Skip to main content Accessibility help
×
Hostname: page-component-cd9895bd7-7cvxr Total loading time: 0 Render date: 2024-12-24T18:12:54.390Z Has data issue: false hasContentIssue false

4 - Economic Decline and the Crisis of the 1990s

Published online by Cambridge University Press:  10 September 2021

Kevin Gray
Affiliation:
University of Sussex
Jong-Woon Lee
Affiliation:
Hanshin University, South Korea
Get access

Summary

In chapter four, we examine the North Korean regime’s attempts to overcome its secular economic decline through the opening of trade relations with the West in the 1970s. As elsewhere in the socialist bloc, declining growth rates and superpower detente led to growing engagement with the West. However, the collapse of raw material prices in the 1970s and North Korea’s failure to export its manufactures made it increasingly difficult for the country to service its debts and, as a result, Pyongyang defaulted in the mid-1970s. Locked out of world capital markets, North Korea made some attempts to attract FDI investment in the 1980s, though these attempts were limited and largely unsuccessful. As a result of a poor investment climate and continued geopolitical instability, North Korea became increasingly reliant on aid from the Soviet Union and China. However, the collapse of the Soviet Union along with the pragmatic shift in China’s foreign economic policy in the early 1990s immediately exposed North Korea’s excessive reliance on cheap energy imports. The earlier “privileges of backwardness” possessed by North Korea thus quickly became a curse, leading to economic collapse and to mass famine. North Korea’s strong developmental nationalism along with the almost complete elimination of civil society meant instead that the country’s socio-political system was relatively impervious to the transformations elsewhere in the socialist world between 1989 and 1991.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×