Liudmila V. Zakharova – PhD in Economics, Senior Researcher, Center for Korean Studies, Institute of Far Eastern Studies of the Russian Academy of Sciences. 32 Nakhimovsky Prospect, 117997 Moscow, Russian Federation. E-mail: email@example.com.
A nuclear crisis on the Korean peninsula was primarily caused by security reasons. However, from the very beginning an economic component has been inextricable part of any settlement plan. Since the 1990s the DPRK has been offered economic benefits in return for an agreement to abandon its nuclear program. After the first nuclear test in 2006 the international community led by the USA has emphasized imposing economic restrictions on North Korea. Engagement and sanctions have become two key approaches to dealing with the DPRK. They have been applied simultaneously and separately, unilaterally and multilaterally. As a result of the severe economic sanctions imposed against the DPRK by the UN Security Council the country has been significantly restricted in its external economic relations. Nevertheless, unlike the case of Iran, measures of financial and economic pressure failed to make North Korea abandon its nuclear arsenal, with the escalated tensions between Pyongyang and Washington bringing the region close to war in 2017. In 2018 the situation is dynamically changing as a new stage in the nuclear settlement on the Korean peninsula has begun. The historic USA-DPRK summit held in Singapore on 12 June 2018 opened new opportunities for engaging North Korea. The article revises previous experience and approaches to dealing with the DPRK in the economic sphere with the aim of reducing tensions in the region. Based on the analysis of different strategies applied and positions of the key regional players the author looks at the prospects of using economic methods in the nuclear settlement on the Korean peninsula and also proposes practical measures for economic engagement of the DPRK.
Key words: Korean peninsula, DPRK, nuclear crisis, USA, sanctions, Republic of Korea, China, Russia, engagement, economic cooperation
1. Aziatskie sosedi Rossii: vzaimodeystvie v regionalnoy srede: kollektivnaya monografiya [Asian Neighbors of Russia: Cooperation in a Regional Context: monogragh] / ed. by Georgy Toloraya; Institute of Economics RAS. Moscow, Dashkov and Ko Publ., 2016. 200 р. (In Russian).
2. Asmolov K. Vybor iz zol [Choice between Evils]. Rossiya v globalnoy politike – Russia in Global Politics, 07.08.2017. Available at http://www.globalaffairs. ru/global-processes/Vybor-iz-zol-18882 (accessed: 13.06.2018) (in Russian).
3. Denisov V.I. Rossiya i Koreyskiy poluostrov v novoy mezhdunarodnoy situatsii [Russia and the Korean Peninsula in a New International Situation]. // Yezhegodnik IMI – Yearbook of the Institute of International Studies, 2015, vol. 1 (11), pp. 39–49 (in Russian).
4. D'yachkov I.V. «Nemirnyy atom» Severo-Vostochnoy Azii: koreyskiy uzel: monografiya [Non-Peaceful Atom of Northeast Asia: the Korean Knot: monograph]. Moscow, MGIMO-University Publ., 2016. 239 p. (in Russian).
5. Zhebin A.Z. Situatsiya na Koreyskom poluostrove i interesy Rossii [The Situation on the Korean Peninsula and Russia’s Interests]. Koreyskiy poluostrov i vyzovy globalizatsii – The Korean Peninsula and Challenges of Globalization. Moscow, IFES RAS Publ., 2006. Pp. 28– 35 (in Russian).
6. Koreyskoe uregulirovanie i interesy Rossii [Korean Settlement and Russia’s Interests]. Ed. by V.I. Denisov and A.Z. Zhebin. Moscow, IFES RAS, Russkaya panorama Publ., 2008. 344 p. (In Russian).
7. Nespokoynoe sosedstvo. Problemy Koreyskogo poluostrova i vyzovy dlya Rossii: kollektivnaya monografiya [Uneasy Neighborhood. Problems of the Korean Peninsula and Challenges to Russia: monograph]. Ed. by G.D.Toloraya. Moscow, MGIMO-University Publ., 2015. 345 p. (In Russian).
8. Albright M. Madam Secretary: A Memoir of Madeleine Albright. Harper Perennial, 2004. 592 p. (Russ. ed.: Olbrayt M. Gospozha gossekretar. Memuary Madlen Olbrayt. Transl. from English. Moscow, Al'pina Business Books Publ., 2004. 688 p.).
9. Torkunov A.V., Denisov V.I., Li Vl.F. Koreyskiy poluostrov: metamorfozy poslevoennoy istorii [The Korean Peninsula: Metamorphosis of Post-War History]. Moscow, OLMA Media Group Publ., 2008. 544 p. (In Russian).
10. Fenenko A. «Yadernye trevogi» na Koreyskom poluostrove [“Nuclear Alarms” on the Korean Peninsula]. Mirovaya ekonomika i mezhdunarodnye otnosheniya – World Economy and International Relations, 2013, no. 5, pp. 3–16 (in Russian).
11. Babson B. Inter-Korean Economic Relations in a Regional Context. Asian Perspective, 2002, vol. 26, no. 3, pp. 71–89.
12. Babson B. The North Korean Economic System: Challenges and Issues. International Journal of Korean Studies, 2016, vol. XX, No. 1, pp. 149–175.
13. Beck P., Reader N. Facilitating Reform in North Korea: the Role of Regional Actors and NGOs. Asian Perspective, 2005, vol. 29, no. 3, pp. 31–49.
14. Choi Jinwook. The North Korean Domestic Situation and Its Impact on the Nuclear Crisis. Ritsumeikan Annual Review of International Studies, 2006, vol.5, pp. 1–18.
15. Frank R. The Political Economy of Sanctions against North Korea. Asian Perspective, 2006, vol. 30, no. 3, pp. 5–36.
16. Funabashi Y. The Peninsula Question: A Chronicle of the Second North Korean Nuclear Crisis. Washington, DC, Brookings Institution Publ., 2007. 592 р.
17. Haggard S., Noland M. Hard Target: Sanctions, Inducements, and the Case of North Korea. Stanford, California, Stanford University Press Publ., 2017. 321p.
18. Kim Inhan. Agency Conflict and the End of Strategic Patience. The Journal of East Asian Affairs, 2017, vol. 31, no. 2, pp. 63–90.
19. Niksch L. China's Policies toward North Korea's Nuclear and Missile Programs. International Journal of Korean Unification Studies, 2015, vol. 24, no. 2, pр. 1–40.
20. Silberstein B. Explaining North Korea? Orbis, 2018, vol. 62, iss. 2, pp. 335–338.
21. Smith H. North Korea: Markets and Military Rule. Cambridge University Press Publ., 2015. 381 p.
22. Spoorenberg T., Schwekendiek D. Demographic Changes in North Korea: 1993–2008. Population and Development Review, 2012, vol. 38, no. 1, pp. 133–158.
23. Streltsov D., Kireeva A., Dyachkov I. Russia’s View on the International Security in Northeast Asia. The Korean Journal of Defense Analysis, 2018, vol 30, no. 1, pp. 115–134.
24. Wonhyuk Lim. The Anatomy of a Failure: The Geneva Agreed Framework of 1994. Seoul, KDI Publ., 2004. P.1.
25. Zakharova L. Economic cooperation between Russia and North Korea: New goals and new approaches. Journal of Eurasian Studies, 2016, vol. 7, iss. 2, pp. 151–161.