In North Korea, all factories and businesses are owned by the government. What type of economy does North Korea have?
Answers
There are different economic systems in the world. One main category is the Centrally Planned Economy or Least Open Economy that is implemented in North Korea. Here the government is the central authority that possesses all the country’s resources. Government also controls all production and distribution. This system enables people having no voice in the economic decision makings of the government.
In North Korea, due to systemic inefficiencies, infrastructural decay, supply shortages and mechanical obsolescence problems, the country was successful to resolve all of them through its highly centralized functions and by rejecting to liberalize their economic management.
Its pros include less unemployment, principal incentive of production and inequality.