ABSTRACT
Time, and the process of diplomacy, will reveal whether North Korea has reached its defining moment. This chapter reviews the major developments affecting the strategic environment in terms of North Korea's traditional interests, analyzes North Korean responses to these developments, and assesses their implications for US and Republic of Korea policies. Having offered an interpretation of Pyongyang's perceptions, the chapter stresses the need for caution in drawing firm conclusions about how North Koreans "see" the world. Perceptions aside, North Korea's basic response to developments has been quite clear: batten the hatches and push forward against the storm. Developments in South Korea that most observers regard as typical trials of a new democracy, for example, leaders in Pyongyang may see as a potentially "revolutionary" situation—and hence a positive trend working in their favor. A combination of domestic economic difficulties and foreign pressures is pushing Pyongyang to the point where it has no choice but to open up and adopt reformist measures.
