autarky


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autarky

1. (esp of a political unit) a system or policy of economic self-sufficiency aimed at removing the need for imports
2. an economically self-sufficient country

autarky

or

autarchy

the practice or policy of economic self-sufficiency

Autarky

 

self-sufficiency, self-satisfaction; in the economic sense, the creation of a closed, self-sufficient economy in a separate capitalist country, leading to a break in traditional international economic ties.

In a pure form, autarky existed only in precapitalistic formations in a natural economy. Autarky as a policy is in conflict with the demands of the international division of labor. Under imperialism, when all countries are closely connected by a system of international economic relations, there are only tendencies toward autarky, arising as a result of the intensification of the contradictions of capitalism. These tendencies were most powerful during the 1930’s when, as a result of the world economic crisis of 1929–33, a break occurred in the previously existing foreign trade and other economic relationships, and countries conducted a policy of “ruining their neighbor.” In the most aggressive imperialistic countries autarky began to serve the aims of creating a relatively closed economy capable of producing all that was necessary for conducting a war under the conditions of economic blockade. Autarky was the official economic theory of Fascism. After World War II autarkic tendencies—for instance, high obstructive duties—are to some degree inherent in several closed trade economic blocs such as the European Economic Association and the European Association for Free Trade.

V. V. MOTYLEV

References in periodicals archive ?
Under the Ahmadi-nejad Administration, however, that changed and the Agriculture Ministry was set at full speed ahead on autarky.
Wages are higher than under autarky, reflecting the static gain from a more efficient international allocation of production technologies, and the growth rate is higher.
The ex ante expected utility in autarky is the weighted average of the expected utility in period 1.
teams would then accumulate (14 blue, 14 red) instead of the autarky outcome (12 blue, 12 red), while Japan teams would accumulate (six blue, six red) instead of (four blue, four red).
Given India's long colonial experience, during which time many Indian leaders were jailed, and conscious of centuries of exploitation, the ruling political elite chose policies of economic autarky, self-sufficiency, and import substitution (Thakur, 2004) A fear of foreign domination led to discouraging foreign investment and a rejection of market principles.
If the real-world interest rate is lower than the real interest rate would be under capital autarky conditions, then for given domestic saving, investment when international borrowing is permitted should be higher than under autarky.
But I am confident that the situation would be worse had India not switched its economic gears from autarky to policies that actively encouraged greater participation in the global economy.
OVER the past six years Syria, once a byword for proto-Soviet state control and autarky, has opened up its economy and implemented investment laws that allow foreign companies to set up shop.
In this scenario, where transportation costs are high and may lead to autarky, calls for interventionist government policies by the developed country occur (e.
Economists usually describe the gains from international trade by comparing welfare at a free-trade equilibrium with welfare at an autarky equilibrium.
The Autarky Group provides effective and reliable factory automation solutions to support a wide range of production and manufacturing applications.
As household consumption increases with income through time, it is also apparent that external deficits enable living standards to be higher compared to autarky.