North Korea Archives - Page 2 of 4

Signs of Economic (Reform) Life in North Korea?

Since Kim Jong-un inherited the throne from his father in 2011, there has been widespread debate over the possibility of North Korean economic reform. A 2015 report on the North Korean economy pointed to domestic markets expanding in size and quantity, despite periods of government suppression. Black markets have long existed in North Korea, but the growth of formal markets signals progressive changes in the North Korean economy. So how far can these markets go?

Black Economy Flourishes in North Korea

North Korea’s black economy becomes a way of life as the poor and entrepreneurs look for alternative means of survival, according to Reuters. The underground market signals a slow ease to capitalism, no matter how much the government denies or tries to stop it.

The underground economy is in many downtrodden economies across the world, where few job opportunities and lacking growth force citizens to find innovative ways of making a living. However, North Korea’s black economy is different because it could lead to massive social and political change.

North Korea-China Relations have Cooled, but are not Cold

Much has been made of the recent cooling of diplomatic relations between China and North Korea and Beijing’s increased emphasis on Seoul. Deteriorating relations since 2012 were confirmed most recently by South Korean President Park Geun-Hye’s prominent position at China’s 70th anniversary celebrations of the end of World War II. For those looking forward to North Korea’s rapid demise and to the reunification of the peninsula on Seoul’s terms, this growing distance between Beijing and Pyongyang has been greeted with cautious optimism.

Jump Starting the Six-Party Talks

On the brink of a crisis that threatened to escalate into conflict, North and South Korea recently reached an agreement on 25 August to prevent further confrontation, resume official talks, hold reunions of separated families and promote civilian exchanges. This was a remarkable reversal in tensions. But the thaw is only the beginning of a precarious and long journey toward peace and stability on the Korean peninsula.

North Korean Economy Expanded in 2014 Despite the Isolation

According to the Bank of Korea, North Korea’s economy underwent 1.0-percent growth in 2014. Analysts expect a drought to hamper economic progress for 2015. North Korea does not release economic reports to the world, and South Korea’s central bank is the only organization that monitors the Hermit Kingdom’s progress.

Climate Change Mitigation and…North Korea?

The North Korean (Democratic People’s Republic of Korea, DPRK) government would appear to have a compelling prima facie self-interest in participating in the global climate change mitigation and adaptation project centred on the UN Framework Convention on Climate Change (UNFCCC). Capacity-building incentives that feed into the leadership perpetuation and state survival imperatives of the North Korean government represent the most likely explanation for North Korea’s interaction with the UNFCCC.

Is North Korea’s Economy Turning Around Under Kim Jong-un?

The longevity of Kim Jong-un’s regime in North Korea has been subject to widespread speculation by outside observers. Several factors led some to predict an early downfall for the regime: young and immature leadership, a potential factional struggle, a stagnant economy and a hostile external environment. But this prediction has not yet been realised. The Kim Jong-un regime is alive and well. It has been surviving, if not thriving, with stable political leadership and a gradual economic recovery.

North Korea Relaxes State-Control Over Workers’ Salaries

The North Korean government last month introduced a new economic scheme that theoretically allowed companies to pay their workers more for better productivity, reported the Associated Press on Monday.

Nonetheless, a government economist said that the move was not a sign that the communist state was gradually adopting a capitalist free market system.

China Shuts Off Ties With North Korean Bank

China’s second largest lender, the state-owned Bank of China, announced on Tuesday that it will be suspending its dealings with the Foreign Trade Bank of North Korea, North Korea’s main foreign exchange bank, following growing displeasure in Beijing over Pyongyang’s nuclear program.

According to a BOC statement, the Chinese bank will be suspending all of FTB’s accounts in China; and also halt all fund transfers related to these accounts.

China & North Korea: A Historically Tense Alliance Built On Necessity

China & North Korea’s relationship can be traced back to more than a thousand years; and just like today, the relationship between China and North Korea has always been one of mutual necessity. Nonetheless, a rift now appears to be emerging between the long-time allies. North Korea’s continued use of a threatening posture, if it fails to gain concessions and shows China’s inability to influence its smaller neighbour, may ultimately be seen by China as detrimental to its own interests.