How it's painting the global economic picture?
The economic world is often dominated and driven by a cloud of the phenomenon at times. The popular terminology which is impassioned in the vocabulary and mind space of economists is "Protectionism". Dr. Arvind Subramanian, Chief Economic Adviser to the Government of India also mentioned about the resurgence of protectionism under the global risk outlook in the 2017 economic survey. The obvious onset is the agenda propagated by the present US President since his election campaign and Brexit.
Protectionism per se is the practice of shielding a country's domestic industries from foreign competition. The usual measures are imposing taxes on imports and restrictions on free trade and migration; all of what President Trump seems to be moving towards. Was it only election propaganda or a real problem that endangers US economy? Will it resolve the issues that American people are facing today? As it was only the developed nations like the US who promoted and supported globalization a few decades back.
The present-day criticism is globalization has caused inequality, driving wealth and jobs out of America. President Trump in his inaugural address professed that he will go by two rules 'Buy American, Hire American.' Reacting to the present state the head of the second largest economy and developing nation China, President Xi Jinping at the WEF Annual Meeting, Davos 2017 said that pursuing Protectionism is just like locking one's self in a dark room: wind and rain might be kept outside but so are light and air. The Chinese billionaire and founder of e-com giant Alibaba, Jack Ma questioned US strategy of spending over $14 trillion in fighting wars over the past 30 years rather than investing in infrastructure at home and blaming other nations for stealing jobs.
So, is it just a power play between the developed and developing countries or intrinsic economic situation or just hoopla? It seems there is a thin line between the global wellbeing and own national interest. The implication of such news doing the rounds and manifestations of the influential is evident in the economic scenario at all levels whether it is the Middle East, Asia or European region. The genius of a professional engaged in the corporate advisory is to be aware, study and interpret the global and regional situations for the benefit of their clients. As Benjamin Franklin said, an investment in knowledge pays the best interest.
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