{"id":37095,"date":"2018-08-06T12:38:12","date_gmt":"2018-08-06T03:38:12","guid":{"rendered":"http:\/\/www.dailynk.com\/english\/?p=37095"},"modified":"2020-01-17T08:28:46","modified_gmt":"2020-01-16T23:28:46","slug":"north-korea-must-move-on-from-its-policy-of-economic-self-reliance","status":"publish","type":"post","link":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/","title":{"rendered":"North Korea must move on from its policy of economic self-reliance"},"content":{"rendered":"
\"\"
Kim Jong Un visits a hydroelectric power plant in Orang County, according to a July 17 report in the Rodong Sinmun. Images: Rodong Sinmun<\/figcaption><\/figure>\n

The Bank of Korea announced that North Korea\u2019s economic growth rate was -3.5% in 2017. This came as no surprise, given the actions taken by North Korea\u2019s leaders, who believe that ideological enthusiasm toward political goals can overcome the country\u2019s economic crisis. North Korea\u2019s leaders have committed several fatal policy mistakes, with their \u201ceyes and ears\u201d having been covered by inflated economic statistics. <\/span><\/p>\n

The most significant mistake has been increasing military spending while investing the country\u2019s resources in nuclear development. The resource shortages caused by increasing military expenditures have been exacerbated by the country\u2019s continued adherence to \u201cself-reliance\u201d policies and its planned economy. Moreover, leaders have blindly chosen to believe that they can develop the country\u2019s science and technology fields without allowing the their economy to open up to the world.<\/span><\/p>\n

Industrial workers are forced to work seven days a week for 10 or more hours per day due to so-called \u201cspeed battles\u201d aimed at accomplishing a large volume of work in the shortest possible time. North Korea\u2019s economic sphere is awash with all kinds of \u201cbattles\u201d and \u201cshock troops.\u201d The country\u2019s plans for industrial production rates continue to increase, particularly in the spheres of agriculture, coal, mining, electricity and steel. <\/span><\/p>\n

Continued international sanctions and economic trouble has led to a reduction in imports and a rise in food shortages throughout the country. Some areas of the country are on the verge of mass starvation. Recent droughts, floods and other natural disasters have only added to the country\u2019s difficulties. <\/span><\/p>\n

International sanctions have worsened the country\u2019s economic situation, but the fundamental problem is political in nature. The failed strategies of North Korea\u2019s policymakers have almost completely disregarded the trends and changes occurring across the globe. <\/span><\/p>\n

This year, North Korea\u2019s leadership ascertained the need for drastic measures and hinted at new policy changes. The New Year\u2019s Address emphasized peace, while the Pyeongchang Olympics, two inter-Korean summits, and the US-DPRK summit have continued to raise interest amongst the international community toward denuclearization and peace on the Korean Peninsula.<\/span><\/p>\n

The North Korean leadership presented a new strategy for economic growth, and the country\u2019s general markets are continuing to be revitalized. The responsibility for agricultural production has moved from co-op farms to family units, and the country is attempting a wide variety of economic recovery measures. <\/span><\/p>\n

North Korea\u2019s leadership, however, has still failed to move away from its outdated economic policy framework of \u201cself-sufficiency,\u201d and is not moving forward resolutely toward measures that will fully implement the market economy in the country. <\/span><\/p>\n

Why is North Korea\u2019s self-reliant economy irrational? <\/strong><\/p>\n

Priority is placed on policies that support national defense and so-called \u201cmilitary-first\u201d measures. The Korean People\u2019s Army (KPA) intervenes in economic matters to resolve the serious economic issues affecting the country. Ultimately, the military has become so intertwined in economic matters than a new term has been created: the military economy. <\/span><\/p>\n

Emphasis on agriculture and manufacturing has been made through economic management, but the economy is still largely dependent on a planned system, which makes it near-impossible for market-competitive management methods to infiltrate from the outside. <\/span><\/p>\n

The country\u2019s dual pricing system, which has arisen due to the co-existence of the planned and market economies, is preventing progress toward a completely market-based economic system. <\/span><\/p>\n

Moreover, the country\u2019s inability to remove itself from the socialist planned economy is an issue. The government is still unaccommodating toward the market and entrepreneurs, and co-op farms and organizations that hold the right to joint ownership are still being restricted from participating in free market activities due to government\u2019s policies. <\/span><\/p>\n

The dearth of foreign capital investment in the country\u2019s manufacturing sector has made it difficult for real competition to take place in the consumer market and has led to stagnation in product innovation and quality.<\/span><\/p>\n

The state\u2019s investment is focused on heavy and military industries along with construction projects for the elite, which has created a gap in the development of economic infrastructure. North Korea\u2019s focus on heavy industry has consumed a great deal of capital and technology, at the expense of the consumer goods industry. For this reason, the country has insufficient infrastructural resources, and North Korea\u2019s leaders have been using the sparse resources that do exist very ineffectively. <\/span><\/p>\n

So how can North Korea become a strong and prosperous country? <\/strong><\/p>\n

The following excerpt from an article published in the July 16, 2018, edition of the state-run publication Rodong Sinmun makes for sobering reading. <\/span><\/p>\n

\u201cNow is not the time to sit down and wait or cry for the right conditions to fall into place. This is the time for all workers to make a brave decision and work proactively as fighters with a do-or-die spirit by becoming the everlasting flame that spurs rapid development and implement perfectly and rapidly whatever is given to them by the Party. Our workers have no right to faint or die before carrying out the Party\u2019s policies and orders.\u201d<\/span><\/i><\/p>\n

This article hints at the position North Korea\u2019s mid-level bureaucrats find themselves in. They don\u2019t have sufficient resources available to them, but nonetheless must unconditionally strive to achieve the tasks demanded of them by the Party. <\/span><\/p>\n

For the country to develop, the right conditions must be set by the government. The regime must reform the country\u2019s economy and show the world that it is attempting to rid itself of corruption.<\/span><\/p>\n

Instead of criticizing bureaucrats for failing to finish building projects, the government should focus on reforming the country\u2019s irrational economic system and cooperating with the outside world. This will propel North Korea toward becoming a respected member of the international community. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of Korea announced that North Korea\u2019s economic growth rate was -3.5% in 2017. This came as no surprise, given the actions taken by North Korea\u2019s leaders, who believe that ideological enthusiasm toward political goals can overcome the country\u2019s economic crisis. North Korea\u2019s leaders have committed several fatal policy mistakes, with their \u201ceyes and […]<\/p>\n","protected":false},"author":124,"featured_media":37096,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[644],"tags":[],"class_list":["post-37095","post","type-post","status-publish","format-standard","has-post-thumbnail","category-analysis-and-opinion"],"yoast_head":"\nNorth Korea must move on from its policy of economic self-reliance - 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\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"North Korea must move on from its policy of economic self-reliance\" \/>\n<meta property=\"og:description\" content=\"The Bank of Korea announced that North Korea\u2019s economic growth rate was -3.5% in 2017. This came as no surprise, given the actions taken by North Korea\u2019s leaders, who believe that ideological enthusiasm toward political goals can overcome the country\u2019s economic crisis. 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North Korea\u2019s leaders have committed several fatal policy mistakes, with their \u201ceyes and […]","og_url":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/","og_site_name":"North Korea News \u2014 Daily NK | Latest DPRK Updates 2026","article_published_time":"2018-08-06T03:38:12+00:00","article_modified_time":"2020-01-16T23:28:46+00:00","og_image":[{"width":696,"height":456,"url":"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2018\/08\/11-4-696x456.jpg","type":"image\/jpeg"}],"author":"Jo Hyon, PhD, Kyungnam University","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Jo Hyon, PhD, Kyungnam University","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/#article","isPartOf":{"@id":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/"},"author":{"name":"Jo Hyon, PhD, Kyungnam University","@id":"https:\/\/www.dailynk.com\/english\/#\/schema\/person\/16cbb05adae68a20c4b8640531f0533a"},"headline":"North Korea must move on from its policy of economic self-reliance","datePublished":"2018-08-06T03:38:12+00:00","dateModified":"2020-01-16T23:28:46+00:00","mainEntityOfPage":{"@id":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/"},"wordCount":990,"commentCount":0,"publisher":{"@id":"https:\/\/www.dailynk.com\/english\/#organization"},"image":{"@id":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2018\/08\/11-4-696x456.jpg","articleSection":["Analysis & Opinion"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/","url":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/","name":"North Korea must move on from its policy of economic self-reliance - North Korea News \u2014 Daily NK | Latest DPRK Updates 2026","isPartOf":{"@id":"https:\/\/www.dailynk.com\/english\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/#primaryimage"},"image":{"@id":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2018\/08\/11-4-696x456.jpg","datePublished":"2018-08-06T03:38:12+00:00","dateModified":"2020-01-16T23:28:46+00:00","breadcrumb":{"@id":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.dailynk.com\/english\/north-korea-must-move-on-from-its-policy-of-economic-self-reliance\/#primaryimage","url":"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2018\/08\/11-4-696x456.jpg","contentUrl":"https:\/\/www.dailynk.com\/english\/wp-content\/uploads\/sites\/2\/2018\/08\/11-4-696x456.jpg","width":696,"height":456,"caption":"Kim Jong Un visits the hydroelectric power plant in Orang County according to a July 17 Rodong Sinmun report. 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