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Is Korea on the Verge of Change? Our comparison of South Korea and North Korea in Chapter 15 shows how important government institutions are for a country's economic development. There is some encouraging news that North Korea may be contemplating some changes in its economic institutions. Any change in what has to be one of the most dismal economic and social environments in the world would certainly be welcome, even a minor one. One sign that change may be in the air was Kim Jong II's recent semi-secret trip to China. After a brief stay in Beijing, Kim Jong traveled to Shanghai, the leading commercial and banking city in China. Then he traveled further south to Shenzhen, the special economic zone where China initiated economic reforms more than 20 years ago. Shenzen was once a small fishing village, but now it is a city of 5 million with the highest per capita income in China. In one of the many articles speculating on the meaning of Kim Jong's visit to China, Karby Leggett (2001), "North Lorean's Discreet Jaunt in China Is Telling," Wall Street Journal, January 18, writes that the North Korean leader appears to like the Chinese model of development–step-by- step liberalization with continued tight political controls. South Korea's President Kim Dae Jung claimed to be encouraged by news that Kim Jong was visiting China: North Korea is out there to pursue big changes," he said. Not everything looked like a change, however. Leggett also reports that Kim's visit to China was marked by the usual secrecy and tight security. China did not even acknowledge Kim Jong's presence in China! He moved about Beijing in a 35-car motorcade that carried scores of North Korean security guards and a large entourage of advisors and attendants. This was not a normal state visit. |
Who Has Done More for the Poor: Bill Gates or Mother Teresa? In his new book, Dinesh D'Souza (2000), The Virtue of Prosperity: Finding Values in an Age of Techno-Affluence, New York: Free Press, asks exactly this question, and if you have read D'Souza before, you know his answer. Economists like to avoid dealing with morals and virtues, but D'Souza does not shy away from strong opinions. His writings provide some refreshing opposing views to the often- unanswered claims by religions and leftist politicians that money is the root of evil. He is certainly provocative as he writes that "capitalism civilizes greed, just as marriage civilizes lust." Then he goes on to write: "And to the degree that greed leads to effort, and lust to pleasure, who would want to eradicate them?" Well, you can form your own opinion. |