Monthly Archive: February, 2010

Speaking on the failure of North Korea’s attempt to reconsolidate state control over the economy, Noland concludes with this: The underlying political stability of that regime, I think, is starting to be called into question. Noland emphasizes how difficult it is to confirm reports of civil unrest in North Korea, but I think there’s sufficient evidence for us to conclude that North Koreans are questioning and challenging their government more openly than ever.

[Update: Kushibo notes that North Korea has started lifting market restrictions. Rice prices and exchange rates have begun to stabilize. The confiscation is done, but does this mean the regime is backing down? That would mean that change is irreversible, and that the regime has just surrendered much of its control over the economy. And just to thank Kushibo for re-posting his comment after I stupidly deleted it, I’ll recommend you read his post on the sacking of Pak Nam-Ki....

Why did North Korea believe that it could reestablish a socialist economy despite international sanctions? According to Open News, the men in the palace were expecting a substantial infusion of sanctions-busting cash from the Chinese: North Korea expected to receive a financial aid of more than a hundred million yuans from china once the currency reform was in place, so that it provides better supply of goods. And, this is why North Korea had informed China of how and when...