Autarchy or autarky is a concept or can also be said to be an independent and protectionist economic system. In the autarky system, a country really upholds independence in the economy. But this independence is too extreme because it is also supported by protectionists. Simply put, a country with this system isolates itself from the economy and international trade. All needs must be produced and met by themselves, and do not require assistance from other countries. So this concept is in contrast to the concept of international economics where every country needs each other.
The autarchy system itself has a negative stigma because in practice the protectionist policies that are applied are often oppressive, intimidating their citizens, and sometimes must be carried out brutally. An example of the autarchy system, for example, was that of Nazi Germany during World War II.
Another example of a country that tried to run an autarky system that ended tragically was Cambodia. In the 1970s, driven by the social and political revolution spearheaded by the Khmer Rouge, Pol Pot tried to impose a system of autarchy on the Cambodian state. At that time, the Cambodian state isolated its economy from the global economy, rejected all foreign economic relations, and declared that Cambodia could produce all its own needs. At first glance, the policy on economic independence is good, as one of the characteristics of the socialist system. But because this is autarky and there are protectionists, this is where the brutal side of the protectionist policy can be seen, where there is a mass massacre in Cambodia which is estimated to have massacred more than 2 million Cambodians at that time. The massacre was carried out to completely eliminate the western influence in Cambodian society in order to build an isolated Cambodian state that could meet all its own needs. But these efforts failed miserably because in the end Pol Pot was overthrown and his cruelty was condemned by the international community.
Today there is no country that implements a pure autarchy system. North Korea, which is said to be close to an autarchic system, turns out to be not that extreme in running its economy. In fact, North Korea continues to open trade relations, especially with China in order to fulfill its domestic needs. But it can be said that North Korea is the country closest to its current condition with the definition of an autarchic system.
Basically it is difficult for a country to stand alone. Each country has its own advantages, disadvantages, and comparative advantages, so that each country will need each other. Moreover, as humans, every human being has a natural instinct to socialize, including in the form of large organizations such as the state. It seems that there will never be a country that can implement the autarchy system purely and completely.
Autarky is regional or state economic independence. A form of state autarchy was carried out by Nazi Germany in 1933, which carried out trade without involving other countries. Afghanistan has also used the policy of autarky in 1996 to 2001. In the context of the country, adherents of the autarchy system are very rare, especially for now it may not exist anymore. Autarky policy will be very detrimental to the economic development of a country. Every country needs imports to meet food needs. It may not be imported, but the production cost will certainly be very expensive. Besides that, export activities are also a step to introduce domestic products to foreign countries. State income will also increase with export-import activities. Moreover, with the existence of a liberal market, every country must take part in it for the sake of economic progress.
What if the autarky system are implement in the small area?
For a smaller scope, regional self-sufficiency still applies. As in our country which has regional autonomy. Policies are left to the respective regional leaders to manage the running of the economy. This includes food self-sufficiency. We remember that in the 80s, the distribution of fertilizers was regulated by the central government and the distribution of agricultural products was also managed by the central government. But now each region is given the authority to manage agricultural facilities and infrastructure for food self-sufficiency. The provision of seeds and fertilizers in each region is now different. And this has been regulated independently by the autonomous region. The positive side for regions that have qualified natural resources and human resources will certainly achieve maximum food self-sufficiency. Improving welfare for the community. However, for regions that have limited natural resources and human resources, they will certainly not feel sufficient. Indirectly, the autarky system that occurs in the regions also hinders national food self-sufficiency. Unequal food welfare.
This means that the autarky system seen from its impact is more likely to have a negative effect. but that does not mean if a country or region can maximize existing human resources and natural resources, then the country will become a powerful country without dependence on other countries.
This Autarky economic system can also be referred to as an exclusive system that seeks to close itself off where in the process it tries to limit interaction, communication and economic, financial and trade cooperation with other parties outside the country because of ideological interests, lack of harmony in building diplomatic relations with other parties. other countries or also because the country is in a state of war emergency or is in a confrontation that forces the people in a country to be mobilized in support of national interests including concentrating and focusing on efforts to suppress and create self-reliance in terms of food security, military resilience and economic resilience.
The implementation of the autarky system is the impact of a political system controlled by leaders who tend to be authoritarian and fascist dictators, so that it gets opposition from many parties and the state which leads to conflicts and boycotts and economic sanctions that force leaders to take extreme policies in meeting economic needs, including economics. in terms of consumption, production, and distribution of fulfillment of the needs of goods and services to maintain the sustainability and existence of the people and the state.
Autarky in relation to the international trading system.
In relation to the international trade system, the Autarky concept seeks to limit the people and economic actors from connecting, interacting and building trade cooperation with other countries or the global community and trying to carry out trade that is exclusive in nature which only involves economic actors and the community within a country. The products traded are also limited to locally produced goods and services, including the use of payment instruments that only use local currency.
This autarky system does not agree with the practice of capitalism, liberalism, anti-free trade and rarely carries out export and import activities so that the level of progress and economic growth has stagnated. Besides that, all production machinery, natural resources and factors of production are all controlled by the state and are empowered and maximized to support the national interest.
