Autarky facts for kids

Autarky is a special kind of economy where a country or region tries to make everything it needs by itself. It does not trade much, or at all, with other countries. You can also call it a self-sufficient economy or a closed economy.

This means a country with autarky aims to produce all its own food, clothes, machines, and anything else its people need. It tries not to rely on help or goods from outside its borders.

What is Autarky?

Autarky comes from a Greek word meaning "self-sufficiency." In simple terms, it's when a country acts like a very independent household. Instead of buying things from neighbors, it grows its own food, builds its own tools, and makes its own clothes. For a whole country, this means producing all goods and services within its own borders.

Why Do Countries Consider Autarky?

Sometimes, countries might think about autarky for different reasons:

• Protecting Local Businesses: A country might want to help its own factories and farms grow stronger without competition from foreign goods.
• National Security: In times of war or conflict, a country might want to be sure it can get all the supplies it needs without depending on other nations that might become enemies.
• Political Independence: Some leaders believe that trading less with other countries gives them more control over their own decisions and less influence from outside.

Challenges of Autarky

While autarky sounds like it could make a country very strong, it often comes with many difficulties:

• Lack of Variety: People might have fewer choices for products.
• Higher Costs: It can be more expensive to make everything at home, especially if other countries can produce things more cheaply.
• Slower Progress: Without trading ideas and goods, a country might miss out on new technologies or better ways of doing things from around the world.
• Limited Resources: No country has every natural resource it needs. For example, a country might not have oil or certain metals.

Is Autarky Common Today?

True autarky is very rare in the modern world. Most countries today are part of a global economy. They trade goods and services with many other nations. This helps countries get things they cannot easily make themselves. It also allows them to sell what they produce best to others.

One country often mentioned when discussing autarky is North Korea. It has tried to be very self-sufficient for a long time. However, even North Korea trades a small amount with some countries, like China and Japan. This shows how difficult it is for any country to be completely cut off from the rest of the world.

In history, some countries have tried to be more self-sufficient, especially during or after big wars. But over time, most have found that trading with others helps their economies grow and offers more benefits to their citizens.

See also

In Spanish: Autarquía para niños