North Korea Command Economy is Based on Agriculture and...

The economy in North Korea operates under the Central Bank of the Democratic People’s of and it remains as one of the world’s last centrally planned systems. North Korea has a command economy and it is based on agriculture and natural resources. The government permits private farmers markets to sell a range of goods, they also allowed some private farming on an experimental ground. Although, agriculture has a decreasing role in the nations economy there has been an increase in cultivated land projects, mechanization and the use of chemical fertilizers. Farmers are either paid or allowed to keep bees, fruit trees, chickens and gardens. Some farmers can sell leftover produce at regional markets that are held annually. Farmers make out†¦show more content†¦For the most parts the main importing partners are the same but with a different percentage rate: China 67.2%, South Korea 20% and the European Union 4.0%. The importing goods are coking coal, petroleum, machinery and equipment, textiles and grain. North Korea’s most recent Gross Domestic Product are as followed: Purchasing Power Parity $40 billion, real growth rate .08%, official exchange rate $28 billion, per capita $1,800.00, agriculture 23.3%, industry 42.9% and services 32.9%. International trade is highly restricted. North Korea faces many challenges affecting their economy. One of the many challenges is that the supply of coal, oil and electricity has declined and affected all regions of the economy. Since North Korea is run on the Juche Idea theory foreign trade is not encouraged, therefore they have had chronic shortages. Industrialized capital stock is beyond reconstruction because of the years of under investment. North Korea invests most of their money in military spending and that draws off means needed for civilian consumption and investments. 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