Re:RCEP, the world’s biggest trade agreement
by simonh on Monday November 16, 2020 @03:29AM
(#25109410)
I do understand and sympathise, genuinely, but I think this approach is what has held India back for the last few generations. Just look at the speed with which China has modernised over the last 30 years in comparison. Protectionism freezes an economy and society in place.
Yes this policy helps some rural families, but it also condemns all the other rural families to getting only variable quality, intermittently available, expensive dairy products. Every protectionist support for a local industry imposes a cost on everyone else, to the point where everyone benefits a bit from protection, but also pays costs on all the goods and services they themselves consume. It may even be sustainable, but only at the price of sacrificing the chance of a better future.
Change is painful, no doubt about it, but opening up to international markets can also mean opening up to international investment, technical skills and partnerships. It needs to be coordinated and there should also be transition plans to mitigate some of the pain. I do believe it’s for the best though.
Yes this policy helps some rural families, but it also condemns all the other rural families to getting only variable quality, intermittently available, expensive dairy products. Every protectionist support for a local industry imposes a cost on everyone else, to the point where everyone benefits a bit from protection, but also pays costs on all the goods and services they themselves consume. It may even be sustainable, but only at the price of sacrificing the chance of a better future.
Change is painful, no doubt about it, but opening up to international markets can also mean opening up to international investment, technical skills and partnerships. It needs to be coordinated and there should also be transition plans to mitigate some of the pain. I do believe it’s for the best though.