The Limits of Protectionism: Building Coalitions for Free
Trade, Michael Lusztig, Pittsburgh: University of Pittsburgh Press,
2004, pp. xi, 272.
As the title suggests, Michael Lusztig offers a non-apologetic
endorsement of liberal trade, coalition building, and the limitations of
protectionism and rent seeking. Specifically, he argues that
“flexible” rent seekers have a better opportunity to prosper
than “inflexible” rent seekers. The goal, therefore, is for
governments to reduce rents below a specific threshold to force sectoral
interests to successfully adjust to or exit the market. Strategies include
the big bang approach, divide and conquer, iteration, and the path of
least resistance. Catalysts for change are periods of economic crisis,
international obligations, and strategic considerations in which reform is
linked to potential electoral success. Ultimately, in Lusztig's
opinion, crisis and mandated international change offer the best
opportunities for rent reduction, at least in terms of limited political
backlash.