Shun Dev’t-inhibiting Protectionism

Commentary

The malaise that caught the global economy for years now with the dwindling performance of commodity products, especially the free fall in crude oil prices on the world market, is yet to subside. In the heat of it, several countries are devising and adopting diverse salvaging measures to keep their economies at least afloat.

As good as some of these strategies may look for the countries at first sight, the long-run consequences on them, talk less of even the immediate impact on the rest of the world with whom the concerned countries irrefutably need to live, can be devastating.

More so in a world where “give and take” is irresistible! We are talking here about trade protectionism which some countries feel could shelter their economies from others so that they keep what they feel they have without any fear of encroachment or better still, rationing. Countries adopting the policy feel that limiting competition from foreign industries, as the policy implies, may keep their economies buoyant.

This may yield desired fruits, at least in the short run, given that the policy raises the prices of imported goods and makes them less competitive to those locally-produced. Success is undeniably recorded largely by countries whose exports surpass imports. What they have failed to understand however is the fact that when they go alone, they might have the impression that they are faster, but with others, they have the propensity to go farthest.

Little wonder President Paul Biya in an address to diplomats accredited to Yaounde during his New Year Wishes ceremony on January 4, 2018 castigated increasing trade protectionism and isolation as counter-productive for much-sought global development. Mr Biya told the world, through the different Ambassadors, High Commissioners, Chargés d’Affaires and Representatives of International Organisations who thronged the State House to wish him well in 2018, that in the face of difficult global economic nomenclature characterized by growing inequality that obviously ignites populism and nationalism, some countries, especially developed ones, are opting for solitude.

“These phenomena, which can be observed especially in some developed countries, have led to the protectionist and isolationist tendencies that have been gaining ground for some time now. It is obvious that if such phenomena become more widespread, we may witness a veritable regression of trade, with all its attendant negative effects on both developed and developing countries” he said. Objectively, adopting such a stand may be unconsciously inviting nefarious effects in the long run.

This, as such economies will see their local industries distanced from productivity-enhancing competitiveness. To quote the Holy Book which posits that, “Like iron s...