United States. Central Intelligence Agency

“ North Korea, one of the world's most centrally planned and isolated economies, faces desperate economic conditions. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and spare parts shortages. Industrial and power output have declined in parallel. The nation has suffered its tenth year of food shortages because of a lack of arable land, collective farming, weather-related problems, and chronic shortages of fertilizer and fuel. ”

“ After decades of economic mismanagement and resource misallocation, the North since the mid-1990s has relied heavily on international food aid to feed its population while continuing to expend resources to maintain an army of about 1 million. North Korea's long-range missile development and research into nuclear, chemical, and biological weapons and massive conventional armed forces are of major concern to the international community. ”

“ Large-scale military spending eats up resources needed for investment and civilian consumption. In 2003, heightened political tensions with key donor countries and general donor fatigue threatened the flow of desperately needed food aid and fuel aid as well. Black market prices continued to rise following the increase in official prices and wages in the summer of 2002, leaving some vulnerable groups, such as the elderly and unemployed, less able to buy goods. ”