Summary: North Korea has engaged in various forms of economic reforms and marketization attempts such as establishing Special Economic Zones and obtaining Foreign Direct Investment. Yet, many of North Korea’s current and potential investors are skeptical about investing in a country with little transparency, high unpredictability, and investor safeguards. Dr. Stephan M. Haggard of UC San Diego’s School of International Relations and Pacific Studies explains the problems and challenges, as well as the potential, of reforming North Korea’s economy. Dr. Haggard also touches upon the issue of reunification in relation to the North’s economy, and how Pyongyang’s neighbors can influence the future of North Korea’s economy.
