Answer to Question #54722 in Economics for ana

Question

How do northe korea's changes in policy reflect the role of government in the nations economy

Answer 1

North Korea's economy is a centrally planned system, i.e. the role of market allocation schemes is limited. Although there have been some small-scale reforms as of 2015, Pyongyang's basic adherence to a rigid centrally planned economy continues, as does its reliance on fundamentally non-pecuniary incentives. There have been reports of economic reform, particularly after Kim Jong-un assumed the leadership in 2012, but recent reports conflict over particular legislation and enactment.