North Korea's Secret Weapon? Economic Growth.
Things are looking up. Sort of.
Photographer: Ed Jones/AFPWith the United Nations imposing yet another round of sanctions on North Korea for its nuclear provocations, it's worth asking why such penalties have been failing for more than a decade. One reason is that the North Korean economy is improving more than is commonly understood -- and that will make altering its behavior through trade barriers significantly harder.
The current approach to sanctions is partly based on the assumption that North Korea's economy is a socialist nightmare, but that's no longer really true. Although the country is still poor, its gross domestic product grew by an estimated 3.9 percent in 2016, to about $28.5 billion, the fastest pace in 17 years. Wages have risen quickly, and per-capita GDP is now on par with Rwanda, an African economic exemplar.