North Korea' Command Economy is Based on Agriculture and Natural Resources

The areas where crops are not cultivated are used for livestock industry. The sea is where the people of the North Korea obtain most of the protein. The main marine organisms captured are shellfish, yellow tail, spear, squid, squid, sardine, squid. North Korea is blessed with natural resources, its topography is mainly hills and mountains. They have a large amount of deposits and are estimated to have economic value of about 200 minerals. Important are iron ore and coal, and more importantly magnesite, zinc, lead, and gold, which have been delivered.

Until the 1900s, the economy of the Korean Peninsula was completely based on agriculture, and almost all Koreans were farmers. Today, industry is more important than agriculture in North Korea and South Korea. In North Korea, the economy depends on heavy industries, and the government controls almost all economic activities. The economy of North Korea develops far more slowly than Korea. Even before the division of the Korean Peninsula in 1945, the cold and mountainous economy concentrated on industrial production and food imported from the south (Bhatia et al., 2002).

The famine in the late 1990s caused by floods and other natural disasters revealed the shortcomings of the North Korean economy. For a while the world knew that the economy of North Korea was much later than Korea, but the famine news shocked the West. After the 1995 and 1996 floods, North Korean agriculture was destroyed in the dry summer due to the 1997 typhoon destruction. In 1997, the daily food supply per capita was reduced from 24.5 ounces (700 grams) to 3.5 ounces (100 grams). Distribution is also intermittent. Due to the increase in fatalities due to starvation and nutritional deficiencies, the funeral is small and can only be carried out at night and is restricted to direct family members. As the number of poor people increases and food shortages increase, there are reports that the situation related crime is increasing.

Because of North Korea's isolationism, the world knows little about this country, but we do not know much about the economy of North Korea. The North Korean economy is filled with problems such as resource allocation mistakes and reliance on international relief of "emergency". Citizens in many states are malnourished, and the province is operating under the full control of the government. Almost all aspects of the North Korean economy are state owned, including real estate, domestic products, imports and exports.

By examining the command and control economy of the Democratic People's Republic of Korea, it is easy to clarify why it is difficult for the people to support the people. Setting your own production level according to demand Rather than using a free market, setting a production level will incorrectly assign resources. The misplacement of such resources combined with North Korea's pine policy has led to a decline in the production of food and other goods and services that other people in the state reasonably think. Many of the problems of the DPR Korea (North Korea) also came from the nation's decision to isolate itself. For example, the isolationism of North Korea means that the state can not trade with most other countries. Therefore, North Korea can not use the economic benefits of free trade, such as lowering the price of goods and services. For this reason, the question of why a country chooses to isolate itself from other countries in today's globalization process is questioned.