North Korea's Illicit Economy: Black-Market Trading as a Lifeline
The Hidden Income Source of the Regime
WEB New Focus International's report highlights the significance of black-market trading in North Korea's economy. The country's centrally planned economy, following the ideology of Juche, restricts market allocation, leaving the black market as a primary source of income for the majority of the population.
Command Economy and Government Control
North Korea's command economy vests all means of production under state control. The government sets economic priorities and allocates resources accordingly. This strict centralized system limits opportunities for legal income generation, leading to the widespread reliance on black-market activities.
Illicit Trade and Prohibited Goods
Black-market trading in North Korea extends beyond the exchange of goods and services. It involves the illicit trade of prohibited weapons and drugs, providing the regime with additional revenue streams. The country's isolation and tight control have facilitated these illegal activities.
Impact on the Population
While black-market trading provides a source of income for many North Koreans, it also has negative consequences. The illicit activities undermine the country's official economy and contribute to corruption and instability. Additionally, the trade of prohibited goods, such as weapons, poses a threat to regional security.
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