North Korean currency reform intended to control the market economy

Most of the experts said that the purpose of the Korean currency reforms by reducing residents held cash in hand to stop inflation. Of course, cannot be denied that the regime which does have such a purpose. But from an objective point of view, the inflation is not serious to require implementation of currency reform. Korea 2002 "7-1 improvements have appeared since the" serious phenomenon of inflation, but recently has been basically back to normal. It can therefore be said that, compared to control inflation, monetary reform more inclined to other purposes.

The currency reform as weakened over the past 15 years to challenge national economic domination system measures of market forces is more appropriate. Although the Administration tried to maintain highly planned economic system, but the spontaneous growth of the community still has a number of market forces, they become the elites mortal enemy. Korean cadres are most worried about the "enemy" is to rely on the market for a living people. For the ruling class, in the home do tofu or sewing clothes for aunt were better than "American imperialism" and "puppet" more fearful of South Korea.

This is because market forces towards the cadre of power and privilege. Bazaar is available on virtually change the consciousness of the Korean people. The spontaneous formation of the market makes the inhabitants understand, even if they do not rely on things that can be assigned its own survival. In addition, the fair is also a channel for the free flow of information.

Due to the Korean Peninsula North-South economic disparities, and in the case of splitting the situation, if you take the Chinese reform and open policy is likely to be the same as East Germany caused system crash and the consequences of being unified. Korean rule classes cannot be arbitrary control, finally forced to suppress the market forces only. Therefore, they implement the currency reform, this policy will be to many individuals and small and medium-sized enterprises a mortal blow.

The 2005 recovery after the distribution system, the rule of the Korean domestic scene in short is "anti-reforms". In the past four or five years, the North Korean regime has been working to limit or suppress the spontaneous formation of market trends and attempt recovery of Stalin's regime in the era of Kim Il Sung. Monetary reform is leading to this goal.

(Korea of the North Korean Journal article 8 December)