The

{North Korean}
Economy

Done By: Zarah Chowdhury/ IX/Orange

Q. How does the economy work?

North Korea’s economy has to be the most isolated

and tightly controlled command economy. Their
economy is fully owned and controlled by the
government. As a communist country, North Korea
holds a centralized or a planned economy. The
government sets priorities for their economic
development and controls all parts of production.
Hence, North Korea’s economy is the most least free
economy in Asia.
 Q. Who is reigning?

As mentioned before, the economy of North Korea is

fully under control of the government. However, the
tightly controlled commands by the government has
got the economy fall worsen since 1997.
Q. How do people live there?
The isolation of North Korea has caused most of its
population to live in extreme poverty.
 North Korea’s market structure
North Korea’s market structure holds the government choosing and deciding all factors
of the market. The government has restricted the market to not produce more than it is
needed for the population. Although recently North Korea’s economic development has
increased developments in their market structure as well including better price
mechanism, increase in wages, changes in the distribution system and better
management in the market. These factors have helped improve the market structure
throughout the years and increased
More efficiency in the market. They have also
Linked with China to export resources which
Has benefitted them a lot by receiving good
Quality products and resources and remain
To maintain a good relationship with China
For further benefits the government wants
For North Korea.
Q. What are the social and political issues
of North Korea?
As having a planned economy, North Korea has to go through a
lot of drawbacks with it including, their main political issue for
years have been on how to find a way to sustain the economy
without compromising the internal stability of the government.
Moreover, human rights of the country has been ignored and
caused social issues including, degrading treatment, inhuman
torture and even politically motivated killing. These issues are
still bound to be solved and while these are there the country
might face a huge fall on their economy for all of the political and
social issues.
The End.