The North Korean economy is a very significant one, at least in the realm of scholarship. It is one of the most historically relevant examples of a completely governmentally controlled economy. For as long as North Korea has existed, their economy has remained relatively constant; a socialist state with absolute governmental control over all factors of production. While many outside observers speculated that widespread changes could be coming once Kim Jong-Un rose to power, the system has experienced virtually no change during his time thus far as North Korea’s deific dictator. He has warned against North Korea opening their economy to other nations, as it would weaken the perfect Korean people to “the contagion of foreign influences.” In truth, he simply doesn’t wish to weaken the system of perfect control the government has instituted over the people. The prevailing theory of economics is that there are three primary forces that influence an economy, and by analyzing who controls each one can determine the type of the examined economy. These three forces are land, labor, and capital. Land consists of a countries natural resources, including minerals, wildlife, and vegetation. Under the North Korean economic system, all land is owned by the government. The government even claims ownership over the imports they receive from foreign countries, such as China, regardless of who actually purchased the items. Labor is the work and energy that need to be expended to produce an item. The chief political party in North Korea controls all production, ordering all their citizens around when they determine that they need a particular good or service. Lastly, there is capital. This is the machinery or tools needed to produce an item. Again, these tools are generally owned by the North Korean government. They own all factories and, by extension, the tools that are used to produce goods. By examining these three statistics, the economic system of North Korea is relatively evident, they are a strict socialist state. Socialism is when the government has a high and controlling role in the lives of the people, making laws that can restrict their freedoms in order to benefit the country as a whole. In the case of North Korea, these laws and restrictions don’t benefit the people, but rather their glorious leader.
North Korean Economy Watch. N.p., n.d. Web. 20 Mar. 2017.
“North Korea.” North Korea Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d. Web. 20 Mar. 2017.
“The World Factbook: KOREA, NORTH.” Central Intelligence Agency. Central Intelligence Agency, 12 Jan. 2017. Web. 20 Mar. 2017.