The Political Economy of Sanctions and Inducements: the North Korean Case
A central debate with respect to North Korea is whether inducements or sanctions are better suited to influencing North Korea’s behavior. Sanctions do not seem to have worked, but inducements have had limited effect as well. An analysis of the issue requires an understanding of the political foundations of the regime, the dynamic effect of sanctions, and the nature of cross-border interactions at the firm level.
Stephan Haggard is the Krause Distinguished Professor at the Graduate School of International Relations and Pacific Studies, University of California San Diego. He is the author with Marcus Noland of Famine in North Korea: Markets, Aid and Reform (2007) and Witness to Transformation: Refugee Insights into North Korea (2011). Haggard and Noland co-author the Witness to Transformation blog at http://blogs.piie.com/nk.