Economic System of North Korea

written by Tham Chia Shing

Economy - overview: North Korea, one of the world's most centrally directed and least open economies, faces chronic economic problems. Industrial capital stock is nearly beyond repair as a result of years of underinvestment, shortages of spare parts, and poor maintenance. Frequent weather-related crop failures exacerbated chronic food shortages caused by on-going systemic problems, including a lack of arable land, collective farming practices, poor soil quality, insufficient fertilization, and persistent shortages of tractors and fuel. The economic system of North Korea is command economy. The goverment has allowed private "farmer markets" to begin selling a wide range of goods and also allowed some private farming to increase agricutural production due to the experiments in 2002.

In 2012, KIM Jong Un's first year of leadership, the North displayed increased focus on the economy by renewing its commitment to special economic zones with China, negotiating a new payment structure to settle its $11 billion Soviet-era debt to Russia, and purportedly proposing new agricultural and industrial policies to boost domestic production. The North Korean government often highlights its goal of becoming a "strong and prosperous" nation and attracting foreign investment, a key factor for improving the overall standard of living.

Extra Information:

DO YOU KNOW WHY DOES THE NORTH KOREA WANTED TO CHANGE TO MIX MARKET???

Because the population continues to suffer from prolonged malnutrition and poor living conditions.

(Source: http://www.indexmundi.com/north_korea/economy_overview.html)