THE REVENGE OF THE STATE POLICY OF PROTECTIONISM IN THE MODERN ECONOMY

Abstract

The relevance of the topic. Currently, there is a large-scale rethinking of the phenomenon of globalization and the associated openness and blurring of the borders of national states. If in the 1980s and 1990s countries competed to become part of a globalized world, now many consider their statehood as the key to economic prosperity. There is a «decline» of liberal ideas, the founder of which was A. Smith and received a «second wind» at the end of World War II. We live in an era of rethinking the benefits of globalization and the growing demand to protect the economy from foreign competition. The draft of the global single market, in which the WTO was supposed to act as an arbitrator, seems to have reached an impasse. In such circumstances, the appeal to the analysis of the theoretical foundations of protectionism and the practice of its implementation seems to be an urgent scientific problem. Goal. A systematic theoretical study of the features of the policy of state protectionism in the modern economy, taking into account new factors of its formation. Methodology. In the process of developing the research issues, the authors used dynamic, comparative analysis, synthesis, logical modeling, generalization, analogy, induction, deduction. Results and conclusions. Ideological disputes between supporters of protectionism and liberalism have been going on since the XVI century. As for the 20th century, protectionism was the world's predominant practice until the 1940s. Since 1947, when the «General Agreement on Tariffs and Trade» (GATT) was signed by 23 countries, liberal dogmas began to dominate the world. And only the financial crisis of 2008 radically changed this long-term trend (as of the end of 2018, 425 restrictive trade measures were identified in 59 countries). Subsequent events: Brexit, victory in the US presidential election, etc. Trump's Covid-19 has only reinforced the protectionist policies necessary to ensure economic growth and sovereignty. The prevailing types of protectionist policies are currently sectoral protectionism and regional protectionism. This is evidenced, in particular, by the conclusion of the Trade Agreement on the Regional Comprehensive Economic Partnership (RCEP) between China, Japan, Australia, the Philippines, South Korea, Indonesia and other countries in the Asia-Pacific region. As for sectoral protectionism, it applies primarily to agriculture and high-tech industries. Perhaps the most obvious sign indicating the transition from free market to protectionism at the regional level is the protectionist tendencies that are observed in the European Union itself, which has long been considered the main stronghold of free market ideas and neoliberal globalization and has actively advocated reducing tariff and non–tariff restrictions in world trade. Scope of application. State regulation of the economy, economic theory, international economic relations, theory of socio-economic development.