The New Protectionism

How Yesterday's Problems Hinder Today's Efficiency

One of the biggest obstacles to increasing efficiency is yesterday's problems that narrow our vision. The diminishing role of industrial production as a source of wealth and jobs will inevitably lead to the emergence of new protectionism. The first reaction during periods of rapid change is to attempt to build walls that can protect one's own garden from the cold external winds. However, such walls can no longer protect the structure if its activities do not meet global standards. In this case, attempting to build a wall makes the company even more vulnerable.\n\nThe most striking example is Mexico, which from 1929 for 50 years tried to make its internal economy independent from the outside world. It did this not only by building high walls of protectionism but also – the unique Mexican experience! – by prohibiting the export of domestic companies' products. This attempt to create a modern but purely Mexican economy failed miserably. The country increasingly depended on the import of food and industrial products. Eventually, Mexico had to open up to the outside world simply because it had nothing to pay for imports. Soon the country discovered that a significant part of its enterprises was unviable.\n\n**TIP OF THE DAY**\nDoes the reduction in manufacturing jobs threaten your country's industrial base? Why is it so difficult to accept that the level of development of society and the economy in developed countries is no longer determined by physical labor?"

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