Why Is North Korea Giving Up?
North Korea is a long-mysterious nation, renowned for its nuclear arms program and hardline political system that has long ensured its isolation. Yet recent developments suggest that the long-remaining closed-off nation is finally taking steps to open up its doors to the outside world. The reason? Unrest and an economic crisis.
With Kim Jong-un’s diplomatic efforts with the United States, South Korea, China and Japan, experts believe that North Korea is part of a wider trend of globalization that has made it more plausible for such isolated nations to connect and interact with foreign countries for the potential benefit of a solid economy.
Palestinian university professor and international relations expert Hashim Ubaidy believes that Kim Jong-un “understands the needs of his people and therefore is willing to compromise to secure greater economic stability”.
Indeed, economic incentives seem to play an important role in understanding why North Korea is changing its behaviour. Sehen Shaktidasan, professor of Economics Research at American University, believes that North Korea’s “most immediate need is to integrate with the global economy and gain access to the financial system in order to increase trade and investment possibilities”.
At present, North Korea is place under tough international sanctions by the United Nations. This has been effective in impeding the nation from engaging in lucrative activities such as the selling of weapons. As a result, North Korea’s economy has been stagnant for decades and creating more jobs and opportunities have become a priority for the nation.
Furthermore, the advances in information and communication technology has undoubtedly made the outside world more accessible for North Korea. This has introduced the idea of a “modern lifestyle” to many young North Koreans, thus making improvements in their living conditions increasingly desirable.
Foreign Investment
Under Kim Jong-un, North Korea has named special economic development zones in an effort to entice foreign investments. Attempting to simulate economic growth by encouraging foreign investment is highly dependent on other nations’ willingness to cooperate. Currently it seems as though there is an increase in foreign aid being poured into North Korea.
An example of this are the special economic zones such as the Kaesong Industrial Complex and the Rajin-Sonbong economic development zones, which have seen hundreds of millions of dollars of investment from countries such as China, South Korea, and even from from the United States.
However, there are persisting doubts about the risk foreign investments pose to North Korea. Issues such as instability, the lack of transparency and legal protection for investors, and the possibility of expropriation by the North Korean government are all factors that are believed to be hindering the potential for a successful and sustainable foreign investment-led development in North Korea.
Domestic Reforms
The North Korean government has taken steps to support a more open economy. This involves providing subsidies to special economic zones, giving companies more autonomy, and eliminating restrictions on production and sales.
Such reforms have been capable of bringing some positive developments. This has included the introduction of small-scale markets, a stimulus plan which involves the construction of more roads and infrastructure, and basic reforms like the implementation of income taxes and currency exchange.
Positive domestic reforms are believed by some to be a result of growing pressure from the younger generations who are dissatisfied with the current economic situation. As a result, the government has taken steps to ensure economic conditions improve, as to not create further discontent.
Ultimately North Korea’s decision to give up isolationism may be a result of more than just economic considerations. It appears to be a conscious and rational decision by Kim Jong-un in an effort to make his country more prosperous and respected, and to be a more active member of the international community.
Geopolitical Considerations
North Korea’s move towards more openness has been welcomed by the international community largely due to its potential to create more stability in East Asia.
This is especially more visible between South and North Korea. North Korea has moved away from its aggressive stance with regards to its neighbor by withdrawing troops from their shared border and reducing economic sanctions and threats.
The new South Korean president Moon Jae-in has committed to resolving the challenges that divide the two nations – namely the elimination of nuclear weapons and the reunification of the Korean peninsula. Both countries appears to be in agreement on the idea of peace, as they have aim to resolve the decades-old Korean conflict.
China has also welcomed North Korea’s steps towards more openness. As the two countries have always had close ties, Chinese officials have been eager to see stability on the Korean peninsula and continue to advocate for an end to the conflict.
Perspectives From North Korean Citizens
Despite the potential for deeper international cooperation, it remains unclear what the future holds for North Koreans. Some citizens have voiced scepticism about the current state of affairs and the benefits it holds for their country. North Koreans’ reluctance to join the international community can be best expressed by one North Korean who said, “It seems like North Korea’s re-opening is being done for the good of other countries, not for our good. We have to be very careful about what this means for our future.”
This sentiment can be tied to a lack of trust between the North Korean government and its citizens. They are afraid of the unknowns that come with opening the doors to the rest of the world and their uncertainty over the government’s intentions.
On the other hand, the North Korean government’s open-arms approach has generated more optimism amongst citizens. For example, the economics professor from Pyongyang University of Science and Technology commented, “North Korea’s opening up can be seen as a sign of progress for our country. We must welcome this opportunity for a new era of development and hope for a brighter future for all North Koreans.”
Foreign Aid Dependency
Foreign aid plays an important role in helping North Korea’s fragile economy. This is particularly true when it comes to providing humanitarian assistance. According to the UN, North Korean citizens are estimated to be facing a food crisis due to the long-lasting economic difficulties and a devastating drought that struck the nation in 2015.
However, foreign aid has become increasingly politicised. For instance, China and South Korea have both taken steps to limit their respective forms of assistance to North Korea.
This has made it more difficult for the North Korean government to secure the necessary resources for its citizens. It is believed that such foreign aid restrictions have potentially hindered North Korea’s progress towards becoming a more economically stable nation.
The Role of Sanctions
Sanctions are a major challenge for North Korea. As relief and development expert Kristi Govella explained, “the international sanctions regime has a devastating effect on North Korea’s economy, hindering efforts to create jobs, stimulate growth and supply basic supplies of food and medicine”.
Crippling economic sanctions continue to impede North Korea’s economic and social development, having a significantly negative impact on the standard of living in the country.
International experts contend that if the United Nations were to introduce sweeping reforms to its sanctions policy and grant North Korea more access to international trading and investment, it would be a major financial boost for the country.
Reforming the Political System
The effects of economic sanctions on North Korea have been felt by its citizens in a variety of ways. For the nation to make a successful transition towards an open economy, its citizens need to be given more political and economic freedom.
The lack of a functioning political system has been a major obstacle for North Korea, as it has reined in many reforms that would be necessary for it to move towards a more open economy.
The need for a greater degree of transparency within the North Korean political and legal systems has been an issue persistently raised by international leaders. In the absence of such transparency, the effects of the sanctions and government economic policies remain shrouded in secrecy.
Relevance to International Relations
North Korea’s relaxed attitude has had more than just economic implications. It is believed to have opened up the possibility for greater cooperation between East Asian nations, and has also provided a glimpse of hope for the potential reunification of the Korean peninsula.
The nation’s recent steps to open up to the outside world have been welcomed by many international leaders, as it has the potential for greater stability in the region.
To strengthen this relationship, there needs to be a stronger commitment from the North Korean government to more openness and dialogue. This is necessary in order to make the transition from isolation to openness a successful one.
Despite the potential obstacles, North Korea’s decision to give up isolationism is a promising move, and one that appears to hold great potential for the long-term economic, political and social development of the nation.
