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North Korea Breaks Away from ‘Average-ism’: How Differentiated Rewards are Reviving its Economy

EtcNorth Korea Breaks Away from 'Average-ism': How Differentiated Rewards are Reviving its Economy
Rodong Sinmun

North Korea has been promoting the “need for differentiated rewards based on individual achievements” by arguing that egalitarianism will eventually “dampen people’s motivation.”

Rodong Sinmun, in an article titled “Average-ism is a Stumbling Block to Progress,” states, “Evaluating and distributing resources based on the quality and quantity of labor is an important principle that must be upheld in a socialist economic framework.”

The article shared the story of a skilled worker from a light industry factory, pointing out, “Since we reward uniformly those who contribute significantly to technological innovation and those who do not, a tendency to work just enough has prevailed among the technicians, negatively impacting the factory’s development.

The article states, “With the appointment of the new primary party secretary, the employees’ skills were assessed, and exceptional individuals have been appointed to suitable positions. Furthermore, political and material evaluations were thoroughly based on their achievements in technological innovation.”

It explained that, as a result, interest in technological innovation has risen, and the pace of technological advancement in the factory has accelerated.

The article also mentioned that the party has long stressed overcoming egalitarianism.

It added, “Recently, the party has taught that the evaluation and compensation for those who contribute actively through technology should be handled in a way that others would envy.”

The article also noted that it is a misguided belief that fostering egalitarianism within a unit and demotivating those who achieve results will maximize the collective spirit of the masses. It suggested that “practical improvements must be made starting with the evaluation process. This implies that proper evaluation can also enhance workers’ motivation.”

North Korea has emphasized “socialist competition” to tackle prolonged economic hardships. The idea is that everyone can grow through competition among units. Recently, the government has appeared to be encouraging competition further by offering rewards based not only on group performance but also on individual capabilities.

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