Autarky Essay ⋆ Political Science Essay Examples ⋆ EssayEmpire

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Autarky means self-sufficiency, or nonattachment, especially in relation to economics. In economic literature it refers to a closed economy. The term should not be confused with autarchic, which is the act of self-ruling. Autarky is understood both as a theoretical construct of comparative advantage and as economic self-sufficiency. Autarky is a foundational concept in the doctrine of comparative advantage. David Ricardo sought to enhance Adam Smith’s theory of absolute advantage by means of the principle of comparative advantage and trade that Robert Torrens originated. Ricardo thereby introduced into economic literature the theory of comparative cost advantage in international trade. For the purpose of independence from international influence, autarkic countries should be self-sufficient and not engaged in international trade. Historical examples of autarky just prior to the beginning of World War II (1939–1945) include Fascist Italy when the League of Nations sanctioned an embargo, Hitler’s expressed desire for Germany in the Hossbach Memorandum, and Spain following an Allied embargo subsequent to its civil war.

Autarky, however, is quite rare in the current age. China is an example of a country that pursued a policy of almost entire autarky until recently, and it was not until the 1970s that India began the process of eliminating powerful trade barriers. Even North Korea, which is perhaps the only current autarky, practices some trade with China and Japan. Modern countries that have pursued autarky through the substitution of domestic production for imports have reduced themselves to inefficiency and poverty, compared to those countries that are competitive in foreign trade. The population demand for production of a full range of goods at competitive prices is impossible to be achieved by any country. It is because trade is beneficial to society that higher commodity prices do not eliminate the doctrine of comparative advantage.

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