North Korea Economy

June 29, 2010North Koreaby EconomyWatch


Present Condition of North Korean Economy

As of now North Korea economy finds itself going through a difficult economic phase. Since end of Roh Moo-hyun’s regime South Korea have not provided them with financial aid and this has brought about some problems for North Korea’s economy.

Even though North Korean government has been able to make do without financial aid provided by their South Korean counterparts they are now finding it difficult nonetheless. In addition to this financial organizations in North Korea like banks have been on receiving end of sanctions imposed by USA because of apparent lack of transparency in their operations.

Pyongyang and Economy of North Korea

Pyongyang has been crucial to economy North Korea. National government has spent a lot of resources in trying to improve facilities available at this capital city. However, noted economic institutes such as Korea Development Institute have also noted that economic conditions outside Pyongyang are far from being ideal as authorities have been employing resources available in these parts to spruce up North Korea’s capital.

A number of economic reports by similarly well known reports have questioned merit of these moves by concerned authorities in higher echelons of North Korea economy. These reports have stated that at present, as per logic pertaining to market economy, margins of profit in Pyongyang have exceeded those in areas outside Pyongyang.

Much of this is because inconsistencies in flow of goods in case of Pyongyang and areas outside it. In case of Pyongyang more goods are coming in whereas in case of areas outside Pyongyang limits of this city flow of goods are facing stern regulations. This situation is causing an increasing amount of goods to end up in this city compared to other parts of North Korea.

As per their estimates this is portraying an economic image of North Korea that may not be as accurate as it seems to be from a superficial level. These reports have also stated some other reasons for overall stable state of North Korea economy. It is being said that savings at an individual level in North Korea as well as dollar reserves of business enterprises have been impressive.




blog comments powered by Disqus