This paper analyzes North Korea's economic reforms after Kim Jong-il regime officially started in 1997. It argues that the prospect of North Korea's change is not a rapid, bottom-up, transformative change but it is a gradual, top-down, and evolutionar...
This paper analyzes North Korea's economic reforms after Kim Jong-il regime officially started in 1997. It argues that the prospect of North Korea's change is not a rapid, bottom-up, transformative change but it is a gradual, top-down, and evolutionary change. First, it investigates the constitutional revision in 1998 and '7.1 new economic management improvement policy' in 2002. These measures aim to improve economic conditions by introducing the market system and reducing the state's role in economy. Second, it examines the China's special economic zone. It analyzes the factors of successful economic reform and opening in China and its implication for North Korea. Third, it focuses on North Korea's special economic zones and their limits and future development.
In order to achieve successful economic reform and opening in North Korea, first of all, it is essential that North Korean leaders demonstrate strong will and decision for economic reform and opening. Second, it is necessary to improve the relationship with foreign countries, especially with the U.S. In order to entice foreign investment, favorable international environment is essential. Therefore, North Korea must abandon the nuclear policy and seek to improve the relationship with the U.S. Third, South Korea's role is also important for the economic reform and opening of North Korea. South Korea's economic cooperation with North Korea is important not only for the economic reason but also for the peninsula's peace and eventual unification.