Politico-economic Implications of North Korea's "Quasi-market Economy” in the Kim Jung-un Era
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The article scrutinized the origin and characteristics of the quasi-market in North Korea and its politico-economic implications for the regime. It analyzes Kim Jung-un’s succession of Kim Jong-il’s economic strategies with special reference with policy changes in the context of the side effects of 7.1 measures. In order to understand meanings and their limitations of the changes the author reviewed related literature of North Korea. Changes in North Korea’s economic laws since 2015 reflect the strategy of North Korean leadership to stabilize and strengthen its power base by providing material incentives and control power over the quasi-market to North Korea’s power elite. North Korea’s quasi-market mechanism and its resource allocation distortion aggravate its chronic shortages.
Abstract
The article scrutinized the origin and characteristics of the quasi-market in North Korea and its politico-economic implications for the regime. It analyzes Kim Jung-un’s succession of Kim Jong-il’s economic strategies with special reference with policy changes in the context of the side effects of 7.1 measures. In order to understand meanings and their limitations of the changes the author reviewed related literature of North Korea. Changes in North Korea’s economic laws since 2015 reflect the strategy of North Korean leadership to stabilize and strengthen its power base by providing material incentives and control power over the quasi-market to North Korea’s power elite. North Korea’s quasi-market mechanism and its resource allocation distortion aggravate its chronic shortages.
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