Compare Korea, North (2008) - Korea, North (2007)

Compare Korea, North (2008) z Korea, North (2007)

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	Korea, North (2008)	Korea, North (2007)

Background	An independent kingdom for much of its long history, Korea was occupied by Japan in 1905 following the Russo-Japanese War. Five years later, Japan formally annexed the entire peninsula. Following World War II, Korea was split with the northern half coming under Soviet-sponsored Communist domination. After failing in the Korean War (1950-53) to conquer the US-backed Republic of Korea (ROK) in the southern portion by force, North Korea (DPRK), under its founder President KIM Il Sung, adopted a policy of ostensible diplomatic and economic "self-reliance" as a check against excessive Soviet or Communist Chinese influence. The DPRK demonized the US as the ultimate threat to its social system through state-funded propaganda, and molded political, economic, and military policies around the core ideological objective of eventual unification of Korea under Pyongyang's control. KIM's son, the current ruler KIM Jong Il, was officially designated as his father's successor in 1980, assuming a growing political and managerial role until the elder KIM's death in 1994. After decades of economic mismanagement and resource misallocation, the DPRK since the mid-1990s has relied heavily on international aid to feed its population while continuing to expend resources to maintain an army of approximately 1 million. North Korea's history of regional military provocations, proliferation of military-related items, and long-range missile development - as well as its nuclear, chemical, and biological weapons programs and massive conventional armed forces - are of major concern to the international community. In December 2002, following revelations that the DPRK was pursuing a nuclear weapons program based on enriched uranium in violation of a 1994 agreement with the US to freeze and ultimately dismantle its existing plutonium-based program, North Korea expelled monitors from the International Atomic Energy Agency (IAEA). In January 2003, it declared its withdrawal from the international Non-Proliferation Treaty. In mid-2003 Pyongyang announced it had completed the reprocessing of spent nuclear fuel rods (to extract weapons-grade plutonium) and was developing a "nuclear deterrent." Beginning in August 2003, North Korea, China, Japan, Russia, South Korea, and the US have participated in the Six-Party Talks aimed at resolving the stalemate over the DPRK's nuclear programs. North Korea pulled out of the talks in November 2005. It test-fired ballistic missiles in July 2006 and conducted a nuclear test in October 2006. North Korea returned to the Six-Party Talks in December 2006 and subsequently signed two agreements on denuclearization. The 13 February 2007 Initial Actions Agreement shut down the North's nuclear facilities at Yongbyon in July 2007. In the 3 October 2007 Second Phase Actions Agreement, Pyongyang pledged to disable those facilities and provide a correct and complete declaration of its nuclear programs. Under the supervision of US nuclear experts, North Korean personnel completed a number of agreed-upon disablement actions at the three core facilities at the Yongbyon nuclear complex by the end of 2007. North Korea also began the discharge of spent fuel rods in December 2007, but it did not provide a declaration of its nuclear programs by the end of the year.	An independent kingdom for much of its long history, Korea was occupied by Japan in 1905 following the Russo-Japanese War. Five years later, Japan formally annexed the entire peninsula. Following World War II, Korea was split with the northern half coming under Soviet-sponsored Communist domination. After failing in the Korean War (1950-53) to conquer the US-backed Republic of Korea (ROK) in the southern portion by force, North Korea (DPRK), under its founder President KIM Il-so'ng, adopted a policy of ostensible diplomatic and economic "self-reliance" as a check against excessive Soviet or Communist Chinese influence. The DPRK demonized the US as the ultimate threat to its social system through state-funded propaganda, and molded political, economic, and military policies around the core ideological objective of eventual unification of Korea under Pyongyang's control. KIM's son, the current ruler KIM Jong Il, was officially designated as his father's successor in 1980, assuming a growing political and managerial role until the elder KIM's death in 1994. After decades of economic mismanagement and resource misallocation, the DPRK since the mid-1990s has relied heavily on international aid to feed its population while continuing to expend resources to maintain an army of 1 million. North Korea's long-range missile development, as well as its nuclear, chemical, and biological weapons programs and massive conventional armed forces, are of major concern to the international community. In December 2002, following revelations that the DPRK was pursuing a nuclear weapons program based on enriched uranium in violation of a 1994 agreement with the US to freeze and ultimately dismantle its existing plutonium-based program, North Korea expelled monitors from the International Atomic Energy Agency (IAEA). In January 2003, it declared its withdrawal from the international Non-Proliferation Treaty. In mid-2003 Pyongyang announced it had completed the reprocessing of spent nuclear fuel rods (to extract weapons-grade plutonium) and was developing a "nuclear deterrent." Beginning in August 2003, North Korea, China, Japan, Russia, South Korea, and the US have participated in the Six-Party Talks aimed at resolving the stalemate over the DPRK's nuclear programs. North Korea pulled out of the talks in November 2005. It test-fired ballistic missiles in July 2006 and tested a nuclear weapon in October 2006. In October 2006, the DRPK announced that it would return to the Six-Party Talks. The Talks reconvened in December 2006.
Budget	revenues: $2.88 billion $NA expenditures: $2.98 billion $NA	revenues: $NA expenditures: $NA
Debt - external	$12.5 billion (2001 est.)	$12 billion (1996 est.)
Economic aid - recipient	$372 million note: approximately 65,000 metric tons in food aid through the World Food Program appeals in 2007, plus additional aid from bilateral donors and non-governmental organizations (2007 est.)	$NA; note - approximately 350,000 metric tons in food aid, worth approximately $118 million, through the World Food Program appeal in 2004, plus additional aid from bilateral donors and non-governmental organizations (2005)
Economy - overview	North Korea, one of the world's most centrally directed and least open economies, faces chronic economic problems. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and shortages of spare parts. Industrial and power output have declined in parallel from pre-1990 levels. Due in part to severe summer flooding followed by dry weather conditions in the fall of 2006, the nation suffered its 13th year of food shortages because of on-going systemic problems including a lack of arable land, collective farming practices, and persistent shortages of tractors and fuel. During the summer of 2007, severe flooding again occurred. Large-scale international food aid deliveries have allowed the people of North Korea to escape widespread starvation since famine threatened in 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Large-scale military spending draws off resources needed for investment and civilian consumption. Since 2002, the government has formalized an arrangement whereby private "farmers' markets" were allowed to begin selling a wider range of goods. It also permitted some private farming on an experimental basis in an effort to boost agricultural output. In October 2005, the government tried to reverse some of these policies by forbidding private sales of grains and reinstituting a centralized food rationing system. By December 2005, the government terminated most international humanitarian assistance operations in North Korea (calling instead for developmental assistance only) and restricted the activities of remaining international and non-governmental aid organizations such as the World Food Program. External food aid now comes primarily from China and South Korea in the form of grants and long-term concessional loans. During the October 2007 summit, South Korea also agreed to develop some of North Korea's infrastructure and natural resources and light industry. Firm political control remains the Communist government's overriding concern, which will likely inhibit the loosening of economic regulations.	North Korea, one of the world's most centrally planned and isolated economies, faces desperate economic conditions. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and shortages of spare parts. Industrial and power output have declined in parallel. Due in part to severe summer flooding followed by dry weather conditions in the fall of 2006, the nation has suffered its 12th year of food shortages because of on-going systemic problems, including a lack of arable land, collective farming practices, and chronic shortages of tractors and fuel. Massive international food aid deliveries have allowed the people of North Korea to escape mass starvation since famine threatened in 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Large-scale military spending eats up resources needed for investment and civilian consumption. In 2004, the regime formalized an arrangement whereby private "farmers' markets" were allowed to begin selling a wider range of goods. It also permitted some private farming on an experimental basis in an effort to boost agricultural output. In October 2005, the regime reversed some of these policies by forbidding private sales of grains and reinstituting a centralized food rationing system. By December 2005, the regime terminated most international humanitarian assistance operations in North Korea (calling instead for developmental assistance only) and restricted the activities of remaining international and non-governmental aid organizations such as the World Food Program. External food aid now comes primarily from China and South Korea in the form of grants and long-term concessional loans. Firm political control remains the Communist government's overriding concern, which will likely inhibit the loosening of economic regulations.
Electricity - exports	0 kWh (2007)	0 kWh (2005)
Electricity - imports	0 kWh (2007)	0 kWh (2005)
Electricity - production	22.5 billion kWh (2006 est.)	22.19 billion kWh (2005)
Exchange rates	official: North Korean won per US dollar - 140 (2007), 141 (2006), 170 (December 2004), market: North Korean won per US dollar - 2,500-3,000 (December 2006)	official: North Korean won per US dollar - 141 (2006), 170 (December 2004), 150 (December 2002), market: North Korean won per US dollar - 2,500-3,000 (December 2006)
Exports	0 bbl/day (2006)	NA bbl/day
Exports - partners	South Korea 32%, China 29%, Thailand 9% (2006)	China 35%, South Korea 24%, Thailand 9%, Japan 9% (2005)
GDP - composition by sector	agriculture: 23.3% industry: 43.1% services: 33.6% (2002 est.)	agriculture: 30% industry: 34% services: 36% (2002 est.)
GDP - real growth rate	-1.1% (2006 est.)	1.6% (2006 est.)
Imports	10,520 bbl/day (2006 est.)	23,520 bbl/day (2004 est.)
Imports - partners	China 27%, South Korea 16%, Thailand 9%, Russia 7% (2006)	China 42%, South Korea 28%, Russia 9%, Thailand 8% (2005)
Labor force	20 million note: estimates vary widely (2004 est.)	9.6 million (2002 est.)
Labor force - by occupation	agriculture: 37% industry and services: 63% (2004 est.)	agriculture: 36% industry and services: 64% (2002)
Pipelines	oil 154 km (2007)	oil 154 km (2006)
Railways	total: 5,235 km standard gauge: 5,235 km 1.435-m gauge (3,500 km electrified) (2006)	total: 5,214 km standard gauge: 5,214 km 1.435-m gauge (3,500 km electrified) (2006)

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