ADAPTATION OF THE AGRICULTURAL SECTOR OF NORTH KOREA IN THE CONTEXT OF INTERNATIONAL ECONOMIC SANCTIONS

Issue № 9, 2023, article № 10, pages 91-100

Section: International relations and world agricultural experience

Language: Russian

Original language title: АДАПТАЦИЯ АГРАРНОГО СЕКТОРА СЕВЕРНОЙ КОРЕИ В УСЛОВИЯХ МЕЖДУНАРОДНЫХ ЭКОНОМИЧЕСКИХ САНКЦИЙ

Keywords: DPRK, NORTH KOREA, AGRICULTURAL SECTOR, AGRICULTURE, FOOD SECURITY, AGRI-FOOD MARKET, INTERNATIONAL ECONOMIC SANCTIONS, MEASURES OF ADAPTATION AND COUNTERACTION TO SANCTIONS, STATE REGULATION, AGRI-FOOD PRODUCTS

Abstract: The article highlights the impact of international economic sanctions on the economy in general and the agricultural sector of North Korea in particular, and assesses ways to adapt the country to the prevailing conditions. The following were noted as the most negative consequences of the sanctions: a sharp reduction in agricultural production due to lack of energy and means of production; lack of necessary medical care due to current bans on the import of equipment; a significant reduction in the volume of food supplies under international humanitarian assistance programs; a decrease in household incomes by an average of 25%; a reduction in exports by more than 90%, which significantly limited the possibility of importing raw materials, spare parts and materials due to a decrease in the inflow of foreign currency; a drop in domestic investment in production due to the ban on the supply of industrial equipment, which exacerbated the problem of modernization of fixed assets. In these conditions, it is necessary to take the following measures for the development of agriculture: the growth of financial support for agricultural producers, the strengthening of the material and technical base, the development of irrigation, the supply of fertilizers, the renewal of the fleet of agricultural machines, the expansion of the area of crops under crops, the increase in grain yields, the achievement of the grain harvest indicator at the level of at least 7 million tons for the purpose of self-sufficiency. The adaptive properties of North Korea to economic sanctions are manifested in the development of the shadow economy with the help of various intermediaries, which allows for trade and economic cooperation

Authors: Kamenetskaya Olga Vladimirovna