The Prospects of Economics Reform in North Korea: Comparisons with China, Vietnam and Yugoslavia

Abstract

The article investigates the political and diplomatic factors influencing the prospects of North Korea's post-2002 experiment with market-oriented economic reforms. Comparing the North Korean situation with the experiences of Yugoslavia, China and Vietnam, it concludes that a certain degree of political liberalisation, the successful normalisation of P'y[ocheck]ngyang's relations with the US, South Korea and Japan, and the decoupling of foreign economic assistance from military negotiations are essential preconditions of a successful reform process in North Korea. In the absence of these preconditions, economic crises alone are insufficient to stimulate a comprehensive reform programme, although they might inspire certain superficial corrective measures.