THE SYSTEM OF NATIONAL WEALTH IN FRIEDRICH LIST'S THEORY

The article delves into Friedrich List's ideological and theoretical developments in the field of international trade and economic policy. It analyses the features of the formation of List's theory within the context of a critical examination of economic liberalism. By scrutinising the shortcomings of laissez-faire economics, List offered a compelling alternative to the dominant theories of his time. List's approach emphasised the importance of historical context in shaping economic analysis and policies, contrasting with the universal principles advocated by classical economists. His ideas formed the basis for the historical school of economic thought, which stressed the significance of national circumstances in economic policymaking. The article summarises the provisions of List's theory of national productive powers and the concept of staged development. List argued that nations pass through distinct stages of economic and civilisational development, each requiring tailored policies to foster growth. The article highlightі List's vision of sectoral diversification of the national economy, and examines his key arguments in favour of implementing the policy of “educational protectionism”. This policy was crucial for List because, based on historical method, he attributed vital importance to manufacturing, viewing it as the backbone of a nation's economic strength. He argued that a robust manufacturing sector is essential for achieving long-term prosperity and reducing dependency on foreign goods. Therefore, the policy of “educational protectionism” advocates for temporary protective measures to shield infant manufacturing industries from foreign competition until they become self-sufficient. The article reveals the essence, main goals, and criteria for applying this policy in practice, providing insights into how List envisioned tariff regulation and the transition from selective protectionism to free trade as industries mature. Finally, the article considers the advantages and limitations of List's contribution and assesses its relevance and applicability to the present stage.