The Current Economic Situation of North Korea and the Prospects for Economic Reform

The purpose of this study is to examine the possibility of applying the economic reform model of China to North Korea, and to propose a feasible reform scenario for North Korea. Based on an overview of the country's current economic situation, the study concluded that the reform must begin from the agricultural sector, as was in the case of China's economic reform. This is because resolving the severe shortage of food must be given top priority in the policy agenda, and hence boosting food production through agricultural reform is a necessary and feasible way of reform. The study also suggests the necessity to develop the light industry and expand exports through decentralization to the local governments and inward foreign direct investments by overseas Korean investors.