In recent moves there have been increasing signs and signals that Kim Jong Un is embracing economic reform in North Korea, making steps towards small moves towards the liberalization of markets and trade within the nation.
The subject of economic reform is a touchy one, nor is it even a new one. North Korea's stalinist modelled economy has never functioned to its full efficiency since it collapsed in the 1990s. The fall of the North Korean economy and the subsequent famine that followed led to the emergence of an underground "market system" in the 1990s what North Koreans have used to trade and partner various goods and food; recognizing that they can't always rely on the state.
The existence of these markets have been a tangible dilemma for North Korea's leadership. Not only does it clash with their ideology, but at the same time as scholar Ken E. Gausse highlights, marketization increases individual autonomy and threatens their control over individuals. However, these markets allow people to thrive in a way which avoids the repetition of desolation and dire famine like in the 90s, which has led to North Korean authorities pretty much raising the white flag to their existence.
However, this did not stop an all out assault on the existence of the markets in 2005 by Kim Jong-Il. Despite implementing some economic reforms of his own tolerating the markets in 2002; he backtracked and attempted to crush the markets in favour of the state controlled economy. However all of his and the government's attempts to do this not only ended in defeat but also created genuine discontent from the North Korean population. Resultantly, the markets have become a fact of life.
Thus, it is speculated that Kim Jong Un is now taking a new track and embracing change. He recognizes the need for better economic conditions in North Korea and that he must work with the market, than against it. As Lankov comments "Under Kim Jong Un, not a single policy has been implemented which would somehow damage the interests and efficiency of private businesses... it's only a matter of time before the Kim regime formally adopts a market-based economy- as China did 35 years ago under Deng Xiaoping"
In addition to market reforms and tolerance, Kim Jong Un has also pursued agricultural reforms in an attempt to boost the income of farmers; the previous, collectivized system having contributed to very poor agricultural performances.
The real question is concerning these reforms is, what happens next? Will North Korea stick to them and slowly perform a China? Will it concede the political freedoms necessary to modernize further? Or will it bring a whole new instability and set of challenges to the regime?
However, this did not stop an all out assault on the existence of the markets in 2005 by Kim Jong-Il. Despite implementing some economic reforms of his own tolerating the markets in 2002; he backtracked and attempted to crush the markets in favour of the state controlled economy. However all of his and the government's attempts to do this not only ended in defeat but also created genuine discontent from the North Korean population. Resultantly, the markets have become a fact of life.
Thus, it is speculated that Kim Jong Un is now taking a new track and embracing change. He recognizes the need for better economic conditions in North Korea and that he must work with the market, than against it. As Lankov comments "Under Kim Jong Un, not a single policy has been implemented which would somehow damage the interests and efficiency of private businesses... it's only a matter of time before the Kim regime formally adopts a market-based economy- as China did 35 years ago under Deng Xiaoping"
In addition to market reforms and tolerance, Kim Jong Un has also pursued agricultural reforms in an attempt to boost the income of farmers; the previous, collectivized system having contributed to very poor agricultural performances.
The real question is concerning these reforms is, what happens next? Will North Korea stick to them and slowly perform a China? Will it concede the political freedoms necessary to modernize further? Or will it bring a whole new instability and set of challenges to the regime?
