Without question the tea leaves are clearly signaling a huge change
in course. They are trying hard to avoid mistakes while they
implement the changes so parts of it will appear slow. However,
recall that China's conversion was also slow in appearance at any
time and place. I am certain that they can get it right.
However, once the proper framework is established and this is
happening now, and the key individuals have gotten a little used to
it, the obvious step is simply negotiate the reunification of North
and South Korea. This can instantly jump pensions to modern levels
and fully extend the benefits of the richer state to the poorer
state.
The North Korean population is then in position to advance into
modernism as quickly as possible with huge capital support flooding
the country.
Germany is certainly the best model simply because they have already
done all this without making a porridge out of it.
North Korea Enlists
German Help to Prepare Economic Opening
01/04/2013
Pyongyang may be preparing to open up its economy. A report in a
prominent newspaper claims the regime has enlisted the aid of German
economic and legal experts to lay the groundwork for foreign
investment in North Korean companies. The move could be made as soon
as this year.
On New Year's Day,
North Korean leader Kim Jong Un called for a "radical"
economic renewal for his country and an end to decades of conflict
with South Korea. Now, a German media report says he is moving
quickly to fulfill at least the first pledge.
According to an
article to be published on Saturday by the daily Frankfurter
Allgemeine Zeitung, the communist regime in Pyongyang is preparing to
open up the country's economy to foreign investors. Moreover, it has
enlisted the assistance of German economists and lawyers to lay the
groundwork for the move.
"There is a
master plan," one of the economists involved in the plan told
the paper. "They want to open up this year." The FAZdid
not identify the economist, but noted that he works at a respected
German university and that he had advised other governments in Asia
in the past.
The economist told
the paper that the country is primarily interested in modernizing
its laws relating to foreign investment. However, North Korea is not
intending to follow the Chinese model, which called for the creation
of special economic zones for foreign investors, the economist told
the FAZ. "Rather, they are interested in the Vietnamese
model, in which specific companies were chosen as recipients of
investments," the source said.
Signs of Change
Such a move would be
revolutionionary for North Korea , which has long been largely cut
off from the rest of the world by virtue of its heavy-handed regime.
The country's economy is in a shambles as a result. But
since Kim Jong Un took over from his late father just over a year
ago, there have been signs of change.
His New Year's
address was the most obvious indication that he is prepared to
embark on a path different from the one followed by his father,
Kim Jong Il. Indeed, even holding such an address was a departure;
it marked the first such speech by a North Korean leader since Kim
Il Sung held the last one in 1994.
Furthermore, Kim was
surprisingly open about the poor economic situation in which his
country finds itself. He pledged renewal, indicating that it would
largely be dependent on continued technological advancement. He also
highlighted last month'srocket launch, saying it was a boost for
"national self-esteem."
Still, even as
the FAZ reports that there are many in the country's
leadership who are in favor of opening up the country to investments
from Japanese, South Korean and Western companies, the professor the
paper cites notes that it is far from a done deal.
"The military in
North Korea," he told the paper, "will not want to give up
power." He added that it is by no means clear whether Kim's
reform efforts will be able to overcome military resistance.
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