In November of 2009, Kim Jong-il and his cohorts made a sudden change in the country's currency; however, this has led to chaos for economic reform. North Korea's regime decided slice off two zeroes from the old paper currency (won) and gave less than a week for all North Koreans to exchange their old notes for new ones.
Therefore, due to this debacle North Korea executed a former top finance official last week due to the country's failed currency reform, stated Yonhap news. Pak Nam-gi, the ruling Worker's Party former finance and planning department chief was executed by a firing squad in Pyongyang last week. Mr. Pak is the enthusiast behind the reform and is accused of destroying the country's economy and harming leader Kim Jong-il's plans to transfer leadership to his son.
For many countries, economic reform can be a good thing. Take Vietnam and China for example they are two of the most successful countries in effecting a transition from a centrally planned to a more market-guided economic system. Both countries had experience of combining national reunification with economic reform.
This calamity showcases by tighten up control at the expense of the poor and further widens the gap between the haves and the have-nots. Thus, North Korea has much to learn and it is possible to introduce systemic change while increasing the rate of growth, allocating resources, reducing poverty and preventing the emergence of inequality of income.
