PROLOGUE: WHAT IS NORTH KOREA?
North Korea is an isolated, secretive state on the Korean peninsula that has defied much of the economic and political changes of the last decades. It has a population dominated by ethnic Korean citizens, but also citizens of Chinese and Japanese descent. Despite the open hostility of many other nations, North Korea is not considered a member of the global community, and remains largely closed off from the outside world.
REASONS FOR RESTRICTED GLOBALIZATION
One reason for North Korea’s lack of global integration is its aversion to foreign business. The North Korean government controls every aspect of its economy, which is largely based in domestic production, and tightly regulates trade and transportation, making it difficult for foreign companies to establish partnerships with North Korean companies. Trade restrictions also make it difficult for North Korean citizens to become employed abroad, which has hampered their access to global markets.
A further impasse to global integration is North Korea’s strained relationship with the United States. The US has imposed heavy economic sanctions on North Korea over its nuclear weapons program and its human rights record, which has made it nearly impossible for American and many foreign businesses to conduct business activities in the country.
Exacerbating this situation is the fact that North Korea is politically relatively uncompromising. It is unwilling to open up further to the rest of the world, citing security and self-reliance concerns. With the ruling Workers’ Party having total control over the government and economy, significant changes would be uncertain and potentially dangerous. As a result, North Korea is largely shielded from global pressures and influences.
HUMANITARIAN CONCERNS
The lack of global integration of North Korea has led to a severely impoverished nation, one of the most densely populated countries in the world. Over 90% of North Koreans live below the poverty line, and access to health and educational services is limited. Human Rights Watch and other organizations have reported widespread rights abuses, including individuals who are detained without charge, and torture and religious persecution.
North Korea’s lack of global ties also contributes to a lack of technological advancement. Only a small fraction of North Koreans have access to the internet and few are familiar with modern technology tools. As a result, North Korea does not benefit from advances in technology or the global market, leaving North Koreans behind the times.
OUTLOOK FOR NORTH KOREA
Given its current state, it is unlikely that North Korea will become integrated into the global economy and society any time soon. The current regime is highly resistant to change, and the US has shown little inclination to reduce its economic restrictions. In the short term, it is unlikely that North Korea will become a universally recognized nation. Even if it were to eventually become more open, it would undoubtedly face enormous challenges in adapting to global market structures and social norms.
ENVIRONMENTAL CONSIDERATIONS
In the absence of global integration, North Korea’s environmental problems have developed unchecked. The nation’s forests have been critically over-harvested for fuel, leaving water sources and soil unprotected from contamination. Air pollution is high as well, with industrial smog blanketing much of the country. Conservation efforts have been largely neglected, with little investment in renewable energy or waste management.
REFORMS AND PROSPECTS
In recent years, North Korea has begun to loosen some of its restrictions, allowing for a limited amount of foreign investment. In 2019, the country held its first Trade Fair, inviting representatives from 28 countries. While many welcomed the move as a sign of willingness to liberalize, others remain skeptical whether it will lead to greater economic and political freedom. Though it may remain closed to international investors and corporations, industry insiders remain hopeful that North Korea will eventually open its doors to increased foreign engagement.
Government Regulations and Sanctions
The regulations and sanctions imposed by the North Korean government are a major obstacle to global integration. Trade is strictly controlled and heavily monitored, with a complex network of export and import license requirements hindering economic cooperation with other countries.
Exchange regulations further limit the ability of North Koreans to access resources from abroad. North Korean citizens are not allowed to leave the country without special permission, and citizens are able to convert foreign currency only through tightly regulated channels. All foreign-sourced funds and investments must be authorized by the government.
Political sanctions, meanwhile, limit the communication of North Koreans with the outside world. The government monitors the use of the internet and telecommunications, and restricts access to foreign radio, television and movies.
CONCLUSION
North Korea has historically resisted economic and political globalization, resulting in a highly closed-off nation with limited access to technology, human rights abuses and an impoverished population. Its hostile relationship with the US and its government-controlled economy make it difficult for foreign companies to establish ties with North Korean businesses and individuals. While there have been some recent openings to foreign investment, it remains unclear if the country will become more open in the future.
Social Pressures
The lack of global integration of North Korea has also led to increased social pressures. The traditional homogeneity of North Korean society has led to increased xenophobia and racism, as well as an influx of ethnic Koreans from abroad. A large portion of North Koreans lack the skills and resources necessary to cope with an increasingly globalized world.
North Korea’s social makeup also contributes to its lack of global integration. Since the country’s political population has little generational turnover, younger North Koreans tend to be apolitical, uninterested in the country’s geopolitical struggles or the wider world.
Moreover, North Koreans often rely on the government for jobs and services, creating disincentives to political openness. Dissidents can be severely punished and citizens that express dissatisfaction with the government risk serious repercussions. Such restrictions make it dangerous to debate global integration, which in turn perpetuates the current state of affairs.
Influence of China
China has long been North Korea’s major ally and a key supplier of aid, both in the form of food and financial aid, as well as diplomatic support. This has enabled North Korea to maintain its self-sufficiency and relatively strong economic performance. China’s influence, however, has had the unintentional consequence of giving North Korea the ability to resist international pressure to globalize and reform.
While the Chinese government has sought to mediate a rapprochement between North and South Korea, it has been reluctant to push North Korea to open up. This has been due to a fear of precipitating a collapse of the North Korean regime, which could lead to an influx of North Korean refugees and create a political vacuum in Northeast Asia.
China’s influence over North Korea, and its resistance to political reform, has created a situation where North Korea remains largely closed off from the global economy and international community. This has made the prospect of North Korea becoming a fully globalized nation increasingly unlikely.
International Diplomacy
The international community has attempted to engage North Korea in diplomatic talks about nuclear disarmament, international trade and human rights. The United Nations has held several meetings on the topic, but progress has been slow amid disagreements among member states, limited political will from North Korea and a lack of enforcement mechanisms.
The US has led much of the diplomatic effort, but with North Korea’s nuclear program still active and sanctions in place, it is unclear if any diplomatic engagement can truly lead to a meaningful resolution. Without a change in the political climate and a willingness to cooperate between the US and North Korea, the diplomatic path currently appears to be a dead end.
CONCLUSION
The global integration of North Korea remains a distant reality in the near future. With a narrow domestic market and a hostile foreign environment, economic and political reforms are likely to be slow in coming. The current state of affairs may be viewed as a product of a long resistance to global engagement, due to a combination of government regulations, sanctions, social pressures and the influence of North Korea’s major ally, China.
