[Asia Economy Reporter Lee Ji-eun] North Korea, which has prepared a new five-year economic development plan, is going "all-in" on economic development. While empowering the Cabinet, which oversees the economy, it is also conducting practical economic training for cadres. However, there are concerns that such efforts are likely to fail under the closed planned economy system.
North Korean propaganda outlet "Meari" reported on the 27th that "remote retraining for economic leadership workers (cadres) is actively underway," stating that the first phase of remote retraining was conducted in two rounds. Retraining for economic sector cadres is carried out through the remote education website "Risang," operated by Kim Chaek University of Technology, where cadres must attend lectures for six months and be evaluated through exams.
North Korea's move to retrain economic cadres is closely related to Kim Jong-un, the General Secretary of the Party, emphasizing self-reliance through economic development. At the 8th Central Committee's 2nd plenary meeting held from the 8th to the 11th, Kim sharply criticized the problems that emerged during this year's economic planning process and took the bold step of replacing the Party's economic director within just one month.
At a recent expanded plenary meeting of the Cabinet, chaired by Premier Kim Deok-hoon, methods to economically and legally guarantee enterprises' independent production and management activities were discussed. Additionally, the Cabinet and economic institutions analyzed the causes of passive and conservative tendencies during this year's economic plan formulation and proposed measures to carry out this year's economic plan. The fact that Premier Kim, not General Secretary Kim, chaired the meeting appears to be a strategy to empower the Cabinet, which leads the economy.
North Korea has been experiencing economic difficulties due to UN sanctions starting in 2017, natural disasters, and the COVID-19 pandemic. Lee In-young, Minister of Unification, recently projected at the National Assembly's Foreign Affairs and Unification Committee that North Korea's food shortage this year could reach 1.3 million tons. Amid the remote prospect of sanctions relief, North Korea is pursuing economic development through self-reliance.
However, there are also criticisms that there are limits under the closed economic system. Kim Seok-jin, a research fellow at the Korea Institute for National Unification, stated in a recently published online series report titled "Why Did North Korea's Five-Year Economic Development Strategy Fail?" that "the basic direction of the plan remains regressive, as seen in prioritizing the development of metal and chemical industries, which are core to the self-reliance traditional industries, as the central task of economic construction," and criticized that "the strong emphasis on national control over the economy is an undesirable measure that could reverse marketization and reforms in economic management methods."
Researcher Kim added, "The result is likely to be a worsening economic situation despite massive input of manpower and resources," and warned, "Unless North Korea shifts to a completely new development strategy including denuclearization and external opening, the crisis of the North Korean economy will continue."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
