North Koreas Critical Economic and Political Situation - Essay Example

Running Head: NORTH KOREA North Korea Introduction North Korea is a communist state located in East Asia where all the powers lie in the hands of the leader of the country. There has been only one party, KWP, in rule since independence in 1948. Most of the country is covered with high mountain ranges. The economic condition of the country is in very bad shape and it depends on foreign aids for the basic food supply. Crimes like robbery, prostitution, human trafficking, and bribery are widespread. Many people flee to China and South Korea in the hope of a better life. Laws are very rigid and people have no right to freedom of any kind. The nation has least free economy in the world. NORTH KOREA Geography of North Korea North Korea is a part of eastern Asia. The country is the northern part of the Korean peninsula covering an area of 120,410 square kilometers. It shares its borders with South Korea, China and Russia. It has Korea Bay on one side and the Sea of Japan on the other. The coastline of North Korea is 2,495 kilometers long. Pyongyang is the capital city of the country. 80% of the Korean land is covered with rough mountain ranges. Plains and low-lands, inhabited by mass population, form a very small portion of the total area. Mount Paektu (2,744 meters) is the highest mountain of the region. The two prominent rivers of the country are Yalu and Tumen. The land experiences four distinct seasons and has a continental climate (Savada, 1993). The present population of North Korea is around 23,301,725. The population growth rate is 0.84%. Korean is the official language of the state and the dominant religions are Buddhism and Confucianism. Chinese and Japanese people form a small section of the society (Central Intelligence Agency [CIA], 2008). Politics and Government The Democratic People's Republic of Korea came into existence in 1948. Since independence the communist Korean Worker's Party has ruled the country. The government of the country, under the leadership of Kim Jong Il, exhibits true dictatorship. People do not have the basic rights of expression and movement. There is a scarcity of food. Any person showing disrespect to KWP has to face tortures or even death penalties. The conditions of the prisons are pitiable. The government does not pay any attention to the malnutrition, people of the state are facing. Executions are carried out in public. Many people escape to China for survival but have to face severe punishments if caught (Amnesty International USA, 2007). North Korea has been given the worst freedom house rating, a score of 7-7. It is known as the worst violator of human rights. A lot of people have died of malnutrition and the government focuses on its own needs only (Freedom House, n.d.). The corruption perception index ranks various countries based on the level of corruption in their public offices. Because of the absence of required sets of data, North Korea has never been included in the CPI's (Transparency International, 2007). Economy The currency of North Korea is the North Korean won. GDP of a country is an estimate of its economy. North Korea has a GDP of $1,900 per capita. GDP (real growth rate) is 1.6%. GDP (purchasing power parity) is $40 billion. GDP per sector is: Agriculture - 30% Industry - 34% Services - 36% An estimate of the labor force is 10 million with 36% into agriculture and 64% in industry and services. The major agricultural products are rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggs and major industries are related to military products; machine building, electric power, chemicals; mining, metallurgy; textiles, food processing. The country receives an external food aid of $81.11 million. The external debt is of $12 billion. Total export is of $1.437 billion and total import is of $3.181 billion (CIA, 2008). With the world's least free economy figure of 3%, North Korea holds 157th place out of 157 countries. No international authority is allowed to collect country's economic information. North Korea has corruption rooted in every individual's job profile. Government uses unlawful means of earning money, burdened with heavy international debts. There is no freedom of business or trade outside or within the country. No planned system of taxes exists. Government takes all the decisions about the land, even the wages in the industries. Foreign investment is not encouraged. No equity markets exist in the nation. There is no economic system and the dictator controls entire decisions (The Heritage Foundation, 2008). The GINI index is a measure of income inequality. No official data is released by the government. Some rough estimates about the economy of North Korea are gathered from its trade partners only (CIA, 2008). To improve its economic status, North Korea is focusing mainly on the development of the IT industry. The state has decided to improve its ties with western and Asian countries. It is trying to attract Korean scientists in China and Japan for cultivating science and technology in the country. Trade with China has grown to $1.38 billion in the recent years. It is aiming at joint ventures with China and introducing Chinese technology in its manufacturing practice. Foreign investors are allowed to establish independent companies and certain laws are being relieved to appeal to foreign investors. With the cooperation of China special economic zones and technological parks are on their way (Seung-yul, 2005). Other Important Statistics North Korea has a literacy rate of 99%. 99% of males and females above the age of 15 years are able to read and write. Life expectancy of the total population is 71.92 years. Males have a life expectancy of 69.18 years and females of 74.8 years. Total infant mortality rate is 22.56 deaths/1,000 live births. It is 24.2 deaths/1,000 live births for males and 20.84 deaths/1,000 live births for females (CIA, 2008). Crimes like robbery and prostitution are on a rise in North Korea. In a way, the rigid policies of the government and the economical conditions of the country are responsible for an increase in the crime rate. Officials support the criminal activities by taking bribes and encouraging people to break the law. According to several reports the government officials of North Korea support smuggling of drugs like opium, heroine, cocaine, hashish, untaxed cigarettes, pirated CDs, bogus antiques, and rare species parts. North Korean is also believed to be the supporter of terrorism and abduction (Kaplan, 1999). Conclusion North Korea is in critical economic and political situation. There is a need to introduce new economic reforms to stabilize the financial condition of the country. Laws must be crafted for the benefit of the society and for reducing the crime rate. New technologies need to be adopted for the development of the country and independence from the external financial aids. References Amnesty International USA (2007). More information on North Korea. Retrieved February 11, 2008 from http://www.amnestyusa.org/North_Korea/More_information_on_North_Korea/page.doid=1011313&n1=3&n2=30&n3=963. Central Intelligence Agency (2008). CIA - The World Factbook -- Korea, North.Retrieved February 11, 2008 from https://www.cia.gov/library/publications/the-world-factbook/print/kn.html. Freedom House (n.d.). freedomhouse.org: Program Detail.Retrieved February 11, 2008 from http://www.freedomhouse.org/template.cfmpage=66&program=56 Kaplan, D.E. (1999). The Wiseguy Regime - US News and World Report. Retrieved February 11, 2008 from http://www.usnews.com/usnews/news/articles/990215/archive_000266.htm. Savada, A.M. (1993). North Korea - GEOGRAPHY. Retrieved February 11, 2008 from http://countrystudies.us/north-korea/19.htm. Seung-yul, O. (2005). NORTH KOREA'S ECONOMIC DEVELOPMENT AND EXTERNAL RELATIONS. Retrieved February 11, 2008 from www.keia.org/2-Publications/2-2-Economy/Economy2005/Oh.pdf. The Heritage Foundation (2008). Index of Economic Freedom. Retrieved February 11, 2008 from http://www.heritage.org/Index/country.cfmid=KoreaNorth Transparency International (2007). faq / 2007 / cpi / surveys_indices / policy_research / home - Transparency International. Retrieved February 11, 2008 from http://www.transparency.org/policy_research/surveys_indices/cpi/2007/faq. Read More