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Showing posts with the label protectionism

The Infant Industry Argument And Its Relevance For Industrial Policy In The European Union

Volkswagen plant in Wolfsburg, Germany (photo by VW_Werk_Altes_Heizkraftwerk.jpg: Richard Bartz derivative work: Diliff via Wikimedia Commons) A white paper released by the British government in 2017 described the United Kingdom as an " open, liberal market economy ", whose foundation lies in "the power of the competitive market - competition, open financial markets, and the profit motive". Despite recognizing the government's "strategic power and leadership role" in developing and disseminating technologies and industries, the white paper rejected protectionism and equated industrial policy mostly with Research and Development (R&D), education and infrastructure. Nowadays there is a widespread belief that countries develop because of "free market" . Therefore, economically poorer regions, such as Greece, southern Italy or Portugal, are responsible for their own poverty, either because of their cultural shortcomings, ...