Autarky
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An autarky is an economy that limits trade with the outside world, or an ecosystem not affected by influences from the outside, and relies entirely on its own resources. In the economic meaning, it is also referred to as a closed economy.
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[edit] Origin of the 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 is also spelt as "autarky", and either 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.
[edit] 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".
[edit] 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.
[edit] Historical autarkies
- The United States, while still emerging from the American Revolution and wary of the economic and military might of Great Britain, came close to complete autarky in 1808 when President Jefferson declared a self-imposed embargo on international shipping. The embargo lasted from December 1807 to March 1809. [1] (PDF file)
- 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.
- India had a policy of near-autarky that began after its establishment as an independent state, around 1950, and ended in 1991. [2]
- China as well was close to an autarky from around 1950 to 1978, as a result of policies established by Mao Zedong. [3]
- Albania became a near-autarky in 1976, when Communist Party leader Enver Hoxha instituted a policy of what he termed "self-reliance". [4] Outside trade increased after Hoxha's death in 1985, though it remained severely restricted until 1991. [5]
- Mussolini's Italy claimed to be an autarky [6], especially after the 1935 invasion of Abyssinia and subsequent trade embargoes. However, it still conducted trade with Germany and elsewhere.
