, YU Mi-yong, chairwoman
Member of:
ESCAP, FAO, G-77, ICAO, IFAD, IMF (observer), IMO, INTELSAT
(nonsignatory user), IOC, ISO, ITU, LORCS, NAM, UN, UNCTAD, UNESCO,
UNIDO, UPU, WFTU, WHO, WIPO, WMO, WTO
Diplomatic representation in US:
none
US diplomatic representation:
none
Flag:
three horizontal bands of blue (top), red (triple width), and blue;
the red band is edged in white; on the hoist side of the red band is a
white disk with a red five-pointed star

@Korea, North, Economy

Overview:
More than 90% of this command economy is socialized; agricultural land
is collectivized; and state-owned industry produces 95% of
manufactured goods. State control of economic affairs is unusually
tight even for a Communist country because of the small size and
homogeneity of the society and the strict rule of KIM Il-song and his
son, KIM Chong-il. Economic growth during the period 1984-88 averaged
2%-3%, but output declined by 3%-5% annually during 1989-92 because of
systemic problems and disruptions in socialist-style economic
relations with the former USSR and China. In 1992, output dropped
sharply, by perhaps 7%-9%, as the economy felt the cumulative effect
of the reduction in outside support. The leadership insisted on
maintaining its high level of military outlays from a shrinking
economic pie. Moreover, a serious drawdown in inventories and critical
shortages in the energy sector have led to increasing interruptions in
industrial production. Abundant mineral resources and hydropower have
formed the basis of industrial development since WWII. Output of the
extractive industries includes coal, iron ore, magnesite, graphite,
copper, zinc, lead, and precious metals. Manufacturing is centered on
heavy industry, including military industry, with light industry
lagging far behind. Despite the use of improved seed varieties,
expansion of irrigation, and the heavy use of fertilizers, North Korea
has not yet become self-sufficient in food production. Six consecutive
years of poor harvests, coupled with distribution problems, have led
to chronic food shortages. North Korea remains far behind South Korea
in economic development and living standards.
National product:
GDP - purchasing power equivalent - $22 billion (1992 est.)
National product real growth rate:
-7 to -9% (1992 est.)
National product per capita:
$1,000 (1992 est.)
Inflation rate (consumer pric