This study proposed the detailed plans and directions of prioritized projects in the Vision 3000 Initiatives under the policies
on North Korea by the Lee Myung-bak Administration, encom- passing four areas on resolving energy deficiency, eradicating absolute poverty and famine, supporting greenery and planting of trees, and providing education on the economy and training for industrial personnel in North Korea. In essence, the study reveals that providing the North with briquettes and boilers for devel- opmental aid in line with the support of the same content in the past will relieve shortage of energy. Also, in regards to uplifting the capacity of the North Koreans, the study emphasized the need for training North Korean energy experts while continuing with exchange projects of South Korean light industrial raw materials for North Korea’s abundant underground resources.
On the second project with focus on eradicating absolute poverty and famine, the study underlined the importance of strategic approaches to the provision of aid by targeting the most devastated population groups by these adverse conditions. The study also pointed out the benefits of conducting this project in line with medical support and improvement on t osing and waterworks mentioned in the Vision 3000 Initiatives for higher efficiency and more desirable outcomes. In sum, the study finds that in order to eradicate absolute poverty of North Koreans, South Korea most help in increasing food production and support the North Koreans with aid packages designed to improve overall living qualities of its citizens. Also, to reinforce North Korea’s capacity, a South-North
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cooperative framework and partnership between the benefactor and the recipient of developmental aid was emphasized for better effects of aid.
Third, for the project on expanding greenery and planting trees, detailed projects on expanding the existing programs for planting trees in the short-term as well as a joint South-North cooperation to prevent damage to forestry and the extermination and prevention of insect breeding in the long-term. Also, planting of fruit trees to secure food for North Korea’s economic benefit was also advised in relevance to this project.
Fourth, on training of industrial personnel, the study’s emphasis was on the expansion of on-site training at a South-North economic cooperation site for immediate effects of vocational training. So that in the short-term training for North Korean laborers provided by South Korean experts will lead to long-term transfer of knowledge and technology by North Korean experts the rest of the North Korean laborers. In addition, the early establishment of Pyongyang University of Science and Technology which is currently in planning is highly desired along with the need for the establishment of science and technology institutions and vocational training centers in major industrial regions of North Korea.
Since the establishment of its regime, North Korea has been obstinate in pursuing socialist and planned economic system of self-containment, which resulted in its extreme economic crisis. It is
important for North Korea to be incorporated in the global capitalist economy to recover from the crisis. However, North Korea is continuously wasting its already depleted resources on nuclear weapons and missiles development for regime maintenance. Thus, the revitalization of the North Korean economy will be difficult should such wrong tactics of state governance continue without fundamental changes.
North Korea faces its southern neighbor, South Korea, which has accomplished a great level of economic development in the past decades and suggested several proposals to aid North Korea in its hardships. If ever, the North Korean regime seeks to improve the lives of its citizens, South Korea will be the leading aiding country in North Korea’s revitalization. In this regard, South Korea should work towards a fundamental remedy with persistence and per- suasion towards North Koreans for the grounds of its economic revival, rather than solely pursuing developmental aid to North Korea in the absence of strategies.
Also, one must seriously take notice of the fundamental difficulty of North Korea’s economic revival, which lies in North Korea’s pursuit of nuclear development. Without denuclearization of North Korea, necessary conditions will not be met for the several aforementioned projects that may go into waste. Therefore, im- mediately foregoing nuclear development and accepting devel- opment aid from South Korea and the international community
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would be an urgent task for North Korea to complete.
In conclusion, should North Korea decide not to give up its development of nuclear weapons, receiving aid from South Korea and the international society will not be feasible, and Kim Jong-il’s intent for realizing a ‘Big and Powerful Country in 2012’ will be deemed impossible. In the meantime, North Korea must adhere to the policy suggestions under the Vision 3000 Initiatives, as they contain projects that provide North Korea with the window of opportunity.
NOTES
1_Chang Hyung-su et al., Organizations and Activities of Multilateral Develop- ment Organizations (Seoul: Korea Institute for National Unification, 2008), p. 7.
2_Ibid., p. 7.
3_Ibid., pp. 47-49.
4_Ibid., pp. 74-82.
5_Park Hyeong-Jung et al., Theory and Practice of Developmental Aid in the International Community (Seoul: Korea Institute for National Unification, 2008), pp. 59-62.
6_Chung Ju-hwan, “North Korea's Joint Venture Law,” Journal of Danguk Law, Vol.3 (1993), pp. 305-306.
7_The main contributing nations in giving out loans are Japan with $0.28 billion and West Germany with $0.15 billion in the total amount of support for loans. Kim Se-won, “North Korea’s Openness and Joint Venture Law,”
North Korea, No. 220 (April 1990), p. 46.
8_Yoon Ki-gwan, “North Korea’s Transformations in External Economic Policies and Trends in Foreign Trade,” Korea Unification Studies, Vol. 2, No. 1 (1996), p. 113.
9_Ibid., p. 113-114.
10_Kim Se-won, “Open-door policies and the Joint Venture Law,” North Korea, No. 220 (April 1990), p. 47.
11_In effect, joint ventures under the Joint Venture Law resulted in the con- tributions by the ‘Jochongnyeon’ in the past. Kim Young-hoon, “Expect- ation Effects and Tasks in the Agricultural Sector in the aftermath of the 7.1 Improvement Measures for Economic Management,” Unification Issues Studies, Vol. 15, No. 2 (2003), p. 149.
12_Kim Sang-ho, “A Study on Investment Dispute Settlements in the Najin- Sunbong Free Trade Economic Zones,” International Business Studies, Vol. 14 (1999), p. 93.
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13_Kim Hee-wook, “North Korea’s Changes in External South-North Economic Cooperation,” Unification Studies, Vol. 1(1996), pp. 38-39.
14_Kim Young-hoon, “Expectation Effects and Tasks in the Agricultural Sector in the aftermath of the 7.1 Improvement Measures for Economic Manage- ment,” p. 149.
15_Kwon Young-kyoung, “North Korea’s Economic Trends and Reform·
Openness,” Understanding North Korea 2008 (Seoul: Education Center for Unification, 2008), pp. 158-160.
16_Kim Young-hoon, “Expectation Effects and Tasks in the Agricultural Sector in the aftermath of the 7.1 Improvement Measures for Economic Manage- ment,” pp. 151-153.
17_Kwon Young-kyoung, “North Korea’s Economic Trends and Reform·
Openness,” p. 157.
18_Ibid., p. 164.
19_In September 2000, the United Nations General Assembly adopted the Millennium Development Goals (MDGs) comprising of the eight following goals: ① eradication of extreme poverty and hunger, ② achievement of universal primary education, ③ promotion of gender equality and em- powerment of women, ④ reduction of child mortality, ⑤ improvement of maternal health, ⑥ combat HIV/AIDS, malaria, and other diseases, ⑦ ensure environmetal sustainability, and ⑧ develop a global partnership for development. The five major principles of the Paris Declaration on Aid Effectiveness are the following: ① Ownership by countries, ② Alignment with countries’ system and policies, ③ Harmonization of donors’ actions,
④ Managing for Results, and ⑤ Mutual Accountability.
20_Kim Kyuryoon et al., Realizing Policies of Cohabitation and Prosperity through the Vision 3000 (Seoul: Korea Institute for National Unification, 2008), p. 184.
21_Kim Kyuryoon et al., Realizing Policies of Cohabitation and Prosperity through the Vision 3000, pp. 192-193.
Current Status and Future Prospects for Marketization of North Korean Economy
Lim Kang-taeg
Director Center for North Korean Studies Korea Institute for National Unification(KINU)