Reform from Below: Behavioral and Institutional Change in North Korea
AbstractThe state is often conceptualized as playing an enabling role in a country's economic development--providing public goods, such as the legal protection of property rights, while the political economy of reform is conceived in terms of bargaining over policy among elites or special interest groups. We document a case that turns this perspective on its head: efficiency-enhancing institutional and behavioral changes arising not out of a conscious, top-down program of reform, but rather as unintended (and in some respects, unwanted) by-products of state failure. Responses from a survey of North Korean refugees demonstrate that the North Korean economy marketized in response to state failure with the onset of famine in the 1990s, and subsequent reforms and retrenchments appear to have had remarkably little impact on some significant share of the population. There is strong evidence of powerful social changes, including increasing inequality, corruption, and changed attitudes about the most effective pathways to higher social status and income. These assessments appear to be remarkably uniform across demographic groups. While the survey sample marginally overweights demographic groups with less favorable assessments of the regime, even counterfactually recalibrating the sample to match the underlying resident population suggests widespread dissatisfaction with the North Korean regime.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Peterson Institute for International Economics in its series Working Paper Series with number WP09-8.
Date of creation: Sep 2009
Date of revision:
failed states; transition; reform; North Korea; refugees;
Other versions of this item:
- Haggard, Stephan & Noland, Marcus, 2010. "Reform from below: Behavioral and institutional change in North Korea," Journal of Economic Behavior & Organization, Elsevier, vol. 73(2), pages 133-152, February.
- P2 - Economic Systems - - Socialist Systems and Transition Economies
- P3 - Economic Systems - - Socialist Institutions and Their Transitions
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alesina, Alberto & Drazen, Allan, 1991.
"Why Are Stabilizations Delayed?,"
American Economic Review,
American Economic Association, vol. 81(5), pages 1170-88, December.
- Leeson, Peter T., 2007. "Better off stateless: Somalia before and after government collapse," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 689-710, December.
- Stephan Haggard & Marcus Noland, 2008.
"Famine in North Korea Redux?,"
Economics Study Area Working Papers
97, East-West Center, Economics Study Area.
- Chang, Yoonok & Haggard, Stephan & Noland, Marcus, 2009.
"Exit polls: Refugee assessments of North Korea's transition,"
Journal of Comparative Economics,
Elsevier, vol. 37(1), pages 144-150, March.
- Yoonok Chang & Stephan Haggard & Marcus Noland, 2008. "Exit Polls: Refugee Assessments of North Korea's Transition," Working Paper Series WP08-1, Peterson Institute for International Economics.
- Stanley Fischer & Alan Gelb, 1991. "The Process of Socialist Economic Transformation," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 91-105, Fall.
- Yoonok Chang & Stephan Haggard & Marcus Noland, 2008. "Migration Experiences of North Korean Refugees: Survey Evidence from China," Working Paper Series WP08-4, Peterson Institute for International Economics.
- Powell, Benjamin & Ford, Ryan & Nowrasteh, Alex, 2008. "Somalia after state collapse: Chaos or improvement?," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 657-670, September.
- Noland, Marcus & Haggard, Stephan, 2010. "Political attitudes under repression: evidence from North Korean refugees," MPRA Paper 21713, University Library of Munich, Germany.
- Katzeff Silberstein, Benjamin, 2010. "North Korea: Fading Totalitarianism in the "Hermit Kingdom"," Working Paper Series 836, Research Institute of Industrial Economics.
- Stephan Haggard & Marcus Noland, 2010. "The Winter of Their Discontent: Pyongyang Attacks the Market," Policy Briefs PB10-1, Peterson Institute for International Economics.
- Noland, Marcus & Haggard, Stephan, 2009. "Repression and punishment in North Korea: survey evidence of prison camp experiences," MPRA Paper 17705, University Library of Munich, Germany.
- Haggard, Stephan & Lee, Jennifer & Noland, Marcus, 2012.
"Integration in the absence of institutions: China–North Korea cross-border exchange,"
Journal of Asian Economics,
Elsevier, vol. 23(2), pages 130-145.
- Marcus Noland & Stephan Haggard & Jennifer Lee, 2011. "Integration in the Absence of Institutions: China-North Korea Cross-Border Exchange," Working Paper Series WP11-13, Peterson Institute for International Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peterson Institute webmaster).
If references are entirely missing, you can add them using this form.