North Korea

North Korea

North Korea is a state in East Asia, occupying the northern half of the Korean Peninsula. Its capital and largest city is Pyongyang. The Korean Demilitarized Zone serves as the buffer area between North Korea and South Korea. The Amnok River and the Tumen River form the border between North Korea and People's Republic of China. A section of the Tumen River in the extreme north-east is the border with Russia.

North Korea has an industrialised, autarkic, and highly centralized command economy. North Korea's isolation policy means that international trade is highly restricted, hampering a significant potential for economic growth. The North Korean economy is completely nationalized, which means that food rations, housing, healthcare, and education is offered from the state for free. The payment of taxes has been abolished since April 1, 1974. In order to increase productivity from agriculture and industry, since the 1960s the North Korean government has introduced a number of management systems such as the Taean work system.

In the 21st century, North Korea's GDP growth has been slow but steady, although in recent years, growth has gradually accelerated to 3.7% in 2008, the fastest pace in almost a decade, largely due to a sharp growth of 8.2% in the agricultural sector. This comes as a surprise given that most economies have reported minus growth due to the global financial crisis of 2008-2009.