We don’t really know what life is like inside
North Korea. We do know it’s ruled by this
guy, we know it’s the subject of numerous
insane rumors and we know the sealed borders
prevent us from learning much of anything
about the place. But one thing that is becoming
a little more clear is the state of the Hermit
Kingdom’s economy, one that may have been
built on the backs of smugglers and black
market traders.
For the most part the economy in North Korea
is run by the government, including imports,
exports and manufacturing. In fact, private
trade is illegal, but that doesn’t mean
it doesn’t happen. Over the last couple
of decades North Koreans have developed a
gray market, or an informal economy, one that
is not monitored, controlled or taxed by the
government. And, according to one North Korea
expert, its success can be partially attributed
to Kim Jong Un himself.
"Kim Jong Un's policy is remarkably friendly
towards the private businesses, because his
father was uncertain. He oscillated from toleration
of the private economy to occasional support
of the private economy, and then back to attempts
to eradicate the private economy….Kim Jong
Un's policy is different. It's a quite tacit
approval and encouragement and support of
private economic activities."
And if this is true, if Kim Jong Un really
does support more private business, than this
is big news. Sure, he may still rule the country
with dark age tactics, like using executions
as a means to flex his power, but he is North
Korea’s first leader in a long time to support
an economic system that even slightly resembles
a free market.
But, it’s not just Kim Jong Un who is helping
the North Korean economy. The grey market
has origins in a flourishing black market,
one that was brought upon by a devastating
famine in the mid 1990’s. You see, back
then the government had a public distribution
system that gave out - or withheld - food
to its citizens based on political affiliation
and loyalty. The famine collapsed this system
and forced citizens to fend for themselves.
Insert black market here. North Korean leadership
knew they had to either look the other way
or see their people starve. But, the black
market soon grew past its origins became a
place for goods that were illegal or unavailable.
This is Kim Danbee, a North Korean defector
who started working in the black market at
the age of 13, helping smuggle in items from
China.
“The products I usually smuggled were the
ones that everyone can use...I would illegally
import electronic goods like television sets,
refrigerators, rice cookers...I also smuggled
cosmetics, face masks and clothes that women
like, and even needles and hair extensions”
This was groundwork for today’s North Korean
grey market, which in turn may be laying the
groundwork for an actual private sector. This
is an economy that went from the Kim Jong-il
parceling out meager food rations to the 2010
opening of a department store in Pyongyang,
shelves stocked high with imported goods priced
only in US dollars.
No one knows for sure where North Korea’s
economy will go from here, but they seem to
be tiptoeing towards a free market...which
could ultimately lead to looser borders. But
for now those borders remain closed, the country
is still cloaked in wild rumors and this guy
is still in charge. Yes, he may support the
black markets and a grey economy, and yes,
he may be more economically progressive than
his father and grandfather. But he still is
an unpredictable leader who may have just
executed a high level military general for
falling asleep in a meeting. So, who can really
tell what lies ahead for North Korea, its
economy, and its people.
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