KDI 한국개발연구원

요약 Propelled by the dissolution of the Soviet Union, the pace of
change in the world has become more rapid in the final decade
of the twentieth century than at any time in history. The
economies of almost all former socialist countries have
undergone a transformation and have shifted in the direction of
the market system. Although North Korea remains an exception
to this worldwide trend, the change in the international order not
only presents South Korea with an opportunity to normalize its
relationship with North korea but also opens the way to the
eventual reunification of the Korea peninsula.

As the German experience demonstrates, unification entails
both material and social costs. The benefits of unification appear
to outweigh the costs, however, particularly if the cost can be
spreadout over time through a gradual approach. For such and
approach to be a viable option, North Korea would have to
change, and indeed it is expected to change, because its
economic development under the iuche(self-reliance) model has
come to a standstill, The two Korea societies have been
organized according to entirely different principles for half a
century, and to narrow the divergence South Korea likewise
must change. Relatively little attention, however, has been paid
to the transition period through which the two economies would
have to pass before eventual unification. This book helps to fill
this important gap in the research.

The authors provide a detailed comparison of the South and
North Korean economic systems, identify transition period issues,
and propose reforms in the respective sectors of the two
economies. This book is therefore useful not only for providing a
clear picture of the status quo in the South and North Korean
economies but also for explaining the policy implications of a
transition period that could begin at any time. The conclusions
and policy recommendations represent the views of the authors
and not necessarily those of the Korea Development Institute.

The Korea Development Institute and the East-West Center
in the Honolulu, Hawaii, hosted a conference at the Center from
August 2 to August 13, 1993, on "Economic Systems in South
and North Korea and a Proposal for Economic Integration." The
chapters of this book were developed form papers presented at
that conference.

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