New State Practices At A Time of System Disturbance and the Nasty Business of Protectionism -The Expectation for Global Demand Management


Daniel Drache

This paper examines the new state practices of demand management and rescue policies. States have become innovative in the current crisis developing highly divergent responses to re-insert government in the management of the economy (Rodrik, 2008). The paper will argue that protectionism of the classical variety is a peanut-sized problem today and that states learned from the mistakes of the Great Depression when Everest-sized trade walls brought global trade to a halt.

A background paper prepared for UN World Economic and Social Survey, 2010

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