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No More Communism! North Korea Capitulates: Farming.

Written by Gary North on July 19, 2013

The last bastion has fallen. The last hold-out is no longer holding out.  North Korea now allows collective farms to lease land to peasants. The peasants pay 30% of the crop to the collective.

This is sharecropping.  This is what the USA had in the South after 1865. This is a move to capitalism.

We can be sure of this: output will rise. This is what Deng did in 1978. He freed up agriculture. The boom began within a year.

Starvation is the mother of political invention.

The peasants will buy into this if they believe they will really get to keep 30%. It may take a couple of years to persuade them. They have reasons to be skeptical. They are suspicious. But if the collectives abide by the rules, Communism is finished.

The experiment has failed.

Celebrate. Light up a Cuban cigar. (No. Sorry. That’s illegal in the land of the free and the home of the NSA.)

In 1953, South Korea was poverty-stricken. Today, it is among the richest nations per capita in the world. Its economic growth per capita dwarfs China’s.

May the lights come back on in the North.

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11 thoughts on “No More Communism! North Korea Capitulates: Farming.

  1. Sounds like a positive change. A correction: the article linked to says that the 70/30 split is reversed. The farmers get 30% the state gets 70%. Also, the farm managers don't know if their share will come out of the farmers' take or the state's.

  2. The way I read it, it says 30% will go to the collective (farm) and 70% to the farmer…..?? (I clicked on dailynk.com)

  3. Seymour Kleerly says:

    Was North Korea a true Communist state or a paranoid, over repressive police state that cared nothing for the masses?

  4. What saved the Puritan colonists in Massachusetts was the decision to allow each person to cultivate his own plot of land instead of working the land communally. Output increased so dramatically that the colony was saved from the starvation they were surely heading toward under the communal system.

  5. Both. Communism is not valued as an economic system. It economic failure was recognized early on by all but the most obtuse, and the people in the Soviet Politburo were anything but. Communism's value is, as an article in US News and World Report stated in the early '80's, that it offers those in power the most absolute power and control of any system ever devised.

  6. Look at what communal living gets you in tribal cultures – no progress because there’s no incentive beyond doing the least demanded of you (if that). And war for resources was a given. Capitalism allows individuals to use thei gifts as little or as much as they want, and you can work alone or with a company, run a small business, a partnership, grow to be a national or international chain…the opportunities are endless. This is why we don’t live in huts and why we have highways and bridges and….Baskin & Robins! Broadway, slinkys, more patents than any other country.

  7. Re: Seymour Kleerly,
    — Was North Korea a true Communist state or a paranoid, over repressive police state that cared nothing for the masses? —

    Both concepts are not mutually exclusive. One can argue with little risk of being wrong that a Communist society requires a paranoid, opressive government to maintain the continuity of the system, as it fails completely as an economic system for human beings. This conclusion does not stem merely from recent experience but from economic theory.

  8. desierasmus says:

    "Under the reforms, as part of agricultural liberalization in North Korea’s rigidly planned economy, farm workers may keep up to 30 percent of their unit’s produce and are allowed to sell them at market prices, sources said."

    From what this says, the STATE will keep 70% and the workers get 30%. Compare this with the arrangement in Genesis 47 that Joseph, Pharaoh's agriculture czar, offered to the Egyptians who had become landless peasants because of the famine:

    20 So Joseph bought all the land of Egypt for Pharaoh, for all the Egyptians sold their fields, because the famine was severe on them. The land became Pharaoh's. 21 As for the people, he made servants of them[a] from one end of Egypt to the other. 22 Only the land of the priests he did not buy, for the priests had a fixed allowance from Pharaoh and lived on the allowance that Pharaoh gave them; therefore they did not sell their land.

    23 Then Joseph said to the people, “Behold, I have this day bought you and your land for Pharaoh. Now here is seed for you, and you shall sow the land. 24 And at the harvests you shall give a fifth to Pharaoh, and four fifths shall be your own, as seed for the field and as food for yourselves and your households, and as food for your little ones.” 25 And they said, “You have saved our lives; may it please my lord, we will be servants to Pharaoh.” 26 So Joseph made it a statute concerning the land of Egypt, and it stands to this day, that Pharaoh should have the fifth; the land of the priests alone did not become Pharaoh's.:

    The NK Pharaoh evidently plans to offer a leaner deal to his landless peasants.

  9. The Lights come back on in the world.

  10. Texas Chris says:

    So, roughly the same as the taxes I pay here in the USSA?

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