{"id":29950,"date":"2015-02-13T17:29:57","date_gmt":"2015-02-13T08:29:57","guid":{"rendered":"http:\/\/en.dailynk.com\/en\/?p=29950"},"modified":"2020-01-17T08:29:45","modified_gmt":"2020-01-16T23:29:45","slug":"market-not-policies-spurring-econo","status":"publish","type":"post","link":"https:\/\/www.dailynk.com\/english\/market-not-policies-spurring-econo\/","title":{"rendered":"Market, Not Policies, Spurring Economic Growth in NK"},"content":{"rendered":"<p class=\"MsoNormal\">The improvement of economic affairs in the<br \/>\nKim Jong Eun era is more an outgrowth of revitalized resident efforts poured<br \/>\ninto commercial activity than a result of top-down policy decisions. According<br \/>\nto sources within the country, North Korean authorities have started relaxing<br \/>\ntheir tightfisted economic policies and tolerating growth of new markets<br \/>\nbecause they are worried about residents\u2019 opposition.&nbsp;<\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">In an article titled, \u201cHow to View North<br \/>\nKorea\u2019s Recent Economic Improvement,\u201d the Chinese weekly <i>World Knowledge<\/i><br \/>\nreported that the continual increase of food production starting from Kim Jong<br \/>\nEun\u2019s rise to power in 2012 is due to the <i>bunjo<\/i> farming system.<\/span><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">The <i>bunjo<\/i> agricultural system falls under the June 28th Measures, announced by North Korea in 2012, which include policies set to increase the efficiency of<br \/>\ncollective farms by reducing the amount of workers in each <i>bunjo<\/i> unit,<br \/>\noriginally consisting of approximately 10 to 25 people, down to four to six. More importantly, the measures stipulate that a higher proportion of<br \/>\noutput be distributed to the farmers, with 70% going to the state and the<br \/>\nremaining 30% and any surplus divided among the workers.<\/span>&nbsp;<\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">Some academic sources maintain that<br \/>\neconomic growth can also be attributed to the \u201cMay 30th Measures,\u201d announced in May<br \/>\n2014, which lay out policies for looser regulations of the manufacturing,<br \/>\nmaintenance, and agriculture industries in order to stimulate production<br \/>\ngrowth.<\/span>&nbsp;<\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">Despite the harsh sanctions brought down by<br \/>\nthe international community after North Korea\u2019s 3rd Nuclear Test on February<br \/>\n12th, 2013, they assert that state policies like the June 28th Measures and May<br \/>\n30th Measures contributed immensely to growing and strengthening the economy.<\/span>&nbsp;<\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">But according to <a href=\"http:\/\/www.dailynk.com\/english\/read.php?cataId=nk01500&amp;num=12641\"><font color=\"#0000ff\">Daily NK\u2019s inside sources<\/font><\/a>, the <a href=\"http:\/\/www.dailynk.com\/english\/read.php?cataId=nk01500&amp;num=12833\"><font color=\"#0000ff\"><i>bunjo<\/i> changes<\/font><\/a> have only been implemented in some regions&#8211;on an<br \/>\nexperimental basis&#8211; and have done relatively<br \/>\nlittle to excite activity as of yet. Also, there is no verifiable evidence that the<br \/>\nloosened regulations on manufacturing and other industries resulting from the<br \/>\nMay 30th measures have increased production. Because of this, claiming that<br \/>\nNorth Korea\u2019s economic policies have been at the heart of the country\u2019s recent<br \/>\nfinancial growth remains, for the time, an unfounded assertion.<\/span><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">Experts believe that the economic measures<br \/>\ntaken up by North Korea during Kim Jong Eun\u2019s reign have played a positive role<br \/>\nin the country\u2019s growth, but insist this is dwarfed by the outpour of resident<br \/>\neffort into market activities. Though the scale of last year\u2019s foreign trade decreased<br \/>\nand North Korea failed to attract significant foreign investment, the economy<br \/>\ncontinued to grow on the back of citizens who worked to expand the market.<\/span>&nbsp;<\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">Kwon Tae Jin, director of the North Korea,<br \/>\nNortheast Asia Research Center at the GS&amp;J Institute, told the Daily NK, \u201cAs<br \/>\nlong as foreign investment is nominal and the North Korean authorities continue<br \/>\nto implement rigid controls, money will not end up in the hands of everyday<br \/>\npeople. Looser controls and aggregating state owned capital is key to stimulating<br \/>\neconomic growth.\u201d<\/span><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">He added that while he believes the<br \/>\neconomic improvements such as the June 28th Measures and May 30th Measures have<br \/>\nmade a positive impact on the economy overall, they must move in a direction<br \/>\nthat stabilizes and expands the market in order to stimulate the economy.<\/span><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">Another expert on North Korea, who spoke on<br \/>\ncondition of anonymity , added, \u201cWhile we can positively evaluate economic<br \/>\ngrowth in the Kim Jong Eun era, it is fairly clear that said growth is the<br \/>\nresult of market activity contributed by residents, not the consequence of<br \/>\ngovernment policies. If North Korea loosens up regulations, I think we are<br \/>\ngoing to see even more growth in the future.\u201d &nbsp;<\/span><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">*The contents of this article were broadcast to the North Korean people via Unification Media Group.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The improvement of economic affairs in the Kim Jong Eun era is more an outgrowth of revitalized resident efforts poured into commercial activity than a result of top-down policy decisions. According to sources within the country, North Korean authorities have started relaxing their tightfisted economic policies and tolerating growth of new markets because they are [&hellip;]<\/p>\n","protected":false},"author":140,"featured_media":29952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[644],"tags":[],"class_list":["post-29950","post","type-post","status-publish","format-standard","has-post-thumbnail","category-analysis-and-opinion"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Market, Not Policies, Spurring Economic Growth in NK - North Korea News \u2014 Daily NK | Latest DPRK Updates 2026<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dailynk.com\/english\/market-not-policies-spurring-econo\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market, Not Policies, Spurring Economic Growth in NK\" \/>\n<meta property=\"og:description\" content=\"The improvement of economic affairs in the Kim Jong Eun era is more an outgrowth of revitalized resident efforts poured into commercial activity than a result of top-down policy decisions. 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