July Economic Measures and Prospect of Agricultural Reform in North Korea

It has been proven that the July Economic Reform made a real difference in raising agricultural production. The driving factors behind the positive results were favorable weather, more fertilizer through international aid, the reduction of blight and harmful insects, and the improvement of irrigation. Except for the July Economic Reform and motivation, however, those physical factors would have not produced synergistic effects like they did. Indeed, if the farmers had been given a fixed income without additional incentives, the production would have not increased as high. Another motivation is that the farmers’ markets turned into general markets in March 2003 when they received government supports. This reform regarding trade affords an opportunity for farmers to raise their income. In that regard, the success of the July Economic Reform is of great significance to the recovery of North Korean agriculture.