Is economic struggle driving North Korea to negotiating table? - BBC News - 0 views
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Is economic struggle driving North Korea to negotiating table?
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1) Sanctions are beginning to biteExports of goods such as textiles, coal and seafood are the biggest contributors to North Korea's GDP. It's difficult to gauge just how much of an impact sanctions have had on the country's economy, simply because growth rates for the 2017 year have yet to be estimated. But exports may have declined by "as much as 30% last year", according to Byung-Yeon Kim, author of the book "Unveiling the North Korean Economy". In particular, exports to China -
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2) The economy is increasingly a priorityYou just have to read the text of Kim Jong Un's new year speech to see where his focus lies. The word "economy" is peppered through the speech, getting almost as much play as "nuclear". Image copyright Reuters Image caption Mr Kim offered the talks in his new year address Because North Korea can't make foreign currency through exports or foreign labour anymore, another potential source of hard currency is tourism.
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3) Nuclear capabilities have been provenA series of successful missile tests have demonstrated the regime's ability to develop nuclear weapons, each one more seemingly more sophisticated than the last. And despite the bellicose rhetoric from the US and Donald Trump, North Korea has managed to consistently conduct its missile tests with no real retaliation or repercussions, barring sanctions. Image copyright EPA Image caption South Korea's President Moon wants more engagement with the North So in a sense, Kim Jong Un isn't losing anything by negotiating with South Korea.
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In summary...Let's be realistic. Kim Jong Un isn't desperate yet. Sanctions and a weaker economy aren't going to have the regime discarding its nuclear goals. And there are still plenty of ways for it to make money, including via the latest asset class to hit international markets - cryptocurrencies.But it IS possible to see why North Korea may be more inclined to head to the negotiating table - especially with South Korea which has already said it may consider removing some sanctions temporarily during next month's Winter Olympics.