Thursday, August 28, 2014

Autarky vs Free Market

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How to Enrich a Country: Free Trade or (Mercantilist) Protectionism? - tSoL > .
Economics - PrDaEx >> .

Autarky is the characteristic of self-sufficiency, usually applied to societies, communities, states and their economic systems. The word autarky is from the Greek: αὐτάρκεια, which means "self-sufficiency" (derived from αὐτο-, "self", and ἀρκέω, "to suffice"). The term is sometimes confused with autocracy (Greek: αὐτoκρατία "government by single absolute ruler") or autarchy (Greek: αὐταρχία – the idea of rejecting government and ruling oneself and no other).

Autarky as an ideal or method has been embraced by a wide range of political ideologies and movements, especially left-wing ideologies like African socialism, mutualism, war communismcouncil communism, Communalism, Swadeshi, syndicalism (especially anarcho-syndicalism) and leftist populism, generally in an effort to build alternative economic structures or to control resources against structures a particular movement views as hostile. Conservative, centrist and nationalist movements have also adopted autarky in an attempt to preserve part of an existing social order or to develop a particular industry. Some right-wing populist and far-right movements occasionally espoused autarky as a goal.

Proponents of autarky have argued for national self-sufficiency to reduce foreign economic, political and cultural influences, as well as to promote international peace. Economists are generally supportive of free trade. There is a broad consensus among economists that protectionism has a negative effect on economic growth and economic welfare while free trade and the reduction of trade barriers has a positive effect on economic growth and economic stability.

Autarky may be a policy of a state or some other type of entity when it seeks to be self-sufficient as a whole, but it also can be limited to a narrow field such as possession of a key raw material. Some countries have a policy of autarky with respect to foodstuffs and water for national-security reasons. Autarky can result from economic isolation or from external circumstances in which a state or other entity reverts to localized production when it lacks currency or excess production to trade with the outside world.

An autarkic economy that also will not or can not conduct outside trade is known as a closed economy.

Early state societies that can be regarded as autarkic include nomadic pastoralism and palace economy, though over time these tend towards becoming less self-sufficient and more interconnected. The late Bronze Age, for example, saw formerly self-sufficient palace economies rely more heavily on trade, which may have been a contributing factor to the eventual Bronze Age Collapse when multiple crises hit those systems at once. After that collapse, the ideal of autarkeia formed a part of emerging Greek political culture, emphasizing economic self-sufficiency and local self-rule.

During the Late Roman Empire, some rebellions and communities pursued autarky as a reaction both to upheaval and to counter imperial power. A prominent example is the Bacaude, who repeatedly rebelled against the empire and "formed self-governing communities" with their own internal economy and coinage.

Medieval communes combined an attempt at overall economic self-sufficiency through the use of common lands and resources with the use of mutual defense pacts, neighborhood assemblies and organized militias to preserve local autonomy against the depredations of the local nobility. Many of these communes later became trading powers such as the Hanseatic League. In some cases, communal village economies maintained their own debt system as part of a self-sufficient economy and to avoid reliance on possibly hostile aristocratic or business interests. The trend toward "local self-sufficiency" increased after the Black Plague, initially as a reaction to the impact of the epidemic and later as a way for communes and city states to maintain power against the nobility.

Autarkic ambitions can also be seen in the Populist backlash to the exploitations of free trade in the late 19th-century and in many early Utopian Socialist movements. Mutual aid societies like the Grange and Sovereigns of Industry attempted to set up self-sufficient economies (with varying degrees of success) in an effort to be less dependent on what they saw as an exploitative economic system and to generate more power to push for reforms.

Communist movements embraced or dismissed autarky as a goal at different times. In her survey of anarchism in the late 1800s, Voltairine De Cleyre summarized the autarkic goals of early anarchist socialists and communists as "small, independent, self-resourceful, freely-operating communes." Peter Kropotkin in particular advocated local and regional autarky integrating agriculture and industry, instead of the international division of labor. Pyotr Alexeyevich Kropotkin (Пётр Алексе́евич Кропо́ткин; 9 December 1842 – 8 February 1921) was a Russian anarchist, socialist, revolutionary, economist, sociologist, historian, zoologist, political scientist, human geographer and philosopher who advocated anarcho-communism. He was also an activist, essayist, researcher and writer.

Kropotkin was a proponent of a decentralised communist society free from central government and based on voluntary associations of self-governing communities and worker-run enterprises. His work repeatedly held up communities "that needed neither aid or protection from without" as a more resilient model. He wrote many books, pamphlets and articles, the most prominent being The Conquest of Bread and Fields, Factories and Workshops, but also Mutual Aid: A Factor of Evolution, his principal scientific offering. He contributed the article on anarchism to the Encyclopædia Britannica Eleventh Edition and left unfinished a work on anarchist ethical philosophy.

Early socialist movements used these autarkic efforts to build their base with institutions like the Bourse de travail, socialist canteens and food assistance. These played a major role in securing workers' loyalty and building those parties into increasingly powerful institutions (especially in Europe) throughout the late 19th and early 20th-centuries. Through these cooperatives "workers bought Socialist bread and Socialist shoes, drank Socialist beer, arranged for Socialist vacations and obtained a Socialist education."

Today, national economic autarkies are relatively rare. A commonly-cited example is North Korea, based on the government ideology of Juche (self-reliance), which is concerned with maintaining its domestic localized economy in the face of its isolation. However, even North Korea has extensive trade with Russia, China, Syria, Iran, Vietnam, India and many countries in Europe and Africa. North Korea had to import food during a widespread famine in the 1990s.

A better modern example at a societal level is the autonomous region of Rojava, the autonomous northern region of Syria. Largely cut off from international trade, facing multiple enemies, and striving for a society based on communalism, Rojava's government and constitution emphasize economic self-sufficiency directed by neighborhood and village councils. Rojavan society and economics are influenced by Bookchin's ideas, including the emphasis on local and regional self-governance. Under changes made in 2012 property and business belong to those who live in or use it towards these goals, while infrastructure, land and major resources are commons run by local and regional councils. Bookchin however was concerned about the effects of autarkism in respect to the closing off of a community and therefore always stressed the need for a balance between localism and globalism.

An example of a contemporary effort at localized autarky, incorporating the concept's history from black nationalism, Ujamaa, African-American socialism and the civil rights movement, is Cooperation Jackson, a movement aimed at creating a self-sufficient black working class economy in Jackson, Mississippi. The movement has aimed to secure land and build self-sufficient cooperatives and workplaces "to democratically transform the political economy of the city" and push back against gentrification. Cooperation Jackson also saw a gain in electoral political power when its involvement proved pivotal to the 2013 mayoral election of Chokwe Lumumba and the 2017 election of his son, Chokwe Antar Lumumba.

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sī vīs pācem, parā bellum

igitur quī dēsīderat pācem praeparet bellum    therefore, he who desires peace, let him prepare for war sī vīs pācem, parā bellum if you wan...