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 ?
Thus, at period t, reforms that increase the demand for credit are more successful in an open than in a closed economy.
Yemen remains effectively a small, closed economy. The country failed to join any regional or international economic bodies.
Therefore, in a closed economy, in the medium term, the economy would return to the initial output level.
In a closed economy, most of the studies were for developed countries.
And as a closed economy, if the North finally ran balanced trade, all trade surplus for the South would have gone as well.
The government is also said to be considering allowing foreign banks into the country's largely closed economy.
While South Korea enjoys a free economy that encourages investment and growth among its citizens, North Korea operates in a closed economy where education is limited to the regime's propaganda.
"The state operated a closed economy, and there were many restrictions against foreigners in the market," he said.
"Libya has the potential to be a major recipient from the Gulf region, given how rich it is and how hungry the country is for capital and investment after being a closed economy for more than 30 years," said Rami Sidani, the head of Middle East and North Africa investments at Schroder Investment Management in Dubai.
The ordinary Hartwick rule gives a sufficient condition for constant consumption in a closed economy with constant population and stationary technology.
But America is still a relatively closed economy. While the share of exports in US output has risen over time, this is currently no more than 14% of US GDP, that is, about half of what it is for the UK and about a third of what it is for the eurozone.
Russia is a closed economy as well as a closed society.