In the past, foreign policy and security concerns have trumped
any efforts to reform the North Korean economy. Today, the linkage
between security and economic policies is being reconsidered as
part of a larger debate in the North Korean leadership that has
already transformed the country in fundamental ways. Despite
renewed tensions with the United States, North Korea has begun to
implement important economic reforms. Moreover, underneath the
cover of the ever-present military-first slogan in the controlled
media, a debate is taking place between reformers and conservatives
over whether Pyongyang s bloated military industrial complex should
be scaled back to help ensure the success of economic reform.
Not only do these developments reflect strong political forces
in the North Korean leadership that support reform, but they could
also have profound implications for the future of Pyongyang s
national security policy. North Korea may decide that it will need
a more favourable external security environment in order to secure
greater access to international economic and financial assistance
for its reform measures and, ultimately, downsizing its military.
Pyongyang could launch a new policy of engagement that would
include greater flexibility in the Beijing Six Party Talks. A
second scenario is continued internal struggle over reform that
could lead to an inability to act decisively on key security and
foreign policy issues, including at the nuclear talks. Finally,
progress in reform may, paradoxically, strengthen conservatives,
leading to hopes in Pyongyang that it can improve the economy,
while simultaneously maintaining a large powerful military. Whether
Washington can do anything at this point to influence directly the
emerging debate in Pyongyang is unclear, but a renewed policy of
engagement on its part could enhance the chances of success for
North Korean advocates of reform.
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