The DPRK Energy Sector: Current Status and Future Engagement Options
This report discusses the history, current status, and potential future of the DPRK energy sector. The authors, drawing on the Nautilus Institute's decades of work on North Korea, describes the history of the DPRK energy sector, in particular changes in the sector since 1990. The study then looks at the current status and supply and demand balance of North Korea's energy sector noting the vulnerabilities and critical needs of that sector. The report also explores options for the rehabilitation of the DPRK energy sector that could be used in negotiations with North Korea as part of a 'roadmap' to denuclearization and legitimate energy needs if negotiations are not successful and the DPRK either collapses (due to an internal coup, succession crisis, or war) or continues to stagnate. The report concludes by identifying the robust strategies that are important in both engagement and non-engagement (collapse or stagnation) scenarios.
Energy and the Environment: Challenges to a Post-Unification Economic Recovery
After unification, Korea will need to address the challenges of failing energy infrastructure and years of environmental degradation in order for the post-North Korean segment of the economy to quickly transition to a market based system and become a source of job creation. The unification of Germany and Eastern European transitions to the free market can provide a glimpse of the challenges Korea may face during this process and the options that exist to address them.
The North Korean Economy: Background and Policy Analysis
Abstract : This report provides an overview of the economy of the Democratic People's Republic of Korea (DPRK) or North Korea, its external economic relations, attempts at reform, and U.S. policy options. The economy of North Korea is of interest to Congress because the it provides the financial and industrial resources for Pyongyang to develop its military, constitutes an important push factor for potential refugees seeking to flee the country, creates pressures for the country to trade in arms and illegal drugs, is a rationale for humanitarian assistance, is tied to Pyongyang's program to develop nuclear energy and bombs, and creates instability that ultimately affects the economy of South Korea. The North Korean threat to sell nuclear weapons material could be driven in part by its need to generate export earnings. The dismal economic conditions also foster forces of discontent that potentially could turn against the Kim regime especially if knowledge of luxurious lifestyle of communist party leaders becomes better known or as the poor economic performance hurts even Pyongyang's elite. The North Korean economy also is a target of economic sanctions. Along with the United States, North Korea's major trading partners China, Japan, South Korea, and Russia form the so-called Six Parties. In the current Six-Party Talks, economic assistance (including fuel oil) is a major bargaining chip in seeking the complete dismantling of the DPRK's nuclear program. Economic policy options include normalizing relations with Pyongyang, negotiating a trade agreement, lifting economic sanctions, allowing the DPRK to join international financial institutions, and removing the country from the terrorism list. This report will be updated as conditions warrant. (Cataloger's note of 2/8/07: This report was updated 24 Jan 2006.)