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North Korea Realises Free Markets Work

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well not quite but a step in the right direction

one day enough people will realise that black markets are not black

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Bowing to reality, the North Korean government has lifted all restrictions on private markets — a last-resort option for a regime desperate to prevent its people from starving.

In recent weeks, according to North Korea observers and defector groups with sources in the country, Kim Jong Il’s government admitted its inability to solve the current food shortage and encouraged its people to rely on private markets for the purchase of goods. Though the policy reversal will not alter daily patterns — North Koreans have depended on such markets for more than 15 years — the latest order from Pyongyang abandons all pretense of a central, planned economy…

As of May 26, the government no longer forces markets to close at 6 or 7 p.m., has dropped the rule restricting customers to women older than 40 and has lifted a ban on certain goods being sold. One city official in the city of Pyungsung informed the Good Friends humanitarian group that the living standard had “drastically decreased since the currency exchange, and the government cannot provide distribution so they have to bring the market back up.”…

Compared with the peak of the food crisis, in the mid and late ’90s, “the actual amount of food — less is available now,” said Kim Heung-gwang, a North Korean defector and president of a group called North Korea Intellectuals Solidarity. “But back then, the food circulation industry wasn’t as built up. Even though the absolute amount of food is less now than it was 15 years ago, I think the starvation problem will be less significant.”

An interesting detail, though, is why they set that exchange cap in the first place. Time offered a theory last year:

The second reason for the crackdown — as ever with Pyongyang — is control. The government allowed black markets to proliferate this decade out of desperation, but they had grown to the point where the leadership may have begun to feel threatened. Small traders and black markets existed outside of government control, and by definition at some point the regime was not going to tolerate that, analysts say. “The breakaway, snowballing market is a threat to the regime,” says Lim Kang-taeg, senior research fellow at the Korean Institute for National Unification, a government-sponsored think tank in Seoul. “This is a significant blow leveled at the market, and will help the government tighten up control :lol::lol: .”

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“The breakaway, snowballing market is a threat to the regime,” says Lim Kang-taeg, senior research fellow at the Korean Institute for National Unification, a government-sponsored think tank in Seoul. “This is a significant blow leveled at the market, and will help the government tighten up control :lol::lol: .”

:(

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We have a command economy.

The econony will grow by x% if we shovel y% more debt/money into it.

Every bit as retarted as the crap coming out of Pyongyang.

Edited by OnlyMe

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I don't understand what currency they would use?

If someone grows soem veg and sells it in the markets would they take NK currency?

If someone brings food in from China to flog then they would have had to buy it using a currency worth something so why take NK currency for it?

Anyone know what the NK currency is worth?

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They had a report on this on BBC news a week or so ago.

Only showed extremely subsistent farming methods. No mechanisation - when they finally found a tractor to parade in front of the camera it happened to be donated by the EU - when this was pointed out a subject positioned himself in front of the EU flag to hide its origin!

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They had a report on this on BBC news a week or so ago.

Only showed extremely subsistent farming methods. No mechanisation - when they finally found a tractor to parade in front of the camera it happened to be donated by the EU - when this was pointed out a subject positioned himself in front of the EU flag to hide its origin!

Everyone knows that such labour saving technology only puts people out of work!

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Everyone knows that such labour saving technology only puts people out of work!

Indeed, the clue is in the name :)

The theory that those whose labour has been "saved" would turn, en-masse, to integrated-circuit design or sonnet writing, has been pretty much disproven by now.

Apparently the way to make a given area of land produce as much food as possible, with the lowest energy inputs possible ... is for a human to cultivate it intensively.

What's going wrong in NK is something else.

Edited by huw

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Hopefully they will meet in the middle at a Scandanavian style of Social Liberal Democracy, the mode of political economy that seems to be the most successful. I'm not hopeful though, the VI's are very powerful.

You've not seen Wallander have you. They're all nuts.

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A market economy without uniform enforcement of property rights* is called an oligopoly.

See Russia, post '87 collapse.

At least it'll make Chelski a little more lively.

And perhaps we'll finally get a decent noodle bar out of it (the cack they serve here is always decidedly limp, and oily).

(* whatever the buzzing drone of misinformation says, the UK is a long, long way away from this)

Edited by ParticleMan

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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