This paper is organized as follows. In the first chapter, we
analyse North Korea`s long-run growth trend to find out
whether current economic difficulties are temporary or structural.
In addition, three most serious problems of North Korean
economy are investigated; food problem, energy shortage and
foreign exchange constraint.
In the second chapter, we draw lessons form reform
experiences of China and Eastern Europe and compare the North
Korean economy with pre-reform economies of China and
Eastern Europe. Based on above analysis we derive implications
on North Korea`s future reform.
The third chapter discusses prospects for reform in North
Korea with emphasis on the political economy of reform.