Success and Failure of North Korean Development Strategy
This study seeks to clarify the characteristics of the DPRK development strategy, examining how a self-reliant development strategy led to economic difficulties in the country. The author describes how the strategy to construct a self-sufficient economy negatively affected investment capital, production costs, and the trade balance, causing problems that included a foreign debt problem, a lack of consumer goods in the 1970s and 1980s, and a shortage of food and energy in the 1990s. North Korea’s self-supporting economic structure has persisted, despite food and power shortages. Today’s economic growth, led by personal consumption, is strengthening this structure. It has been argued that a serious challenge to the self-supporting structure will arise during the next stage of economic development.
Keywords: self-reliance, heavy industry, shortage of consumer goods, foreign debt
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.