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The Risk of Protectionism: What Can Be Lost?

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  • Marek Dabrowski

    (CASE—Center for Social and Economic Research, 00-165 Warsaw, Poland
    Bruegel, 1210 Brussels, Belgium
    Department of Public Policy, Central European University, A-1100 Vienna, Austria)

Abstract

The increasing wave of protectionism in various corners of the world with the use of seemingly attractive but economically misleading slogans (shortening supply chains, onshoring, reshoring, nearshoring, friend-shoring, reindustrialization, and ending/correcting ‘hyperglobalization’, etc.) creates a serious challenge to the global trading system and global economic development. Trade and financial transactions have also become victims of the increasing number of geopolitical conflicts and tensions, both ‘hot’ and ‘cold’. Before it becomes too late, i.e., before the current trade tensions go too far and create the hardly reversible spiral of trade and financial wars, retaliations, etc., it is desirable to reflect on what can be lost due to protectionism. This essay analyzes four areas that have benefited from global economic integration since the 1980s (economic growth, poverty eradication, reduction in global economic inequalities, and disinflation) and may suffer from its reversal. It also discusses potential remedies that may help stop a protectionist drift.

Suggested Citation

  • Marek Dabrowski, 2024. "The Risk of Protectionism: What Can Be Lost?," JRFM, MDPI, vol. 17(8), pages 1-24, August.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:8:p:374-:d:1460512
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    References listed on IDEAS

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