Research Highlight

From marketization to a market economy in North Korea

This paper argues that Kim Jong-un, the leader of North Korea, faces a dilemma between maintaining his dictatorship and enabling economic growth amid pervasive marketization. Although he puts more emphasis on economic development than his father did, he is unlikely to launch Chinese-style reform mainly because North Korea is different from China in terms of the political conditions, which determine the intensity of economic reforms. To do so, the paper reviews the literature on the impact of marketization on social norms, the official economy, and corruption in North Korea. On the basis of these impacts, it posits that facilitating marketization from below contributes to North Korea's move toward a market economy.
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