2008 Woodie Awards
Developing Nations
Tests just the tip of the iceberg for North Korea
Erin Egan '07
Issue date: 10/12/06 Section: World
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There has always been a serious cry for adequate governance and anti-corruption measurements in developing nations. The World Bank appealed to this notion when it hosted the anti-corruption panel called "Partnerships To Combat Corruption: Rising To The Challenge," in Singapore on Sept. 16. Its primary focus was to link the fight against corruption with the fight against poverty. This makes recent actions of North Korea a severe hindrance.
The political framework of a country cannot be separated from its economic well-being, and there is not a more flagrant example of this than North Korea. Kim Jong Il has held a one-man communist dictatorship in one of the most surreptitious, economically weak nations in the world. Much like other developing nations, corruption is embedded in the politics of North Korea.
According to The Wall Street Journal, approximately $24 million dollars in North Korean money has been frozen in a Chinese bank while local authorities investigate money laundering across the border. To put this in perspective, this is approximately 14,000 times the estimated GDP per capita in a country of 23,113,019 (approximately 24 million people) as astated in the CIA's country profile.
In light of the international fight for just government the recent nuclear testing of North Korea is a huge step back for the developing world. There are six million vulnerable people in North Korea completely dependent on a U.N. World Food Program and South Korean and Chinese food exports.
They suffer from malnutrition after the collapse of the state-run agricultural program. North Korea's weak economy and dependence on international trade make it extremely vulnerable to talks of U.N. trade sanctions. Although U.N. humanitarian initiatives will not cease direct food aid, the North Korean economy will suffer immensely and the country will be subject to a whirlwind of repercussions.
These repercussions do not cease at the nation's borders. The developing world of East Asia will now unfortunately endure economic setbacks in an era the World Bank has recently deemed an Economic Renaissance. If China were forced to adhere to U.N.-imposed sanctions, it would loose a large portion of a $1 billion dollar export market now held with North Korea.
The political framework of a country cannot be separated from its economic well-being, and there is not a more flagrant example of this than North Korea. Kim Jong Il has held a one-man communist dictatorship in one of the most surreptitious, economically weak nations in the world. Much like other developing nations, corruption is embedded in the politics of North Korea.
According to The Wall Street Journal, approximately $24 million dollars in North Korean money has been frozen in a Chinese bank while local authorities investigate money laundering across the border. To put this in perspective, this is approximately 14,000 times the estimated GDP per capita in a country of 23,113,019 (approximately 24 million people) as astated in the CIA's country profile.
In light of the international fight for just government the recent nuclear testing of North Korea is a huge step back for the developing world. There are six million vulnerable people in North Korea completely dependent on a U.N. World Food Program and South Korean and Chinese food exports.
They suffer from malnutrition after the collapse of the state-run agricultural program. North Korea's weak economy and dependence on international trade make it extremely vulnerable to talks of U.N. trade sanctions. Although U.N. humanitarian initiatives will not cease direct food aid, the North Korean economy will suffer immensely and the country will be subject to a whirlwind of repercussions.
These repercussions do not cease at the nation's borders. The developing world of East Asia will now unfortunately endure economic setbacks in an era the World Bank has recently deemed an Economic Renaissance. If China were forced to adhere to U.N.-imposed sanctions, it would loose a large portion of a $1 billion dollar export market now held with North Korea.