autarkie

Autarkie, or autarky, denotes a policy or condition of economic self-sufficiency in which a country seeks to meet its total demand from domestic production, minimizing or eliminating reliance on imports. In theory, autarky implies a complete absence of trade, with all goods produced domestically. In practice, few economies pursue full autarky; most aim for selective self-sufficiency in strategic sectors while remaining integrated into global markets.

Historical and contemporary examples vary in scope. Some states pursued autarkic ambitions as part of broader political aims, such as Nazi Germany’s program in the 1930s to reduce dependence on foreign imports, or tightly controlled economies like North Korea that limit foreign exchange and exchange trade. More common are policies of import substitution or strategic self-sufficiency in key areas such as food, energy, or critical technologies.

Mechanisms used to promote autarky include tariffs, import quotas, exchange controls, subsidies to domestic producers, procurement mandates, and centralized planning. These measures are often part of broader industrial policy intended to develop domestic capacity and reduce vulnerability to external shocks.

Economic effects and criticisms. Autarky typically reduces welfare by limiting the gains from trade and the benefits of comparative advantage, potentially raising costs, reducing consumer choice, and slowing technological progress. It can also create distortions and inefficiencies if protected industries do not become internationally competitive. In the modern era, discussions of autarky tend to focus on strategic autonomy and security of supply rather than full economic isolation, covering energy independence, supply chains for critical inputs, and domestic production resilience.