can independently compete with similar economies in other countries.
• Implement retaliatory measures when such policies are applied by trading partners.

History of development

In the XVIII century. The policy of protectionism was the dominant doctrine recognized by the countries of Europe. At that time, economic historians identified protectionism with mercantilism, which was aimed at achieving a positive balance in foreign trade through a system of prohibitive measures. In addition, the theory of A. Smith was spreading, which ran counter to the policy of mercantilism and consisted in freeing the economy from state regulation that impeded the natural development of industries.

In contrast to the theory of free trade, by the end of the XVIII century. began to develop a policy of protectionism, which was marked by the introduction of the first tariffs on imported goods in the US Treasury Secretary A. Hamilton. At the beginning of the 19th century France staged a blockade of Great Britain, after the lifting of which English goods poured into the markets of European countries. France defended itself with duties, but the states of the German Union did not have time to do this. After German manufacturers became unable to produce competitive products, the economist F. List gave a theoretical justification for the need to pursue a policy of protectionism in countries starting the path of industrial development.

It turns out that protectionism in history is the economic theory of Friedrich List and his followers.

Development of protectionism in Russia

The policy of protectionism is aimed at protecting the domestic market of the country from the invasion of imported goods. The first manifestation of such a policy in Russia was the Trade Charter of the second Moscow Tsar of the Romanov dynasty, Alexei Mikhailovich. The essence of the document is to introduce a high duty on the business activities of foreigners. At the request of merchants in 1667, foreigners were allowed to trade, but subject to the conditions prescribed in the New Trade Charter.

The first rejection of protectionism occurred in 1857, when Russia introduced a liberal tariff that cut duties by 30%. Subsequently, the country's economy underwent a crisis that lasted until 1880. But already 10 years later, the policy of Alexander III led to a powerful rise in industry thanks to new customs tariffs.

During the reign of the Bolsheviks, foreign trade was nationalized and all transactions with imported goods were carried out by an authorized body. In addition, currency transactions - the purchase of gold, platinum, foreign currency - were carried out only by Narkomfin. Soviet protectionism is a policy aimed at the monopoly of foreign trade, which was abolished immediately with the transition of the economy to a free market.

Modern protectionism in Russia

After the liquidation of the state monopoly in foreign trade, enterprises were able to independently communicate with foreign firms and make decisions. However, the opening up of the economy, which forced domestic firms to compete with foreign goods, did not spur technology upgrades, quality improvements, and price/cost reductions. Thus, the country's trade turnover fell to 97 billion dollars in 1992 compared with 220 billion dollars in 1990, which amounted to 44%. In 1997 the situation improved (commodity turnover amounted to 139 billion dollars), but the geo-economic position of Russia did not change.

Therefore, when a country loses its position in competitiveness, conditions arise for the creation and support of industries with the ability to produce goods that can withstand competition in the domestic and foreign markets. Sensible protectionism is a necessary policy to protect the domestic producer by subsidizing investment from tariffs in weak industries.

Protective Policy Forms

The development of protectionist tendencies makes it possible to single out several forms of the state's defensive policy.

1. According to the object of protection, there are:

• selective method- aimed at protecting a specific product and / or from a specific state.
• collective method- carrying out protectionism by the united countries in relation to states that are not members of this union.
• Industry method- establishes the protection of the industry.
• Hidden protectionism- this is a form of protection of the national economy by non-tariff methods.

2. Direction measures:

• Stimulating (export).
• Restrictive (import).

3. By the nature of the instruments:

• Tariff.
• Non-tariff.
• Mixed.

Instruments of protectionism

Instruments of international trade in relation to state regulation are divided into tariff (using customs duties) and non-tariff (everything else).

Tariffs are monetary obligations imposed on producers of imported and exported goods when crossing the border. From here came such a definition as customs protectionism - this is the course of the state aimed at levying a high amount of duties on imported foreign goods on the domestic market. When using the tariff policy, there are a number of problems, one of which is finding the optimal level of customs duty. After all, by overestimating this figure, you can block imports. At present, the average tariff level in Russia is 11%.

The most popular instrument in developed countries is non-tariff regulation of foreign trade, the instruments of which can be conditionally divided into 3 types: financial, quantitative and technical.

Non-tariff methods

There are more than fifty ways of non-tariff regulation.

1. Quantitative methods:

• Quota- a limited number of goods for export and import.
• Licensing- issuance by the state of permits for the import/export of goods in a certain quantity and for a specific period.
• Voluntary export restriction- an agreement between the two countries to limit the volume of exports.

2. Technical (hidden) protectionism in the economy - these are non-customs barriers established by state and local authorities in trade relations.

• Domestic taxes, fees - payments levied on imported goods, thereby reducing their competitiveness.
• Technical barriers - requirements put forward to imported goods in accordance with national standards.
• Public procurement policy - holding tenders in favor of the choice of goods of national production, even if their cost is higher than imported analogues.
• The requirement to increase the national product in order to further replace a similar imported one.

3. Financial methods:

• A subsidy is a monetary assistance allocated by the state for the development of national producers, which sideways discriminates against imports.
• Export credit - financial support for national firms for the production and marketing of goods outside the country.
• Dumping is the promotion of goods to a foreign market by lowering export prices. This method is prohibited by international trade rules.

Non-tariff methods of protectionism are methods of foreign economic regulation of the activities of the state that are different in terms of trade policy instruments from the customs tariff impact.

State protectionism

The national economy, which covers the national economy of the country, is a subject of international relations, competing with similar subjects in the field of stability, independence and development dynamics. The representative of the national economy is the state.

Based on this, state protectionism is the protection of national economic interests arising from the relationship of the state, on the one hand, with domestic economic entities, and external agents, on the other. The goal is to create favorable conditions for national reproduction, improve and strengthen the position of the state in the global economic system, and ensure independent economic development.

The policy of protectionism is the economic policy of the state, directed to the realization of national interests.

Advantages

What is better - free trade, which develops on its own (without the intervention of outside forces) and identifies industries that can compete, or a policy of protectionism?

Benefits of a protectionist policy:

• The fight against unemployment. When consuming inexpensive imported goods, there is no need to produce something, as a result, there is a reduction in jobs, an increase in unemployment and, accordingly, payments from the budget, which affects the decline in living standards.
• Duties, fees, taxes- additional sources of filling the budget.
• Assistance in the development and establishment of a new industry that is dynamically developing in other countries. A temporary disadvantage is higher prices in the domestic market to support the domestic producer.
• Ensuring national security.

disadvantages

There are also disadvantages of the policy of protectionism:

• Possibility of development of internal monopolies.
• Deceleration of economic growth, when the state redistributes resources from productive industries in favor of those that are not efficient enough to meet the needs of the domestic market.
• Rising prices due to tariffs on imported products and the possibility of forming a national monopoly that is interested in high prices.
• Trade wars.

In any case, a properly built protectionist policy is aimed at developing a domestic industry with high productivity and low prices for its country.

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

What is protectionism?

This is the name of the economic patronage of the state, which is manifested in the fact that the domestic market of one's country is protected from the import of foreign goods into it. Exports are also encouraged by increasing the competitiveness of products in foreign markets. With a competent policy, this translates into economic growth.

But state protectionism also has a negative side. Its significance in the economy can be reversed if you unceremoniously pull the blanket over yourself, as this will cause responses from other countries.

Why is there a policy of protectionism?

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

What does history tell us?

In different periods, state formations constantly changed their directions of economic policy. They moved now and then towards protectionism. True, not a single state has ever taken a radical form anywhere. So, it is absolutely necessary that there be a movement of goods, technologies, capital and labor without any restrictions. And this state of affairs has its own nuances, because of which nothing like this was organized. Therefore, absolute state protectionism is something out of the realm of fantasy. Now any government regulates the circulation of resources in its country. Despite the fact that the declaration of the openness of the economy is widespread, in fact, this is how they cover up the rather cunning protectionism of state economic interests.

Dilemma

A significant theoretical challenge is the choice: what is better - protectionism or free trade. Thus, the advantages of the first are that it allows the development of national industry. Free Trade boasts of comparing national costs with international ones. And there is no end in sight to the discussion about what is better.

If we consider the development of this dilemma, it is worth noting that until the early 70s of the last century, the countries of the world gradually switched to support free trade and increased liberalization. But since then, the trend has been reversed. Thus, states fence themselves off from others with the help of sophisticated tariffs and various barriers, protecting their economies from foreign competition.

Types of protection

What, then, are the various states setting as their goals, turning in the direction of protectionism? The features allow you to judge the types of protection. There are two of them in total:

1. Permanent protection. It is used to protect sectors from foreign competition that are of strategic importance for the domestic economy (agriculture, the military industry), and is of significant importance in critical situations (for example, war).
2. Temporary protection. Used to fence off newly established industries until they are stable enough to compete successfully with similar areas in other states.

Appropriate measures can also be taken if trading partners have introduced certain protectionist restrictions on their part. Explicit state protectionism is a measure that almost always entails a backlash. Propaganda to buy domestic products without activating any restrictions can become a kind of way out.

Forms of protectionism

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

1. selective protectionism. It implies protection from a specific product/state.
2. Industry protectionism. This includes the protection of a certain area of ​​economic life (for example, agriculture).
3. collective protectionism. This is understood as the mutual protection of several countries that have united in an alliance.
4. covert protectionism. It is understood as protection, during which non-customs methods are used, including those that stimulate domestic producers.

Modern protectionism

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

Speaking about tariff restrictions, it should be said that there are only quotas. This is all that relates to measures of state protectionism and is not hidden by anyone. All of them are focused on regulating imports. But non-tariff restrictions also belong to measures of state protectionism. It is understood as quotas, licensing, public procurement, various requirements for the presence of local components, technical fees, taxes and fees for non-residents, dumping, subsidies and export credits. This implies measures of state protectionism. A number of less important components also belong to them, but due to the rarity of use and specificity, they will be omitted within the framework of this article. By the way, we can say that the measures of state protectionism include the imposition of sanctions against other countries. But this is a specific issue, on which there is no consensus yet.

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

As for customs and tariff regulation, it should be noted that new technologies are being introduced, which allow for improved administration and monitoring of the state of affairs. In the non-tariff field, there is an increase in the use of specific methods within the framework of management. At the same time, there is an orientation towards the export of high-tech services, goods and technologies.

In the long term, innovative development is important. Especially its importance grows with the gradual exhaustion of the potential for the effectiveness of other factors. should involve the creation of conditions under which developing activity and the share of investments will grow, which is aimed at introducing new quality products and technological processes. Ultimately, this will be of exceptional importance in terms of improving the quality of life of the population.

Important to meet the needs of people is the support of small and medium-sized businesses. Here you can work on reducing the number of administrative barriers, simplifying documentary processes (registration and closing of an enterprise), reducing the list of activities that require a license. Ultimately, it is necessary to strive to create an investment-attractive environment. Not least by reducing the total tax burden on business entities. So far, it cannot be said that this aspect belongs to measures of state protectionism.