North Korea Rejects China Economic Model, China's economic model is not working in N. Korea? Options

[millersdude]

Every nation embraced China's economic model has some degrees of success in growing their economy and raising living standards. North Korea has followed China's economic model for several years and now they are rejecting it. Maybe it is not in line with their communist ideals. China has a lot of died hard party members like Kim too, but they are in a minority now, not enough to influence China's political directions.

North Korea Rejects China Model Spurning Furs in Test

http://www.bloomberg.com/apps/news?pid=206...id=a0ytn5hucZ30

Aug. 4 (Bloomberg) -- The closing of Kim Yong Gu’s fur clothing factory in North Korea may be the beginning of the end for the communist country’s only cross-border business center with the South, the last symbol of reconciliation between the former wartime foes.

As the North makes documentaries about leader Kim Jong Il following reports he has terminal cancer, businessman Kim pulled out after his managers were stranded in a government protest of military drills by the U.S. and the South. Other manufacturers may follow because of demands they quadruple factory wages and pay 31 times more for land leases, according to Lee Im Dong, who heads a group representing companies at the park in Gaeseong.

South Korean companies at the complex employ more than 40,000 North Koreans and helped increase trade between the countries to a record $1.8 billion last year from $222 million in 1998. The dispute may mark the end of the North’s experiment with a Chinese-style market economy, said Derek Scissors, a research fellow at the Heritage Foundation’s Asian Studies Center in Washington.

“This is North Korea’s way of saying, ‘We looked at the Chinese economic model, and now we’re rejecting that,’” he said. “This would be the last nail in the coffin of the direction they were going.”

China’s former leader Deng Xiaoping started opening its economy to the West in 1977 while maintaining the Communist Party’s monopoly on power. The country’s economy grew 82 times from 1978 to 2008......

This post has been edited by millersdude: Aug 7 2009, 11:07 AM

[Titanium]

Hey as long as there are mutual interests for China without any significant threats, the Kim regime can do as they please.

[Mid-Night_Sun]

"The closing of Kim Yong Gu’s fur clothing factory in North Korea may be the beginning of the end for the communist country’s only cross-border business center with the South, the last symbol of reconciliation between the former wartime foes"

and they focus on what model NK is doing? are my priorities mixed up?

[xbzj3]

The china model actually was never great for North korea, china uses the labour of hundreds of million and has tons of farmland that allow for food sufficiency. North korea never truly liberalized their economic and trade system. North korea would be better off following the asian tigers if their government wasn't so retarded.

This post has been edited by xbzj3: Aug 7 2009, 03:09 PM

[Kathynine]

Man, are they stupid or what? Damn, Kim Jong Il needs to fry on an electric chair.

[mrsallonby]

The china model actually was never great for North korea, china uses the labour of hundreds of million and has tons of farmland that allow for food sufficiency. North korea never truly liberalized their economic and trade system. North korea would be better off following the asian tigers if their government wasn't so retarded.

I always thought China's economic plan was similar to the Asian Tigers, and the differences come mainly from the disparity in size.

[xbzj3]

I always thought China's economic plan was similar to the Asian Tigers, and the differences come mainly from the disparity in size.

Unlinke china, north korea kept most of the central planning system which isn't a great way to follow the Asian tigers.

[TruthDoesntHurt]

I dont think they reject the economic model, that's the author's own interpretation.

I think the closure has more to do with tensions and political complications, so NK decided to close the SK plant.

This post has been edited by TruthDoesntHurt: Aug 7 2009, 09:16 PM

[mrsallonby]

Unlinke china, north korea kept most of the central planning system which isn't a great way to follow the Asian tigers.

Are you sure about that?
It may be true for Taiwan, Hong Kong, and Singapore... But what about South Korea (and Japan)?