Protectionism in Russia has been a topic of debate for many years. The country has a long history of protectionist policies, which have been used to promote local industries and protect them from foreign competition. However, recent years have seen a shift towards more liberal economic policies, including greater openness to foreign investment and trade.
On the one hand, protectionism has been used to promote local industries and protect them from foreign competition. The most famous example of this was the import substitution policy pursued by the Soviet Union in the 1930s and 1940s. This policy aimed to replace imports with domestically produced goods, and it was successful in developing a number of industries, particularly heavy industry.
More recently, the Russian government has used protectionist measures to protect the domestic automotive industry. In 2013, the government introduced a scrappage scheme, which provided incentives for car owners to trade in their old vehicles and buy new ones. The scheme significantly boosted domestic car sales, but it was criticized by foreign car manufacturers, who argued that it distorted the market and discriminated against foreign competitors.
On the other hand, protectionism has also been criticized for being inefficient and damaging to the wider economy. Protectionist policies are often used to shield inefficient industries from competition, which can lead to higher prices and reduced innovation. This is particularly true in the case of import substitution policies, which can result in the production of inferior goods that are unable to compete on the international market.
Furthermore, protectionist policies can also lead to retaliation from other countries, with tariffs and trade barriers levied against Russian exports. This can lead to reduced trade and investment, which can have knock-on effects for the wider economy.
In recent years, the Russian government has moved towards a more liberal economic policy, with greater openness to foreign investment and trade. This has included joining the World Trade Organization (WTO) in 2012, which has led to the gradual reduction of tariffs and trade barriers.
However, concerns remain about the extent to which the government is committed to liberal economic policies. Some critics argue that the government has used non-tariff barriers, such as regulations and technical standards, to restrict foreign competition in certain industries. This can make it harder for foreign companies to compete with domestic firms, and can limit the benefits of liberalization.
Another concern is the country's reliance on natural resource exports, particularly oil and gas. While the liberalization of the economy has helped to diversify exports, analysts argue that the economy remains too dependent on these resources. This can make the economy vulnerable to fluctuations in global commodity prices, and could limit growth in the long-term.
In conclusion, protectionism in Russia has a mixed record. While it has been successful in promoting certain industries and protecting them from foreign competition, it has also been criticized for being inefficient and damaging to the wider economy. The government's recent move towards liberalization is a positive step, but concerns remain about the extent to which the country is committed to open markets. In the long-term, the government will need to balance its desire to protect domestic industries with the need to promote innovation, competitiveness, and growth.