DPRK is in the process of economic reforms, even if it is occurring haphazardly and auto-pilot. The policy is one of non-interference, not only in the private activities but in the activities of state organs. Likely the chances of KJI type of widespread crackdowns in the markets occurring are increasingly slim and slimmer each month. One may argue that DPRK should take an activist approach to the process - actively and openly embracing change, like China or Vietnam, or ultimate the past ROK authoritarian model. However, politics is still relevant, which may prevent the regime openly embracing reforms, though signs of the country transforming from the totalitarian model to the authoritarian one is abundant. The politics in the inner circles in Pyongyang may still be lagging and lack the full consensus in change. Ultimately, this conservative approach to economic change may work in the countrys favor. This may provide more stability. Too, resources may be allocated more efficiently. Besides, the more central control and aggressive reform policymaking may result in miscalculations that leads to mis-allocations. In the meantime, the policy makers should do well to focus on the various infrastructures which support and energize the markets - roads, communications, transports, and gradually, financial, legal, and research institutions too. Currently corruption is what is permitting the large growth in market activity. Thus, with respect to economic development, corruption is good. The reason is that the extant policies have been anti-market. However, after some growth and when the state takes up a more pro-activist stance on the market and obtains expertise and interest in free market-oriented policy making, only then would reducing corruption support market development.
Posted on: Tue, 16 Sep 2014 12:46:05 +0000
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