8 August 2016

Reuters: Despite sanctions, North Korea prices steady as Kim leaves markets alone

The relative stability of both prices and the currency - in contrast to the volatility seen under his father Kim Jong Il - is partly attributable to the younger Kim's hands-off approach to an increasingly market-based economy and also, experts say, suggests some policy learning in Pyongyang.

Once reliant on a Soviet-style centrally-planned economy, North Korea is now home to a thriving system of semi-legal but policed markets known as "jangmadang", where individuals and wholesalers can buy and sell privately-produced or imported goods.

"Since Kim Jong Un came to power, there has been no control or crackdown on the jangmadang," said Kang Mi-jin, a North Korean defector who works at the Seoul-based Daily NK website and regularly speaks to market sources in the North. [...]

North Korea's centrally-planned rationing system never recovered from a devastating famine in the 1990s. From April to June this year the state handed out just 360 grammes of rations per person per day, the lowest amount for five years, according to a recent World Food Programme (WFP) report.

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