Investing.com investing.com 10 Jan, 2021 06:30 am

Kim Jong Un's big plan to grow North Korea's economy faces harsh reality By Reuters

Kim Jong Un's big plan to grow North Korea's economy faces harsh reality By Reuters
Kim Jong Un's big plan to grow North Korea's economy faces harsh reality

Economy 51 minutes ago (Jan 10, 2021 12:55AM ET) By Josh Smith SEOUL (Reuters) - Kim Jong Un's ambitious new plan for the next five years is aimed at developing North Korea's shattered economy, but the proposals may falter in the face of major crises that have already stalled the young leader's current projects.However, the new plan is unlikely to turn around the growing decay of the North Korean economy, making it difficult for Kim to deliver on his lofty promises and potentially cutting the resources available for treasured military projects, said Chad O'Carroll, CEO of Korea Risk Group, which monitors North Korea." ECONOMIC WISH LIST The plan - which includes proposals for more advanced nuclear weapons - appears to be doubling down on North Korea's "Byungjin," or parallel development policy, said Kang Dong-wan, professor of Political Science & Diplomacy at Donga University in Busan."North Korea is going back to its 2017 plan – dual policy of improving its nuclear deterrent and self-reliant economy," he said.

North Korea plans to invest in tidal and nuclear electricity plants as well as "zero-carbon buildings and zero-energy buildings in keeping with the world trends of architectural development", while the country's mobile communication networks should become "next-generation" as soon as possible.North Korea's economy shifted away from being fully centralised after many private markets and business sprung up in the face of government failures to provide in the 1990s.

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