North Korea

The Democratic People's Republic of Korea (DPRK; Korean: Chosŏn Minjujuŭi Inmin Konghwaguk; Hangul: 조선민주주의인민공화국; Hanja: 朝鮮民主主義人民共和國), also known as North Korea, is a country in East Asia, covering the northern half of the Korean Peninsula. Locally and in mainland China, it is more commonly called Pukchosŏn ("North Chosŏn"; 북조선; 北朝鮮), a name that associates the country with the Joseon Dynasty. Bukhan ("North Han"; 북한; 北韓) is commonly used in South Korea.

Economy

Following the official ideology of Juche (self-reliance) and the central planning mandated by its brand of Stalinism, North Korea's economy has stagnated. The government's refusal to participate in international trade and its refusal to publicize economic data limit the amount of reliable information available. Publicly-owned industry produces nearly all manufactured goods. The regime continues to focus on heavy military industry at the expense of agriculture.

Related Topics:
Juche - Economy

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The North Korean military's effect on the economy cannot be overstated. The government spends 25% (2005) of the nation's GDP on military (compared to 3.3% (FY03 est.) for the U.S. and 2.7% (FY03) spent by neighboring South Korea), and has recruited 1 million of the healthiest young men into the army and has 4.7 million in reserves (2005). This focus on military spending is unheard of anywhere else in the world, and has severely depressed the North's economy for decades.

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A series of natural disasters, combined with political mismanagement and corruption, as well as the collapse of the Soviet bloc have all caused the economy to stagnate. The agricultural outlook is terrible and food products are deliberately diverted away from citizens and into the military in attempts to ensure regime's survival. The combined effects of a reclusive regime, serious fertilizer shortages, successive natural disasters, and structural constraints — such as little arable land and a short growing season — have reduced staple grain output to more than 1 million tons less than what the country needs to meet even internationally-accepted minimum requirements.

Related Topics:
Agricultural - Fertilizer - Natural disaster - Arable land - Grain

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North Korea has previously and may in the future receive a flow of international food and fuel aid from the People's Republic of China, South Korea and the United States in exchange for promises not to develop nuclear weapons. In June 2005, the United States announced that it would give 50,000 metric tons of food aid to North Korea. The United States gave North Korea 50,000 tons in 2004 and 100,000 tons in 2003. On 19 September 2005, North Korea was promised food and fuel aid (among other things) from South Korea, the United States, Japan, Russia and China in exchange for abandoning its nuclear weapons program and rejoining the Nuclear Non-Proliferation Treaty. It remains to be seen if this exchange will actually occur.

Related Topics:
19 September - 2005 - Nuclear Non-Proliferation Treaty

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However, there is substantial evidence that the aid is not getting to those who need it. The Discovery Times channel documentary "Children of the Secret State" showed hidden camera footage from inside North Korea where clearly marked US food aid was being sold openly in front of North Korean police while malnourished orphans were ignored as they picked for scraps off of the ground nearby http://times.discovery.com/convergence/insidenorthkorea/video/video.html.

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In July 2002, North Korea started running an experiment with capitalism in the Kaesŏng Industrial Region. A small number of other areas have been designated as Special Administrative Regions, including Sinŭiju along the China-North Korea border. Mainland China and South Korea are the biggest trade partners of North Korea, with trade with China going up 38% to $1.02 billion in 2003, and trade with South Korea going up 12% to $724 million in 2003 since the start of the experiment. It is reported that the number of mobile phones in P'yŏngyang rose from only 3,000 in 2002 to approximately 20,000 during 2004. As of June 2004, however, mobile phones became forbidden again. A small amount of capitalistic elements are gradually spreading from the trial area, including a number of advertising billboards along certain highways. Recent visitors have reported that the amount of open-air farmer markets have increased in Kaesong, P'yŏngyang, as well as the China-North Korea border, bypassing the food rationing system. Some speculate that these market reforms are merely a cover by the North Korean government, or perhaps an attempt by the country's rulers to further their own personal interests in some way.

Related Topics:
Kaesŏng Industrial Region - Special Administrative Regions - Sinŭiju - Mainland China - South Korea - P'yŏngyang - Kaesong

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