Introduction

As per tradition, North Korea announced its main economic goals for 2017 during the New Year’s address. The goals are similar to those of the previous year and can be summed up as follows. First, economic growth will be driven by a five-year strategy based on the achievements in science and technology. Second, innovative projects will be pursued in such areas as power generation, metal, chemicals, coal, railroad and machinery. Third, the livelihoods of the North Korean people will be enhanced by achieving significant developments in the light, agricultural and fisheries industries. Fourth, resources will be concentrated on key construction projects, including the Ryomyong Street and Wonsan District projects. Finally, efforts will double for projects on national land management, forest restoration and environmental protection.

A variation from the preceding year was that there was no mention of any “economic management measures,” which had previously been emphasized as a means to achieve economic goals. It was stressed at the beginning of the previous year that “a strong and prosperous socialist state will be built through specially tailored economic management measures and through collectivism-based competition and the self-reliance first doctrine;” statements that were missing from this year’s address.

Since Kim Jong-un’s rise to power in 2012, North Korea announced numerous “new economic management measures” and sought to implement reform and open up policies. However, no tangible results were achieved in real production, particularly in the agricultural sector which plays a crucial role. However, it cannot be definitely concluded that the changes sought in the past five years under Kim Jong-un have ended in failure or diminished previous achievements, simply based on the policy objectives and outcomes realized during the short five-year period. But, even so, the policy goals and outcome must be consistently monitored and analyzed.

With this in mind, this chapter offers a rough analysis on the reform and opening up of the North, which were previously considered as hidden objectives of North Korea’s economic policies during the past five years. In the process, the focus is placed on the agricultural sector. This chapter also attempts to draw upon the short- and long-term prospects, within a feasible range.

* This article is part of 2016 The DPRK Economic Outlook

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