“Economy of the Extended Space” as a form of autarky in 1930s Germany and German-Yugoslav relations in 1933–1941

The economic policy of autarky has consistently been regarded as an appealing alternative to a policy of free trade for developing or isolated states. The autarkic policy pursued by Nazi Germany prior to World War II represents a significant topic of academic interest, particularly in the context of historical analysis. The subject of this study is the concept of “economy of the extended space” as a form of autarky in Germany during the 1930s. Concurrently, the primary focus is on the application of this model to one of the most understudied areas of the Third Reich’s foreign economic interactions, namely German-Yugoslav relations. The relevance of this topic is determined by two key considerations: firstly, the importance of the phenomenon of the existence of a state with limited resources in conditions of isolation; and secondly, the significance of the “Yugoslav factor” in the context of Berlin’s foreign policy during the interwar period. The primary objective of this research is to gain a comprehensive understanding of the “economy of the extended space” that emerged in Nazi Germany and the processes through which European states that were primarily agrarian and not significantly influenced by industrialisation were subjugated to its control. Firstly, it is important to note that the focus of this discussion is on the states of South-Eastern Europe. The Kingdom of Yugoslavia represents a particularly noteworthy example of a successful state in this region. It was a large state with a diverse economy, including a thriving agricultural sector and significant mineral reserves. Additionally, Yugoslavia emerged as an important market for German industrial products, contributing to its economic stability and growth. The author examines the economic situation in Germany in the 1930s, the controversy surrounding supporters and opponents of autarkic policies, and the relationship between Germany and Yugoslavia in the interwar period. The study draws upon a variety of historical sources, including documents from the Political Archive of the German Foreign Ministry in Berlin, reports from Third Reich diplomats published in the collection of diplomatic papers titled “Akten zur deutschen auswärtigen Politik: 1918–1945”, statistical data from Yugoslavia, articles from scholarly journals, collections of speeches and monographs written by German researchers from the 1920s to 1930s, and research works from the latter half of the 20th century on the economics of Nazi Germany. The findings of the study indicated that the relationship between Germany and Yugoslavia was mutually beneficial. Both states were invested in the positive development of the other’s economy. Hitler’s decision to incorporate Yugoslavia into the “economy of the extended space” had several advantages. Firstly, it provided Germany with a reliable source of agricultural products and minerals, situated in close proximity to its territory. Secondly, it enabled Germany to maintain its primary trade relationship with Western countries, while also avoiding a complete reorientation of trade towards South-Eastern European countries.