The Rise and Fall of North Korea
How North Korea, a country once wealthier than its Southern counterpart, descended into poverty
North Korea is now one of the world’s poorest countries, relying largely on Chinese aid. But the per capita GDP of North Korea was once far greater than that of its southern counterpart, South Korea — and of its most powerful ally, China.
This is the story of North Korea’s economic success throughout the 1970s and 80s, and its persistent decline since the early 1990s.
The Rise of North Korea
Starting in 1970, North Korea’s economy experiences a sharp upturn, with per capita nominal GDP increasing from $384 to $836 in 1985, an average yearly increase in the country’s growth rate of up to 25%. By comparison, China only reaches the landmark of $600 per capita ten years later, in 1995.
North Korea’s growth is driven by a surge in urbanisation, the onset of rapid industrialisation and increased demand for Western-inspired products. Rapid growth is accompanied by an increase in life expectancy to 70 years and a sharp reduction in childhood mortality rate to 20%.
North Koreans begin to settle in and around the nation’s flourishing capital, Pyongyang and the city’s population expands to 3 million.
