[Research Directions]
[New Research Projects]
Economic Development in Central Asia, the Promotion of Regional Cooperation and Japanese-German Cooperation
- Research institute: NIRA (Research conducted by NIRA)
- Research term: July 2003 - June 2004
Attention has recently been drawn to Central Asia by the region's economic potential and the impact of the respective situations in Afghanistan and Iraq over the past two years. Linking as it does Asia and Europe, the Central Asian region possesses significant long-term geopolitical importance. Japan and Germany have shown great interest in the peace, development and prosperity of the Central Asian nations and have actively supported their economic development and stability.
The overall goal of this research project is to deepen understanding of the conditions necessary to the economic development and regional stability of Central Asia, in order to establish a shared foundation for closer cooperation between Japan and Germany in the region. In the initial phase of the project, a roundtable meeting will be held with the participation of specialists from Central Asia to provide an opportunity to explore optimal directions for the region. The results of discussions held at this meeting will be summarized as proposals.
Basing its discussions on the results of the "Symposium on Japanese and German Contributions to Sustainable Development in Central Asia," held in Berlin in June 2002, this conference will be held on October 4 and 5, 2003, in Tashkent, Uzbekistan's capital, under the joint auspices of NIRA, the Japanese-German Center Berlin (JDZB), and the Konrad Adenauer Foundation (KAS). Discussions will focus on deepening understanding of the actual status of Central Asia.
In addition, lectures on Central Asia will be given by specialists on the region, with a focus on Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan.
Reorganization of Regional Governments and Perspectives on a New Regional System -- Increasing the Areas Administered by Regional Governments and Revitalizing Local Community Organizations
- Research Institute: NIRA (Research conducted by NIRA)
- Research term: September 2003 - October 2004
The decentralization and consequent reorganization of regional governments has grown into a worldwide trend. Japan's prefectural divisions, the nation's largest administrative divisions, were established in the Meiji Era and have been maintained without major revisions since that period. As a result, they are not sufficiently adaptable to new trends, such as the adoption of independent tax and finance systems, and the establishment and promotion of autonomous regional economic and industrial policies. The solution of this situation requires that part of the national government's powers should be transferred to the prefectures, to enable them to fulfill the role of genuine regional governments capable of supporting their component local governing bodies in a variety of activities.
Regional governments are presently facing a new situation. The increasing diversification of the intellectual perspectives and lifestyle choices of citizens and their growing urge to participate more fully in society have made the establishment of a society of independent citizens, that is, the promotion of citizen autonomy, a crucial policy issue for the future. Local community organizations, such as neighborhood associations, which formerly served as a "home ground" for citizens, have either ceased to function or are growing weak. It will be essential to establish policies to revive or recreate these organizations.
This project will examine the optimal form of socially and economically independent regional government, the establishment of which will be crucial to the nation's achievement of decentralized and autonomous government. In addition, the project will attempt to design a new regional system to replace the present dual system, composed of prefectures and municipalities, which is uniformly applied nationwide.
North Korea's Economic Policies in the Kim Jong Il Era -- An Evaluation of the Process of Change
Dr. Kim Sang Kee
Former NIRA Visiting Research Fellow
On July 28, former NIRA Visiting Research Fellow Dr. Kim Sang Kee gave a presentation at a research report session.
Dr. Kim's research focused on the changes in North Korea's economic policies in the direction of reform and liberalization since the death of President Kim Il Sung. His analysis focused on economic policies implemented from the inauguration of the Kim Jong Il government in 1994 to the present, a period which can be divided into three separate phases.
- First Phase: Administration based on Kim Il Sung's Final Counsel (1994 - 97)
- Second Phase: Establishment of an Internal System and the Search for New Economic Policies (1998 - July 2002)
- Third Phase: Introduction of New Methods of Economic Management (July 2002 - )
- Overview of the Kim Jong Il Administration's Economic Policies and Future Direction
From the inauguration of the Kim Jong Il government in 1994 to the present, North Korea's economic policies have been based on the nation's officially declared adherence to "Socialism of Our Own Style." In an attempt to solve its serious economic problems, the country has chosen to adopt elements of a market economy and has focused on attracting foreign investment through a policy of designating special economic zones. This demonstrates North Korea's recognition that only reform and liberalization can normalize its economy and promote development. It was feared, however, that drastic reforms would be a destabilizing factor, and the nation therefore promoted them gradually and restrictively. In the future, North Korea will have no choice but to continue to adopt elements of a market economy and move away from socialist planned management to solve its economic problems. The nation has in fact commenced this process. In an indication of the transition in its concept of market functions, North Korea expanded the purview of its "farmer's markets" to a wider range of products in March 2003 and issued public bonds in May 2003.
It is a very difficult question as to whether or not these policies will generate economic recovery in North Korea. The solution of the nation's supply shortages will be an important factor in their medium- to long-term efficacy. The problem is that these shortages are not temporary and relative, but chronic and absolute. The designation of special economic zones after the adoption of the Economic Management Improvement Measures on July 1, 2002, shows that North Korea is strongly aware of the necessity for capital inflow. The recovery of the North Korean economy depends on the promotion of an inflow of foreign capital and the solution of supply shortages by setting in place additional measures for the adoption of elements of a market economy to correct the nation's distorted economic structure.
North Korea's foreign relations have been cooled by the issue of its nuclear program. To the extent that this situation continues, it can be expected that the North Korean economy will fall into further difficulties and the nation's supply shortages will become more serious.
National Institute for Research Advancement (NIRA) Home PageCopyright (c) National Institute for Research Advancement (NIRA)