North Korea 's Economic Development

1566 WordsApr 29, 20157 Pages
Overview: North Korea Most have heard of North Korea. With a shroud of secrecy over internal and external matters and a dictatorial reign opposed to most outside nations, it is viewed as the most isolated country in the world. It is for this precise reason that we have chosen North Korea as our point of focus. Information on this country are unreliable and scarce, but if enough is pieced together then a closer picture of today’s most famous totalitarian regime will start to form. Economic Growth North Korea’s economy is a centrally planned system. Although, there have been limited attempts at decentralization, Pyongyang continues to follow a centrally planned system as of 2015. Despite the collapse of communist governments worldwide in 1991, North Korea still remains isolated from the global economy[2]. Why is North Korea’s economy in such bad shape? The government tightly controls international trade and investment. Limited foreign participation is accepted in the economy through special economic zones. The financial sector is tightly controlled by the state. Calculating North Korea’s GDP is close to impossible, since they take very little part in public trade. Because of the lack of trade, real output is hard to nail down, resulting in a wide discrepancy of externally calculated GDP. Also, North Korea doesn’t publish their national income data. Due to this, the CIA and other well known associations and banks can only measure their purchasing power parity. Between

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