Prospects for Rason Special Economic Zone

Policies toward Special Economic Zones (SEZs) are often used as evidence of North Korea’s efforts to reform economically. Kim Jong-il’s trips to China and Russia along with China’s increasing interest in developing its northeastern provinces of Jilin and Heilongjiang have put renewed focus on the Rason SEZ. A new road and new investment laws provide some hope that positive changes are occurring, but a history of economic policy relapses, big questions over the profitability of the SEZ, and the capability of reforms taking hold North Korea make the prospect for the Rason SEZ’s success uncertain.