Economy
North Korean military transporting missiles (http://www.telegraph.co.uk/news/worldnews/asia/northkorea/4960009/North-Korea-threatens-full-scale-war-if-rocket-is-intercepted.html)
North Korea's economy has been plagued with several issues throughout the years. North Korean economy focuses primarily on industry. The country is well known for its production in machinery, weapons, chemicals, textiles, and military products.
While North Korea is strong in its mechanical industry, there is little agricultural growth within the country. Under the communist regime, food rations were required for all citizens. Private farming was prohibited until around 2002, when the government allowed private farms. In 2005, however, the North Korean government cut back the allowance of private farming. What farms that remain are not allowed to sell their crops for profits.
From 1950 to around 1990, the North Korean economy flourished under industrialization. After the collapse of the Soviet Union, North Korea lost a large portion of aide. Soon it's industry went into a steep decline. North Korea, once known for its advancements in technology began forcing millions of citizens into physical laborers to make up for their technological downgrade.
Another economic issue in North Korea is its policy towards the military. In North Korea, military is first and foremost. This policy, called Songun, is the most important policy within the communist country. The military is given the best food rations and economic care. The North Korean government believe that the military is the most important power. The North Korean government believes that by providing the military with so much power makes the reclusive country appear more aggressive in international affairs. However, do to this policy, the members of the military are fed before the rest of the citizens and have large spending budgets at the expense of North Korean citizens. Instead of putting money back to the majority of consumers, it is pumped into the military.
North Korea has also eliminated all foreign currency within the country as well as issued re-domination of its own currency as well. The government put a limit on how much the old money could be exchanged for the new money, and only allowed one week period for the exchange as well. This drastic and sudden change to its currency policies caused inflation as well as shortages.
North Korea has also eliminated all foreign currency within the country as well as issued re-domination of its own currency as well. The government put a limit on how much the old money could be exchanged for the new money, and only allowed one week period for the exchange as well. This drastic and sudden change to its currency policies caused inflation as well as shortages.