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Which problem has faced both Cuba and North Korea under communist rule?
Wiki User
∙ 10y ago
their command economies have been inefficient
Wiki User
∙ 10y ago
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Why North Korea has not developed an economy comparable to South Korea is a complex issue. One reason is that North Korea has faced repeated sanctions from the UN. North Korea and South Korea had comparable economies until the mid-1970s. South Korea chose to embrace a Westernized Capitalist economy and was able to modernize alongside Japan and Taiwan in developing a first-world modern economy. Conversely, North Korea continued to become more autarkic and slide into increasing forms of state-planned economy. Without innovation and a strong private sector, North Korea's economy continues to shrivel whereas South Korea's economy continues to grow and develop.
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