At first glance, North Korea appears to be completely cut off from the world, both economically and politically. With a tightly controlled government and a nominally state-planned economy, it’s difficult to observe the country’s global trade patterns. To get a better understanding of what North Korea exports and imports to and from the rest of the world, we must look beyond the confines of the official data.
It is estimated that North Korea has a large reserve of natural resources, including coal, iron ore, oil and natural gas. The country also has considerable potential for hydropower production, however, much of this potential still remains untapped. As such, most of North Korea’s exports are natural resources, such as coal and iron ore, which are used to produce other goods. It also exports minerals, fish and seafood, textiles and apparel, agricultural products, and manufactured goods such as computers, electronics, and machinery. North Korea is strongly reliant on its export trade for income and foreign currency, although the exact value of these exports is difficult to calculate.
North Korea relies heavily on imports from other countries. Much of the country’s agricultural needs are met through imports from China, South Korea and Russia. Other important imports are oil and gas, machinery and transportation equipment, iron and steel, and electronic equipment. North Korea also imports food, medicine, and other items from European Union countries. North Korea is heavily dependent on these imports, due to the restrictions placed on its economy, and the country lacks the resources to produce most of the items it needs.
North Korea is widely seen as an isolated nation, but it has gradually been becoming more integrated into the international economy since the late 1990’s. Since then, the country has been involved in a number of international trade agreements and is a member of the WTO. This has resulted in a dramatic increase in North Korea’s economic activity and has seen the nation’s exports and imports soar in recent years. In 2016, North Korea exported more than US$2.5 billion worth of goods, while importing US$5.5 billion from other countries.
However, North Korea’s trade relations with the rest of the world come with certain restrictions. North Korea is subject to several UN sanctions, which, for the most part, restrict the country’s ability to trade with the outside world, in order to limit its access to resources and technologies used for nuclear proliferation. As such, the majority of North Korea’s trade has been with China, its closest ally, which makes up more than 90 percent of the country’s exports and even more of its imports.
While North Korea has been relatively successful in increasing its export and import activities over the past decade, the outlook for the country’s economy remains uncertain. This is due to the unpredictable political situation, the restrictive sanctions imposed by the international community, and the uncertainty surrounding the country’s nuclear program. In light of these issues, it is difficult to predict whether the continued increase in North Korea’s export and import activity is sustainable in the long-term.
How North Korea Makes Money
North Korea has a number of key sources of income that enable it to purchase imports from abroad. Perhaps the most important of these is exports to its main ally, China. North Korea has an estimated US$30 billion in exports to China every year, which make up the majority of North Korea’s total exports. In addition to this, North Korea also receives remittances from North Koreans working overseas, which are estimated to be around US$1 billion or more. North Korea also receives aid from other countries, such as South Korea, Japan and The United States.
The North Korean government also earns significant amounts of money through activities such as counterfeiting currency and producing illegal drugs, both of which are highly illegal and subject to international sanctions. A number of reports have suggested that North Korea is also involved in arms dealing and weapons procurement, which could also be a significant source of income. Finally, North Korea is believed to have a significant number of special interest groups in foreign countries, which can be used to raise money through various forms of criminality such as money laundering.
These various sources of income are used to purchase imports and maintain North Korea’s economic infrastructure. In recent years, North Korea has made attempts at reforming its economy, including a focus on foreign investment and trade liberalization. However, these reforms have been limited in scope and are unlikely to provide a lasting solution to North Korea’s economic woes.
Given the country’s current reliance on exports and imports, it is evident that North Korea needs to increase its engagement with the outside world if it hopes to improve the lives of its citizens. This will require greater liberalization of its economy and more openness towards foreign investment and trade. In order for this to happen, North Korea needs to take steps to end nuclear proliferation and its export of weapons, counterfeit currency and illegal drugs.
North Korea & Global Trade
North Korea has not been entirely isolated from global trade. The country is an active member of several international organizations, such as the World Trade Organization (WTO), the Asian Development Bank (ADB), and the United Nations (UN). In addition to this, North Korea has numerous trade deals with other countries, such as China, South Korea and Russia, as well as many European countries.
These trade deals have enabled North Korea to open up its economy and trade with the rest of the world. This has provided North Korea with access to a much larger market than it could access before. As a result, the country’s exports have increased, while its imports have decreased. This has led to increased economic growth, which has aided in the development of the country.
However, North Korea’s involvement in global trade has also been cause for concern. The country has been accused of using its trade with other countries to gain access to materials and technologies that could be used for military or nuclear purposes. In response to this, North Korea has agreed to abide by several international treaties, including the Nuclear Non-Proliferation Treaty and the Comprehensive Nuclear-Test Ban Treaty, in order to prevent the proliferation of nuclear weapons.
Overall, North Korea’s involvement in global trade has had a largely positive effect on the country’s economy. This has enabled North Korea to open up its markets and increase its exports, as well as providing it with access to much-needed goods from abroad. However, it is important that North Korea continues to abide by international treaties, in order to ensure that the country is not used as a source of materials or technologies for nuclear proliferation.
North Korea & The Digital Economy
In recent years, North Korea has taken steps to enter the digital economy. In 2011, the country began allowing its citizens to access the internet, albeit in a heavily censored and policed form. In 2015, North Korea established the first state-sponsored cryptocurrency, called the Jutae, which is said to have been used to purchase items online, as well as transferring funds to foreign countries.
In addition to this, the country has also been investing heavily in the production and development of digital technologies, such as the cyberattack software used to disrupt a number of websites and networks around the world. North Korea has also been investing in blockchain technology, which it hopes to use to enable anonymous and secure transactions.
It is clear that North Korea sees the digital economy as a possible way to increase its economic activity. The country hopes to be able to export its digital skills and talents, such as cyber security and blockchain technologies, in order to generate income. This could also give North Korea access to a much larger market, as well as allowing the country to diversify its sources of income.
However, it remains to be seen how successful North Korea is in its foray into the digital economy. The country’s actions are still being monitored closely by the international community, due to concerns that North Korea’s digital activities could be used for nefarious purposes, such as hacking and stealing data from foreign countries or networks. As such, it is likely that North Korea will face restrictions and sanctions if it does not abide by international laws.
North Korea’s Economic Outlook
North Korea’s economic outlook is uncertain at best. The country has been subject to numerous sanctions, and its trade with the rest of the world is severely restricted. In addition to this, the unpredictable political situation and the ongoing nuclear crisis only add to the uncertainty surrounding North Korea’s economic prospects.
However, analysts have suggested that North Korea has the potential to become a major economic player in the region. This is due to its large natural resources, the potential for hydropower production, and the country’s increasing involvement in the digital economy. The increased access to a larger market, as well as the potential for foreign investment and trade, could lead to an increase in North Korea’s economic activity.
In order for North Korea to take advantage of these opportunities, however, it must take steps to address the concerns surrounding its nuclear program and its human rights record. In addition to this, North Korea must continue to abide by the international treaties it has signed, and its actions must remain within the bounds of international law. Taking these steps will be essential if North Korea is to open its markets and increase its economic activity in the future.
Nevertheless, North Korea has the potential to become a major economic player in the years to come. The development of its digital economy, as well as its increasing involvement in global trade, could provide the country with the resources and technologies it needs to become a prosperous nation. If North Korea can continue to abide by international law, and take steps to improve the lives of its citizens, then its economic prospects may improve dramatically in the future.
