Principle and System of Economic Guidance and Management



The DPRK firmly adheres to the principle of properly combining political guidance with economic and technical guidance, the unified guidance of the State with the creativeness of each unit, unitary direction with democracy, and political and moral incentive with material incentive in the guidance and management of the socialist economy.

The State directs and manages the national economy through the Taean work system, a socialist form of economic management whereby the economy is operated and managed scientifically and rationally on the basis of the collective efforts of the producer masses, and through the system of agricultural guidance whereby agricultural management is conducted by industrial methods.

It enforces the self-accounting system in economic management to meet the requirements of the Taean work system and make proper use of such economic levers as cost, price and profit.

The national economy of the DPRK is a planned economy. The State ensures a high rate of growth in production and a balanced development of the national economy by implementing unified and detailed planning.




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