AskDefine | Define autarky

Dictionary Definition

autarky n : economic independence as a national policy [syn: autarchy]

User Contributed Dictionary

English

Alternative spellings

Etymology

Greek autarkia αὐτάρκεια self sufficiency

Noun

  1. National economic self-sufficiency.
  2. The state of personal self-sufficiency.

Related terms

Translations

state of personal self-sufficiency
  • Croatian: autarkija

Extensive Definition

An autarky is an economy that is self-sufficient and does not take part in international trade, or severely limits trade with the outside world. Likewise it refers to an ecosystem not affected by influences from the outside, which relies entirely on its own resources. In the economic meaning, it is also referred to as a closed economy.

Origin of the term

The word "autarky" is from the Greek , which means "self-sufficiency" (derived from , "self," and , "to suffice"). The term is sometimes confused with autarchy (Greek: ) which is pronounced the same as autarky, and means self-government or government by absolute rule. Libertarian theorist Robert LeFevre used "autarchy" and "autarchism" in the sense of self-government to describe his own political philosophy and to distinguish it from anarchism.

Additional characteristics of autarkies

The tendency of autarkies to invade their neighbors in an attempt to increase their access to resources has long been known. As the 19th century economist Frédéric Bastiat put it, "If goods don't cross borders, troops will". Equally well known is the tendency of non-autarkies to invade nations to secure trade.

Modern autarkies

Mercantilism was a policy followed by empires, especially in the 17th and 18th centuries, forbidding or limiting trade outside the empire. In the 20th century, autarky as a policy goal was sought by Nazi Germany in the 1930s, by maximizing trade within its economic bloc and minimizing trade outside it, particularly with the then world powers - Britain, the USSR and the United States of America - with whom she would eventually go to war and thus must not rely upon. In 1930s Germany, this economic bloc consisted primarily of economically weak countries such as those in 'South America, the Balkans and eastern Europe (Yugoslavia, Romania and Hungary)' who had raw materials vital to Germany's recovery. Trade with these countries, which was negotiated by then Minister of Economics Hjalmar Schacht, was based on the exchange of German manufactured produce directly for these materials rather than currency, allowing Schacht to barter without reliance on the strength of the Reichsmark. However, although food imports fell significantly between 1932 and 1937, Germany's rapid rearmament policy after 1935 proved contradictory to the Nazi Party autarkic ambitions and imports of raw materials rose by 10% over the same period.
Today, complete economic autarkies (or autarchies) are rare. An example of a current autarky is North Korea, based on the government ideology of Juche (self-sufficiency). However, even North Korea has a small amount of trade with the People's Republic of China and Japan. Bhutan, seeking to preserve an economic and cultural system centred around the dzong, has until recently maintained an effective economic embargo against the outside world, and has been described as an autarky. With the introduction of roads and electricity, however, the kingdom is being forced into trade relations as its citizens seek modern manufactured goods.

Historical autarkies

  • Japan was partially an autarky during the era known as the "Edo period", prior to its opening to the west in the 1850s, as part of its policy of sakoku. There was a moderate amount of trade with China and Korea; trade with all other countries was confined to a single port on the island of Dejima.
  • The Soviet Union during Stalin's reign was proposing a doctrine labeled Socialism in one country. Although it was not necessarily an absolute form of autarky it contained elements supporting an isolationist policy, such as: claims of Russian pre-eminence in various scientific fields, attempts of dissociating the scientific grounds from the Western synchronic theories (the Lysenko affair) and others.
  • Ceausescu's Romania in the 1980s proposed such goals as: paying the entire foreign debt, increasing the number of items produced in the country and their quality. The aim of these policies was to reduce dependency on foreign imports, as the relationship of Ceausescu with both Western and Communist leaders was worsening.

References

External links

autarky in Arabic: اكتفاء ذاتي
autarky in Bulgarian: Автаркия
autarky in Catalan: Autarquia
autarky in Welsh: Awtarci
autarky in Danish: Autarki
autarky in German: Autarkie
autarky in Spanish: Autarquía
autarky in Esperanto: Aŭtarkio
autarky in French: Autarcie
autarky in Italian: Autarchia
autarky in Hebrew: כלכלה אוטרקית
autarky in Hungarian: Autarkia
autarky in Dutch: Autarkie
autarky in Japanese: 閉鎖経済
autarky in Polish: Autarkia (ekonomia)
autarky in Portuguese: Autarquia
autarky in Romanian: Autarhie
autarky in Russian: Автаркия
autarky in Simple English: Autarky
autarky in Serbian: Аутаркија
autarky in Ukrainian: Автаркія
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