Unravelling Economic Decentralization and Marketization in the Local Economy of North Korea: A Comparative Political Economy Perspective
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This article delves into the intricacies of economic decentralization in North Korea from a Comparative Political Economy (CPE) perspective. It challenges the prevailing notion that economic decentralization inevitably leads to a linear transition from planned to capitalist economies, solely influenced by neoliberal forces. Instead, it argues for a more nuanced CPE approach that recognizes the multifaceted factors shaping marketization and development. The study focuses on the transformation of the local economy in North Korea, examining policy dimensions and the dual nature of marketization. The emergence of market-oriented resource allocation and capital accumulation by local actors is contrasted with rent-seeking behaviors driven by political hierarchies. Despite the nascent manifestation of marketization within the local economy and the active engagement of individuals in market mechanisms, the system remains constrained in its subservience to political objectives rather than actively striving for a detachment from politics. In conclusion, this study undertakes a comparative assessment of North Korea’s experiences in relation to those of Eastern Europe and China, discerning both the shared characteristics and distinctive elements that set them apart.
Abstract
This article delves into the intricacies of economic decentralization in North Korea from a Comparative Political Economy (CPE) perspective. It challenges the prevailing notion that economic decentralization inevitably leads to a linear transition from planned to capitalist economies, solely influenced by neoliberal forces. Instead, it argues for a more nuanced CPE approach that recognizes the multifaceted factors shaping marketization and development. The study focuses on the transformation of the local economy in North Korea, examining policy dimensions and the dual nature of marketization. The emergence of market-oriented resource allocation and capital accumulation by local actors is contrasted with rent-seeking behaviors driven by political hierarchies. Despite the nascent manifestation of marketization within the local economy and the active engagement of individuals in market mechanisms, the system remains constrained in its subservience to political objectives rather than actively striving for a detachment from politics. In conclusion, this study undertakes a comparative assessment of North Korea’s experiences in relation to those of Eastern Europe and China, discerning both the shared characteristics and distinctive elements that set them apart.
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