What Drives North Korea?

Trump has been at the short end about four times. If Thomas Jefferson had but one man to invite to dinner, it would be Trump. Those who oppose Trump have found and will find themselves lemmings running toward their fall. Savaged the competitors with techniques like not installing sprinklers in Trump Tower, to save on costs — with tragic consequences this week. He would not have admired, much less dined with, Donald Trump. That just makes it all the more repugnant to see such sycophantic behavior willing promoted in this country.

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The usual leftist moral equivalency between communist discatorships and the United States of America, we have come to expect. The usual mindless right wing over generalizations I have come to expect, and not one word addressing the points I made. I wish he were dead! I was referring to how the North Korean citizens have no choice but to lavish praise on their dictator, so that they and their families can survive the repressive regime. They have no choice, but you and Al do have a choice, yet still fawn over Trump in much the same way. They are, in many cases, indoctrinated and they live in conditions comparable to slavery.

Those that do think for themselves usually keep their thoughts to themselves, because the alternative is imprisonment or death. But since you are apparently a man who believes his values and will to power make him better than others, I suggest you put your beliefs to the test. Show them the way. I gave you the last word and you gave me a dare? No leading question or any other excuse this time, just your overwhelming need to respond, ironically calling others trolls. A troll would be someone who constantly puts down on others, including those suffering in a dictatorship, then pretends to be magnanimous in allowing the last word, but always with a ready excuse to rescind the offer.

His side interests include an ongoing fascination with the history of science and technology and military history. By Jeremy Hsu April 6, 4: Ever hear of that? We all do it, goes the dogma, but we do it worse! And, of course, not one negative word for third world, tin pot dictator.

My point well made! So yes, we do lack shared vaues! You say, and I quote: More proof that we. A government research center, the Korea Computer Center , was set up in , starting the slow development of an information technology industry. In and the State Economic Development Administration announced a number of smaller special economic zones covering export handling, mineral processing, high technology, gaming and tourism.

The most successful export industry is the garment industry. Production is by a North Korean firm for a European or other foreign partner, by a Chinese firm operating in North Korea with a North Korean partner, or by North Korean workers working in Chinese or other foreign factories. The North Korean motor vehicle production establishes military, industrial and construction goals, with private car ownership by citizens remaining on low demand. Having Soviet origins the subsequent practice of cloning foreign specimens, and a recent automobile joint-venture , North Korea has developed a wide-range automotive industry with production of all types of vehicles.

However, North Korea produces far fewer vehicles than its production capability due to the ongoing economic crisis. North Korea has not joined or collaborated with the OICA , or with any other automotive organization, so any critical information about its motor vehicle industry is limited. The energy sector is one of the most serious bottlenecks in the North Korean economy. Since , the supply of oil, coal, and electricity declined steadily, and seriously affected all sectors of the economy. Crude oil was formerly imported by pipeline at "friendship prices" from the former Soviet Union or China, but the withdrawal of Russian concessions and the reduction of imports from China brought down annual imports from about 23 million barrels 3.

As the imported oil was refined for fuels for transportation and agricultural machinery, a serious cutback in oil imports caused critical problems in transportation and agriculture. According to statistics compiled by the South Korean agency Statistics Korea based on International Energy Agency IEA data, per capita electricity consumption fell from its peak in of kilowatt hours to a low of kilowatt hours in It slowly rose since then to kilowatt hours in , a level below that of Coal production peaked at 43 million tons in and steadily declined to Major causes of coal shortages include mine flooding, and outdated mining technology.

As coal was used mainly for industry and electricity generation, decrease in coal production caused serious problems in industrial production and electricity generation. Coal production may not necessarily increase significantly until North Korea imports modern mining technology. Electricity generation of North Korea peaked in at about 30 TWh. There were seven large hydroelectric plants in the s. Four were along the Yalu River , built with Chinese aid, and supplying power to both countries.

Coal exports to China currently account for a major portion of North Korea's revenue. Some hydroelectric facilities were believed to be out of operation due to damage from major flooding in Coal-fired power plants were running well under capacity, due in part to a serious decline in coal supply and in part to problems with transportation of coal. The electricity supply steadily declined and was 17 TWh in Since electricity generated needed to be doubled just to return to the level, power shortages continued until coal production could increase substantially and generating equipment is refurbished.

Construction has been an active sector in North Korea. This was demonstrated not only through large housing programmes, of which most were visible in the high-rise apartment blocks in Pyongyang , but also in the smaller modern apartment complexes widespread even in the countryside. These are dwarfed in every sense by "grand monumental edifices". The Bank of Korea claims that construction's share of GDP fell by almost one-third between and , from 9.

However, the latter figure excludes the Korean People's Army , which visibly does much of the country's construction work. Since about , when 18 tower blocks were built in Pyongyang, a construction boom has taken place in Pyongyang. Several reissues of banknotes in recent years suggest that citizens are inclined to hoard rather than bank any savings that they make from their incomes; reportedly they now also prefer foreign currency.

At least two foreign aid agencies [ clarification needed ] have recently set up microcredit schemes, lending to farmers and small businesses. In and laws were passed to codify rules for savings and commercial banking. However it was not until that North Korean banks started to seriously compete for retail customers.

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Competing electronic cash cards have become widely accepted in Pyongyang and other cities, but are generally not linked to bank accounts. North Korean banks have introduced retail products which permit a mobile phone app to make payments and top-ups. Until the early s the official retail sector was mainly state-controlled, [67] under the direction of the People's Services Committee.

Consumer goods were few and of poor quality, with most provided on a ration basis. In and in , private markets were progressively legalized, mostly for food sales. In , the Korea Institute for National Unification estimated there were government-approved markets employing about 1. North Korea's sparse agricultural resources limit agricultural production.

Climate, terrain, and soil conditions are not particularly favorable for farming, [16] with a relatively short cropping season. The weather varies markedly according to elevation, and lack of precipitation, along with infertile soil, makes land at elevations higher than meters unsuitable for purposes other than grazing. Precipitation is geographically and seasonally irregular, and in most parts of the country as much as half the annual rainfall occurs in the three summer months. This pattern favors the cultivation of paddy rice in warmer regions that are outfitted with irrigation and flood control networks.

Farming is concentrated in the flatlands of the four west coast provinces, where a longer growing season, level land, adequate rainfall, and good irrigated soil permit the most intensive cultivation of crops. The mountains contain the bulk of North Korea's forest reserves while the foothills within and between the major agricultural regions provide lands for livestock grazing and fruit tree cultivation.

Since self-sufficiency remains an important pillar of North Korean ideology, self-sufficiency in food production is deemed a worthy goal. Another aim of government policies—to reduce the gap between urban and rural living standards—requires continued investment in the agricultural sector. The stability of the country depends on steady, if not rapid, increases in the availability of food items at reasonable prices. In the early s, there were severe food shortages. The most far-reaching statement on agricultural policy is embodied in Kim Il-sung's Theses on the Socialist Agrarian Question in Our Country , which underscores the government's concern for agricultural development.

As industrialization progressed, the share of agriculture, forestry, and fisheries in the total national output declined from Their share in the labor force also declined from In the s, the decreasing ability to carry out mechanized operations including the pumping of water for irrigation , as well as lack of chemical inputs, was clearly contributing to reduced yields and increased harvesting and post-harvest losses. Incremental improvements in agricultural production have been made since the late s, bringing North Korea close to self-sufficiency in staple foods by In particular, rice yields have steadily improved, though yields on other crops have generally not improved.

The production of protein foods remains inadequate. Access to chemical fertilizer has declined, but the use of compost and other organic fertilizer has been encouraged. North Korean fisheries export seafood, primarily crab , to Dandong, Liaoning , illicitly. Since the s, a majority of North Koreans have received their food through the public distribution system PDS.

The PDS requires farmers in agricultural regions to hand over a portion of their production to the government and then reallocates the surplus to urban regions, which cannot grow their own foods. Decreases in production affected the quantity of food available through the public distribution system. Shortages were compounded when the North Korean government imposed further restrictions on collective farmers. When farmers, who had never been covered by the PDS, were mandated by the government to reduce their own food allotments from kilograms to kilograms of grain per person each year, they responded by withholding portions of the required amount of grain.

It was further reported that the PDS failed to provide any food from April to August the "lean" season as well as from March to June In January , the North Korean government publicly announced that the PDS would no longer distribute rations and that families needed to somehow procure their own food supplies. In and in , private markets were progressively legalized. From to , North Korea suffered a famine.

Since there has been a gradual recovery in agriculture production, which by brought North Korea back close to self-sufficiency in staple foods. However, as of , most households have borderline or poor food consumption, and consumption of protein remains inadequate.

In the s, the North Korean economy saw stagnation turning into crisis. Economic assistance received from the Soviet Union and China was an important factor of its economic growth. Upon its collapse in , the Soviet Union withdrew its support and demanded payment in hard currency for imports.

China stepped in to provide some assistance and supplied food and oil, most of it reportedly at concessionary prices. The rigidity in the political and economic systems of North Korea left the country ill-prepared for a changing world. The North Korean economy was undermined and its industrial output began to decline in Deprived of industrial inputs, including fertilizers, pesticides, and electricity for irrigation, agricultural output also started to decrease even before North Korea had a series of natural disasters in the mids.

This evolution, combined with a series of natural disasters including record floods in , caused one of the worst economic crises in North Korea's history. The establishment of this zone also had ramifications on the questions of how far North Korea would go in opening its economy to the West and to South Korea, the future of the development scheme for the Tumen River area, and, more important, how much North Korea would reform its economic system.

North Korea announced in December a three-year transitional economic policy placing primary emphasis on agriculture, light industry, and foreign trade. However, lack of fertilizer, natural disasters, and poor storage and transportation practices have left the country more than a million tons per year short of grain self-sufficiency.

The s famine paralyzed many of the Stalinist economic institutions. The government pursued Kim Jong-il's Songun policy, under which the military is deployed to direct production and infrastructure projects. As a consequence of the government's policy of establishing economic self-sufficiency, the North Korean economy has become increasingly isolated from that of the rest of the world, and its industrial development and structure do not reflect its international competitiveness.

Domestic firms are shielded from international as well as domestic competition; the result is chronic inefficiency, poor quality, limited product diversity, and underutilization of plants. The food shortage was primarily precipitated by the loss of fuel and other raw materials imports from China and the Soviet Union which had been essential to support an energy intensive and energy inefficient farming system.

Following the collapse of the Soviet Union, the former concessional trade relationships which benefited the North Korea were not available. The three flood and drought years between and only served to complete the collapse of the agriculture sector. Thirty seven percent of the population was deemed to be insecure in food access. In North Korea had an exceptionally good harvest, 5. Distribution was uneven with the Public Distribution System largely ineffective. Any shortfall between production and need could be easily met by government funded imports, should the decision to make those purchases be made.

It is the world's 18th largest producer of iron and zinc , and has the 22nd largest coal reserves in the world. It is also the 15th largest fluorite producer and 12th largest producer of copper and salt in Asia. Other major natural resources in production include lead , tungsten , graphite , magnesite , gold , pyrites , fluorspar , and hydropower. In , North Korea exported However, starting from February China suspended all North Korean coal imports, although according to China overall trade with North Korea increased.

North Korea has a proficient information technology industry. In , a technological exhibition unveiled a new wi-fi service called Mirae "Future" , which allowed mobile devices to access the intranet network in Pyongyang. The exhibition also showcased a home automation system using voice recognition in Korean.

North Korea's economy has been unique in its elimination of markets. By the s, market elements had been suppressed almost completely. Almost all items, from food to clothes, have traditionally been handed out through a public distribution system, with money only having a symbolic meaning.

Ratios of food depend on hierarchy in the system, wherein the positions seem to be semi-hereditary. Until the late s, peasants were not allowed to cultivate private garden plots.

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Since the government is the dominant force in the development and management of the economy, bureaus and departments have proliferated at all administrative levels. There are fifteen committees—such as the agricultural and state planning committees—one bureau, and twenty departments under the supervision of the State Administration Council; of these, twelve committees—one bureau, and sixteen departments are involved in economic management.

In the early s, several vice premiers of the State Administration Council supervised economic affairs. Organizations undergo frequent reorganization. Many of these agencies have their own separate branches at lower levels of government while others maintain control over subordinate sections in provincial and county administrative agencies. Around , with the collapse of the Soviet Union , restrictions on private sales, including grain, ceased to be enforced.

In , and in , private markets were progressively legalized. In , North Korea announced the "May 30th measures". Also enterprise managers would be allowed to hire and fire workers, decide who they do business with and where they buy raw materials and spare parts. North Korea, one of the world's most centrally planned and isolated economies, faces desperate economic conditions. Industrial and power output have declined in parallel. During what North Korea called the "peaceful construction" period before the Korean War, the fundamental task of the economy was to overtake the level of output and efficiency attained toward the end of the Japanese occupation ; to restructure and develop a viable economy reoriented toward the communist-bloc countries; and to begin the process of socializing the economy.

Nationalization of key industrial enterprises and land reform, both of which were carried out in , laid the groundwork for two successive one-year plans in and , respectively, and the Two-Year Plan of It was during this period that the piece-rate wage system and the independent accounting system began to be applied and that the commercial network increasingly came under state and cooperative ownership. The plan stressed more than merely regaining the prewar output levels. The highest priority was developing heavy industry, but an earnest effort to collectivize farming also was begun.

At the end of , output of most industrial commodities had returned to levels, except for a few items such as chemical fertilizers, carbides, and sulfuric acid , whose recovery took longer. Having basically completed the task of reconstruction, the state planned to lay a solid foundation for industrialization while completing the socialization process and solving the basic problems of food and shelter during the Five-Year Plan of — Although growth rates reportedly were high, there were serious imbalances among the different economic sectors.

Because rewards were given to individuals and enterprises that met production quotas , frantic efforts to fulfill plan targets in competition with other enterprises and industries caused disproportionate growth among various enterprises, between industry and agriculture and between light and heavy industries.

Because resources were limited and the transportation system suffered bottlenecks, resources were diverted to politically well-connected enterprises or those whose managers complained the loudest. An enterprise or industry that performed better than others often did so at the expense of others. Such disruptions intensified as the target year of the plan approached. Until the s, North Korea's economy grew much faster than South Korea's. Although North Korea was behind in total national output, it was ahead of South Korea in per capita national output, because of its smaller population relative to South Korea.

For example, in North Korea's population was slightly over 10 million people, while South Korea's population was almost 25 million people. After claiming early fulfillment of the Five-Year Plan in , North Korea officially designated a "buffer year"—a year of adjustment to restore balances among sectors before the next plan became effective in Not surprisingly the same phenomenon recurred in subsequent plans.

Because the Five-Year Plan was fulfilled early, it became a de facto four-year plan. Beginning in the early s, however, North Korea's economic growth slowed until it was stagnant at the beginning of the s.

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Various factors explain the very high rate of economic development of the country in the s and the general slowdown since the s. During the reconstruction period after the Korean War, there were opportunities for extensive economic growth—attainable through the communist regime's ability to marshall idle resources and labor and to impose a low rate of consumption. This general pattern of initially high growth resulting in a high rate of capital formation was mirrored in other Soviet-type economies. Toward the end of the s, as reconstruction work was completed and idle capacity began to diminish, the economy had to shift from the extensive to the intensive stage, where the simple communist discipline of marshaling underutilized resources became less effective.

In the new stage, inefficiency arising from emerging bottlenecks led to diminishing returns. Further growth would only be attained by increasing efficiency and technological progress. Beginning in the early s, a series of serious bottlenecks began to impede development. Bottlenecks were pervasive and generally were created by the lack of arable land, skilled labor , energy , and transportation , and deficiencies in the extractive industries. Moreover, both land and marine transportation lacked modern equipment and modes of transportation. The inability of the energy and extractive industries as well as of the transportation network to supply power and raw materials as rapidly as the manufacturing plants could absorb them began to slow industrial growth.

The First Seven-Year Plan initially — built on the groundwork of the earlier plans but changed the focus of industrialization. Heavy industry, with the machine tool industry as its linchpin, was given continuing priority. During the plan, however, the economy experienced widespread slowdowns and reverses for the first time, in sharp contrast to the rapid and uninterrupted growth during previous plans. Disappointing performance forced the planners to extend the plan three more years, until During the last part of the de facto ten-year plan, emphasis shifted to pursuing parallel development of the economy and of defense capabilities.

This shift was prompted by concern over the military takeover in South Korea by General Park Chung-hee — , escalation of the United States involvement in Vietnam , and the widening Sino-Soviet split. It was thought that stimulating a technological revolution in the munitions industry was one means to achieve these parallel goals. In the end, the necessity to divert resources to defense became the official explanation for the plan's failure. The Six-Year Plan of — followed immediately in In the aftermath of the poor performance of the preceding plan, growth targets of the Six-Year Plan were scaled down substantially.

Because some of the proposed targets in the First Seven-Year Plan had not been attained even by , the Six-Year Plan did not deviate much from its predecessor in basic goals. The Six-Year Plan placed more emphasis on technological advance, self-sufficiency Juche in industrial raw materials, improving product quality, correcting imbalances among different sectors, and developing the power and extractive industries; the last of these had been deemed largely responsible for slowdowns during the First Seven-Year Plan. Improving transport capacity was seen as one of the urgent tasks in accelerating economic development—it was one of the major bottlenecks of the Six-Year Plan.

North Korea claimed to have fulfilled the Six-Year Plan by the end of August , a full year and four months ahead of schedule. Under the circumstances, it was expected that the next plan would start without delay in , a year early, as was the case when the First Seven-Year Plan was instituted in Even if the Six-Year Plan had been completed on schedule, the next plan should have started in However, it was not until nearly two years and four months later that the long-awaited plan was unveiled— had become a "buffer year".

The inability of the planners to continuously formulate and institute economic plans reveals as much about the inefficacy of planning itself as the extent of the economic difficulties and administrative disruptions facing the country. For example, targets for successive plans have to be based on the accomplishments of preceding plans. If these targets are underfulfilled, all targets of the next plan—initially based on satisfaction of the plan—have to be reformulated and adjusted.

Aside from underfulfillment of the targets, widespread disruptions and imbalances among various sectors of the economy further complicate plan formulation. The basic thrust of the Second Seven-Year Plan — was to achieve the three-pronged goals of self-reliance, modernization, and "scientification". Although the emphasis on self-reliance was not new, it had not previously been the explicit focus of an economic plan. This new emphasis might have been a reaction to mounting foreign debt originating from large-scale imports of Western machinery and equipment in the mids. Through modernization North Korea hoped to increase mechanization and automation in all sectors of the economy.

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The specific objectives of the economic plan were to strengthen the fuel, energy, and resource bases of industry through priority development of the energy and extractive industries; to modernize industry; to substitute domestic resources for certain imported raw materials; to expand freight-carrying capacity in railroad, road, and marine transportation systems; to centralize and containerize the transportation system; and to accelerate a technical revolution in agriculture.

In order to meet the manpower and technology requirements of an expanding economy, the education sector also was targeted for improvements. The quality of the comprehensive eleven-year compulsory education system was to be enhanced to train more technicians and specialists, and to expand the training of specialists, particularly in the fields of fuel, mechanical, electronic, and automation engineering.

Successful fulfillment of the so-called nature-remaking projects also was part of the Second Seven-Year Plan. These projects referred to the five-point program for nature transformation unveiled by Kim Il-sung in From all indications, the Second Seven-Year Plan was not successful. North Korea generally downplayed the accomplishments of the plan, and no other plan received less official fanfare. It was officially claimed that the economy had grown at an annual rate of 8. The reliability of this aggregate measure, however, is questionable. During the plan, the target annual output of 10 million tons of grains cereals and pulses was attained.

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However, by official admission, the targets of only five other commodities were fulfilled. Judging from the growth rates announced for some twelve industrial products, it is highly unlikely that the total industrial output increased at an average rate of After the plan concluded, there was no new economic plan for two years, indications of both the plan's failure and the severity of the economic and planning problems confronting the economy in the mids.

Growth and changes in the structure and ownership pattern of the economy also have changed the labor force. Private artisans, merchants, and entrepreneurs had joined state or cooperative enterprises. In the industrial sector in , the last year for which such data are available, there were 2, state enterprises and cooperative enterprises. North Korea's foreign trade deteriorated in the s. International sanctions impeded international trade to some degree, many related to North Korea's development of weapons of mass destruction.

United States President Barack Obama approved an executive order in April that declared "the importation into the United States, directly or indirectly, of any goods, services, or technology from North Korea is prohibited". The main paper Rodong Sinmun was running short of paper and was publishing only a third of its normal print run, two energy plants supplying electricity to Pyongyang had to be shut down intermittently due to lack of coal, causing blackouts, coal mines were operating under capacity due to lack of fuel, coal could not be transported due to lack of fuel and food rations had been cut by half.

North and South Korea's economic ties have fluctuated greatly over the past 30 years or so. Many firms agreed to invest in North Korea, encouraged by the South Korean government's commitment to cover their losses, should investment projects in the north fail to become profitable. Following a decision by the South Korean Government to allow trade with the North see Reunification efforts since , South Korean firms began to import North Korean goods. Direct trade with the South began in the fall of after the unprecedented September meeting of the two Korean Prime Ministers.

During this decade, the chairman of the South Korean company Daewoo visited North Korea and reached agreement on building a light industrial complex at Namp'o. In addition, the two governments said they would build a four-lane highway bypassing the truce village at Panmunjeom. Trade with South Korea declined after Lee Myung-bak was elected President of South Korea in , who reduced trade to put pressure on North Korea over nuclear matters. Bilateral trade rose sharply after Some South Korean companies launched joint ventures in areas like animation and computer software, and Chinese traders have done a booming business back and forth across the China—North Korea border.

In a survey of Chinese operations in North Korea, a majority reported paying bribes. You had to be there and you had to build trust. European enterprises founded in the European Business Association EBA , Pyongyang, a de facto chamber of commerce representing a number of European-invested joint ventures and other businesses. This film was put on a YouTube channel called " BusinessNK " and could be watched together with a number of other videos on foreign joint ventures as well as other investment and business activities in North Korea.

Though no international banks operated in the isolated socialist state in , foreign companies were said to be increasingly interested in dealing with North Korea. The Rason Special Economic Zone was established in the early s, in the northeastern corner of the country bordering China and Russia. In June , an agreement with China was made to establish a joint free trade area on North Korea's Hwanggumpyong and Wihwa Islands and China's border area near Dandong.

From Wikipedia, the free encyclopedia. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. May Learn how and when to remove this template message. Automotive industry in North Korea. Energy in North Korea. North Korean won and List of banks in North Korea. Agriculture in North Korea. Mining in North Korea.

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