Ecuador and new protectionism

Dan's comments on new protectionism:

The Washington Times sees the case of Ecuador - what it calls the "the world's most protectionist response to the global economic crisis," with restrictions on "everything from Peruvian shampoo to Chilean grapes and U.S.-made running shoes" - as a bellwether heralding the possible spread of protectionism around the globe.

The combination of falling remittances, its debt default, and plummeting oil prices have put the country in a very difficult spot, but autarky and import substituting industrialization are not the way out.