Nationalism economic

doctrine

Created by: Cojan Mihaela

Pascaru Mariana
EMREI 142

What is economic nationalism?

Economic nationalismis a body of
policies that emphasize domestic control
of the economy, labor, and capital
formation, even if this requires the
imposition oftariffsand other restrictions
on the movement of labor, goods and
capital.
In many cases, economic nationalists
opposeglobalizationor at least question
the benefits of unrestrictedfree trade.
Economic nationalism may include such
doctrines asprotectionism andimport
substitution.

Policy Implications
Economic nationalism should be understood as a set of
practices to create, bolster and protect national economies
in the context of world markets. The rise and
institutionalisation of economic nationalism in the 20th
century was a product of economic crisis, nationalist
movements and enlarged states.
There has been no return of economic nationalism as in a
generalised rise in protective barriers to trade since the
financial crash of 2011. Unlike the 1930s, sovereign debt
has not motivated states to withdraw from global markets.

Policy Implications
The integration, complexity and extensity of the worlds
economy mean that a reversal of trade as great as during the
interwar period would entail an economic Armageddon.
Whatever future ructions the worlds economy experiences due,
above all, to chronic levels of sovereign debt, policy makers
should be mindful of this reality.
Simultaneously, they should be aware that ongoing instability
may entail greater economic nationalism. The key lesson from
the period after the Second World War is relevant now at a more
overtly global level: the importance of planning, regulation and
respect for models of economic diversity to further global trade.

History
Actually, the new economic nationalism of the
mid-20th century stems from two different
sources, not from one source alone: one of these
is, obviously, mercantilism; the other is the
doctrine of "national insulation" which, leaving
aside the ancient claims of Aristotle, goes back to
Johann Gottlieb Fichte. Of these two sources, the
latter, though the less acknowledged and the less
known, is certainly the more important.

 The mercantilist tradition included certain elements

that are not found again in the contemporary world,
such as colonialism; and other elements which are
very prominent in present-day society, such as
concern for balances of payments and for full
employment. What is, therefore, particularly
important to us today is not so much the entire
mercantilist tradition as some special parts of it.
These can be described as our mercantilist heritage.

The end of mercantilism was due to many causes.

Because mercantilism was so intimately related with
the state, with state structure and powers, its practical
manifestations varied from country to country as
did its eventual contradictions and difficulties.

The goals
economic

nationalism involves the implementation of

economic policy that follows the national purpose and
direction.
Economic nationalism draws on the foundations of national
identity, but concentrates on using economic means to unite a
populace and increase the power of the nation-state in the
world order.
Nationalist sentiments are mobilized to ensure the economic
autonomy of the nation-state.

The emergence of economic nationalism

in a state generally occurs as a result of
several conditions:
1. First, the expansive processes of globalization may elicit strong
reactions by ethnic nationalities which fear the eradication and
subordination of their cultural identities;
2. Second, a set of elites and policy makers set nationalist goals of
autonomy, unity, and identity to appeal to this sentiment and
achieve several aims.

Consequences
By directly and indirectly supporting nationalist parties and
doctrines, the Kremlin has opened the door for radical and
xenophobic parties.
The creation of internal and external enemies may have short-term
benefits in uniting a populace and thus encouraging economic
growth,.

Consequences

Contributing to animosities between groups of citizens within a state.

Problems arise when a state actively encourages these sentiments
without placing limits on their development.
Russia finds itself in the particularly difficult position of needing a
strong, self-confident national identity to drive economic development,
while also wishing to prevent violent manifestations in which supposed
enemies are physically targeted.

Conclusions
economic nationalism has emerged as a popular and powerful
theory that is supported by wide and diverse constituencies looking
to preserve their cultural heritage and expand their states
international power.
Nation-states must concentrate on building economic prowess in
order to maintain or strengthen their international influence.

Conclusions

the consequences of encouraging economic nationalism can involve

the radicalization of politics and the persecution of segments of the
national population, which can lead to fragmentation and eventual
political and, hence, economic instability within a state.

Thank you!