How Does North Korea Make Money

For us in the West, North Korea is a rather mysterious country in many aspects. A combination of government secrecy (very few updates on the nation are publicly released), strict control over entrance into the nation by foreigners and Western dislike of the DPRKs authorities mean that we know very little for certain about the country.
One of the enigmas surrounding the nation lie in its economy. While its economy is pretty much in dire straits (its annual growth of 0.8% is deemed as stagnating, per capita income is estimated to be $1-2k per year), the country continues to maintain a huge military expenditure (as evidenced by the recent reported hydrogen bomb tests). The DPRK spends around $10bn, according to International observers, on its military- a quarter of the total national GDP, among the highest rates in the world. North Korea must be getting some reliable income to be able to maintain this spending, but where from? How does the DPRKs economy function with its doors of trade largely closed to todays globalised world?

1. (Narrow) International Trade

Textiles constitutes a significant part in the North Korean
economy, but is secondary to commodities.

North Korea exports roughly $2.7bn worth of materials every year, a notably large proportion of these exports being derived from primary industry. Mining in particular plays a massive role in keeping North Korean trade afloat, with coal and iron constituting over 46% of the nations exports. Other products exported from the DPRK include clothing, molluscs (according to the OEC North Koreas 6th most valuable export, no kidding) and fur.

Nevertheless, it is evident that North Korea is heavily dependent upon its primary sector, on the commodities (coal, iron, etc) whose prices are constantly fluctuating. The impact of these fluctuations on North Korea is amplified by this dependence, meaning their economy would be far more damaged by a fall in coal prices, for example, than other nations whose economies are far more diverse. NKs exports have given them a tightrope to walk upon- as opposed to the kind of solid, wide platform most countries would ideally like to have.

But not only does North Koreas product lack diversity, but its list of trade partners does as well. The countrys lack of extensive diplomatic ties with other nations has resulted in China receiving 84% of NKs exports, followed far behind by Indonesia, which receives just 2%. This is the same when you look at North Koreas imports. 84.5% of NKs imports come from China- India follows with just 5%.

So not only are North Korea extremely sensitive to global commodity prices, but also to the performance of China. Currently the Chinese economy is relatively stable, but could a catastrophe hit, North Korea would see a severe lack of supplies, one even more deadly than it is experiencing right now.

But it would be foolish to put this off as a long-term economic problem. Kevin Stahler from the Peterson Institute of Economics claims the countrys lack of economic diversity is already hitting growth. "Just as it [North Korea] rode the resource boom to its apex in 2011, it is now the victim of a steady and steep decline in world prices."

2. Tourism

North Koreas state tourism is becoming more popular to
travellers from outside the region.

Its reputation in the West has written off to many the idea of ever travelling to North Korea, but it is indeed possible, and its not even that complicated. You just need to have two guides prepared to accompany you on a pre-planned tour, which can be organised via a number of online tour operators. It may not be totally convenient ("Its not possible to travel independently in North Korea", according to tour operator Gill Leaning), but it is an opportunity available to those who wish to take it.

Its easy to travel to North Korea because the authorities there see tourism as a potential source for a great amount of income and economic activity. Their increased efforts particularly in the past few years have seen the number of visits to DPRK growing. For example, Leaning claims to have received a 400% increase in booking enquiries in 2012, largely thanks to the nations 100 year anniversary and the governments heavy publicity of the occasion.

It is difficult to attain the precise figures for how much income tourism brings, but what is more certain is that, currently, the majority of the DPRKs 100,000 guests a year are Chinese. "About 80% of the tourists who come are from neighbouring countries," says Kim Sang Hak, a senior North Korean economist. "Its normal to develop tourism within your region... but we are also expanding to European countries as well.". In explaining his countries target to increase tourism to two million people a year by 2020, Hak affirms that "Tourism can produce a lot of profit relative to the investment required, so thats why our country is putting priority on it."

3. The Black Market

The North Korean-built African Renaissance
Monument in Senegal.

While the North Korean economy does produce something, looking at figures such as the GDP per capita earlier mentioned, it is evidently not performing particularly well. It is widely believed that the DPRK has been and still is involved in some more questionable dealings to try to further boost its revenues. The governments sale of labour workers to Russia and China has been relatively well documented. While exporting labour itself is not something unusual, the taking of up to 70% of the workers earnings as loyalty payments by the North Korean government makes this dealing particularly shady. This exporting of workers not only brings North Korea revenue, but it brings revenue in the form of US Dollars, providing the government with a far safer, stable currency than its own Won.
North Korea also exports monuments and statues of national leaders to other countries. These can be seen throughout Africa, in countries such as Senegal (pictured), and the Mansudae Art Studio, the Pyongyang-based company responsible for most of these works, had even created one for Germany in 2005.

However shady one might consider these deals to be, they are technically legal- and according to NPR, they brought in around $2bn in 2009. But there is a darker side to the North Korean economy, that involves drugs, counterfeit money, and weaponry.

According to the Wall Street Journal, in 2001 North Korea made somewhere between $500m and $1bn from illegal drug sales. The late 20th century saw growing opium exports from the DPRK, but more recently crystal meth has been growing in popularity, not just outside the country but internally, where "People with chronic disease take it until theyre addicted," according to an NGO worker in an interview with journalist Isaac Fish. "They take it for things like cancer. This drug is their sole form of medication."

Counterfeiting money has also been a tactic used by the North Korean government, usually of the dollar in attempts to destabilise the American economy. Making the government up to $25m a year, the USA has actively moved to stop this, by introducing a new $100 bill in 2013 specifically designed to prevent further North Korean counterfeits.

Read More..

Educate Yourself on How to Make Money Online

Most of you probably always wonder to yourselves how some people make thousands and thousands of dollars on referral sites like Cashcrate. You think, “How in the heck is that possible when some the highest paying offer is only about $10? I’m not going to sit home all day and fill out $.50 offers that take 20 minutes each. Talk about a waste of time!” Trust me, you’re out of your mind if you think that you can sit around and fill out those little offers all day.

However, you have to look at the entire website from a different angle. Why waste your time filling out little surveys when you can refer other members, have them fill out the surveys and then get paid a commission for their work? Its simple, have your money and time work for you, not the other way around. I did the dirty work when I first joined the PTC websites. I was uneducated and all I cared about was making money even if that meant putting in hours of work. As I looked around the websites I was shocked when I saw that some of the elder members were receiving checks for $2000 a month. I thought to myself, no way someone can be making that much filling out surveys. I did some research, broadened my intelligence on the website and learned that earning referrals was where the real money was at.

So I did what any newbie would do, I made a blogger, posted Cashcrates FAQ and thought the money would be rolling in. However, when it wasn’t, I was angry and just wanted to quit the whole operation. I knew that I was not going to be making any money if I continued doing what I was doing, because every other idiot was doing the same thing that I was. I had no proof of payments, no information on how to actually make money, and worst of all no originality.

When I finally realized how stupid I was for thinking that the spam of a blog was going to actually make money I went to google and did some research. I found out that the formula to getting referrals is quite simple, BUT takes a good amount of work.

Make a website (or a blog/webs account), post unique/well-written content that readers will want to read, and spend your time increasing your PR by getting backlinks. I have been told in the past that the key to having a lot of traffic on your website is to spend 20% of your time writing content and 80% getting backlinks.

If you have no idea what I’m talking about then go back to my first posts and start reading. I promise you that you will learn a lot about this business and your time spent will be worth it in the long run. It really isn’t that hard to make money online as a teen, just be smart, don’t give up and don’t get rattled if you had a bad month. Keep at it and you will be making money in no time.

Read More..

Stop Being Lazy

I was just on Cashcratess forums going through some sob stories of how people need to make 2 more dollars or they wont reach the minimum $20 to cashout. I feel sorry for these people, because although it does take some work to start earning something on Cashcrate, it really is not that hard. $2? Honestly? Go find 20 cans in a trashcan and there ya go. Stop being a lazy teen (like I once was) and go put in some work and before you know it you will be making $2 every hour of every day for 30 days straight on Cashcrate.

I have recently been reading up on investing and how beneficial it is if you start at a young age. I am still only 17, so if I establish a strong investing IQ then I will be set financially for the rest of my life. One of my favorite quotes that I came across just yesterday was:

"Stop working for your money, instead have your money work for you."

This had a powerful impact on me and really speaks volumes to about 99% of Americans. They get an education, get a job, pay taxes and barely have any income left for themselves. So basically they are working 60+ hours a week to eat and live in their house. Sounds exhilarating. Live a little, take chances and it will pay off in the end. Having your money work for you is exactly what I am teaching you to do. If you havent already read some of my previous posts on keywords and backlinks.

Cashcrate and other survey sites are a great way to start earning some extra money. I currently have a job at a pet store, but because I put in a couple extra hours on this blog and survey sites I am making an additional $500 a month. And just because many of you are young, doesnt mean it is hard to make money online as a teen. Just be smart, stop being lazy and use your brain to decide whether there is a good or bad oportunity in front of you.

Read More..

Different Ways for Teens to Make Money Online

While online survey sites remain the best way for teens to make money online, there are many other options to keep in mind during your ventures. Here is a list of 5 other possibilities that you can use to get started on today.

1.) EBAY - There are thousands of dollars to be made on Ebay if you put the time in. A
n account is free and you can begin selling your items today. In fact, over the past month or so I have been selling old video games, clothes and other various items laying around my room and have already accumulated $870. It really is a great opportunity which is why many adults make their living by selling things via Ebay. Just make sure that you are a reliable seller and be ready to communicate with the buyers about your items.

2.) Blogging - Have a hobby or interest? Write about it. For example, I have several friends that run a big gaming blog and pull in thousands of dollars a month via Adsense. At first, they got few visitors , but as they continued to write quality content more readers began to show up. By simply writing about something that they enjoyed, they were able to start up a relatively cheap blog and now make upwards of $5000 a month. By posting google adsense ads on the blog, visitors click on the ads and they are paid a commission for each click.

3.) Mechanical Turk - Until recently I had no idea what Mturk was. However, after checking it out and using it for a couple weeks I have been pleasantly surprised. Simply put, Mechanical Turk is a service offered by amazon.com that allows you complete small tasks for a compensation. For example, you may be shown a picture and told to describe it in 10 words for $0.10. Now this may not seem like a lot but after doing it for a while you can make a steady income. Also, there are much higher payouts like writing a 1000 word article for someone for $15. There is a good amount of money to be made on Mturk if you put the time in.

4.) Write an E-book - A simple and fun way to make money is to write an e-book and sell it online. Consider yourself an expert on something? Put your thoughts down on paper and you will be surprised at the amount of people interested in what you have to say. E-books can be about anything, so dont think that just because your a teen people wont want to read what you have to say. When your finished you can offer your book to people on forums, Facebook, etc. and charge a price that you think is reasonable.

5.) Youtube - Youtube is an amazing way to earn great money online. Creating an account is completely free and like blogging, you can place adsense ads on your videos. Thousands of videos on Youtube have millions of views, so just imagine the profit that can be made. If you create a channel and upload funny, unique, informative, interesting videos you can quickly grow your view count on your videos and be well on your way to earning great money. However, just know that just because you make a video, that doesnt mean that people will watch it. It has to be engaging and make sure to leave the viewer wanting more so they will come back and eventually tell others about your channel.

Combine what works for you

Now you dont just have to try one of these methods. If you combine a couple of them you can be on your way to earning good money online as a teen. Begin testing what works for you and what yields you the highest profit and stick with that. Good luck everyone! Thanks for reading.

Read More..

Economic Sanctions on Iran Have They Worked

A massive moment in international relations today saw an agreement settled between Iran and the P5+1, that accepts (though limits) Irans right to nuclear energy, while lifting the economic sanctions placed upon the Middle Eastern power for the past decade.

There is much debate over whether the sanctions placed on Iran were effective. The American government has been a champion of economic restrictions, believing that causing economic troubles could pressurise the Iranian government into giving in over its nuclear energy program- and, from a rather cynical point of view, perhaps in the long term even stir up public resentment of the government to the point of its toppling. It wouldnt be surprising- for the US of course was a major force behind the 1953 coup of Irans first ever elected authority.

But back to the point, there are numerous critics of the sanctions. A primary argument on this side has been that the sanctions have simply been a form of collective punishment, that has stirred resentment among Iranians not for their own government as intended, but rather the Western governments imposing these sanctions that are having crippling effects on their lives.

 _________________________________________________________________________________

SANCTION EXPANSION- The 5 most significant bans enforced by sanctions put on Iran
- The sale of weaponry and nuclear technology to Iran (enforced by the United Nations)
- The purchasing of arms from Iran (UN)
- The import of Iranian oil and gas (European Union)
- Any dealing with Iranian banks and financial institutions (EU)
- The freezing of assets* of individuals and organisations believed to be supporting the nuclear 
program, and where applicable a ban on their entering the EU. (EU)

_________________________________________________________________________________

Iranian business did suffer as a result of the sanctions- Irans oil exports fell by almost two-thirds in the two years following the first sanctions put on them in 2011, costing the country from 4 to 8 billion dollars according to Irans oil minister. Oil revenue provided for almost half of Irans government expenditure, meaning that such a hard hit on the Iranian oil industry, combined with Iranian exile from many of the worlds financial institutions, translated into a weak currency, leading to inflation reaching as high as 40%. This high inflation has been the primary source of many of the economic hardships faced by the Iranian people in the past decade.

A Gallup poll from 2012 reflects particularly well the suffering faced by Iranian society since the first round of sanctions in 2006, and how this has translated into staunch opposition of Western powers. The poll, which followed EU sanctions banning oil imports from Iran, found that 48% of Iranians had experienced a lack of money to purchase food supplies for their families in the past year, a strong contrast to just 15% in 2005. There is no doubt that this has contributed to the US government having an approval rating of just 7% among Iranians.

In a climate in which many are already disillusioned and frustrated with Western (primarily American) foreign policy in the Middle East, many Iranians see these sanctions as an extension of their interference in the region, an attempt to punish Iran for often vocally opposing the West.

So it seems evident that sanctions have done little in their objective to stir up significant Iranian resentment against their own government; in fact it appears they have worked against western interests.

But what about pressure on the Iranian government? Has the sanctions program played a leading role in finally drawing Iran and the West to an agreement on the negotiations table?

One could conclude that sanctions were effective in pressurising the Iranian government by going straight to the end result. Iran agreed to limiting its nuclear activity, in exchange for removal of economic sanctions- so the sanctions worked, right?

But it could also be argued that there were numerous other motivations for Iran to come and agree at the negotiating table. Arguably even more important than the removal of sanctions, the deal can potentially put to rest a lot of the diplomatic tensions between Iran and the West. Previous negotiations have centred largely around total deactivation of Irans nuclear facilities, a compromise too far for the Iranian government seeking to diversify its domestic energy production away from oil and gas.

This agreement allows Iran to continue pursuing its nuclear energy production targets. Though production is likely to be far more restricted and monitored under this agreement, the sacrifice is arguably worth the opportunity to redevelop both political and economic relations with the West. This is the issue that has generated the major threat of war in the region, particularly with Netanyahus zeal for military conflict. "The agreement... removes Irans nuclear programme from the danger list," says BBC Middle East Editor Jeremy Bowen. "Two years ago, as Israel threatened to bomb Iran, it looked likely to lead to a major Middle East war. That in itself is a major diplomatic achievement."

Hassan Rouhanis foreign policy is proving to be one
of wider diplomatic relations with the West
than his predecessors.

The Iranian government has received international recognition of its right to develop nuclear energy, something that undoubtedly played a significant role in motivating the Hassan Rouhani, as a President seeking to rebuild some of Irans relations with the rest of the world.

So, it could be said indeed that the economic sanctions played a role in bringing around this agreement on Irans nuclear program, but it would be perhaps too simplistic to conclude from this that the sanctions were successful on the whole. No doubt, those in Iran who suffered because of them are unlikely to forget soon, and furthermore the political implications of the agreement strongly suggest the sanctions may not have played the greatest role in bringing Iran to the table.

*The freezing of assets is when an individual or organisations assets (whether its a property, a business investment or bank accounts) are regulated to prevent the owner from selling or withdrawing them. For example, Irans Central Bank is believed to have up to $10bn in European central banks that is frozen- currently they cannot withdraw it.

Read More..