Protectionist measures: what are they?

For the prosperity of the state and its economy, it is necessary to ensure that there are appropriate conditions for development. They can either arise during the planned development of mankind, or be created separately. Here is the last aspect that we will consider in the framework of this article.

What is protectionism?

This is the name of economic patronage by the state, aimed at the producer within the country. It manifests itself in protecting the business sector from competition with foreign goods. It also promotes the export of its competitive products to the foreign market. Protectionist policies are aimed at developing the national economy and protecting it through tariff / non-tariff regulation. The main opposing philosophy is the “free market”.

What is protectionism?

There are such forms:

1. Real-time protection. It implies support for strategic sectors (such as agriculture), with the weaknesses of which the country would be vulnerable in a war.
2. Temporary protection. It is used to support industries that were recently created, and which need time to grow stronger and compete with world analogues.
3. Response measures. Applicable if trading partners introduce certain restrictions first.

Types of Protectionism

Depending on the development of trends, these types are distinguished:

1. Selective protectionism. It means protection from a specific product or from a particular state.
2. Sectoral protectionism. This is the name given to the protection of a certain sphere of the economic sector (for example, it may be the same agriculture).
3. Collective protectionism. This is the name for the mutual protection of several countries that have united in an alliance.
4. Hidden protectionism. This is a defense during which non-customs methods are applied (stimulating the country's economy, etc.).
   

Protectionist measures in Russia and the rest of the world

What tools are used to protect domestic industries? Russian protectionist measures will be considered, but it should be noted that world ones are very close to them or even identical with them (it depends on the country). So it applies:

1. Antitrust regulation. In this case, protectionist measures include a focus on protecting the national producer, as well as creating a competitive environment. Here, within the framework of interest, there is regulation of natural monopolies, as well as a mechanism for preventing the piece-wise creation of this situation. The main body that implements these provisions is the FAS RF.
2. Customs and tariff regulation. In this case, protectionist measures are of a dual nature. So, they imply restrictions on the import of certain types of goods (such as metallurgical products, chemicals and others) - this is customs regulation. Also, all imported products are subject to a duty, which is charged at a certain tariff. Thus, it becomes more expensive, and it is easier for domestic goods to compete with it.
3. Non-tariff regulation. This includes various measures that are taken as part of administrative regulation. Here protectionism can be expressed in the help of exporting high-tech products (agreements at the level of national governments, holding exhibitions), creating bureaucratic barriers for importers and other similar actions.
   
4. Stimulating innovative development. In the long run, the effectiveness potential of other factors will be exhausted. Useful innovations are needed to improve quality and standards of living. Therefore, a policy is being pursued to increase the activity of developing advanced technologies. It also stimulates an increase in the share of investments that are aimed at introducing qualitatively new products. The companies that do this receive a wide range of support.
5. Support for small and medium-sized businesses. It is expressed in a gradual reduction in the number of administrative barriers, simplification of enterprise registration and business with the state.
6. Creating an attractive environment for investment. Here, the state has taken the path of reducing the total tax burden that is placed on entrepreneurial entities. By 2020, it is planned to lower taxes in the budget system of the Russian Federation to 33 percent of the gross domestic product.
   

It should be noted that the main focus of the article was on the Russian Federation. But similarly, other states of the world act.