Prior to this week’s G20 meeting analysts are reported as saying more than ‘ritual support’ for open markets may be needed to steady a ‘teetering economy’, and to avoid a ‘damaging retreat to protectionism’ – see article. Some economists are reported as saying that without a concerted strategy for a revival, a rash of go-it-alone stimulus packages and industry bailouts could lead to trade wars. The World Bank is reported as saying that 17 of the G20 countries – including most of the major powers – have resorted to protectionist measures since declaring their opposition to such action during a November conference in Washington.

I have been saying on this blog for some time that countries will invoke ‘protectionist measures’ in circumstances where they believe they must do that to protect the well-being of their citizens. It will surprise me if things turn out otherwise. Simply put, I think that like individual people, in the end countries ‘have to do what they have to do’ to survive in the first instance, and enhance and protect as best they can the lifestyles of their citizens in the second instance. I think it naïve to think otherwise, and look forward with interest to what is said at, and develops out of, the upcoming G20 conference. I think that following the conference proceedings closely is critically important in the current economic environment.

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