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The Future of North Korea is South Korea

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  • Marcus Noland

Abstract

North Korea's famine was in significant part a product of state failure, and unleashed an unintended grassroots process of marketization. Reforms undertaken in 2002 are more usefully interpreted as a response to this development than as a pro-active attempt to improve efficiency, and the government’s stance remains ambivalent. The economy is progressively more integrated with those of China and South Korea, but the modalities differ: involvement with China increasingly occurs on market-conforming terms, while interaction with South Korea has a growing official transfer or subsidy element. Recent floods will contribute to a political context for enhanced South Korean government support.

Suggested Citation

  • Marcus Noland, 2007. "The Future of North Korea is South Korea," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 8(3), pages 27-52, July.
    • Handle: RePEc:wej:wldecn:300
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    File URL: https://www.worldeconomics.com/Journal/Papers/Article.details?ID=300
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    Cited by:

    1. Marta Kightley, 2012. "Stosunki gospodarcze pomiędzy Republiką Korei a Koreańską Republiką Ludowo-Demokratyczną," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 43-60.

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