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North Korea’s Shadow Economy: A Force for Authoritarian Resilience or Corrosion?

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  • Alexander Dukalskis

Abstract

An unofficial or ‘shadow’ economy like that in contemporary North Korea generates countervailing pressures for a socialist regime. It can buttress the regime by facilitating the cynical use of anti-market laws, alleviating shortages, helping the official economy to function, and creating vested interests in the status quo. On the other hand, the shadow economy can corrode the regime’s power by diminishing its control over society, encouraging scepticism about collective ideologies, and providing networks and material that can be used for opposition to the state. This article analyses these tensions in the DPRK, by drawing on 35 semi-structured interviews with North Korean defectors.

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  • Alexander Dukalskis, 2016. "North Korea’s Shadow Economy: A Force for Authoritarian Resilience or Corrosion?," Europe-Asia Studies, Taylor & Francis Journals, vol. 68(3), pages 487-507, March.
    • Handle: RePEc:taf:ceasxx:v:68:y:2016:i:3:p:487-507
    DOI: 10.1080/09668136.2016.1154137
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    References listed on IDEAS

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    1. Noland, Marcus & Haggard, Stephan, 2007. "Famine in North Korea: Markets, Aid, and Reform," MPRA Paper 92548, University Library of Munich, Germany.
    2. Stephan Haggard & Marcus Noland, 2010. "The Winter of Their Discontent: Pyongyang Attacks the Market," Policy Briefs PB10-1, Peterson Institute for International Economics.
    3. Marcus Noland & Stephan Haggard, 2011. "Witness to Transformation: Refugee Insights into North Korea," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4389, October.
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