Protectionism and free trade correlation at the turn of the centuries

Abstract

The article studies the theory and practice of using the most important categories of state regulation of foreign trade – protectionism and free trade. That rational regulation in foreign trade policy can lead to the development of nation economies. The study considers historical aspects of the relevance of protectionism and free trade for different countries and their correlation under the influence of technological progress; underlines the urgency of the protectionism at the present stage of development of the world economy. Such a topicality of protectionism is caused by new phenomena in geopolitics and geo-economics that occurred at the turn of the century. The authors agree with the point of view that has been voiced in the past (by Friedrich Liszt), that free trade is an effective policy for developed countries. For those who do not have a highly developed industrial sector, elements of protectionism to protect the domestic economy remain extremely relevant. The policy that is imposed on the underdeveloped countries by the "Washington Consensus" pattern condemns the latter to a permanent lag. The ideas of protectionism remain topical for post-Soviet countries, where deindustrialization occurred during the quarter of a century, the share of the manufacturing sector in the structure of the national economy dropped sharply, and economic growth rates fell.