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North Korea - BTI Transformation Index

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Since Kim Jong-un came to power in April 2012, the role of party organizations and various internal security organizations has increased in protecting against internal challenges. Since Kim Jong-un took office as supreme leader in April 2012, the regime's identity has undergone yet another transformation. Between 1994 and 2010, these entities were systematically neglected in favor of Kim Jong-il's personal secretariat.

With the start of the succession in 2009 from Kim Jong-il to Kim Jong-un, domestic security agencies have been strengthened. Basically, the main pillar of the regime's dominance over society has been the transition from party rule to rule by law. There have been no notable changes to the function of the judiciary since Kim Jong-un's rule began in 2012.

From the 1990s, Kim Jong-il promoted the military at the expense of the party as the pillar of regime survival. The rise of Kim Jong-un since 2009 has been accompanied by efforts to weaken the dominance of the military and promote regime agencies. Traditionally, the most powerful was the domain of the Kim family and the party.

The third factor is corruption, which has been rampant; North Korea is considered one of the most corrupt countries in the world.

Economic Transformation

On the other hand, the regime's political distribution of profitable opportunities through business licensing in favor of regime loyal individuals has hampered the fundamental weakening of the "songbun" system. The rampant corruption does not harm the regime's ability to manage the development of the market economy or the regime's survival, because the chain of corruption ultimately favors the more powerful. With the transition of power from Kim Jong-il to Kim Jong-un, nothing fundamental has changed; only the distribution of monopoly economic rights has shifted in favor of Kim Jong-un's personal court, the party and the cabinet, at the expense of the military.

It strictly monitors and controls foreign trade, as it is the most important source of foreign currency, which is essential for the survival of the regime. The distribution of commercial licenses to regime agencies is one of the most powerful tools to maintain the dependence of the regime elite on the leader. Since Kim Jong-un's inauguration in April 2012, the military's share of commercial licenses has been reduced in favor of his cabinet and personal court.

As with other socialist planned economies, the main role of the banks is to monitor and account for the economic activities of state-owned enterprises and agencies. Since all activities that attract foreign currency were strictly monitored and controlled by the leader, the regime agencies' commercial banks also served as his personal fund management system. With the collapse of the planned economy in the 1990s, North Korea's fiscal system also fell into disarray.

Since the mid-1970s, when Kim Jong-il began operating Bureau 39, conducting commercial business has remained the prerogative of the regime's agencies. With the expansion of the market economy since the early 1990s, the number of private individuals participating in commercial activities has exploded. In reality, however, they have become one of the main pillars of the North Korean economy.

However, North Korea's partners, usually linked to party or military trading companies, are notoriously unreliable and often downright dishonest. Government-funded social safety nets have virtually ceased to exist since the early 1990s, although minimal aid is provided to the capital's residents. Aid fatigue and the regime's lack of cooperation with international partners led to a gradual decline in aid levels in the second half of the 2000s.

Although the industry has been operating at 20% to 30% of its former capacity since the second half of the 1990s, there is officially no unemployment. In particular, with the start of his reign in 2012, Kim Jong-un increased attention and investment in the technical advancement of the asymmetric military.

Level of Difficulty

Finally, South Korean and other international human rights NGOs have stepped up efforts to influence the attitude of the North Korean people towards the regime since the second half of the 2000s. However, in tandem with these developments, the regime has tightened countermeasures such as strengthening internal security organizations, enforcing an atmosphere of fear and distrust, increasing the frequency of repression of and punishing contacts with foreign cultural influence, and revitalizing border controls. In sum, the regime has been forced to balance loosened social control to increase productivity and tighter control to ensure regime survival.

The regime has so far been successful in navigating between the two, while relying on social control to prevent the rise of civil society. While the emergence of any meaningful open conflict has been successfully prevented so far, there is significant potential for internal conflict. Such conflicts mainly exist along two dimensions: between regime and society and between the top leader and elites.

The existence of this internal pressure is confirmed by the regime's brutal repression of the population and the supreme leader's tight control of regime agencies and the small ruling coalition. Regarding the first dimension, between regime and society, North Korea usually resorts to brutal repression to prevent outbreaks of open conflict. With the start of Kim Jong-un's rule in 2012, his pro-market policies have eased relations between the regime and the population.

As for the other dimension, between the top leader and the elites, Kim Jong-un has used traditional measures to prevent an outbreak of open conflict. As in the past, he has resorted, albeit with more force, to purges and public executions of selected members of the top elite, deliberately provoking great fear among them. That's because, along with his increasingly aggressive security provocations, outside powers have stepped up economic sanctions and the flow of divisive information.

Governance Performance

Outsiders sometimes assume that North Korea's increased contact with the outside world will lead to policy changes. In reality, there have been extensive contacts through teaching delegations, North Korean diplomats and trade agents abroad, students at foreign universities and workers and travelers in China, Russia and other countries, as well as foreign visitors to North Korea. . We can safely assume that economic experts in North Korea have long accumulated sufficient basic knowledge of the theory and practice of successful reforms in China and Vietnam.

In reality, there is no voluntary civil consensus on goals in North Korea, although on the surface there is absolute consensus within the country. The conditions for the delivery of food and other goods for humanitarian purposes have also always been a strong and politically contentious issue between North Korea and international donors. Although North Korea has a history of cooperation with international aid organizations dating back to 1995, North Korea's level of cooperation has remained at the most basic level, focused on occasional emergency humanitarian aid and small attempts at development assistance.

According to VOA, $49.3 million, mostly in the form of food aid, was given to North Korea in 2016 by the international community. Mistrust between North Korea and neighboring countries has increased since 2009 over security issues due to North Korea's refusal to denuclearize, accelerated development of nuclear weapons and ballistic missiles, and military and political provocations against South Korea. China, with some reluctance, has repeatedly agreed to the implementation of increased sanctions against the regime whenever North Korea has conducted nuclear and long-range missile tests.

The tenuous relationship is largely due to three factors, namely North Korea's development of weapons of mass destruction, its continued refusal to reform and open up internally, and its paranoia over its internal security. As a result, North Korea has been an isolated island among centers of economic growth and has served to impede economic integration between South Korea, China, and Japan. While North Korea's relations with South Korea and Japan have remained stagnant or regressive, it has improved its ties with China.

China's rapidly growing demand for raw materials and North Korea's desperate need for foreign currency have stimulated trade between the two countries. To compensate for deteriorating political relations with its closest ally, North Korea made efforts to reach out to Japan and Russia in 2014, but to little effect. With its fourth and fifth nuclear tests and multiple missile tests in 2016, North Korea has become increasingly isolated in the international community and suffers from various multilateral and bilateral sanctions.

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