11. The North Korean Economic System: Challenges and Issues
- Author:
- Bradley O. Babson
- Publication Date:
- 04-2016
- Content Type:
- Journal Article
- Journal:
- International Journal of Korean Studies
- Institution:
- International Council on Korean Studies
- Abstract:
- The North Korean economic system is the product of a variety of influences that have shaped its evolution. To understand this system and its challenges today, it is necessary to appreciate North Korea’s unique history and dynamics of change, both internally and externally. These factors have shaped national economic policies and behavior of state and non-state actors in ways that are different than has been the case in other transition economies following the collapse of the Soviet Union. This paper reviews the evolution of the North Korean economic system under the terms of its three leaders; assesses the impacts of recent developments on the system, including UN Security Council Resolution 2270, closure of the Kaesong Industrial Complex, and Seventh Party Congress; and discusses the fundamental challenges facing the economic system today and implications for future engagement policies by the international community. Despite its isolation and many difficult challenges, the North Korean economic system has proven more resilient and adaptive to changing circumstances than many outside observers have expected. A clearer understanding of the limits and opportunities for international economic engagement with North Korea should be a consideration in strategies to address the long-standing security challenges that North Korea poses to its neighbors and the world.
- Topic:
- Sanctions, Reform, Economic structure, Economic Development, and Engagement
- Political Geography:
- East Asia and North Korea