Why North Korea Refuses To Liberalize Its Economy Despite the Success of China

Currently, there are five Communist countries in the world, Vietnam, Laos, People's Republic of China, Cuba, Democratic People's Republic of Korea. All these are Asian countries other than Cuba. Vietnam and China are rising in economics, but North Korea is still one of the poorest countries. The reason may be because it has a complete national economy with Cuba. Compared to other Asian Communist countries, North Korea has the lowest GDP per capita of 1,800 dollars (2008).

From the background, North Korea borders on China and South borders South Korea. There are 28,500 American soldiers, seafarers, marines and pilots in Korea, many of which are gathered at the northern border. In the east, the Sea of ​​Japan (Koreans refer to this as the East China Sea) is a country that overwhelmingly occupied North Korea for decades. Such a situation will make not only delusions but also legal instability of any country. Given the US military's attack on countries that have chosen to boycott the global order, such as Iraq, Libya, Syria, North Korea can choose to abandon or concentrate enormous funds to strengthen its defense capabilities I will

In most of its history, the politics of North Korea has been dominated by conflict with Korea. During the Cold War, North Korea was in sync with the Soviet Union and the People's Republic of China. Because the North Korean government has invested heavily in its military, he hopes to unite North Korea with force and prepare to repel attacks by South Korea and the United States. According to the principle of the subject, in order to protect the sovereignty of North Korea from foreign sovereignty, North Korea aims to achieve high economic independence and mobilize all the resources of the country.

North Korea has always emphasized the need to strengthen military power and continue to focus on the development of an independent economy. With the support of the Soviet Union, China and eastern European countries, North Korea has made major progress by implementing a series of economic development plans. However, the seven-year plan of 1961-67, which was supposed to be extended due to the sharp decline of foreign aid from the Soviet Union in the latter half of the 1950s, since the sharp decline from China at the beginning of the cultural revolution in the mid-1960s It was seriously affected. 3 years

In the 1990s, the North Korean economy stagnated and caught. Economic assistance from the Soviet Union and China is an important element of its economic growth. After the collapse in 1991, the Soviet Union withdrew its support and demanded that the currency be imported in coins. China has been involved in providing some kind of aid, providing food and oil, most of which are reported to be offered at preferential prices. However, in 1994 China reduced its exports to North Korea. The severity of the political and economic system of North Korea has prepared the country for the changing world. The North Korean economy suffered damage, its industrial production began to decline in 1990. Even before North Korea experienced a series of natural disasters in the mid-1990s, agricultural production is beginning to decline due to the lack of industrial input including fertilizer, pesticide and irrigation power. Other causes of this crisis are high defense expenditure (about 25% of GDP) and poor governance.