Unexpected Result from Economic Sanctions against North Korea

Similar documents
Investigating the Geology and Geography of Oil

List of Main Imports to the United States

Year. Fig.1 Population projections

Strengthening Economic Integration and Cooperation in Northeast Asia

Natural Resources, consuming energy in Michigan, ways to think green. Edrick Ramos, PCMI Candidate. 8 th grade Lesson Plan

Summary of the Results

U.S. RELATIONS WITH THE KOREAN PENINSULA: RECOMMENDATIONS FOR A NEW ADMINISTRATION

General Directorate for Economic and Cultural Promotion and Innovation. General Director, Mr. Vincenzo de Luca

CHINA INTERNATIONAL INBOUND TRAVEL MARKET PROFILE (2015) 2015 U.S. Travel Association. All Rights Reserved.

Seoul, May 3, Co-Chairs Report

MEGA-REGIONAL FTAS AND CHINA

geography Bingo Instructions

Japan s Policy to Strengthen Economic Partnership. November 2003

CHAPTER I: SIZE AND GEOGRAPHICAL DISTRIBUTION OF THE POPULATION

Lecture 4 Multilateralism and Regionalism. Hyun-Hoon Lee Professor Kangwon National University

The Political Economy of North Korea: Strategic Implications

U.S.-Japan Opinion Survey 2017

Mizuho Economic Outlook & Analysis

South Africa - A publisher s perspective. STM/PASA conference 11 June, 2012, Cape Town Mayur Amin, SVP Research & Academic Relations

Nuclear Stability in Asia Strengthening Order in Times of Crises. Session III: North Korea s nuclear program

GDP Per Capita. Constant 2000 US$

Contributions to UNHCR For Budget Year 2014 As at 31 December 2014

The Impact of China on the Global Economy

Lecture III South Korean Economy today

China s Aid Approaches in the Changing International Aid Architecture

U.S. Assistance to North Korea

China s National Security Strategy of Peaceful Coexistence

If North Korea will never give up its nukes, what can the U.S. do?

Lecture II North Korean Economic Development: from 1950s to today

GLOBAL RISKS OF CONCERN TO BUSINESS WEF EXECUTIVE OPINION SURVEY RESULTS SEPTEMBER 2017

WSDC 2010: THE DRAW ROUND ZERO. PROPOSITION versus OPPOSITION NIGERIA CYPRUS CROATIA BULGARIA LEBANON PALESTINE BOSNIA AND HERZEGOVINA RUSSIA

CHILE NORTH AMERICA. Egypt, Israel, Oman, Saudi Arabia and UAE. Barge service: Russia Federation, South Korea and Taiwan. USA East Coast and Panama

Social Development in Brazil

North-South Migration To Developing Countries

FUTURE OF NORTH KOREA

Bangladesh: towards middle-income status

[SE4-GB-3] The Six Party Talks as a Viable Mechanism for Denuclearization

North Korea & The U.S.-Japan Defense Cooperation. Jun Isomura Senior Fellow

Taiwan s Development Strategy for the Next Phase. Dr. San, Gee Vice Chairman Taiwan External Trade Development Council Taiwan

Global Issues Monitor 2002 & 2003

USAPC Washington Report Interview with Amb. Morton Abramowitz September 2006

Index. Brazil debt 16, 17, 29 education 21, 22 employment and unemployment 19

North Korean Government and Foreign Policy

Youen Kim Professor Graduate School of International Studies Hanyang University

Session 2: The importance of institutions and standards for soft connectivity

Nuclear Nonproliferation Policy of the Russian Federation

Global Views on Gender Equality. Richard Wike Colloquium on Global Diversity: Creating a Level Playing Field for Women March 3, 2011

Address by Mr Nandor von der Luehe

STUDENT VISA HOLDERS WHO LAST HELD A VISITOR OR WHM VISA Student Visa Grant Data

The term developing countries does not have a precise definition, but it is a name given to many low and middle income countries.

Global Publishing Markets Mapping data, developments, and patterns of the publishing industry worldwide.

Proliferation of FTAs in East Asia

Principal Trade Negotiator Ministry of Economy, Trade and Industry Senior Fellow Research Institute of Economy, Trade and Industry October 19, 2011

Push and Pull Factors for Japanese Manufacturing Companies Moving Production Overseas

SEVERANCE PAY POLICIES AROUND THE WORLD

Spain Your base for European expansion.

Working Together as a Global Company

LIST OF CHINESE EMBASSIES OVERSEAS Extracted from Ministry of Foreign Affairs of the People s Republic of China *

The Three Elephants in the Room: Coal, Oil and Gas in the Primary Energy Consumption (PEC) and their CO2 Emissions up to 2013 Bernard CHABOT

POLI 12D: International Relations Sections 1, 6

WORLDWIDE DISTRIBUTION OF PRIVATE FINANCIAL ASSETS

Mapping physical therapy research

JAPAN-RUSSIA-US TRILATERAL CONFERENCE ON THE SECURITY CHALLENGES IN NORTHEAST ASIA

Global Risk Index 2018

IMMIGRATION. Gallup International Association opinion poll in 69 countries across the globe. November-December 2015

Global Humanitarian Assistance. Korea 대한민국

On aid orphans and darlings (Aid Effectiveness in aid allocation by respective donor type)

Briefing Paper Pakistan Floods 2010: Country Aid Factsheet

New York County Lawyers Association Continuing Legal Education Institute 14 Vesey Street, New York, N.Y (212)

International Relations GS SCORE. Indian Foreign Relations development under PM Modi

2018 Northeast Asia International Conference for Economic Development (NICE) in Niigata B-KOO

Key Facts about Long Run Economic Growth

GERMANY, JAPAN AND INTERNATIONAL PAYMENT IMBALANCES

Global Economic Trends in the Coming Decades 簡錦漢. Kamhon Kan 中研院經濟所. Academia Sinica /18

The Asian financial crisis that broke out in

SECTION THREE BENEFITS OF THE JSEPA

SUMMARY REPORT OF THE NINTH ASEAN REGIONAL FORUM SECURITY POLICY CONFERENCE PHNOM PENH, CAMBODIA, 25 MAY 2012

Official International Travel of Madeleine Albright

Open North Korea: Economic Benefits to China from the Distance Effect in Trade

Contents. Preface... iii. List of Abbreviations...xi. Executive Summary...1. Introduction East Asia in

2014 BELGIAN FOREIGN TRADE

THE TRUTH ABOUT TRADE BEYOND THE EU. Why exiting the EU takes the UK into a world of new opportunity.

REMITTANCE PRICES WORLDWIDE

UNLOCKING GROWTH AND PROSPERITY. The Global Rule of Law and Business Dashboard 2017

2018 Social Progress Index

Security Council. Topic A: The Northern Triangle Topic B: Maintaining Stability on the Korean Peninsula. Background Paper

From Crisis to Redistribution? Global Attitudes Towards Equality, Welfare, and State Ownership

REMITTANCE PRICES W O R L D W I D E

the Federal Reserve Board.

International Regulation: Lessons from the IP Experience for the Internet

The Future of Saudi Price Discrimination: The Effect of Russian Production Increases

BBVA EAGLEs. Emerging And Growth Leading Economies Economic Outlook. Annual Report 2014 Cross-Country Emerging Markets, BBVA Research March 2014

SUMMARY CONTENTS. Volumes IA and IB

5-Year Evaluation of the Korea-EU FTA Implementation

Northeast Asian Politics: Security and Cooperation RPOS 204 (9194)

The Success of Korean Economy

KINGDOM OF CAMBODIA NATION RELIGION KING 3 TOURISM STATISTICS REPORT. September 2010

Korea-U.S. Economic Cooperation

ASIAN TRANSFORMATIONS: An Inquiry into the Development of Nations

Remittance Prices Worldwide Issue n. 19, September 2016

Transcription:

Unexpected Result from Economic Sanctions against North Korea : The Impact on Relationship between North Korea and China Presenter : Joo Young Park (GMU SPP) 2012. May. 2nd

Contents Background of Study Related Study Framework Study Objective Research Question Research Approach and Methodology Findings Conclusion Implications Reference

Background of Study North Korea s military provocations 2006 ; 1 st test missile and nuclear test 2009 ; 2 nd test missile and nuclear test 2012. April ; 3 rd test missile but failed Stalemates of Six-party talks

Related Study Framework How to stop Moderate: Food Support Economic Reform Hardline: Economic Sanction Study Scope Impact to Int l relationship North Korea vs.us US, Japan, South Korea vs. China, North Korea Policy toward North Korea Sanction is correct? Relationship between North Korea and China

Study Objective This study reviews the effectiveness of current policy toward North Korea: political economy sanctions to constrain North Korea s military provocation, and its result on the relationship between North Korea and China.

Research Question Have economic sanctions been effective to control the issues of North Korea s nuclear weapons? What was the political and economic result of economic sanctions to North Korea?

Research Approach & Method Comprehensive literature review Time-serious analysis of historical events Quantitative data analysis - Economic index trend review - Empirical trade data analysis

Provoca tion Sanction Result Motivation of North Korea s provocation North Korean issue proves that the core factor of North Korean nuclear issue is rather the economic situation than the political motivation. Year GDP (billion USD) GDP growth rates (%) GNI (billion USD) 2000 10.6 1.3 10.6 2001 11.0 3.7 11.0 2002 10.9 1.2 10.9 2003 11.0 1.8 11.0 2004 11.1 2.2 11.1 2005 13.0 3.8 13.0 2006 13.7-1.1 13.7 2007 14.3-2.3 14.3 2008 13.3 3.7 13.3 (Source: UN, http:// unstats.un.org/) http://www.youtube.com/watch?v=3rxaqzqa5ua Heavy Flood Failure of economic reform

Provoca tion Sanction Result Structure of North Korea s provocation North Korea Internal Political Crisis Military Provocation North Korea Economic Deterioration Economic Sanctions UN US Japan South Korea

Provocat ion Sanction Result Economic Sanctions to North Korea Ruediger, Frank. (2006). The Political Economy of Sanctions against North Korea. Asian Perspective, Vol. 30, No.3, 5~36. To ensure peace on Korean peninsula, to prevent the proliferation of nuclear material and weapons, the U.S led economic sanctions to North Korean have been repeated with cooperation with China, Japan and South Korea. However, the result of sanctions was not successful. Stephan, Haggard & Marcus, Noland. (2009). Sanctioning North Korea: The Political Economy of Denuclearization and Proliferation. Washington DC: Peterson Institute for International Economics There is clear evidence that North Korea moderated its missile proliferation during periods when rapprochement with the U.S. Without any interest or incentive to induce North Korean s participation, it has been no progress.

Provocat ion Sanction Result Economic Sanctions to North Korea North Korean Trade, 1990-2008 ($ in million) (Source : KOTRA)

Provocat ion Sanction Result Economic Sanctions to North Korea North Korea s Trade with its Major Trading Partners, 1990~2008 (Source : KOTRA)

Provocat ion Sanction Result Economic Sanctions to North Korea China s trade with North Korea, 2000-2009 ($ in million) (Source : General Administration of Customs, People s Republic of China)

Provocat ion Sanction Result Economic Sanctions to North Korea South Korea s trade with North Korea, 2001-2009 ($ in million) (Source : S. Korean Unification Ministry)

North Korea s direction of trade: top ten trading partners [North Korean Imports] 2004 percent 2005 percent 2006 percent 2007 percent 1 China 26.6 China 31.7 China 32.8 China 32.9 2 South Korea 14.6 South Korea 21.0 South Korea 22.1 South Korea 24.4 3 Thailand 8.0 Algeria 8.1 Algeria 9.3 Algeria 9.9 4 Russia 6.9 Thailand 6.6 Thailand 6.0 Thailand 4.6 5 Algeria 6.8 Russia 6.6 Russia 5.1 South Africa 3.6 6 Brazil 6.2 Congo 2.6 Congo 2.9 Congo 3.2 7 India 4.5 India 2.3 India 2.6 Brazil 3.2 8 Netherlands 4.4 Singapore 2.2 South Africa 2.3 Russia 3.0 9 Japan 3.0 Brazil 2.1 Brazil 1.9 India 2.8 10 Congo 2.6 Japan 1.8 Singapore 1.6 Saudi Arabia 1.6 [North Korean Exports] 2004 percent 2005 percent 2006 percent 2007 percent 1 China 41.2 China 32.2 South Korea 30.0 South Korea 36.8 2 South Korea 18.2 South Korea 21.9 China 27.0 China 27.9 3 Japan 11.5 Japan 8.4 Thailand 8.5 Venezuela 9.3 4 Thailand 6.4 Thailand 8.0 Brazil 4.8 Brazil 4.8 5 Brazil 4.5 Brazil 4.2 Japan 4.5 India 4.4 6 Qatar 2.4 India 2.6 Greece 4.5 Myanmar 2.3 7 Myanmar 1.9 Saudi Arabia 2.1 India 4.2 Netherlands 1.8 8 France 1.9 Myanmar 2.0 Myanmar 2.2 Thailand 1.7 9 Germany 1.6 Germany 2.0 Saudi Arabia 1.6 Russia 1.6 10 Nigeria 1.2 France 1.9 Paraguay 1.3 Saudi Arabia 1.4 (Source : KOTRA) Provocat ion Sanction Result

Provocat ion Sanction The North Korean Special Economic Zone Result (Source : L.Oros, 2011 )

Provocat ion Sanction Relationship North Korea and China Result Drew, Thompson, & Natalie Mathews. (2011). Six-Party Talks and China s Goldilocks Strategy: Getting North Korea Just right. Joint U.S. Korea Academic Studies, Vol.21, 179~194. The economic engagement with North Korea provides economic opportunities for Jilin and Liaoning province in Chinese Northeast area. Especially, as the sanctions of U.S, Japan and South Korea, North Korea s isolated resources and markets represent a unique opportunity for Chinese companies that enjoy the benefit of semiprivileged access and geographic proximity. Jae Cheol, Kim. (2006). The Political Economy of Chinese Investment in North Korea: A Preliminary Assessment. Asian Survey, Vol.46, No.6, 898~916 China-North Korean relations are being transformed from being ideology-motivated to interest-motivated.

Provocat ion Results of Economic Sanctions Sanction Result The economic sanction has happened that it has functioned to push North Korea into a closer economic relationship with China. There are two main motivations: 1) North Korea tried to rearrange its external economic relations to reduce any impact that traditional sanctions could have 2) the sanction to North Korea provided a great opportunity of economic development in northeast area of China In conclusion, the sanctions have shown limited effect to control the North Korean issue

Conclusion Have economic sanctions been effective to control the issues of North Korea s nuclear weapons? - U.S led economic sanctions have shown limited influence to control the North Korean issues What was the political and economic result of economic sanctions to North Korea? - The economic sanctions have functioned as an obstacle and pushed North Korea to stick to the relationship with China

Implication The future of East Asia should emphasizes the importance of security cooperation among China, Japan and the U.S. While the economic interactions are extensive among three nations, the security collaborations are limited today. China prefers to keep the status quo. China does not want to implosion or collapse of North Korea, but at the same time, China does not want to North Korean s provocation with nuclear weapon. Multilateral trading should be considered. Especially, through the trading with North Korea, South Korea could enhance the security and enjoy geographic merit as well.

Reference 1) Dongho, Jo. (2011). A strategy for the advancement of the North Korean Economy 2) Ralph, M. Wrobel. (2007). North Korean after) the Nuclear Crisis: the Future of the Economic Reforms. 3) William, B. Brown. (2011). Engaging and Transforming North Korea s Economy. 4) Stephan, Haggard & Marcus, Noland. (2009). Sanctioning North Korea: The Political Economy of Denuclearization and Proliferation. 5) Ruediger, Frank. (2006). The Political Economy of Sanctions against North Korea. 6) Drew, Thompson, & Natalie Mathews. (2011). Six-Party Talks and China s Goldilocks Strategy: Getting North Korea Just right. 7) Jae Cheol, Kim. (2006). The Political Economy of Chinese Investment in North Korea: A Preliminary Assessment. 8) Andray, Abrahamian. (2012). A Convergence of Interests: Prospects for Rason Special Economic Zone. 9) Doowon, Lee. (2011). Estimating the Potential size of Inter-Korean Economic Cooperation. 10) Andrew, L. Oros. (2011). Tomorrow s East Asia Today: Regional Security Cooperation for the 21 st century.

Reference (cont.) 11) Congressional research service. (2007). The North Korean Economy: Overview and Policy Analysis 12) The National Committee on North Korea (2007). NCNK Issue brief 13) Jaewoo Choo. (2008). Mirroring North Korea s growing economic dependence on China 14) Gary Stradiotto & Sujian Guo. (2007). Market Socialism in North Korea: A comparative perspective

Thank you! & Any Question? Unexpected Result from Economic Sanctions against North Korea North Korea, Economic sanctions, Relationship between North Korea and China, Economic reform of North Korea, Chinese investment to North Korea Contact Point : jpark24@gmu.edu