DPRK puts reform in the pipeline

Is it business as usual for the Democratic People’s Republic of Korea (DPRK), after the summit? Some people have questioned why the DPRK does not have a market economy yet.

The DPRK has built a central plan. On the one hand, the country has developed and completed a nuclear program, but on the other hand, the economy is still underdeveloped.

Now, looking at the situation from an entrepreneurial standpoint, who would do business with this kind of training?

CGTN’s Tian Wei asked Geoffrey See, the founder and chairman of Choson Exchange, a non-profit group helping the DPRK have access to knowledge and information in business, entrepreneurship and law.

“I think that’s a misperception of the DPRK, I think DPRK compared to 20 years ago is a different place, there’s been a lot of policy innovation and experimentation in the last 10 years,” said See.

Over the last decade, a lot of work has been done in the DPRK. The agriculture reform has allowed farmers to own it and trade it. Also, the economic zones have been developed. Zones such as the Kaesong Develop Zone, which is also in the ROK. In the last five years, the DPRK has over twenty economic zones targeting different industries.

“They are trying to target different industries; some are a bit more successful, but most of them are still waiting for investment to come in.”

According to See, the key takeaway is that those zones give the DPRK a platform to experience new policies and new laws that they need to develop the country. And there is a lot more autonomy to enterprises.

“So the DPRK has more room to get a license to set up a business, make decisions on who to hire, and also to kind of benefit if the business is doing well and having a shared profit. So they still don’t have private enterprises, but there are strong incentives for people to build a successful business and to grow.”

(CGTN)