Protectionist measures: what are they?

For the prosperity of the state and its economy, it is necessary to take care 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 we will consider in the framework of this article.

What is protectionism?

This is the name of economic patronage from the state, aimed at the producer in the country. It manifests itself in the fencing of the economic sector from competition with foreign goods. Also, the export of its competitive products to the foreign market is encouraged. Measures of protectionist policy are aimed at the development of the national economy and its protection 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 the support of strategic industries (such as agriculture), with weakness of which the country would be vulnerable in the conditions of war.
2. Temporary protection. Used to support industries that were recently created, and who need time to grow stronger and compete with the world's counterparts.
3. Response measures. Applied 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 particular product or from a specific state.
2. Industry protectionism. This is called the protection of a certain sector of the economic sector (for example, it may be the same farming).
3. Collective protectionism. This is how the mutual protection of several countries is called, that they have united in an alliance.
4. Hidden protectionism. This is protection, during which non-customs methods are applied (stimulation of the country's economy and so on).

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 the world is very close to them or even the same with them (depending on the country). So, it is applied:

1. Antitrust regulation. Protectionist measures in this case imply 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, and a mechanism for preventing unit creation of this situation operates. The main body that deals with the implementation of these provisions is the FAS Russia.
2. Customs and tariff regulation. Protectionist measures in this case are of a double nature. So, implying the establishment of restrictions on the import of goods of a certain type (such as metallurgical products, chemical and other) is customs regulation. Also, all imported products are subject to a duty, which is charged at a certain rate. Thus, it becomes more expensive, and domestic goods are easier to compete with it.
3. Non-tariff regulation. This includes various measures that are taken within the framework 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 such actions.
4. Stimulation of innovative development. In the long term, the potential for the effectiveness of other factors will be exhausted. To improve quality and standards of living, useful innovations are needed. Therefore, a policy is being pursued to increase the activity of the development of advanced technologies. It also stimulates an increase in the share of investments, which are aimed at introducing qualitatively new products. Companies that do this receive a wide range of support.
5. Support for small and medium-sized businesses. It is expressed in the gradual reduction of the number of administrative barriers, simplification of the registration of an enterprise and the conduct of business with the state.
6. Creating an attractive environment for investment. Here the state has gone on the way of reducing the aggregate tax burden that is imposed on business entities. By 2020, the level of taxes in the budget system of the Russian Federation is lowered to 33 percent of the level of the gross domestic product.

It should be noted that the main attention in the article was paid to the Russian Federation. But other states of the world act in a similar way.