Economy Systems

North Korea, one of the final countries using 

Command Economy System

As you can see in the title, we’ll be discussing about the command system. So let’s get to know the basic of this philosophy that may be going ‘extinct’ as less countries are using such economy system. To know this economy system, people have to understand that in this command system, government is superior. The government controls the entire production. Thus shaping the government into becoming the economy. The government controls everything from;-

Who associates the interventions and establishment towards one another?

What to produce?

When to produce concerning to the statistics streams?

How are the outputs produced?

For whom to produced?

North Korea stands as one of the last countries which still practice command economy system. North Korea is largely isolated and disengaged from the world’s economy. Data collection is extremely challenging, and reported statistics on the economy remain largely speculative, requiring careful evaluation. North Korea’s economic freedom score is 1.5, making its economy the least free in the 2013 Index.

   

                 “Pyongyang, capital and economic centre of North Korea”

 

From my point of view, the North Korea economic system isn’t literally as what we typically favour as it is, which is a centrally planned economy. Kim Jong-eun is the dominant and supreme leader of North Korea, where everything is answered is answered by him. He controls the entire economy of the country. To make the job easier for the authorities, the government comprises groups of committees to handle certain tasks. This community is called the “State Planning Committee” which consist of top government officials. They assume that the whole natural, capital and labour resources are theirs to own and do as they please.

North Korea rests an “dyed-in-the-wool” and in actual fact it is a closed dictatorial state. In spite of investigating with some of the market reorganisations over the past few years, a structure of state command in addition to control that endorses the command’s long-lasting Seon'gun, which is the “military first” strategy is the world’s utmost bottled-up economy. Every single trait of the economic movement is strongly controlled by “The Workers’ Party”. The underprivileged people are severely reliant on the command sponsorships in accommodation as well as food provisions, and besides that the state-run regulating structure has depreciated knowingly in the fresh years.

The second point is more to concern about the scheming of general revenue measurements for North Korea which specified as the great losses of goods among genuine consumption and the stage of production. For example, from the case of fishing, although it is exact for considerable of the agricultural sector, there was substantial decomposing and record reduction in the course of storage, dispensation and delivery. Enhance in padding of statistics, it is obvious that the statistics is needed to be reviewed to a more perfectly redirect actual consumption.

Above all, there are also other countries that also uses this economic system which is the command system, as an example:- 

 i) Cuba 

  

ii) Russia

 

Further information can be located at :-

North Korean's Leader - NY Times
Economy of South Korea

Written by

Raja Nur Marisa  0315305