The Importance Of Protectionism

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From the 80s, with the end of World War II, the states initiate a restructuring process imposed by the neoliberal model, boosting thus the capitalism based on the supremacy of economic prosperity, the formation of free markets and broad productivity gains stimulated by global competition. In this new scenario, there was an effort to maximize an international economic cooperation environment by concluding international agreements to avoid again the catastrophic outcome of the end of the war (FAO, 2005).
The avid supporters of free trade believed that the opening markets and the reduction of trade barriers inevitably would result in welfare gains for all participants. Although, in the mid-nineteenth century, the liberal conception and minimal …show more content…

Protectionism, although it seems a perverse barrier to the development and equitable distribution of goods, ensures, especially in developing countries, that local products are able to compete with large productions and subsidies offered by exporting countries (Stein, 2016).
In this perspective, the market barriers imposed for agricultural products are the main reason for states provide resistance to change their national agricultural policy framework from protectionist to completely liberalize. Several debates have been raised in order to create mechanisms to protect domestic producers. This is because, especially regarding developing countries, whose technologies are not in advanced scale, cannot compete on the same level as products of developed countries (FAO, …show more content…

Adam Smith, Scottish economist who wrote the liberalism theory, stated that the wealth generation element is at potential of work without having the state as regulator and intervenor. Also, understand that state’s power should be based on the consent of citizens aimed to separate state and society, distinguish public and private, and reduce state intervention in private things. In this context, the developed countries in the world had a strong growth in the creation of agreements between them and their ex colonies (Brock,

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