Abstract

Recent events have underlined the significance of mounting economic pressures at home in influencing North Korea's behaviour abroad: faced with a decrepit economy, missile sales are an attractive source of foreign exchange earnings; while Pyongyang's nuclear programme is seen as a key asset through which to extract economic concessions from a nervous outside world. In the second half of 2002, there were signs that economic difficulties had reached such a point that the leadership was prompted to make what appeared to mark a major shift in policy. However, the hap-hazard measures will do little to turn around the country's failing economy, and are therefore equally unlikely to exert any beneficial effects on North Korea's international behaviour in the foreseeable future.

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