Economy of North Korea - Organization and Management

Organization and Management

North Korea's economy has been unique in its elimination of markets. By 1960s, market elements had been suppressed almost completely. Almost all items, from food to clothes, have traditionally been handed out through a public distribution system, with money only having a symbolic meaning. Ratios of food depend on hierarchy in the system, whereas the positions seem to be semi-hereditary. Until late 1980s, peasants were not allowed to cultivate private garden plots.

Since the government is the dominant force in the development and management of the economy, bureaus and departments have proliferated at all administrative levels. There are fifteen committees—such as the agricultural and state planning committees—one bureau, and twenty departments under the supervision of the State Administration Council; of these, twelve committees—one bureau, and sixteen departments are involved in economic management. In the early 1990s, several vice premiers of the State Administration Council supervised economic affairs. Organizations undergo frequent reorganization. Many of these agencies have their own separate branches at lower levels of government while others maintain control over subordinate sections in provincial and county administrative agencies.