03.23.2005 00:23

North Korea: economic reforms spread, students studying market laws


In Report says North Korean reforms spread, Seoul's JoongAng Ilbo daily looks at a paper from the South's Unification Ministry and the Korea Institute of National Unification, a government think tank: following and because of economic liberalization begun in July, 2002, prices and wages in the DPRK have risen sharply, grain is the only item still rationed, and the currency has been devalued.

This intriguing sentence appears, without further detail:
According to the report, students at Kim Il Sung University are studying with textbooks that cover market principles, starting with the laws of supply and demand.
Which textbooks would those be? Austrian economic texts (here is an historical summary, the previous link concentrates on the distinctive theoretical tenets of the Austrian School) sparked eastern Europe's liberation from Soviet Communism. The name Friedrich von Hayek was frequently heard, especially The Road to Serfdom.
Wholesale stores and 24-hour convenience shops have opened in the country's larger cities, catering to wealthier individuals, the report said. Although it is still forbidden for individuals to own and operate shops, some individuals are running illicit beer bars, karaoke clubs and computer cafes, the report said.

The country's economy grew 1.8 percent in 2003, but wholesale and retail businesses have seen 9.8-percent growth, the report said.
With the shipping restrictions Japan imposed on the North (requiring insurance certificates), China forcing the DPRK's casino money machine to close, and the Japanese halting imports of North Korean chickens because of the avian flu outbreak ( Japan stops poultry imports from North Korea), the North is racing to avoid economic crackup, and the same forces which impelled eastern and central Europe (which includes Russia) towards economic liberalization, are influencing the DPRK.

UPDATE: Tom Palmer at North Korean Karaoke? emailed the reporter at the JoonAng Daily, for more information, and perhaps to find out which textbooks the Kim Il Sung University students use. He's with the new kid on the block, the Cato Institute and also with oldtimers the Foundation for Economic Education and back before the collapse of Soviet Communism, he 'worked to get Paul Heyne's wonderful book The Economic Way of Thinking translated and published in Russian, Czech, Hungarian, Romanian, and Albanian.'