Suryaa Business Desk: Financial analysts warn that protectionist policies adopted by countries worldwide under the banner of protecting their economies, known as securonomics, are becoming a threat to long-term growth. Latest analysis from international sources indicates that tariffs, subsidies, and trade controls imposed by governments under the guise of national security, supply chain autonomy, and industrial protection are slowing down the global economy. Discussions have intensified regarding the strategies nations must adopt to curb the negative impacts of this economic theory and achieve sustainable growth.
Governments generally believe that the securonomics approach helps address supply chain gaps and protect domestic markets from geopolitical tensions. However, experts note that this leads to reduced domestic productivity, steep increases in commodity prices, and damage to international competitiveness. Focusing solely on protective measures hinders innovation, ultimately imposing a heavy financial burden on consumers and industrial growth.
To protect global markets from this dangerous trend, economic policymakers need to take key actions. Economists suggest restricting protective shields strictly to sectors critical to national security, while prioritizing free trade in remaining open markets. Additionally, subsidies given to domestic industries should not be permanent, but limited until they achieve autonomy, ensuring companies do not lose their ability to compete in international markets.
Mitigating the damage caused by securonomics is possible only when mutual cooperation among nations and supply chain partnerships are restored. Price volatility can be curbed by exploring