Protectionism Versus Liberalism in International Trade: Navigating Policy Choices for Africa’s Sustainable Economic Development
Abstract
This study examines the ongoing debate between protectionism and liberalism in international trade, focusing on their implications for Africa’s economic development. African nations face the dual challenge of fostering domestic industries while integrating into the global economy, making the choice between protectionist and liberal trade policies crucial for sustainable growth. Protectionism, often employed to safeguard nascent industries, can foster short-term industrial development but risks inefficiency and market isolation if overextended. Conversely, trade liberalism promotes competition, foreign direct investment (FDI), and integration into global value chains, yet it may expose vulnerable industries to overwhelming foreign competition. Countries can choose to implement more liberal or protectionist policies. The African Continental Free Trade Area (AfCFTA) represents a hybrid approach, offering trade liberalization within Africa while allowing flexibility to protect strategic sectors. Using a blend of recent literature and case studies, this study explores how a balanced trade policy—combining selective protectionism with elements of liberalism—can enhance industrial growth, innovation, and competitiveness across in African economies. The study underscores that no single approach; protectionism or liberalism is universally applicable or inherently bad; rather, trade policies should be tailored to each country’s unique economic context and development stage. Furthermore, African nations should adopt a protectionist stance initially to safeguard emerging industries and develop their competitiveness before pursuing a liberal approach to world trade. Alternatively, they could adopt a protectionist stance in certain economic sectors while maintaining a liberal stance in others to maintain competitiveness in those vital sectors that are crucial to Africa's development. Ultimately, AfCFTA presents a viable framework for advancing Africa’s economic integration and positioning the continent more strategically in global trade.
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