North Korea under Kim Jong Un follows a socialist
economic structure, where production and consumption both are centrally planned
by the state. The sole focus of the country remains on military expansion which
is the only stable factor in the North Korean economy where everything else is
undergoing a contraction. Hence, military prowess is being achieved at the
expense of economic growth. Even food is rationed to people indicating the
extent of ‘planning’; this ultimately has led to severe malnutrition.
The government is now showing flexibility
by reforming the political sector probably because of internal pressure for
change in the political and economic structure. The impoverished conditions in
which the Koreans have found themselves especially, since they are now more
aware of the outside world has led to mass dissatisfaction.
Although, there have been attempts to
change the economic structure of the society they are little more than an
appreciation of the prevailing market system. Since the year 2013, more than a
dozen economic developmental zones have been established within the country in order
to attract foreign investment. North Korea is now more open to visitors and
even privatisation. However, it seems to be more of a tactic to move public
attention away from the political scenario.
Source: The Economist
1 comment:
North Korea is a complex case, both because it has a sclerotic political system and because its military dominates all aspects of society. Change will come to North Korea, but what the consequences of that change will be is anyone's guess.
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