Why did North Korea’s economy collapse but Japan’s didn’t.

North Korea created a command economy built along Stalinist lines. When the Soviet Union collapsed imports of fuel, food and currency dried up. Without fuel the collective farms could no longer operate. Factories stopped working. Besides which there wasn’t much demand for North Korean goods anyway. Adverse weather created flooding and destroyed many of the existing crops. The Korean economy went into a nose dive. The system of food distribution collapsed and a black market and Darwinian capitalism surfaced.

In his book the Joys and Sorrows of Work author Alain de Bottom described how economies that instituted idealistic systems like socialism often collapsed whilst societies like Japan which focussed on producing computer games, plastic toys and gizmos flourished.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s