The Political Economy of Economic Reform in North Korea

Abstract

Over the past decade, North Korea has been undergoing a severe economic crisis, resulting in extreme food shortages, and this has inflicted great suffering upon the North Korean people. Given such dire realities in the county, it is beyond all doubt that the North Korean government must carry out comprehensive economic reforms as quickly as possible, in order to transform North Korea`s present inefficient socialist planned economic system into a market economy Many, including myself, are of the view that economic reform would certainly lead to successful economic growth in North Korea, and this would in turn enhance the legitimacy of the North Korean regime itself Nonetheless, the regime has consistently avoided carrying out economic reform, despite being presented with many good opportunities to succeed in doing so. The July First reforms of 2002 have been half-heartedly and inconsistently applied. This then raises a simple, but very important, question: Why has the North Korean government consistently avoided adopting comprehensive economic reforms? The present study pinpoints North Korea`s unique monolithic system of political control and policymaking, which has the highest level of power concentration in one individual of all political systems, as the biggest barrier to economic reform. Despite the dire need far reform, the current North Korean regime has avoided it for fear of undermining this monolithic system.