Question

List three arguments in favor of protectionist policies and discuss their shortcomings.

Answer 1

The rise in protectionism is evident from the rise of conservative hard-line politicians like Donald Trump, Theresa May,M.Pen et. al and this has a significant implication on developing countries:
1.Immigration: Immigration to developed nation from the developing will reduce and the safety issue of existing diaspora will increase due to anti-immigrant wave.
2.Education & Jobs: The educational and job opportunities for people from developing nations in developed ones will be hard to come by and they may be see the return of diaspora
3.Outsourcing & Offshoring: With focus on creating jobs back home, developed countries might cut back their outsouring and offshoring operations. Also, the investment made in FDI/FII may reduce. These will hurt the economic prospects in developing world.
4.Transfer of Technology: Will be less. This has very significant implication on the capacities to address climate change.

Impact on India and measures to be taken:
1.Diaspora: Feels unsafe and there is rise in hate crimes against Indians. India needs to be take proactive steps to address this.
2.Education and Jobs: Drop in opportunities here means we need to create these opportunities here. Given the woes of ever increasing domestic force, addition of returning diaspora will acerbate the educational and job domain in India. Strengthen Skill India
3.Trade: Stringent H1B visa norms will hurt the IT industry and India needs to belt up on this front. Fall in outsourcing and offshoring operations will mean that India needs to increase its dependence on domestic demand and consumption.
4.Low Transfer of Technology: India will need greater innovation. Make in India,Startup & Standup India will play a pivotal role. India will need special efforts to deal with climate change.

Increasingly Inward looking developed world will throw a plethora of challenges for the developing world in general and India in particular. Greater synergy between them will go a long way in addressing the issue