This paper examines the nature of the economic failure that has brought North Korea such low living standards, and considers how the economic system might be reformed to facilitate a return to overall growth in both aggregate income (GDP) and general living standards. The focus is on...

A brief review is first presented of the changes in pricing institutions in China since 1949, with particular emphasis on the shift from an equilibrium price system to a distorted price system. The authors argue that distorted prices are harmful to economic growth even in a planned economy,...