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I am trying to grasp what you are saying. I live in a developing country and I exactly know what you mean. Protectionism sends shivers down the spines of policy
by rushabh 14y ago
I am trying to grasp what you are saying. I live in a developing country and I exactly know what you mean. Protectionism sends shivers down the spines of policymakers in developing countries. My country (India) has seen great progress in the last ten years thanks to relaxed trade and red-tape.
I am writing this on an Apple laptop. I love this machine and it is reasonably affordable for me. There is no incentive for an Indian company to ever produce a good laptop. Even worse is that there is never going to be an ecosystem in India that will work on complex engineering problems that go into making such a machine.
So while I enjoy as a consumer, I am only adding to the imbalance. It is not only for engineering products. China has become the producer for many simpler products that could have been made in India. I chose to become an entrepreneur and maybe will try and fix a miniscule part that imbalance some day, but I am not sure how many will. Are Indian producers better off because of China? I don't know.
For many decades, my country has been running a trade deficit at the cost of inflation. It all seems fine so far, but there is something surely wrong here. China has been doing the opposite, they have decided to become super producers, which is never possible in India because of the complex decision making.
In the ideal scenario, there must be a balance between global and local. It cannot be all global and no local (or the other way round), which is often a matter of perception. Globalization + technology has led to concentration of capital and the the playing field is not level. I still feel people everywhere must try and level the field.