Stealth Reform in North Korea?

f economic reform is going to be successful over the long-term there are a number of challenges that must be addressed. For one, Kim Jong-un will need to continue to consolidate his grip on power. Social order will help him pursue his agenda effectively. Also, a conducive regional security environment will be crucial. North Korea will need to expand its trading partners beyond China, South Korea via Kaesong, and what other minimal trade it has. Normalized diplomatic relations with the United States and Japan are a must. Even if the nuclear issue is not resolved, US recognition of the DPRK’s right to exist as a state would go a long way to encouraging the expansion of trade in goods unrelated to nuclear sanctions which remain deeply affected by the embargoes. At present potential trade and investment partners of North Korea are spooked, and fear the stigma of being labeled sanctions violators. Lastly, Kim Jong-un will need to ensure that he, his advisors, and those he appoints to formulate and implement policy have the requisite economic knowledge for success. That’s where resumption of the Australian economic training programs are in everyone’s interest.