As per WTO, obvious protectionism (mainly border trade barriers) has affected just over 1% of international trade. However, it does not take into account non-traditional protectionism by ways of introducing complex domestic regulations like public-procurement restrictions, subsidies, product and environmental standards, et al. Moreover, this type of regulatory protectionism is more opaque and less constrained by WTO.
Such protectionist measures would only delay recovery and deepen the crisis. With strong domestic demand and relatively sound banking systems, economies like China, India, Brazil & Russia will lead the way out of crisis. If developed nations have to heal their economies, trying to stop the ascent of the third world is definitely the wrong medicine. What will they do if these third world markets start refusing them?
Such protectionist measures would only delay recovery and deepen the crisis. With strong domestic demand and relatively sound banking systems, economies like China, India, Brazil & Russia will lead the way out of crisis. If developed nations have to heal their economies, trying to stop the ascent of the third world is definitely the wrong medicine. What will they do if these third world markets start refusing them?
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School IndiaManagement Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School IndiaManagement Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
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