Economic & Cultural Openness of North Korea

Economic & Cultural Openness of North Korea

Introduction

North Korea is considered as an isolated country in the current ear of globalization and international trade that have changed the lives of most of the people around the world. The country is the only communist dynasty which is inherited by the people of the nation. It is considered to be the only literate- urbanized- industrialized peacetime economy in the world that has suffered drastically in the recent times. North Korea has a totalitarian system in the country's politics and it is considered to be one of the most cultish systems in the world. Despite of the fact that it is referred to as an isolated country due to the high restrictions imposed on the country by the international players, the country holds one of the largest military force all over the world. The manpower of the country and the spending of North Korea on its defense system are directly proportional to the national income and the population of the country (Blumenthal, 2013). The nuclear program of North Korea is one of the biggest concerns for the global players of power in the world. The cultural isolation is also considered to be a controversial issue for the global community and many attempts are being made by the people of the world to bring North Korea towards openness in terms of economic openness and cultural harmony. This paper discusses the recent events held in North Korea related to the influence of different people on the country to direct it towards economic openness and cultural reform.

Economic Prospects of North Korea

The country is confronted by several economic and resource constraints due to the imposition of several trade barriers and a lack of global collaboration of the country. However, these constraints have not affected the economic conditions of the country in a negative way rather it has provided a growth prospect to the county which has prevented North Korea from being involved into global collaboration and international trade. The country has invested a large amount of effort into the development of consistent balance of payments in its international trading activities. Through this, it has adopted the conventions of international monetary fund (IMF) which are embodied in the manual of balance and payments of IMF (International Monetary Fund).

The elements involved in it include illicit and licit trade of merchandize, current transfers, services and the capital flows. The country also seeks to separate out those transactions that occur on the basis of commercial happenings brought about by the political prospects such as the aid. The uncertainties in the economic conditions are also very well focused by the country. Despite of the political isolation of the country in the world and the issue of nuclear crisis, the current account deficit and trade of the country have shown significant prospects in the recent years. The implication of capital inflows has also determined the growth of the economy. The main sources of trade activities involve china ...