ABSTRACT
This chapter deals with how the Democratic People’s Republic of Korea (DPRK)
might manage its relationships with the International Monetary Fund (IMF) and
the multilateral banks. It suggests that the DPRK can handle conceptual economic
policy formulation and infrastructure investment planning work much better than
most observers think, but that friction with the International Financial Institutions
(IFIs) could arise quickly because of institutional barriers to the actual
implementation of lending programs. More importantly than the internal
problems this might create for the IFIs, poor implementation – and the resulting
poor economic performance – could quickly undermine the DPRK’s political
commitment to change. Therefore, building institutional competency is crucial.
