Stephan Haggard's Research for East-West Center: Engaging North Korea
Engaging North Korea: The Role of Economic Statecraft
05/31/2011
East-West Center

Last week, the U.S. imposed new sanctions on the (North) Korea Tangun Trading Corporation, accused of having trafficked equipment and technology listed on multilateral export control lists “or otherwise having the potential to make a material contribution to WMD or cruise or ballistic missile systems.” The new sanctions under the Iran, North Korea and Syria Nonproliferation Act will be effective for two years.
Also recently, a leaked U.N. Panel of Experts report provided a surprisingly blunt introduction to how the North Koreans—with the complicity of unnamed “third parties”—have sought to circumvent international sanctions. Among other things, the experts found that North Korea and Iran have shared nuclear missile technology and that they have received assistance, in violation of the sanctions, from China and Russia respectively.
These recent events bring renewed focus to the question of how effective either sanctions economic inducements can be in dealing with North Korea. In a new East-West Center Policy Study “Engaging North Korea: The Role of Economic Statecraft,” scholars Stephan M. Haggard and Marcus Noland conclude that North Korea’s political economy and external relations render it remarkably insensitive to either sanctions or inducements.
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Related Links
Stephan Haggard can provide commentary on current developments in the Asia-Pacific, including particularly Korea, and on the politics of economic reform and globalization.
Visit Stephan Haggard and Marcus Noland's Blog on North Korea.

