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→Economy
==Economy==
==Economy==
[[File:Korea - Free Market.jpg|right|280px|thumb|North Korea's energy usage and carbon emissions are somewhat limited by state policy and government decrees. Deforestation and flooding have become problems as people cut down trees for home heating rather than burn fossil fuels or use electricity from coal-fired plants. Tree bark also has become a food source under the socialist regime.]]
North Korea's economy declined sharply in the 1990s with the end of communism in Eastern Europe, the disintegration of the Soviet Union and the dissolution of bloc-trading with the countries of the former socialist bloc. Gross national income per capita is estimated to have fallen by about one-third between 1990 and 2002. The economy has since stabilized and shown some modest growth in recent years, which may be reflective of increased inter-Korean economic cooperation. Output and living standards, however, remain far below 1990 levels. Other centrally-planned economies in similar situations opted for domestic economic reform and liberalization of trade and investment. North Korea formalized some modest wage and price reforms in 2002, and has increasingly tolerated markets and a small private sector as the state-run distribution system has deteriorated. The regime, however, seems determined to maintain control. In October 2005, emboldened by an improved harvest and increased food donations from South Korea, the North Korean Government banned private grain sales and announced a return to centralized food rationing. Reports indicate this effort to reassert state control and to control inflation has been largely ineffective. Another factor contributing to the economy's poor performance is the disproportionately large share of GDP (thought to be about one-fourth) that North Korea devotes to its military.
North Korea's economy declined sharply in the 1990s with the end of communism in Eastern Europe, the disintegration of the Soviet Union and the dissolution of bloc-trading with the countries of the former socialist bloc. Gross national income per capita is estimated to have fallen by about one-third between 1990 and 2002. The economy has since stabilized and shown some modest growth in recent years, which may be reflective of increased inter-Korean economic cooperation. Output and living standards, however, remain far below 1990 levels. Other centrally-planned economies in similar situations opted for domestic economic reform and liberalization of trade and investment. North Korea formalized some modest wage and price reforms in 2002, and has increasingly tolerated markets and a small private sector as the state-run distribution system has deteriorated. The regime, however, seems determined to maintain control. In October 2005, emboldened by an improved harvest and increased food donations from South Korea, the North Korean Government banned private grain sales and announced a return to centralized food rationing. Reports indicate this effort to reassert state control and to control inflation has been largely ineffective. Another factor contributing to the economy's poor performance is the disproportionately large share of GDP (thought to be about one-fourth) that North Korea devotes to its military.