Economy of North Korea
Estimating gross national product in North Korea is a difficult task because of a dearth of economic data and the problem of choosing an appropriate rate of exchange for the North Korean won, the nonconvertible North Korean currency. The South Korean government's estimate placed North Korea's GNP in 1991 at US$22.9 billion, or US$1,038 per capita. In contrast, South Korea posted US$237.9 billion of GNP and a per capita income of US$5,569 in 1991. North Korea's GNP in 1991 showed a 5.2% decline from 1989, and preliminary indications were that the decline would continue. South Korea's GNP, by contrast, expanded by 9.3% and 8.4%, respectively, in 1990 and 1991.
North Korea
North Korea officially describes itself as a "self-reliant" socialist state, and formally holds elections, though said elections have been described by outside observers as sham elections. Various media outlets have called it Stalinist, particularly noting the elaborate cult of personality around Kim Il-sung and his family. The Workers' Party of Korea (WPK), led by a member of the ruling family, holds power in the state and leads the Democratic Front for the Reunification of the Fatherland of which all political officers are required to be members. "Juche", an ideology of national self-reliance, was introduced into the constitution in 1972. The means of production are owned by the state through state-run enterprises and collectivized farms. Most services such as healthcare, education, housing and food production are subsidized or state-funded. From 1994 to 1998, North Korea suffered a famine that resulted in the deaths of between 240,000 and 420,000 people, and the population continues to suffer malnutrition. North Korea follows "Songun", or "military-first" policy. It is the country with the highest number of military and paramilitary personnel, with a total of 9,495,000 active, reserve and paramilitary personnel, or approximately of its population. Its active duty army of 1.21 million is the fourth largest in the world, after China, the United States and India; consisting of of its population. It possesses nuclear weapons.