Understanding the Economic Impact of Sanctions on North Korea: A Comprehensive Overview

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Flag of North Korea

The Pathetic Economy of North Korea- Economics Explained

This video covers the economy of the mysterious hermit kingdom. North Korea is one of the last true command economies left, and having a better understanding of how and what caused the market failure of North Korea is a valuable lesson in economics. This video stitches together a story through the historical, political & mainly economic aspects of the North Korean economy, helping provide a clearer picture of the mysterious hermit kingdom.

Flag of rival & sister nation South Korea

Through the details provided, we see a stagnant market failure of an economy. However, I was surprised to learn that it was not always this way, that throughout most of the Cold War, it was North Korea that was the more prosperous of the two. By having two continental allies, it was the resource-rich north, not the barren, isolated capitalistic south, that prospered. The political situation, however, soon shifted to North Korea's detriment. North Korea's inability to adapt to these shifts led to its eventual stagnation, similar to the USSR.

The unwillingness to change economically, as states like China & Vietnam had, I posit as the reason for the market failure of North Korea and its failings as a state. All that remains is a military dictatorship, propped up by its aging but vast weaponry. This story showed me that economics is not as black-and-white as I had believed prior; there is nuance and other factors at play. The failings and successes of these two similar yet different economies are just as much exterior as interior driven, and studying the causes and the story through data provided this new perspective that it was North Korea who was the richer of the two.

In conclusion, economics always shows a clearer perspective on the state of things at that time, providing a compelling reason to pursue explanations to the data provided. Through this video, I learned, to gain a further understanding on a topic, I have to have develop research & analysis skills, the ability to find, extract, and interpret data, is valuable to understanding topics in this world. Is the economic divide of both Koreas a systematic issue? Is it due to the sanctions and diplomatic isolation, the root issues, or a combination? How much do we truly know about the isolated hermit state? Contact me on my page for further inquiries and discussion and this topic.