Voice of America (VOA) reported on the 20th that North Korea’s democracy and market economy levels remain in the lowest ranks worldwide.
According to the “2024 Transformation Index” report released by the German institute Bertelsmann Stiftung, North Korea’s transition to democracy and a market economy was ranked 131st out of the 137 countries surveyed.
North Korea scored an average of 2.04 points, with 2.55 points (out of 10) in “political transformation,” which signifies the transition to democracy, and 1.54 points in “economic transformation,” representing the transition to a market economy.
Only six countries scored lower than North Korea: Eritrea, Somalia, and Sudan in Africa; Syria and Yemen in the Middle East; and Myanmar in Asia.
The report pointed out that Secretary Kim adopted a “much more aggressive approach in diplomatic and security policy” than his father, citing the legalization of North Korea’s “nuclear force policy.”
Regarding economic policy, the report diagnosed poverty and inequality as structurally rooted in the “Songbun system” and the regime’s political control despite widespread corruption and no signs of market-friendly reforms or liberalization.
Especially after the border closure due to COVID-19, North Korea is presumed to have faced more challenging economic conditions. According to the Bank of Korea’s statistics, North Korea’s economic growth rate was -4.5% in 2020, the lowest since 1997. The report explained that the total foreign trade volume also decreased by 73.4% and 17.3% in 2020 and 2021, respectively, compared to the previous year, further worsening the lives of North Korean residents.
The report also analyzed that amid the rapid polarization of the world due to Russia’s invasion of Ukraine and the escalating tension between the U.S. and China, “Kim Jong Un can maintain a hardline stance towards the U.S. and South Korea while seeking close economic cooperation with China and Russia.”
Furthermore, the report released the “governance” index, which evaluates the political decision-maker’s ability to carry out national affairs. Here, North Korea scored 1.14 points out of 10, ranking 136th out of the total 137 countries.
Since 2004, the Bertelsmann Stiftung has been conducting and announcing surveys on the degree of democracy and market economy development every two years, targeting 137 countries, excluding North America and European countries.
