protekció

Protección, also known as *protekció* in Hungarian, refers to a historical economic policy that emerged in Hungary during the late 19th and early 20th centuries. The term originates from the Hungarian word *protekció*, meaning "protection," and reflects the country’s efforts to safeguard its domestic industries from foreign competition through tariffs and trade barriers. This policy was influenced by similar protectionist movements in Europe, particularly in Germany under the *Zollverein* and France’s *protectionnisme*.

The Hungarian protectionist movement gained prominence in the 1870s, driven by industrialists and politicians who sought to stimulate local manufacturing. Key figures, such as István Tisza, advocated for high tariffs on imported goods to shield Hungarian industries—particularly textiles, metallurgy, and agriculture—from cheaper foreign alternatives. The policy was formalized in 1877 with the introduction of the *Customs Act*, which imposed substantial tariffs on imports while maintaining low duties on raw materials. This strategy aimed to foster economic independence and reduce reliance on foreign markets.

Protección had mixed economic consequences. On one hand, it spurred industrial growth, particularly in heavy industries like steel and machinery, and supported Hungarian agriculture by limiting foreign grain imports. On the other hand, it led to higher consumer prices and inefficiencies in domestic production due to lack of competition. Critics argued that the policy stifled innovation and trade, while supporters maintained it was necessary for Hungary’s economic sovereignty amid regional disparities.

The policy persisted until the early 20th century, though its intensity varied under different governments. After World War I, Hungary’s economic isolation and political instability led to a gradual shift toward more liberal trade policies. Today, *protekció* remains a historical concept illustrating Hungary’s efforts to balance industrial development with global economic integration during a pivotal era of European industrialization.