Thanks to sanctions, Russia has a chance to economic miracle

A photo from open sources How different countries of the world used the abandonment import to develop their economy. Liberal economists for a long time we were taught: they say, in modern conditions, every country in the world should choose a specialization. Do you have any oil? So sell it. Not oil? Then spin, like the Japanese, develop technology. Also good thing. And buy the rest from foreign partners. After all, the international division of labor. But the current conflict between Russia and the West forced to review these “elementary truths” washington advisers. Moreover, developed countries around in the world and in all centuries, they preferred their own to an imported product, native.

FOLLOW NOT THE COUNCIL OF AMERICANS, AND THEIR EXAMPLE

This is now the World Trade Organization, to which we recently entered, gives out as a dogma that countries should trade with friend without any barriers. Like, this will lead to universal prosperity. Dogma used to be different. And it was they who allowed Western countries become developed.

“The most striking example is the American,” the doctor says. Economic Sciences Nikita Krichevsky. – At the end of the XVIII century, immediately after the declaration of independence of the United States, put a barrier to supply industrial products from the UK. Chapter one did it US Treasury Alexander Hamilton. Such protectionism lasted 150 years – until the middle of the twentieth century.

According to experts, this element of trade policy was one of the key components of the American economic miracle. And then The US has convinced the rest of the world that protectionism is evil. And apply trade barriers only to your own economy harm. Like, if you are a raw materials appendage, you will not live worse than countries developing high technology.

“Internationally, standard economic science proves that an imaginary nation of shoe cleaners and dishwashers can equal welfare to a nation composed of lawyers and exchange brokers, “- writes in the book” How rich countries became rich and why the poor remain poor “Norwegian economist Eric Reinert.

By the way, in the arsenal of Hamilton there were such measures as a ban import from unfriendly countries; export ban strategically important raw materials, subsidies and tax incentives to local producers. Doesn’t resemble anything?

Moreover, during the recent crisis, the US actively helped business. In February 2009, Congress passed a law on financial aid of $ 787 billion. Money was allocated to those projects that used products made only in America.

“Today’s Chicago economists to justify globalization and politics of world financial organizations broadcast to the world: state should not interfere with the economy, ”writes Eric Reinert. – Wherein US Small Business Administration Spends $ 20 Each Year billion to support private companies. A World Bank and IMF continue to impose conditions on poor countries establish similar institutions. It turns out, noble economic rhetoric is only suitable for export, and for “internal use” are taken completely different, pragmatic principles. ”

Therefore, the scientist concludes, the American aphorism of the 1820s “Follow not the advice of the British, but their example” today may sound like this: “Follow not the advice of the Americans, but their example.”

Dmitry POLUKHINPhotos from open sources

Photo: Dmitry POLUKHIN

BRITISH TARIFF WALL

The essence of protectionism and import substitution is that early stage of development of industries to protect them from excessive competition with parties of foreign corporations. Do not put the 15-year-old boy on one ring with Mike Tyson ?! And if you put it, then only with that the condition that the latter will be blindfolded eyes and legs. In economics various trade barriers and non-tariff play this role regulation, i.e. subsidies.

“If Britain had its own unique path of industrialization, then it was determined by a system in which excises and tariff wall “, – writes in his book” Trade, production and consumption in England in the years 1640-1845 “British economist William Ashworth.

Competition with imported goods is good. But first conditions for domestic products should be greenhouse. To Do not kill the industry in the bud. That’s why the tariff wall is being built, which prevents foreign corporations from taking over domestic market.

By the way, the ubiquitous transition to protectionist politics began in Europe after the protracted depression of the 1870s and 1880s. After that in all countries that have pursued this policy have begun fast industrial growth. The next phase lasted from the 1930s to the 1960s years. And only after that Europe and the USA mutually liberalized own economies. Then free trade began to bring their fruits.

Nevertheless, the developed countries of the Old World still help. their flagship industries. Europe relies on rural household. Significant subsidies receive Airbus, whose planes compete with the Boeing and are sold worldwide. AND finally, the main European import substitution project – alternative energy. In Europe they sleep and see to get rid depending on Russian hydrocarbons. Another thing these attempts have so far failed. Share of wind and solar energy, although growing, but too slowly. Yes, and kilowatt hours on the output is extremely expensive, even considering the generous state subsidies.

COPY AND DEVELOP

Under the hegemony of Europe and the United States, developing countries in Asia and Latin America had a harder time. Yankee practically succeeded ruin the industry of their southern neighbors. Asian countries with they were able to obtain for themselves the characteristic cunning benefit.

So, South Korea was actively engaged in the 1950s-1960s. import substitution. The country began to create production missing goods and sharply increased import duties on both food and industrial products. Then when the chaebols (local corporations. – Ed.) strengthened, tariffs fell. The nuance is that at the first stage, Koreans actively attracted foreign technology. And also initially focused on the foreign market. Then there is most of the products sent for export. – Chinese and Koreans started by emulating, that is, at first they simply copied successful samples, says Nikita Krichevsky. – Actually, by almost all successfully developing countries followed this path. A then they began to establish their own production.

By the way, export orientation is a very important point. It is provides resources for the purchase of other, more modern technologies. AND continue to develop further. For example, after the Second World War Japan launched the slogan “Export or death.” Politics was plain. Each yen earned on the foreign market was invested in purchase of new technologies from developed countries. On luxury consumer goods in the Japanese didn’t spend those days. Hence the economic miracle, based on technology development, total quality management and rationalization, not export of raw materials.

TOTAL

The Russian government in response to sanctions headed for import substitution. The idea is good. But the main thing here is not overdo.

– The meaning of import substitution is to help your industry to enter the world market, and not close for them domestic market, says the head of the Research Center post-industrial society Vladislav Inozemtsev. – Then entrepreneurs will be forced to maintain a high level quality.

According to experts, producing teapots and woolen socks is a matter of good one. But priority must be given to those industries that are associated with high technology. A good example is the auto industry. In the 2000s with with the help of barrage duties we convinced foreign companies build production in our territory.

“The same thing can be done in agriculture,” continues Foreigners. – Well, we banned the import of Polish apples. So let Polish farmers come to us and grow them here. We will give them land for long term rent. Foreigners will come, and we will be with them to study. All countries do this. TVs in the country already we collect, we produce household chemicals, the food industry developing at the expense of foreigners. And all this is import substitution.

According to the expert, the production created in Russia should focus on the global market. In other words, you have to convince foreigners to place factories not in Romania and Turkey, but in Russia.

And finally, import substitution in the current conditions is not a replacement some suppliers (from Europe) to others (from Asia). And not only invitation of foreigners inland. With tariffs and subsidies It is necessary to help domestic manufacturers. So that they can take significant market share.

Plus, under the conditions of sanctions, it makes sense to develop potentially profitable industries.

“We always think that we need to produce something,” says Nikita Krichevsky. – But the modern economy is 60% a sphere services. For example, Turkey itself receives huge revenues from the sphere tourism. We have every chance to repeat this success. With our vast territories. Potential for development here giant. Support domestic production.

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