Relations of Ownership and Supreme Principle of State Activities
The ownership of the means of production by the State and by social and cooperative organizations constitutes the economic basis of the DPRK as two forms of socialist ownership of the means of production.
The State ownership is an all-people ownership and there is no limit to the property which the State can own. Accordingly, the people are equal in the ownership of the means of production and take part in the work of managing the national property. The State ownership is used for the development of the country and the promotion of the people’s well-being.
The ownership of social and cooperative organizations is the collective ownership of the working people involved in the organizations concerned. It includes land, farm machinery, ships and small- and medium- sized factories and enterprises.
The State enhances the leading role of the all-people ownership over the cooperative ownership so as to combine the two forms of ownership in an organic way, consolidates and develops the socialist cooperative economic system by improving the guidance and management of the cooperative economy and gradually transforms the cooperative ownership into the all-people ownership as a whole based on the voluntary will of all their members.
Private ownership is derived from socialist distribution according to work done and from supplementary benefits granted by the State and society. It includes the products of individual sideline activities including those from kitchen gardens, as well as income from other legal economic activities. The State protects the private ownership of the working people and guarantees by law the right to inherit it.
The State regards it as the supreme principle of its activities to steadily improve the material and cultural standards of the people.
The State takes care of the people as the master responsible for their livelihood. Workers, farmers and office workers exercise the right to labour to their heart’s content and enjoy supplementary benefits from the State in addition to the distribution according to work done. They are provided with modern dwelling houses free of charge as well as enough conditions for labour protection and education. The country offered accommodation at health resorts and holiday homes at its own expense even around the end of the last century when the economic situation of the country was at the worst.
The DPRK applied a tax system for the sake of the people and gradually lowered the tax. It abolished the agricultural tax-in-kind in the mid-1960s and the tax system completely in the 1970s.