We explain what autarky is, its origins and how this economic condition is classified. In addition, we explain its general characteristics and examples.
Autarchy is a term commonly used in economic matters.
What is Autarchy?
Autarchy, autarcy or even self-sufficient economy is the economic condition of a country, region or human organization that is capable of supplying itself and satisfy their needs without requiring elements from outside or from abroad. Thus, it would be a state of full independence in which imports of any kind would be unnecessary.
It is a term commonly used in economic mattersbut it can also be used in other fields of knowledge, such as systems analysis, business administration, politics, law and even philosophy, the field from which it was originally borrowed.
See also: International Trade
Characteristics of autarky:
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Origin of the term
The word autarky comes from the Greek words autos (oneself) and arkeo (to suffice, to adapt)from which its current sense of self-sufficiency is already intuited.
Among the ancient Greeks, especially the Cynics, Stoics, Epicureans and Cyrenaics, autarky It was a highly coveted state of being.since it was the one proper to wise individuals: that in which the exercise of their virtue would be enough for them to exist, without needing help from others. Autarchy, autonomy and ataraxia were the great virtues of the wise for them.
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General concept
A company can represent closed systems with respect to its environment.
In its broadest definition, the autarky of a group or individual refers to its ability to detach from the system (social, economic, etc.) in which he/she is inserted and be able, on his/her own, to guarantee his/her own livelihood.
From there, the concept can be borrowed to describe situations or organizations where self-sustainability is viable and they represent closed systems with respect to their environment.
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Types of autarky
There are two ways to classify autarky:
- Permanent autarky or temporary autarky. Depending on the length of the autarchic period, one may speak of a stage of self-sufficiency or rather of something programmatic and permanent.
- Absolute or relative self-sufficiency. Depending on the degree of autonomy achieved, it may be partial (relative) or total (absolute). This latter is virtually impossible to achieve in real life.
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Use in economics
Autarchy refers to societies that manage to self-supply their consumption.
The greatest use of this term refers to the economic, to name the social systems that They manage to self-supply their market demands (consumption).
It is a condition associated with capitalism in its earliest stages, and generally in simpler economic systems.
It is a very common program in nationalist regimes, not always very democratic, whose purpose is to defend and praise one’s own rather than what comes from outsidewhich is always received with suspicion and fear of contamination.
Thus, these governments would minimize the entry of merchandise and foreign capital, closing in on itself and its local citizens.
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Use in politics
When we talk about an autarchic regime, we generally mean that His permanence in power was not decided and granted to his representatives by the majority of the population, in a free election or something of that sort, but was imposed by the government itself. Thus, an autarchic government is answerable only to itself in matters of legitimacy.
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Use in law
States give themselves the ability to be subject to their own law.
In legal matters, autarky is called a form of administrative decentralization of the States which gives it the capacity for self-management, its own assets and legal personality, always within the framework of the conditions of a given legal-political system. This means that States give themselves the capacity to be subject to their own law.
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Limitation of closed systems
Totally autarkic models, considered as systems closed to their environment (nothing enters from outside and, therefore, nothing leaves) They are viable only as projects and ideals that govern some administrative methodology or purpose.
That is to say, are not achievable in the real worldnor are closed systems in physics: all order requires its environment to a greater or lesser extent and finds it difficult to completely isolate itself from it.
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Differences between autarky and autonomy
Autonomous entities prevent transit between their interior and exterior.
Both terms are more or less synonymous, although The term “autonomous” emphasizes the freedom to follow one’s own rules.but it has nothing to do with the margin of exchange with the outside: as long as it is done with one’s own rules and not those imposed by third parties.
While Autonomous entities do not require anything from the outside or perhaps to the minimum possible, and they usually prevent the transit between the interior and the exterior of the organization to prevent the balance between demand and supply from being violated.
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Autarchy and balance
At first glance it seems that An autonomous entity is in complete balance with respect to what it needs. and what it can provide for itself; however, attempts at economic and social self-sufficiency have rarely been experienced in this way.
In rare cases such a balance has been achieved.Rather, there are often scenarios where needs are temporarily waived until they can be met on one’s own.
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Examples of autarky
Francisco Franco’s Spain is an example of autarky.
Clear examples of more or less absolute autarky were: the economic programs of protectionist nationalist regimessuch as those of North Korea, Franco’s Spain or Nazi Germany, despite their possible ideological differences.
Every model It was proposed to minimize the trade balance with foreign countries and provide for his people at his own expense everything they needed (or force them not to need it).