Not only did North Korea appear unfazed by US-led talks of imposing further sanctions on the country amid tensions caused by ongoing nuclear tests from Pyo
Not only did North Korea appear unfazed by US-led talks of imposing further sanctions on the country amid tensions caused by ongoing nuclear tests from Pyongyang; instead, it launched its sixth test.
Washington has called for an oil embargo and a freeze on Kim Jong-un ‘s assets and is even threatening sanctions against the international business community should they choose to trade with North Korea. China accounts for the majority of North Korean trade, followed by Russia at a distant second place.
However, in 2016, North Korea’s output grew at its fastest pace in 17 years, at 3.9 percent, leaving analysts to doubt the effectiveness of the sanctions model.
Byung-Yeon Kim, a professor of economics at Seoul National University says there are sanctions that are yet to be made which could yet make a difference to North Korea’s nuclear programme ambitions.
“There are three more sanctions possible. The first is to cut off oil supplies to North Korea, ” he says. “If the Chinese government cuts off supplies through their pipelines, this will reduce oil consumption in North Korea by 40 or 50 percent, it will halt the economy to a large extent.”
On the seemingly undeterred growth of North Korea’s output, Kim says markets and trade are the main drivers.
“This changes the economy of North Korea. The markets and trade have impacted construction because the money from foreign trade helps to build large buildings in North Korea. The energy sector [is also affected] because North Korea has built some power plants. There was also an increase in production last year affected by foreign trade and the marketisation of North Korea.”
“Markets undermine the control of society.
