Alex Martynov   
On consequences of protectionism

Once again I'm amused by Ministry of Agrarian Policy and minister Prysiazhniuk.

[The Ministry] recognized that protectionist policy on the meat market of Ukraine instead of the expected increase in production led to the shortage in the last few years.
The plan to overcome shortage in domestic market consisted of government protectionist policies, namely extension of subsidies to the industry and increasing of imports control.

But, in fact, government policy in this area had an opposite outcome. Meat shortage on domestic market had grown, recognizes the ministry.

What a surprise! You can not cure shortage with an import prohibition. Additional production do not emerge that way. No reasonable person would argue that if government ban imports of Chinese and Taiwanese electronics, you can expect growth of electronics production in Ukraine. And it can not be changed with government subsidies. To fund morally outdated and backward technology of production is not a solution. Sure, the beneficiaries would be satisfied. But what about consumers prevented from buying imported goods and forced to pay subsidies to farmers with their tax money. Unfortunately, the bureaucratic brain can generate only one explanation for the failure of his kind of policy: there was not enough money for subsidies.

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