Closed Economies, Autarchy – Failure and Economic Disaster

Autarchy is an economic system in which the state refuses any commercial connection with the outside, solely relying on its own resources. In an autarchic economy, the state does not participate in the international economic life, is not part of any regional and/or global economic organization and does not export or import goods. The characteristics of a closed, autarchic economy are: 1). the state does not take into account the progress of the world economy, 2). the state lacks involvement in the international economy, 3). economic independence is pursued by drastically reducing or canceling imports and exports, 4). the state solely relies on its own resources. This economic system can lead to: a). a pronounced economic decline, due to the impossibility of the state to provide the necessary goods and services for the population’s livelihood, b). a decrease in national incomes, considerable decrease in GDP, c). an increase in the state’s access to domestic natural resources, which in turn leads to an increased chance of their depletion, d). social instability.

CUNOAȘTEREA ȘTIINȚIFICĂ, Volumul 1, Numărul 2, Decembrie 2022, pp. 46-51
ISSN 2821 – 8086, ISSN – L 2821 – 8086, DOI: 10.58679/CS50603

Closed Economies, Autarchy – Failure and Economic Disaster