A science is adjusting and developing in time – on this trajectory the evolution of economic science is situated. The emergence of new concepts, as well as re-theorizing of some traditional concepts comes to support this viewpoint. In order to demonstraprotectionism, globalization, economic patriotism.

ILIESCU ELENA-MIHAELA

VOICULESCU SERBAN

English

Research Papers in Economics

376 
 
ADAPTING THE THEORY TO REALITY. THE TRIAD GLOBALIZATION-
PROTECTIONISM-ECONOMIC PATRIOTISM 
 
Iliescu Elena-Mihaela 
The  « Titu  Maiorescu »  University  The  Faculty  of  Economic  Studies  Bucharest,  district  3, 
Invingatorilor street, no.29, Stella building, ap.9.3. mag_mihaela@yahoo.com 0745146021 
Voiculescu Serban 
The  « Titu  Maiorescu »  University  The  Faculty  of  Economic  Studies  Bucharest,  district  4, 
Govora street, no. 2, bl. 74, sc. 4,1st floor, ap. 50. idmsv@yahoo.com 0722219513 
 
A science is adjusting and developing in time – on this trajectory the evolution of economic science is 
situated.  
The emergence of new concepts, as well as re-theorizing of some traditional concepts comes to support this 
viewpoint. In order to demonstrate these statements I have relied on two theories, antagonistic at a first 
sight  (protectionist  and  global),  by  comparing  the  manner  in  which  they  approach  these  well  known 
concepts (national interest, labor productivity, international trade, inequity, ideological debates, state’s 
role).  
The conclusion is that, in the framework of globalization, the protectionist vision is not entirely disproved 
but reformulated, adjusted according to the dynamics and diversification of international flows.  
Key-words: protectionism, globalization, economic patriotism. 
 Paper JEL code: A1 
 
“Reality  cannot  be  constrained  to  fit  in  the  theory’s  bed  of  Procust,  therefore  adapting  the 
theories to reality is a must”. (Ivanciu Nicolae) 
This is the trajectory on which the evolution of economic science is situated. 
In order to prove the truthfulness of this statement, I shall analyze the evolution and correlations 
which  can  be  established  between  the  four  antagonistic  concepts,  at  least  at  first  sight: 
protectionism, globalization, economic patriotism and country risk. 
Taking  into  account  the  fact  that  protectionism  represents  an  instrument  of  stimulating  the 
domestic industry as major productive and defensive force against foreign competition, and the 
economic globalization, an irreversible and dynamic phenomenon is seen in the light of the free 
movement  of  capital,  the viability  of  the  protectionist  theory  in  the  new  context  is  put  into 
question. 
I chose the theory of Mihail Manoilescu as a reference mark for the protectionist theory, as it 
offers  solutions  which  are  still  applicable  today.  Manoilescu  proposed  a  “re-theorizing”  of 
protectionism based on the new realities, as he considered the 20
th century to be “an era of 
transformation”. 
Therefore, the protectionism promoted by Mihail Manoilescu is not autarchic; it does not build an 
obstacle in the path of globalization. 
He  supports  the  deepening  of  the  international  labor  division,  as  well  as  the  extension  of 
international economic relations; still, he focuses on the nation, on the domestic productive forces 
and on the role of the state in the process of encouraging and protecting the national economy. 
Under these circumstances, in order to harmonize the theory and the reality (also an objective to 
which Mihail Manoilescu subscribed), the intensification and diversification of the international 
economic flows, as well as the adaptation of the role of the state in this context has imposed the 
reformulation of the protectionist viewpoint. 377 
 
Table 1. THEORIEI VERSUS REALITIES   
Concept   Mihail MANOILESCU’s approach   Present approach 
The global level  The nation states’ level 
 
- national interest    ► obtaining the independence        ( economic 
autonomy ) in an interdependent world  
 ► the focus is on the na ional economy  
 ► integrating in the international economic 
flows ( highly diversified )  
 ►  the  focus has transferred  on  the  regional 
and global level (U.S.A., E.U., ASIA )  
Integrating in the international economic flows, but in a 
new perspective, based on the slogan “we shall not sell or 
country”, which influences the economic strategies of the 
nation states. 
The focus is on the economic patriotism of the global 
economic agents.    
- international labor division   ► an objective which ensures the improvement 
of the national economies’ efficiency  
 ► an objective accomplished and valid to this 
day  
An irreversible process in the global economic circuit, 
whatever the political orientation, the economic system 
or the development stage of the nation states 
 
 
- labor productivity  
 ►  it  is  considered  that  increasing  labor 
productivity must represent the main objective of 
all  the  national  economies,  especially  of  the 
agriculture-based one. Attaining this goal, made 
possible  through  the  industrialization  of  the 
agriculture,  would  ensure  to  the  agrarian 
countries the conditions of efficient exportations 
and,  implicitly,  the  premise  to  cover  the 
necessary importations. 
 ►the increase of the labor productivity must be 
achieved based on internal resources (national, 
domestic) 
 ► the increase of labor productivity remains 
the main objective, both on the micro economic 
level  and  on  the  macroeconomic  level,  thus 
creating  the  premise  to  improve  all  the 
macroeconomic results. 
However,  the  importance  of  international 
capital is acknowledged, as a major factor in 
bringing  the  less  developed  countries  to  an 
efficient state.  
The contribution of external capital to the dynamics of 
this  indicator  cannot  be  denied.  However,  it  is 
considered that the internal resources must represent the 
“strong pillar” (the “engine”) of the national economies. 378 
 
 
 
 
- international trade  
 ►  is  perceived  as  the  main  form  of 
globalization: the exportation ensures the foreign 
currency necessary to cover the importations.  
 ►  The  international  flows  have  grown  and 
diversified:  the  international  trade  remains 
highly  extended;  still  it  is  the  direct  foreign 
investments  that  become  the  most  complex 
form of globalization, with positive effects to 
the  economic  growth  of  the  receptive 
economies.  
The participation to the international economic flows is 
beyond doubt but it mainly aims at the capital outlet; for 
inlets,  tariff  or  non-tariff  barriers  were  established  in 
order to protect the domestic economic agents, especially 
in strategic fields (see the example of the U.S.A. France, 
Romania). 
 
 
 
 
 
- inequity (polarization)  
 ► The inequity of the exchanges between the 
industrialized  and  the  agrarian  countries.  The 
industrialized  countries  were  favored  because 
they  would  export  processed  economic  goods 
processed  at  high  prices,  while  receiving  in 
exchange  raw  products  at  small  prices.  It  was 
considered  that  the  production  obtained  by  an 
employee  in  an  industrialized  country  was  the 
equivalent of the production of 10-20 workers in 
an agrarian country.  
 ► The inequity of the international economic 
flows  which  mostly  occur  between  the 
developed  countries  (see  the  Triad),  the poor 
and developing countries being marginalized.  
The  discrimination  generated  by  the  strategy  based  on 
the “economic patriotism”, through the obstacles built in 
the path of free competition. 
The  developed  countries  have  a  preferential  position, 
thus they are engaged in a double game: they are open to 
the economic globalization, mainly in the direction of the 
capital outlet and less open concerning the inlets. On the 
contrary, the poor and developing countries cannot afford 
this practice as their economic growth also depends on 
the foreign capital inlets. 
 
 
 - ideological debate 
 ► the conflict between the protectionist theory 
and the theory of the free exchange 
 ► the conflict between the pro-globalization 
and the anti-globalization parties  
The  conflict  between  free  competition  and  economic 
patriotism. 
 379 
 
 
 
 
 
- the state’s role in protecting 
the national economic agents  
 ►  it  supports  the  market  economy,  but 
considers  the  state  must  become  a  permanent 
presence  in  its  mechanism,  not  only  an 
interventionist force in case of dysfunctions 
 ► the protection of the economic agents against 
external competition is the state’s responsibility  
 ► the market economy is dominant again, the 
state’s  role  is  reformulated  (the  globalization 
has diminished, but not annulled the operation 
margins of governmental policies) 
 ►  the  protection  of  the  economic  agents 
against  global  competition  is  their  own 
responsibility,  in  function  of  their  access  to 
information and their capacity to adapt. As a 
consequence,  the  country  risk  indicator  has 
been  established  to  offer  the  information 
necessary to adapt the globalization strategy to 
the specific of the recipient economies. 
There  is  a  general  tendency  to  adopt  a  protectionist 
attitude  (U.S.A.,  France,  and  Spain).  On  the  European 
Union’s  level,  the  European  Commission  is  trying  to 
limit these practices. Thus, the protectionism, although 
blamed  in  the  international  business  environment  has 
become  a  fashionable  attitude  of  the  national 
governments,  especially  in  the  developed  countries, 
which  tend  to  protect  their  domestic  companies  from 
external  takeovers  and  from  the  powerful  competition 
abroad. France is the best example in this respect. Spain 
was  also  accused  of  protectionism  by  the  European 
Commission  concerning  the  public  utilities.  The  first 
matriculation  tax  introduced  in  Romania  starting  from 
January, 1
st, 2007, can be included in the same category. 
Taking  into  account  that  progress  is  associated  to 
competition, the slogan “We shall not sell our country” 
(well-known to the Romanian people) will have negative 
effects not only from an economic viewpoint, but also 
from the angle of the relations between the nation states. 
 380 
 
In conclusion, in the context of open economies, the protectionist theory is not totally denied, but 
its objectives and applicability field must be adjusted to the new conditions. 
As a result, in order to be harmonized with the real life, the traditional concepts have adapted, 
also  leaving  space  for  new  concepts  to  emerge,  expressing  the  present  social  and  economic 
situation of the recipient economies, both on the quality and on the quantity level. 
A  good  example  in  this  respect  is  represented  by  the  “economic  patriotism”  of  the  global 
economic agents, a notion that also derives from the protectionist practice. 
Taking  into  account  the  theoretical  and  practical  evolution  of  these  well-known  and  highly-
disputed  concepts  (protectionism,  globalization,  economic  patriotism  and  country  risk),  once 
again we have proved the validity of the principle stating that an economic science adapts and 
develops in time. 
 
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ADAPTING THE THEORY TO REALITY. THE TRIAD GLOBALIZATION-PROTECTIONISM-ECONOMIC PATRIOTISM

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ADAPTING THE THEORY TO REALITY. THE TRIAD GLOBALIZATION-PROTECTIONISM-ECONOMIC PATRIOTISM

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