“ Protectionism is the institutionalization of economic failure” quoted Edward Heath.

However, the arguments in favor for protectionism far outweighs the disadvantages.

Protectionism refers to government policies that restrict international trade to help domestic

industries. Governments implement protectionist policies to improve economic activity

within a local economy, however, they can also be implemented for safety or quality

concerns. Employment, food security, enabling a developing economy to diversify, and infant

industries are all the reasons governments will implement protectionist policies.

Governments would implement protectionary measures to protect the domestic

economy. Protectionist policies act as an encouragement for domestic investment within the

local economy. Protectionist measures reduce the level of imports and increase the total

amount of demand for the finished goods and services that are produced in an economy thus

resulting in a higher level of national output and employment.

Governments that are concerned about their local food supply situation would impose

protectionary policies so that the local farmers can operate a profitable business which will

allow for a lower level of dependence on foreign food imports. It is for this reason that eating

and growing locally is encouraged. For example, high tariffs on the imports of corn flakes

would encourage domestic producers or individuals involved in the growing and harvesting

of corn to invest more resources in cornflake production.

Infant industries require government subsidies and strong protectionist laws to

safeguard them from the competition of well-established firms in the international market.

Governments recognize that they are nascent and will do everything in their power to defend

them from fierce competitors which will allow them to thrive and develop potential.

Moreover, many developing economies, like ours, for example, are heavily dependent on
international trade and imports. This can lead to exposure to international commodity prices.

If a government intends to diversify its revenue streams through the export of locally made

products, it will become necessary to shield new industries from the exposure of international

competition indefinitely.

There are different measures of protection that economies use to guard the local

economy. The most common protectionist policies that are implemented by governments

include but are not limited to tariffs, quotas, subsidies, embargoes, and standardization.

Tariffs are the taxes and duties that are imposed on imports. The use of tariffs increases the

prices of imported goods thus making the demand for them smaller. Quotas are the

restrictions on the number of products that are allowed to enter an economy over some time.

If there is a hindrance to the supply of imports, this can increase goods further reducing the

demand in the domestic market.

Standardization is the restriction which deals with the quality of goods that are

allowed to enter a country. Governments when implementing protectionary policies may

require that all imported products meet a certain criterion. These measures tend to reduce

foreign products in a market.

Although the arguments for protectionism are sound and well-intentioned, it must be

noted that there are disadvantages that come with it. The stagnation of technological

advancements, limited choices for consumers, increase in prices due to the lack of

competition, and economic isolation. While domestic producers do not have the concern that

is foreign competition, they do not have the motivation to invest in the research and

development of new products. Additionally, consumers' access to goods in the local market is

limited due to the restrictions on imports. Consumers are disadvantaged in that they will have

to spend more on products without any significant product improvements.

 As with everything, protectionism has its pros and cons, but in a developing

economy’s context, the benefit for its use is justified. It provides for commerce and trade to

transpire within the local economy. The other alternative would be to import products thus

shutting out the local producers in the economy.