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“What is
Merchantilism?????”
Merchantilism is economic nationalism which aims to build a country
wealthy and powerful. Mercantilism is very important
for the theory of International
Political Economy (EPI). Mercantilism
can be seen from the history, philosophy, and
state policy. State
policy is closely
linked to the idea of national
development and intervention
in the economy, and play a role in addressing security issues and the
role of the state. People who
participate in the economy and moral philosophy
creates a term
that is "trading system" to describe the political economic system
that seeks to
constantly enrich the country by holding imports
and encourage export.
This system is
dominated by western European and policies from the 16th until the late 18th
century. The purpose of this policy is to achieve a target profit on a trade
that will bring silver and gold into the country, and the most important thing
is to maintain domestic employment. Nation is a group of people
from various areas of cultural backgrounds, languages and history of where
they live and get to know about the history of their country.
State is a top
notch organization or who has the authority to regulate matters relating to the
interests of the wider community and have an obligation to the welfare,
protection, and national life. State and Nation as an important actor in the
international system as it has sovereignty over political authority, and must
maintain good security by way of peace
given the threat of war and violence is always real. Security a priority in
order to achieve the welfare state, justice and domestic peace, which become
useless when the country was not safe and foreign invasion or internal group
that wants to bring down a country. Merchantilism
and Realism as a complementary perspective, which Realism look at a country
that can control the international political economy and economic nationalism
spawned the same as the conditions in a country that are looking for the
security of the state and the people in it. Realism is in a country because it
has the potential to launch a war because of the anarchy and competition
advance of the country's national interests to take the very limited resources
and to increase the power. Each state has the ability and power distribution
globally to demonstrate the rules where countries compete among each other in
the state system "international half". In a country seen as a realist
competence as the result of a game of “zero sum” which has been obtained in a
country and has been seen by other
countries as an absolute defeat. In the International system, each state must
protect their own country from the threat of economic and became one of the key
to be able to meet domestic goals and foreign policy. Economic
nationalism is an economic philosophy that believes in every economic
management becomes part of the destination country in meeting its national
interests. At the time economic nationalism reached the peak of wealth and power
through foreign trade is not fair, economic nationalism acts as a reaction to
the economic liberalism that focus on national economic development.
An increase in
transportation technology and economic develop into a factor of the rise of
economic nationalism. Independence in an independent political power to make
an economic power feared mercantilism is
given dependency. Therefore, a country needs
to develop a powerful domestic
economy, so it can be obtain wealth and power by combining its own economic
interests and state action
that would help a
country establish itself, and
obtain independence and security. Alexander Hamilton (1755-1804) who
argued that the
existence of a trade
and protection efforts
on a country to
develop its domestic industry, the economic security
of the United States is threatened by the mercantilist
policies of other
countries and requires action
against a state
for economic competition, he suggested that subsidies
to make the goods more competitive in the
United States and abroad by using tariffs to reduce imports.
Georg Friedrich List (1789-1846) was an economist and develop a "National
Innovation System". In the 19th century, he declared that a state needs to
act to offer a productive force in the form of education, technology and industry.
Given this, they support the spirit of the industrialization of the economy associated
with the national interest of a country which is also the primary key for the development
of the country. Developing countries in particular to carry out development and
national development as a process to pursue industrialization Western countries
by offering domestic industrialization . At the end of the 19th century, a
country to produce manufactured goods that do not flourish according to its
domestic market absorption capability. Changing economic nationalism of the
development of domestic productive forces into overseas markets for search
goods produced productive. The concept of security was changed from the
domestic economy and provide resources for domestic. Nationalism has
ended with the foreign
imperialism and creating
an international competition. The emergence of international organizations
such as the General Agreement on Tariffs and Trade (GATT), the World Trade
Organization (WTO), and the
Asian-Pacific Economic
Conference (APEC) appear after the resurrection
neomerkantilism. The organization
offers free trade and open markets are
improving economy, but does not prevent
a country to achieve
economic security and freedom of his country by
implementing policies that depend
on the mercantilist
defense called as
neomerkantilisme. International economic dependence increased
resource demand for
industrial purposes which are strategic
resources, to secure
the country. This dependence
is not fair for
the suppliers of
oil or other resources continue to increase power
and safety. It is
not always all the products
in the world price
is always right at
the initial price, sometimes the price of a product
is always changing, for example, when oil prices go up, they
cut off the supply of oil, because the dependence
of the recipient country will have a national threat
because the state will seek to minimize
dependence while making
the state-other
countries rely. According to Robert
Gilpin, Malevolent Mercantilism is the economic welfare which does not support
and expansion of the political economy obtain by Nazi Germany and imperial
Japan. Given this concept seeks to expand its territorial and political impact
on the economy and to other countries in an effort to protect his country.
Benign Merkantilism defensive aimed at protecting the economy against economic
power. In the Cold War Era, Americans
have asked Japan to reduce trade barriers to open markets for foreign
competence. Japan supported the U.S. to continue to follow mercantilist
Malevolent and to weaken the economy of other countries and Japan keep trying
to maintain its national security with benign mercantilist policies. We know
that economic globalization seen as a threat to the sovereignty of a country,
which has a market linkages and efficiency obtained at the international level
but it will impact this dependence and become a threat to the security of the
state and threaten the country's ability to protect and maintain the security
of the economy.
"Why is Mercantilism
defensive?" Because
he can protect
national interests in the expansion of
the global market and was created to protect
domestic industry from the negative effects
of globalization on policy offensive to
obtain market share from foreign sales.
It can be concluded that each country may use
legal or illegal economy,
due to obtain
wealth and power.
Since every country has the sovereign
right and duty of each be entitled to give his attention to
the security and freedom of his country. With the lack of clarity on natural resources and
overseas markets makes countries become weak in
the system of international political
and economic developments continue to implement trade
policy and finance.
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