Kim Jong-un's Economic Policies in North Korea: A Comprehensive Analysis
North Korea's economic system has long been one of the most talked-about subjects in global politics. On paper, the country operates under a traditional Marxist model where the state owns everything beyond small shops and private gardens, and taxes these small private interests heavily. However, the reality is quite different.
In practice, the majority of North Korea's economic activities and outputs occur in the black market. This illegal sector is largely controlled by corrupt government officials, conducting private trade away from the reach of governmental regulations. According to Kim Jong-un, this system is designed to extract taxes from these illegal businesses, while fostering the loyalty of these officials through the provision of protection and oversight.
A strategist might typically plan to transition these black market businesses into legal ones, allowing them to pay regular taxes. However, this is not the case with North Korea. This transition is hindered by the Kim regime's constant fear of overthrow, leading to periodic crackdowns and economic crises.
In a country devastated by poverty, where people resort to cannibalism, the power of money cannot be underestimated. It commands the ability to hire military units to eliminate competitors, or even purchase death sentences from the Ministry of State Security. The Kim family needs to maintain its monopoly, thus periodic economic collapses are preferred over the risk of overthrow.
Urbanization and Modernization
To improve the North Korean economy, a strategic approach would be to encourage urbanization. In peasant societies, where a high percentage of the population relies on subsistence agriculture, economic conditions tend to be poor. However, as peasant boys and girls become literate and move to urban areas to engage with the industrial world, the society can flourish.
Allowing more people to move into cities and engage in industry could be a powerful catalyst for economic growth. This would require the removal of certain controls and regulations that currently limit rural-urban migration. By creating an environment where individuals can move and find better employment opportunities, the country could see significant improvements in its overall economic health.
Theoretically Unattainable Market Reforms
Despite the potential benefits of urbanization, the idea of transitioning the North Korean economy to a free market is highly unlikely. The Worker's Party has been the ruling force for generations, and the idea of disbanding it and declaring a free market economy is out of the question. The Kim family's hold on power is too tightly woven into the existing political and economic structures for such a dramatic shift to occur.
One of the few strategies that Kim Jong-un has pursued in recent times is economic diplomacy—trading and forming alliances with various countries. By engaging in friendly relations and easing some economic sanctions, he can potentially open up new markets and trade opportunities. For instance, thawing relations with South Korea might lead to the removal of some sanctions and new trading opportunities. However, the effectiveness of this strategy is limited by the overall geopolitical climate and the willingness of other countries to engage with North Korea.
In conclusion, while North Korea's economic realities are complex and multifaceted, understanding the role of the black market, the importance of urbanization, and the challenges of market reforms can provide valuable insights into the future of North Korea's economy. The strategies employed by Kim Jong-un highlight the delicate balance between maintaining power and fostering economic growth in one of the world's most isolated and impoverished countries.