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The Limits of Economic Reform in North Korea under the Kim Jong-un Regime: Lessons from Chinese Experience

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The Kim Jong-un regime has sought to improve the productivity of state-owned enterprises and collective farms by granting greater managerial autonomy and material incentives. While there are some positive aspects to this reform, it is considerably more limited than that of China in the 1980s which began privatization from the onset of its reform process. Unlike China, collective farms have not been disbanded nor have new non-state enterprises developed in the industrial sector. Considering that privatization is a prerequisite for entrepreneurshipthe basic driving force of economic growth, this reform is unlikely to stimulate long-term growth. The limited nature of the reform is closely related to the fact that the regime remains oppressive domestically and isolated externally.

Abstract

The Kim Jong-un regime has sought to improve the productivity of state-owned enterprises and collective farms by granting greater managerial autonomy and material incentives. While there are some positive aspects to this reform, it is considerably more limited than that of China in the 1980s which began privatization from the onset of its reform process. Unlike China, collective farms have not been disbanded nor have new non-state enterprises developed in the industrial sector. Considering that privatization is a prerequisite for entrepreneurshipthe basic driving force of economic growth, this reform is unlikely to stimulate long-term growth. The limited nature of the reform is closely related to the fact that the regime remains oppressive domestically and isolated externally.

참고문헌 (42)

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