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Modernization and Opening-Up of North Korean Economy

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However, North Korea responded with harsh words and showed strong reluctance to South Korea's new move. Park Hyeong-Jung will discuss issues related to South Korea's official aid policy towards North Korea.

Content Analysis of Vision 3000

While the North Korea policies of the past two South Korean administrations tended toward liberalism, the current administration favors a realist approach. However, the change in the policies of the two past administrations and the current one is the strategy used to drive the transformation of North Korea.

Initiatives of the Vision 3000 and Developmental Aid to North Korea

Therefore, North Korea's marketing is essential to formulate better results of development aid to North Korea. In short, development aid to North Korea from the international community along with the Vision 3000 will win.

Promotion of Developmental Aid in parallel with the Vision 3000

Second, training for North Korea's energy experts alongside the first project is highly desirable. These kinds of projects must be continued in the future for North Korea's spontaneity in economic recovery.

Conclusions and Policy Implications

Also, in connection with this project, it was advised to plant fruit trees to provide food for the economic benefit of North Korea. If ever, the North Korean regime seeks to improve the lives of its citizens, South Korea will be the main helping country in North Korea's revitalization. Also, the fundamental difficulty of North Korea's economic revival, which lies in North Korea's pursuit of nuclear development, must be seriously considered.

8_Yoon Ki-gwan, "North Korea's Transformations in Foreign Economic Policies and Foreign Trade Trends", Korea Unification Studies, Vol. 13_Kim Hee-wook, “North Korea's Changes in South-North External Economic Cooperation,” Unification Studies, Vol.

Raising the Issue

On May 4, 2009, North Korea's central newspaper Rodong Sinmun claimed, "Our party has appealed to the people to fight seriously for the 150-day battle," to promote the mobilization of the masses. In general, the North Korean government has implemented censorship and cleansing in society as the justification for the successful implementation of the "150-Day Battle". In particular, it is reported that supervisors are sent to various organs of the party to ensure the exercise of ideological discipline.

According to an informed source, a North Korean government official said: "The market system must be removed. Therefore, we need people to focus on the mobilization movement, so that we can transform the market system discreetly."

Problems of Marketization of Socialist Countries

Accordingly, most activities of the Second Economy are labeled as illegal in the central economic planning system, and governments sometimes use harsh measures to eliminate this economy. Pérez-López classifies the four domains of the Second Economy in terms of the relationship between state control and its legality. Another perspective of the relationship is that failure within the formal economy results in the creation of a second economy.

The national economy is the combination of the socialist formal economy and the second economy. Nevertheless, some argue that the success of the second economy naturally exposes the formal economy's weakness; persuading people to work in competitive fields within the state.6 The second economy can therefore often worsen the national economy and weaken the formal economy's output.

The Conditions of North Korea’s Marketization

The relationship of the second economy with the formal economy is unclear and uncertain in many cases. The aforementioned "8.3 People's Daily Needs Stores" and direct sales stores are also working within the boundary of the formal economy, which can be interpreted as the second economy. activities under the formal economy. They are the second illegal economy within the formal economy and outside the formal economy.

Unregistered private production and sales, black markets and smuggling are among the activities of the second economy outside the formal economy. One example of illegal activities of another economy in the formal economy is trading in raw materials.

North Korea’s Control on Street Markets

The government relaxed such strictures after December 2006, but still bans men over the age of 17 from selling their 700-gram food ration in street markets. On March 15, the government issued another official announcement regarding restricted goods, warning of strong control over markets.13. For example, the prices of grains, eggs, tofu, chicken, pork and soybean oil are set by the government.

Another important aspect is that the government also places restrictions on trading companies as they supply goods to the markets. Trading companies that were managed by various agencies, factories and companies are now controlled by the provincial party.

Prospects for North Korea’s Marketization

North Korea's restriction of these trading companies is another means of preventing deviation in society, as these companies are mostly involved in illegal financial activities that have resulted in an anti-socialist economic environment. Assuming that North Korea does not collapse and faces a change in the environment surrounding it, there may be full opening and reforms in the medium to long term that will legalize and institutionalize market activities. In the mid- to long-term perspective, a "socialist market economy system" will be the best model for North Korea, where the market actively allocates resources and the government continues to manage the macro-economy. 16.

7_Craft production began in North Korea in June 1953 when the Central Committee of the Workers' Party decided to develop local industry. 11_On October 10, 2005, North Korea announced the resumption of the 'National Distribution System' and stopped trading food in markets, but could not continue distribution for more than two months due to food shortages.

Introduction

Establishing a Northeast Asian economic community and solving the North Korean issue

Because North Korea's notable economic problems are clearly visible, there is relatively little need to elaborate on additional or special statements about the country's lagging economy. The urgency of this issue is clear as the people of North Korea live in abject poverty and hardship due to harsh economic conditions. North Korea's economic problems contribute to the living conditions of its people, violating their human rights and hindering their active participation and membership in the Northeast Asian economic bloc.

Therefore, Japan and South Korea should help improve North Korea's economic condition and encourage them to participate in the Northeast Asian community, for the benefit of both the country and its people. Nevertheless, before the North Korean nuclear crisis and missile problems are resolved, it will be politically difficult for both states to provide extensive development assistance to North Korea.5 With these points in mind, this paper will first discuss possible ways for cooperation between Japan and South Korea in helping to solve the problems related to the quality of life (QOL) of North Korean residents.

Assistance policy of Japan and South Korea

To elaborate on the details and changes to Japan's aid policy, we will examine the background of the amendment and the content of the general provisions that guide the direction of Japan's ODA, which were approved by the Cabinet on August 29, 2003. The basic policies of ODA are based on ① supporting self-help efforts of developing countries, ② promoting the “human security” standpoint, ③ guaranteeing equity, ④ utilizing Japan's experience and knowledge, and ⑤ providing aid to solidarity in help establish the international community. Going forward, cases involving NGOs, volunteers and local public entities are likely to form a regular part of Japan's ODA.

Furthermore, it is written that in the case of sustainable growth, efforts should be made to consolidate Japan's ODA cooperation with funds other than those established under ODA. However, Japan's ODA policy expresses its concept of pursuing the national interest to ensure its security and prosperity in stronger ways than South Korea.

Conclusion

Japan and South Korea should consolidate their leading roles in forming a Northeast Asian economic community through joint efforts in aid to North Korea. The cause for such a breakdown in cooperation can then be attributed to the fundamental aspects of North Korea's problems. Moreover, the traditional confrontation between the two Koreas leaves little room for South Korea to influence North Korea's opening.

However, China-South Korea cooperation can contribute to North Korea's opening up to some extent, although it may not bring about a dramatic structural change. Therefore, China and South Korea should continue their efforts to find common ground in cooperation to promote North Korea's opening-up.

Prerequisites for the cooperation between China and South Korea to Promote North Korea’s opening

If there are no mutual benefits for China and South Korea in relation to North Korea, it is impossible to expect any cooperation between the two countries to open up North Korea. It is a common goal for China and South Korea to promote North Korea's stability and development. Therefore, North Korea's opening up and reform will stimulate economic development and cooperation in Northeast Asia, which will certainly benefit China and South Korea.

But isolated North Korea is physically severing the link of cooperation between the three countries. 2. China can play a constructive role with South Korea to promote North Korea's opening up and reform, which will ultimately contribute to cooperation between the three countries.

Ⅴ 3. Challenges for China-South Korea Cooperation in

Four Major Policy Initiatives on Aid to North Korea

Regardless of the transition in governments, South Korean assistance to the North has been consistently embedded in six policy objectives: ① facilitating inter-Korean economic cooperation. To achieve this goal, however, South Korea had to first provide assistance to the North. As for the Roh Moo-hyun government, aid in the form of food aid was provided to the North due to humanitarian concerns, with the intention of encouraging a change in North Korea's behavior.

The South Korean NGO aid community has also tried to change aid patterns to the North to accommodate development aid. Therefore, a general consensus has formed beginning with the North Korean aid community regarding development aid as the dominant method of providing aid to the North.

Conflicts at home and abroad surrounding South Korea’s aid to the North

The food aid agenda of South Korea's government has become the object of criticism in the international community. The two important characteristics of the South Korean government's aid to North Korea are the multiplicity of goals and stakeholders. This kind of aid has pleased South Korean liberals, North Korean authorities, and moreover the Chinese government with its similar methods of aid distribution to North Korea.

3_Ministry of Unification, “Four Years of North Korea Policy: The Road to Peace and Cooperation, Questions and Answers” ​​(2003. Ministry of Unification, “Progress in North Korea Policy: Peace and Prosperity Policy and Major Issues in the Inter- Korean Relations” (2003 .

Modernization and Opening-Up of North Korean Economy

Roles and Efforts

Modernization and Opening-Up of North Korean Economy

Referensi

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