Trade and Protectionism
What is the SA government’s standpoint on trade and protectionism?
Since South Africa is a developing country it should have the right mix of trade and protectionism to have a healthy trade relationship with the other countries. The Government’s view point here is that it should allow free trade. When the government tries to practice protectionism or try to be selective about the trade practices, it will lead to deforming the economy. When the protected industries might benefit from trade protection measures, there are also industries which might get affected from this. The decision of the South African government’s decision to support selected industries might not prove fruitful for other countries. The government’s idea of portraying trade protection as an attractive tool for politics appeals for most voters even when it causes irregularity in the society. People are interested in the immediate profits that happen to the protected industries even when the profits are short lived. In the middle of all this the South African’s government’s decision is mediocre as it relies heavily on old mediation tools and they do not help in solving the major problems of the economy.