Autarchy (concept and evolution)

Etymologically, it can be defined autarky like the power to rule oneself. Likewise, it is known as the situation of a nation or territory that seeks its own resources, avoiding imports from other countries at all costs.

The reasons for which this situation is generated are generally of political and economic origin, and it is also known as autarcía.

However, when reference is made to political law, regardless of the academic definition, it is translated as administrative decentralizationIn other words, it represents administratively what autonomy does in politics.

Autarchy concept

It is a state of self-sufficiency and total independence, in socio-economic and political terms. What characterizes an autarkic territory is that it does not carry out any type of commercial exchange with other countries, that is to say that in this territory only what is to be produced by itself is consumed same.

Historical Evolution of the Autarchy

Since the early days of civilization, cases of autarky have been seen. This makes a logical sense, since in times of the first civilizations, commercial exchange on a larger scale had not yet begun.

With the passage of time, commercial actions were generated between different towns, represented in caravans and commercial fleets between different localities, which ended the autarky. The only case that is exempted from this circumstance was Sparta, the Greek city that excluded itself of Hellenic commercial exchange and developed a totally self-supplying and totalitarian system.

Situations comparable to the autarchy, with which they could be confused, but which are actually examples of dictatorial systems with a strong protectionist sense.

Such is the case of socialist Germany, which in its opportunity championed itself with a autarkic message not to carry out commercial exchanges with other countries, especially those he considered as his enemies potential during the First and Second World War such as the countries of France and England, among others. However, it had to export part of its production, especially in the automotive area.

Another case is the one that occurs today, in North Korea which exercises a kind of autarky, which obeys political-administrative decisions.

Conditions for generating an autarkic process

• Need to run self-supply processes.
• Impossibility of purchase and sale of goods or services.
• Impossibility of existence of capital flows.
• Generation of conditions for National production, typical of each sector, sufficient to supply the country's demand.

Characteristics of the autarky process.

By definition, autarky is the opposite of globalization and free trade, its characteristics are the following:

• Its main characteristic is the nationalist character, together with an authoritarian system.
• This system is not compatible with democratic political systems.
• It represents a closed economy.
• There is no participation in trade activities with other nations, that is, it does not participate in exports or imports.
• There is total control of the state regarding the determination of prices and production systems. In the same way, the state controls and determines consumption patterns.

When did the Autarchy originate?

• It originates when a great danger is perceived in the prolongation of commercial exchanges.
• It can be caused by world catastrophes, wars or economic blockades between countries.
• It is also caused by unemployment caused by the mobilization of industries or by the entry of foreign people to the localities.
• It is also common for it to originate for political reasons, when there are differences between countries by political reasons and exchanges are limited to pressure the one who is at a disadvantage with respect to the other or others. Generally, pressure is exerted by a leader representing the country with greater economic power, which makes the disadvantaged country decide to opt for autarky.

Advantages of autarky

• Generates and encourages national or internal production, through studies and endowments of land and resources of the nation.
• It alleviates a bit the confrontation with foreign competition.
• Promotes and supports the development of local and regional industries.
• Competition between different localities or regions encourages local production and development.
• It avoids dependence on foreign countries, in this sense it guarantees the internal autonomy of the nation.

Disadvantages of autarky

• During the autarky process, the state has full control over natural resources, energy and not the nation's renewable energy sources, likewise it also controls the industrial platform and the solidity of the productive system of the country.
• A maximum effort is required to meet the needs of the population, since there are no commercial exchanges between countries, By not being able to import products and services from abroad, the level of satisfaction of the country is sometimes unattainable to sustain. What supposes the collapse of some productive sectors.
• Drastic reduction of trade relations with other nations, as well as financial flows with foreign countries are reduced or interrupted, which is detrimental to the country.
• The movement of people is also affected, since the country's labor force would be at a disadvantage when faced with committed to national production, since it is considered one more resource, which cannot be made available for to export.
• Internally, the state can be involved in confrontations between the different social layers of the country.

Examples of economies in autarky

• Countries involved in armed conflicts are affected by commercial exchange since they cannot import services or goods and neither can they export their products.
• Countries blocked by their neighboring countries for political reasons have also had to be autarkic.
• Throughout the ages, totalitarian regimes and dictatorships have seen the need to apply this economic route, as has happened in the countries that made up the former Soviet Republican Union Socialist. U.S.S.R., Nazi Germany or North Korea today.

To conclude, it is worth noting that throughout history it has been shown that autarky is an illusion, since commercial exchange between countries is extremely necessary and beneficial for their livelihood and development, taking into consideration that the demography of each country has increased over the years. years.