Import substitution and trade protectionism are tools or strategies that have beenadopted by many a country to promote economic growth and development whenindependence is gained. Countries like Ghana, China, India, Malaysia and many other countries have all used these tools or strategy in one way or the other for their economic growth.To appreciate the strategy being adopted by Dr. Beyeebi and to support it or not, itwould be advisable to understand what import substitution and trade protectionism are,the benefit to be derived if the economy is closed or restricted and the benefitinternational trade provides which will be absent if trade is restricted.
Import substitution is the strategy of encouraging domestic industry by limiting importsof manufactured goods. In economics, an import is any good (e.g. a commodity) or service brought into one country from another country in a legitimate fashion, typicallyfor use in trade. Import goods or services are provided to domestic consumers byforeign producers. The strategy is inward oriented in that trade and industrial incentivesfavor production for the domestic market over the export market An import in thereceiving country is an export to the sending country. If a country practices importsubstitution, then the country is restricting free trade of certain goods and services. Freetrade refers to the trade that is free from all artificial barriers to trade like tariffs,quantitative restrictions, exchange controls, etc.
A process of socio-economic change whereby a human group is transformed from apre-industrial society into an industrial one. A part of a wider modernization process,where social change and economic development are closely related with technologicalinnovation, particularly with the development of large scale energy and metallurgyproduction
Protection refers to the government policy of according protection to the domesticindustries from foreign competition. Any form of restriction imposed on internationaltrade, especially the importation of goods, eg tariffs, quotas, exchange control, etc
The action by the president
The import substitution and trade protectionism drive embarked on by the president Dr.Yebeyebi has both advantages and disadvantages for the country and the citizenry. Asalready explained above, import substitution is encouraging domestic industry bylimiting imports of manufactured goods. Import Substitution involves extensive use of trade barriers to protect domestic industries from import competition. There are a lot of benefits to be derived from such a policy drive.In the first place the policy can assist the president and the country to protect infantindustries. According to Alexander Hamilton and Frederick List a new industry having a