Outlook for North Korean Economic Reform and Marketization
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In North Korea, there are some sectors in which non-national or unplanned production prevails, but it can hardly be said that marketization is institutionalized. In that sense, the North Korean economy is neither a planned economy nor a market economy. Although real marketization has not started in full in North Korea, “marketization from the bottom” has brought centrifugal forces to the system of government in North Korea, which used to be unified under the supreme leader and the Korean Workers’ Party. Considering the industry structure of North Korea, the stable supply of consumer goods depends primarily on agricultural production, light industry production and growth in imports. Rehabilitation and growth of heavy industry require more investment by both domestic and foreign sources. In order for North Korea to foster sound economic development, marketoriented policies, not merely the introduction of some competitive aspects, are needed. This requires both spontaneous motivation in North Korea and support from the outside world at the same time. A healthier economic condition is one important factor in enabling North Korea to maintain a comparatively stable political administration in the post-Kim Jong-il era.
Abstract
In North Korea, there are some sectors in which non-national or unplanned production prevails, but it can hardly be said that marketization is institutionalized. In that sense, the North Korean economy is neither a planned economy nor a market economy. Although real marketization has not started in full in North Korea, “marketization from the bottom” has brought centrifugal forces to the system of government in North Korea, which used to be unified under the supreme leader and the Korean Workers’ Party. Considering the industry structure of North Korea, the stable supply of consumer goods depends primarily on agricultural production, light industry production and growth in imports. Rehabilitation and growth of heavy industry require more investment by both domestic and foreign sources. In order for North Korea to foster sound economic development, marketoriented policies, not merely the introduction of some competitive aspects, are needed. This requires both spontaneous motivation in North Korea and support from the outside world at the same time. A healthier economic condition is one important factor in enabling North Korea to maintain a comparatively stable political administration in the post-Kim Jong-il era.
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