A Country Study: North Korea

North Korea Foreword Acknowledgements Preface Country Profile Country Geography Society Economy Transportation and Telecommunications Government and Politics National Security Introduction Chapter 1 - Historical Setting (Bruce G. Cumings) Historical Setting The Origins of the Korean Nation The Period of the Three Kingdoms Korea under Silla Unification by Kory The Chosn Dynasty: Florescence Dynastic Decline Korea in the 19th Century World Order The Legacy of Japanese Colonialism The Rise of Korean Nationalism and Communism The National Division and the Origins of the DPRK The Korean War The Post-War Economy and Patterns of Industrialization Corporatism and the Chuch'e Idea International Relations Chapter 2 - The Society and its Environment (Donald M. Seekins) The Physical Environment Topography and Drainage Climate Environmental Protection Population Size and Growth Rate Population Structure and Projections Settlement Patterns and Urbanization Koreans Living Overseas Social Structure and Values Confucian and Neo-Confucian Values Chosn Dynasty Social Structure The Traditional Family and Kinship The Colonial Transformation of Korean Society Tradition and Modernity in North Korea Chuch'e and Contemporary Social Values Classes and Social Strata Urban Life Village Life Family Life The Role of Women The Role of Religion Ethnicity, Culture, and Language in Contemporary Society Contemporary Cultural Expression Literature, Music and Film Architecture and City Planning The Korean Language Education Educational Themes and Methods Primary and Secondary Education Social Education Higher Education Adult Education Public Health Chapter 3 - The Economy (Joseph S. Chung) Economic Setting Korea under the Japanese Occupation Developmental Strategy Economic Development and Structural Change Record of Economic Performance Postwar Economic Planning Budget and Finance Organization and Management of the Economy Planning The Ch'ongsan-ni Method The Taean Work System Mass Production Campaigns Industry Development in Major Sectors Mining and Metal Processing Manufacturing Services and Marketing Agriculture, Forestry, and Fisheries Resource Development Production and Distribution of Crops and Livestock Organization and Management Forestry Fisheries Infrastructure Transportation and Communications Railroads Maritime Transportation Civil Aviation Roads Telecommunications Energy and Power Foreign Economic Relations Economic Assistance Foreign Trade Foreign Investment and Joint Ventures Inter-Korean Economic Cooperation Economic Outlook Chapter 4 - Government and Politics (Pan Suk Kim) Relationship Between the Government and the Party The Korean Workers' Party Constitutional Framework Organization of the Government The Supreme People's Assembly The Executive Branch The President and Vice Presidents The Central People's Committee The State Administration Council The Judiciary Local Government Political Ideology: The Role of Chuch'e Party Leadership and Elite Recruitment Party Members Party Cadres The Ruling Elite Leadership Succession Mass Organizations The Media Foreign Policy Inter-Korean Affairs China and the Soviet Union Japan The United States Prospects Chapter 5 - National Security (Guy R. Arrigoni) Military Heritage The Armed Forces National Command Authority Formulation of National Security Policy The Army Organization and Disposition Weapons and Equipment Special Operations Forces Military Capability, Readiness, Training, and Recent Trends The Navy Organization and Disposition Weapons and Equipment Military Capability and Coastal Defense The Air Force Organization and Disposition Weapons and Equipment Trends, Training, Readiness, and Military Capability Air Defense Civil Aviation Officer Corps: Recruitment and Education Military Conscription and Terms of Service Reserves and Paramilitary Forces Role in National Life Relations Between the Military and the Korean Workers' Party Military Doctrine and Strategy The Evolution of North Korean Military Thought Emergence of the New Doctrine Operational Practice in the 1980s and 1990s Employment in Offensive Scenario Defense Industry and Infrastructure Military Industry Special Weapons Chemical Weapons Missile Developments The Nuclear Option Foreign Military Relations Relations with China and the Soviet Union Relations with the Third World Incidents and Infiltrations: Targeting South Korea Geopolitical Changes: New World Order and North Korean Security Internal Security Social Control The Public Security Apparatus The Judicial System Historical Influences The Judiciary Punishment and the Penal System Prospects Appendix. Tables Bibliography

[edit] ECONOMIC DEVELOPMENT AND STRUCTURAL CHANGE

Male workers at the Taean Heavy Machinery and Complex, Taean, Namp'o - [1] [2] Courtesy Tracy Woodward

North Korea's reliance on a command economy has led to an inward-looking development strategy, demonstrated in policies on domestic industrial development, foreign trade, foreign capital, imported technology, and other forms of international economic cooperation. Priority is assigned to establishing a selfsufficient industrial base. Consumer goods are produced primarily to satisfy domestic demand, and private consumption is held to low levels. This approach is in sharp contrast to South Korea's outward-oriented strategy begun in the mid-1960s, which started with light industry in order to meet the demands of growing domestic and foreign markets and export expansion.

As a consequence of the government's policy of establishing economic self-sufficiency, the North Korean economy has become increasingly isolated from that of the rest of the world, and its industrial development and structure do not reflect its international competitiveness. Domestic firms are shielded from international as well as domestic competition; the result is chronic inefficiency, poor quality, limited product diversity, and underutilization of plants. This protectionism also limits the size of the market for North Korean producers, which, in turn, prevents them from taking advantage of economies of scale.

Beginning in the mid-1980s, and particularly around the end of the decade, North Korea began slowly to modify its rigid selfreliant policy. The changes, popularly identified as the opendoor policy, included an increasing emphasis on foreign trade, a readiness to accept direct foreign investment by enacting a joint venture law, the decision to open the country to international tourism, and economic cooperation with South Korea.

Data as of June 1993