North Korea

China Chalk

World Rank 178 overall score is 1.3

Fun Facts

The population, inflation, and GDP of North Korea is unknown. The public is limited to their information through their strict security policy. What is know is the FDI is 227.0 million and an unemployment rate of 4.6%

Legal Systems

The legal system of North Korea is very strict; it illustrates a dictatorial type of government. A modern judiciary is non-existent in North Korea. Most of the property owned belongs to the state. There are government regulation and inspections for all import and export goods, including domestic productions as well. The people of Korea, do not have very much privacy or freedom in their own homes.

Competitive Markets

North Korea is in isolation. The amount of trade that occurs in North Korean is very limited therefore the competitive market is not very beneficial to the North Korean economy.From the research I have came across, the dictatorial state uses the majority of it resources and money on military spending and nuclear weapons. So if there are any improvements with the efficiency usage of its resources the improvements will be with the nuclear weaponry and military advancements.

Limits on Government Regulations

The government of North Korea has complete control on trade. These regulations have not benefited the economic progress at all. What is known about the trade that occurs in North Korea is the black market which is increasing significantly. A black market is an illegal trade that is part of an underground economy.

An Efficient Capital Market

There is scare amount of information on the market of North Korea. I could not find any legit information on their market or wealth-creating projects.

Monetary Stability

North Korea is central planning the economy. The managers have limited amounts of incentives to suggest and the government controls all business. To my knowledge and from the research i have done the monetary system is unstable.

Low Tax Rates

There are no set tax rates. I watched documentaries and i learned that the dictator, Kim Jung-Un, goes through with a gift approach to his citizens. This gifting approach is where the dictator himself will give gifts to his senior workers as an exchange for their loyalty. The gifts and high compliments from the dictator make the people feel special and proud to serve their ruler. In order for the people to produce more effectively, the dictator gives gifts and in return he receives their hard work.

Free Trade

There is no such this as free trade in the country of North Korea. Everything and everyone is under strict control. All import goods and exports goods are monitored and have to be approved before entering or exiting the country.North Korea does little trade with outside countries, if they do trade it is with nearby places such as China and India. North Korea is actually a poor country because of it limited trade and isolation from the rest of the world.
North Korea's economic failures

Interesting Stuff.

I found it quite interesting to find out the extent of how isolated North Korea is from the rest of the world. I decided to research this country simply because my mother is Korean and she explained to me how her mother, my grandmother, escaped from North Korea. Through this project not only did I learn about the economy of the North Koreans but also a little about their daily life. In a way, I believe the citizens of North Korea are a bit brainwashed. Through documentaries I was watching I learned that none of the citizens are allowed access to outside information, therefore they only see what goes on in their own country. I also learned the North Koreans strongly dislike Americans, in one of the documentaries I watched there was a child singing a song about Americans being killed. The children of North Korea are taught to despise the Americans at a very young age. The students were to bow down to pictures of the dictator and listen to stories about him. I also couldn't help but notice that almost every room in a school, office, or home hung a picture of the ruler and his father. The way that some of the Korean Citizens awed over Kim Jung-Un, you would have thought that he was their god. North Korea is considered to be the least free country in the world.