autarky

Autarky is an economic policy or condition of self-sufficiency in which a country aims to meet its own needs without relying on international trade. The term comes from Greek autarkía, meaning self-sufficiency. In practice, autarky can be partial or near-total, involving efforts to produce essential goods and resources domestically while limiting imports. It often centers on strategic sectors such as food, energy, and defense, and may coexist with some level of openness in non-critical areas.

Policy tools commonly associated with autarky include tariffs and import quotas to raise the cost of foreign goods, subsidies and protection for domestic industries, investment in domestic production capabilities, and, in planned economies, centralized decision-making and resource allocation. Countries pursuing autarkic aims may also build stockpiles, diversify suppliers domestically, and pursue substitutes for imported technologies.

Historical use and interpretation vary. Nazi Germany pursued a form of state-driven autarky in the 1930s and 1940s through the Four Year Plan to reduce reliance on foreign imports for raw materials and industrial inputs. India implemented import-substitution industrialization after independence to build domestic manufacturing. Albania under Enver Hoxha pursued a self-reliance doctrine, and North Korea has espoused Juche, a self-reliant political-economic ideology. In modern contexts, some countries seek autarkic elements to bolster food security or supply-chain resilience, even as most remain economically integrated.

Critics argue that autarky is rarely fully achievable and generally costly, leading to higher prices, inefficiency, and reduced innovation due to limited competition and foreign technology. Proponents contend that strategic self-sufficiency can enhance stability and autonomy in volatile global markets.