Autarky

Definition

Autarky is an economic policy aimed at self-sufficiency, where a nation seeks to minimize its dependence on foreign trade by producing all necessary goods domestically. This approach often aligns with the ideologies of fascism and totalitarianism, where control over the economy is centralized, and the state prioritizes national production to bolster its power and independence.

5 Must Know Facts For Your Next Test

1. Autarky was a key feature of economic policies in fascist regimes, particularly in Italy under Mussolini and Germany under Hitler, who sought to strengthen their nations by reducing reliance on foreign trade.
2. This policy often led to the state controlling industries to ensure that essential goods were produced locally, which was seen as vital for national security and autonomy.
3. The concept of autarky can result in inefficiencies due to lack of competition and innovation, as industries may not be exposed to international markets.
4. In practice, autarky can lead to economic isolation, making countries vulnerable during global economic downturns or conflicts.
5. Fascist governments promoted autarky as a means of fostering national pride and unity, presenting it as a way for citizens to contribute directly to the strength of their nation.

Review Questions

• How did autarky manifest in the economic strategies of fascist regimes during the Modern Period?
  • Autarky was central to the economic strategies of fascist regimes, which sought to achieve self-sufficiency through strict control over production and distribution. Leaders like Mussolini and Hitler implemented policies that prioritized domestic industries, reducing reliance on foreign imports. By fostering national production, these regimes aimed not only for economic independence but also to cultivate national pride among citizens, reinforcing their political ideologies.
• Evaluate the effectiveness of autarky as an economic policy in the context of fascism and totalitarianism.
  • While autarky aimed to create self-sufficient economies, its effectiveness was mixed. On one hand, it provided short-term benefits by boosting local industries and reducing vulnerability to foreign influences. On the other hand, it often led to inefficiencies and stagnation due to lack of competition from international markets. The rigid control imposed by fascist regimes also limited innovation, ultimately revealing that sustainable economic growth requires some level of global interaction.
• Assess the long-term implications of autarky on countries that adopted this policy during the Modern Period, particularly regarding their global standing.
  • The long-term implications of adopting autarky were significant for countries like Italy and Germany. While initially it seemed beneficial for national self-reliance, it ultimately resulted in economic isolation that hindered their growth and adaptability in a rapidly changing global economy. As these nations became more embroiled in conflicts, their inability to engage economically with others weakened their global standing and contributed to eventual defeat. This illustrates how extreme self-sufficiency can become a liability rather than an asset in a globally interconnected world.

Related terms

Protectionism: An economic policy that restricts imports from other countries through tariffs and regulations to protect domestic industries.

Nationalism: A political ideology that emphasizes the interests of a particular nation, often promoting self-governance and self-sufficiency.

Central Planning: An economic system where the government makes all decisions about the production and distribution of goods and services.