The North Korean Economy: Between Crisis and Catastrophe

Viewed from afar, North Korea may appear bizarre, orpositively irrational. But as Nicholas Eberstadt demonstratesin this meticulously researched volume, there is agrim coherence to North Korea’s political economy, anda ruthless logic undergirding it-one that unreservedlysubordinates economic welfare to augmentation of politicalpower. Thus, paradoxically, even as official policies andpractices consign the DPRK economy to a perilous realmbetween crisis and catastrophe, the country’s leadershipmaintains unchallenged domestic control and has actuallymanaged to increase its international influence.Through painstaking collection of hard-to-uncoverdata and careful analysis, Eberstadt provides a quantitativetableau of North Korea’s terrible failure in its economicrace against South Korea; its stubborn adherence to policiesall but guaranteed to stifle growth and undermineeconomic performance; and the longstanding officialeffort to ignore, or mitigate, pressures for economicreform.Eberstadt is skeptical of optimistic accounts from SouthKorea and elsewhere suggesting that the North Koreanleadership is interested in resolving the current nuclearimpasse, and getting on with the business of reform anddevelopment. So long as Pyongyang’s rulers entertain theambition of reunifying the Korean peninsula on its ownterms, Eberstadt argues, economic reforms worthy of thename will be subversive of state authority-and vigilantlyresisted by Pyongyang’s rulers. This authoritative volumehas received widespread attention from Asian specialists,well as those concerned with nuclear proliferation andworld peace, and international relations professionalsin general.

Nicholas Eberstadt holds the Henry Wendt Chair in Political Economy at the American Enterprise Institute. His previous works on Korean affairs include The Population of North Korea (1992, co-author), Korea. Approaches Reunification (1995), The End of North Korea (1999), Korea's Future and the Great Powers (2001, co-editor), and A New International Engagement Framework for North Korea? Contending Perspectives (2004, co-editor).