North Korea is known as a command system. This means that the government owns most of the property resources and that most or all economic decision making is set by a central economic plan that is created and enforced by the government. This is a very different system compared to the United States, which is known as a market system that is characterized by a mixture of centralized government economic initiatives and decentralized actions that are taken by individuals and firms. Different nations will use different mixes of the elements of the market system and command system, with a nation like Russia favoring more command elements than the United States do.

Recently, there have been thousands of North Koreans sent to work in Russia, which is mainly due to Russia’s huge labor shortage. Russia’s ongoing invasion of Ukraine has created a shortage of labor as many Russians workers are being sent to the frontlines to fight as soldiers. However, one in Rusia, many North Korean workers say they have experienced slave-like conditions while working there.

Luckily, some North Korean workers have managed to flee Russia since the start of the war and report on the details of the “abysmal” working conditions in Russia. The South Korean government officials also helped with these rescue efforts. Apparently, the workers have been subject to. These workers are escorted around by North Korean security agents. Additionally, they are ordered not to speak to anyone or look at anything. 

Discussion questions:

  1. Describe the differences between a Market oriented economic system and a command system and discuss how many economics are a mix of the two systems.
  2. North Korean workers are describing slave-like working conditions in Rusia. Discuss why migrant laborers are often found working in abusive conditions even in countries where slavery has been outlawed.