Autarky

The Greek word autarky can be decomposed into two words: autos, meaning self, and arkein, meaning to be strong and self-sufficient. When we use the word to describe a nation we mean that the nation is a closed economy cut from international trade or any sources of external support. Autarky has been contended by David Ricardo, a classical British political economist, arguing that countries should produce goods that they have a comparative advantage in. The notion of economic independence was upheld by authoritarian rulers. In the modern world, North Korea comes the closest to exercising autarky. Its official state ideology has been “Juche” which means self-reliance. With the motivation to insulate the country from foreign political influences, North Korea adopted Juche, however, it has resulted in North Korea falling in one of the lowest rungs of the global economic strata. 

Annie Shrestha is a second year students of Economics at Indraprastha College for Women.