Research:
North Korea Government System: Communist state one-man dictatorship Total GDP: 12.38 billion USD(2011) Per capita GDP: $1,800 (2011 est.) Economic growth rate(GDP growth): 1.1% (2013) Unemployment: NA% Additional info: An independent kingdom for much of its long history, Korea was occupied by Japan beginning in 1905 following the Russo-Japanese War. Five years later, Japan formally annexed the entire peninsula. Following World War II, Korea was split with the northern half coming under Soviet-sponsored communist control. After failing in the Korean War (1950-53) to conquer the US-backed Republic of Korea (ROK) in the southern portion by force, North Korea (DPRK), under its founder President KIM Il Sung, adopted a policy of ostensible diplomatic and economic "self-reliance" as a check against outside influence. The DPRK demonized the US as the ultimate threat to its social system through state-funded propaganda, and molded political, economic, and military policies around the core ideological objective of eventual unification of Korea under Pyongyang's control. KIM Il Sung's son, KIM Jong Il, was officially designated as his father's successor in 1980, assuming a growing political and managerial role until the elder KIM's death in 1994. KIM Jong Un was publicly unveiled as his father's successor in September 2010. Following KIM Jong Il's death in December 2011, the regime began to take actions to transfer power to KIM Jong Un and KIM has now assumed many his father's former titles and duties. After decades of economic mismanagement and resource misallocation, the DPRK since the mid-1990s has relied heavily on international aid to feed its population. The DPRK began to ease restrictions to allow semi-private markets, starting in 2002, but then sought to roll back the scale of economic reforms in 2005 and 2009. North Korea's history of regional military provocations; proliferation of military-related items; long-range missile development; WMD programs including tests of nuclear devices in 2006, 2009, and 2013; and massive conventional armed forces are of major concern to the international community. The regime in 2013 announced a new policy calling for the simultaneous development of the North's nuclear weapons program and its economy. South Korea Government System: Republic Total GDP: 1.305 trillion USD(2013) Per capita GDP: $33,200 (2013 est.) Economic growth rate: 1.2% (2011) Unemployment: 3.2% (2013 est.) Additional info: An independent kingdom for much of its long history, Korea was occupied by Japan beginning in 1905 following the Russo-Japanese War. In 1910, Tokyo formally annexed the entire Peninsula. Korea regained its independence following Japan's surrender to the United States in 1945. After World War II, a democratic-based government (Republic of Korea, ROK) was set up in the southern half of the Korean Peninsula while a communist-style government was installed in the north (Democratic People's Republic of Korea, DPRK). During the Korean War (1950-53), US troops and UN forces fought alongside ROK soldiers to defend South Korea from a DPRK invasion supported by China and the Soviet Union. A 1953 armistice split the peninsula along a demilitarized zone at about the 38th parallel. PARK Chung-hee took over leadership of the country in a 1961 coup. During his regime, from 1961 to 1979, South Korea achieved rapid economic growth, with per capita income rising to roughly 17 times the level of North Korea. South Korea held its first free presidential election under a revised democratic constitution in 1987, with former ROK Army general ROH Tae-woo winning a close race. In 1993, KIM Young-sam (1993-98) became the first civilian president of South Korea's new democratic era. President KIM Dae-jung (1998-2003) won the Nobel Peace Prize in 2000 for his contributions to South Korean democracy and his "Sunshine" policy of engagement with North Korea. President PARK Geun-hye, daughter of former ROK President PARK Chung-hee, took office in February 2013 and is South Korea's first female leader. South Korea holds a non-permanent seat (2013-14) on the UN Security Council and will host the 2018 Winter Olympic Games. Serious tensions with North Korea have punctuated inter-Korean relations in recent years, including the North's attacks on a South Korean ship and island in 2010, nuclear and missile tests, and its temporary closure of the inter-Korean Kaesong Industrial Complex in 2013. “Just government” North korea is a communist state one-man dictatorship country. Their total GDP is 12.38 billion us dollars and GDP per capita is 1800 dollars. GDP growth is 1.1 percent and unemployment rate was unable to estimate. During the world war 2, south korea was under US and north korea was under Soviet union. After the world war, north korea started the war in 1950. The goal of north korea is nuclear bomb and to use it as threatening tool. North korea’s goal means Kim Jong un’s goal since he has all of the authorities. He wants to be have strong dictatorship what his father and grandfather had pursued. On the other hand, South korea is a republic ,so called ROK, system country. ROK has 1.305 trillion USD of Total GDP and 33,200 USD of per capita. Its economic growth rate is 1.2 % and unemployment rate is 3.2%. Ultimate goal of ROK is peace, reunion of the Korea peninsula, and prosperity. Inflation targeting is one of ROK’s economic goal. Government doesn’t want inflation happen rapidly so, the government always plan things with the banks in korea. The main difference of those two countries is who will get the benefit. In north korea, they only have plans for priority people such as Kim’s family. However, one of ROK’s main goal is for the people and by the people since government type is democracy. "Governments interacting with the economy" North Korea: Yes, North Korea has Central Bank of the Democratic People's Republic of Korea. The weird thing is Kim Jong Un is also president of this organization. According to one professional article, North Korea’s governing ideology is a strange marriage of communism. Within North Korea, “Inflation is one of North Korea’s most under-reported problems, because of its poor agricultural system and reliance on food imports, the prices of basic foodstuffs vary with global supply and demand trends.” the domestic monetary policy represses inflation through keeping wages and incomes low and fixed rather than allowing them to rise naturally and vary with inflation. I can’t really say that is monetary policy but, if I have to pick one monetary policy in the country, that was monetary policy in North korea. I don’t think any of policies have been successful. Literally, 99 percent of North Koreans are starving and they are keep asking for money by threatening. Their economy will never get better since all the decisions are made by Kim Jong un and he spends all the money for himself and national defense which is developing nuclear bomb. People obviously oppose to the policy but, they can’t express their feelings.. South Korea: Yes, South Korea has a central bank, The Bank of Korea. As I mentioned, inflation targeting is used as monetary policy in Korea. According to The Bank of Korea, they have been adapting inflation targeting as its monetary policy framework. Inflation targeting is a operational framework of monetary policy focusing on the ultimate goal for ‘inflation’ itself. The Bank of Korea used another policy as well. The bank of korea Base Rate is the reference policy rate* applied in transactions between the Bank of Korea and financial institutions, such as repurchase agreements (RPs) and the Bank's liquidity adjustment deposits and loans. Those two are main monetary policy in South Korea. There was an article about the result of monetary policy in Korea. Title of the article was “South Korea Lowers Interest Rates, Increases Uncertainty” Lowering interest rates is one of policy that can manipulate economy but, It didn’t work very well. According to the article, South Korea’s aggressive fiscal and monetary policies of the last few months have failed to cure its economic woes. During 2008-2010, Korea government used fiscal policy which is calle “3T starategy”. They used 3T strategy to maximizing the supplementary budget effects. 3T Strategy: Timely-Programs or projects that could be executed within the year or well-prepared enough to allow initiation without much delay. Targeted-programs or projects that simultaneously promote job creation, stabilize people’s livelihood, and boost consumption Temporary-Step up execution of existing programs or projects, or on temporary ones that could be reversed or terminated quickly, in the interests of long-term fiscal soundness. People in South korea doesn’t really know about the specific policies going on until the news come up on TV. There are always separation among people. One side will like the policy and the other side won’t like the policy. Conclusion I believe that South Korean economic policies is more preferable than the North Korean policy. Even though, idealistically, North Korean government have a better goal for their citizen, they have proved that the socialism can not work in a true world. South Korea, by having a specific economic plan inside the society, allowed the growth of enterprises such as Sam Sung which now have grown into one of the world’s biggest company. Despite the possibility of perishment because of one company’s domination in the economy, the flourishment of the company allowed the country grow as a whole. In everything, results are the most important thing.Statistics prove the results. North korea is in very bad condition economically by seeing statistics. Total GDP in north korea is 12.38 billion USD and total GDP in South korea is 1.305 trillion USD. GDP per capita is more important to measure one’s life expectancy and quality. North Korea has $1,800 of GDP per Capita and South Korea has $33,200 of GDP per capita. I don’t think North Korea has 1800 USD of GDP per capita because they are starving seriously. North Korea’s economy is only good for Kim’s family. They should manipulate the economy but, they wouldn’t. That’s the universal truth. CITATION https://bokeducation.or.kr/common/popup/ecoDictionaryView.do?schInit=%EB%A7%88&seq=44 http://eng.bok.or.kr/broadcast.action?menuNaviId=1899 https://www.cia.gov/library/publications/the-world-factbook/ http://thediplomat.com/2014/08/south-korea-lowers-interest-rates-increases-uncertainty/ http://mic.com/articles/33405/life-in-north-korea-similar-to-what-it-was-like-living-behind-the-iron-curtain |