ABSTRACT
The energy problem is one of the most serious structural dilemmas facing the North Korean economy. A lack of fuel and energy resources and the failure of the electric energy sector to meet national economic needs are among the main factors restricting adequate use of North Koreas existing industrial capacity and blocking the normal functioning of the economy. This chapter examines the current North Korean energy situation in all its aspects, providing a history of the development of the energy sector, political factors surrounding key decisions, and reasons for the existing inefficiencies. It concludes by arguing that the nuclear reactors constructed by the Korean Peninsula Energy Development Organization (KEDO) may provide additional output (if they are eventually completed), but they will not help North Korea overcome the essential structural problems of its energy sector, which requires much broader foreign assistance and provisions of technology.
