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An autarky is an economy that limits trade with the outside world, or an ecosystem not affected by influences from its outside, and relies entirely on its own resources. In the economic meaning, it is also referred to as a closed economy.
Origin of term The word "autarky" is from the Greek αὐτάρκεια, which means "self-sufficiency" (derived from αὐτο, "self," and ἀρκέω, "to suffice"). In American English it is sometimes confused with autarchy (Greek: αὐταρχία), which either means self-government or government by absolute rule. ("Autarchy" is the British English equivalent of the American word "Autarky"). 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". Modern autarkies Mercantilism was a policy followed by empires, especially in the 17th and 18th century, 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. 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-reliance). 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 centered 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 | ||||||||
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