A GLOBAL / COUNTRY STUDY AND REPORT ON “Microanalysis of Different Industries of North Korea” Submitted to Gujarat Technological University IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF Faculty Guide Anitha Sunil Ass. Professor Submitted by Batch: 2011-13 Students of L.J. Institute of Management Studies (Section-B) MBA SEMESTER IV L.J. Institute of Management Studies MBA Programme Affiliated to Gujarat Technological University Ahmedabad May-2013 Student’s Declaration We, Students of L.J. Institute of Management Studies (Section-B), hereby declare that the report for Global/Country Study Report entitled “Microanalysis of Different Industries in North Korea.” is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged. Place : Class Representative Date : Satish Gadhadara Institute’s Certificate ―Certified that this Global /Country Study and Report Titled “Microanalysis of Different Industries of North Korea” is the bonafide work of Students of L.J. Institute of Management Studies (Section-c), who carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate. Place : Date : Director Faculty Guide (Dr. P. K. Mehta) Anitha Sunil Country Overview Commonly referred to as North Korea (Original Name: Democratic People's Republic of Korea or DPRK) is a country in East Asia, located in thenorthern half of the Korean Peninsula. Its capital is Pyongyang, the country's largest city by both land area and population. The Korean peninsula was governed by the Korean Empire from the late 19th century to the early 20th century, until it was annexed by the Empire of Japan in 1910. Following the surrender of Japan at the end of World War II, Japanese rule was brought to an end. The Korean peninsula was divided into two occupied zones in 1945, with the northern half of the peninsula occupied by the Soviet Union and the southern half by the United States. North Korea is a single-party state under a united front led by the Korean Workers' Party (KWP). The country's government follows the Juche ideology of self-reliance, initiated by the country's first President, Kim Il-sung. After his death, Kim Il-sung was declared the country's Eternal President. North Korea has been described as a totalitarian, Stalinist dictatorship with an elaborate cult of personality around the Kim family and one of the lowest-ranking human rights records of any country, though the North Korean government denies this. As a result of its isolation and authoritarian rule, it has sometimes been labelled the "Hermit kingdom", a name once given to its predecessor, the Korean Empire. In 2011 North Korea had the lowest Democracy Index of any nation on earth. North Korea is one of the world's most militarized countries, with a total of 94,95,000 active, reserve, and paramilitary personnel. It is a nuclear-weapons state and has an active space program. Demographic North Korea Demographics are current statistical characteristics of a population. These types of data are used widely in sociology (and especially in the subfield of demography), public policy, and marketing. Commonly examined demographics include gender, race, age, disabilities, mobility, home ownership, employment status, and even location. Demographic trends describe the historical changes in demographics in a population over time. Demographic profiling is essentially an exercise in making generalizations about groups of people. As with all such generalizations many individuals within these groups will not conform to the profile - demographic information is aggregate and probabilistic information about groups, not about specific individuals. Critics of demographic profiling argue that such broad-brush generalizations can only offer such limited insight and that their practical usefulness is debatable. Most demographic information is also culturally based. The generational cohort information above, for example, applies primarily to North America (and to a lesser extent to Western Europe) and it may be unfruitful to generalize conclusions more widely as different nations face different situations and potential challenges. History of reporting demographics Until the release of official data in 1989, the 1963 edition of the North Korea Central Yearbook was the last official publication to disclose population figures. After 1963 demographers used varying methods to estimate the population. They either totalled the number of delegates elected to the Supreme People's Assembly (each delegate representing 50,000 people before 1962 and 30,000 people afterward) or relied on official statements that a certain number of persons, or percentage of the population, was engaged in a particular activity. Thus, on the basis of remarks made by President Kim Il Sung in 1977 concerning school attendance, the population that year was calculated at 17.2 million persons. During the 1980s, health statistics, including life expectancy and causes of mortality, were gradually made available to the outside world. In 1989 the Central Statistics Bureau released demographic data to the United Nations Fund for Population Activities (UNFPA) in order to secure the UNFPA's assistance in holding North Korea's first nationwide census since the establishment of the DPRK in 1946. Although the figures given to the United Nations (UN) might have been purposely distorted, it appears that in line with other attempts to open itself to the outside world, the North Korean regime has also opened somewhat in the demographic realm. Although the country lacks trained demographers, accurate data on household registration, migration, and births and deaths are available to North Korean authorities. According to the United States scholar Nicholas Eberstadt and demographer Judith Banister, vital statistics and personal information on residents are kept by agencies on the ri, or ni level in rural areas and the dong (district or block) level in urban areas. Population 24,589,122 Age Structure 0-14 years: 22.4% (male 2,766,006/female 2,700,378) 15-64 years: 68.6% (male 8,345,737/female 8,423,482) 65 years and above: 9.1% (male 738,693/female 1,483,196) Median Age Total: 32.9 years Male: 31.2 years Female: 34.6 years Population growth rate 0.535% Birth rate 14.51 births/1,000 population Death rate 9.12 deaths/1,000 population 6 Net migration rate -0.04 migrant(s)/1,000 population Urbanization Urban population: 60% of total population Rate of urbanization: 0.6% annual rate of change Sex ratio At birth: 1.05 male(s)/female Under 15 years: 1.03 male(s)/female 15-64 years: 0.99 male(s)/female 65 years and above: 0.51 male(s)/female Total population: 0.94 male(s)/female Infant mortality rate Total: 26.21 deaths/1,000 live births Male: 29.05 deaths/1,000 live births Female: 23.24 deaths/1,000 live births Life expectancy at birth Total population: 69.2 years Male: 65.34 years Female: 73.24 years 7 Total fertility rate 2.01 children born/woman Nationality Noun: Korean(s) Adjective: Korean Ethnic groups Racially homogeneous; there is a small Chinese community and a few ethnic Japanese Religions Irreligion: 64.3% of population, the vast majority of which are adherents of the Juche philosophy Korean Shamanism: 16% of population Cheondoism: 13.5% of population Buddhism: 4.5% of population Christianity: 1.7% of population Languages North Korea shares the Korean language with South Korea. There are dialect differences within both Koreas, but the border between North and South does not represent a major linguistic boundary. While prevalent in the South, the adoption of modern terms from foreign languages has been limited in North Korea. Hanja (Chinese characters) are no longer used in North Korea (ever since 1949), although still occasionally used in South Korea. In South Korea, knowledge of Chinese writing is viewed as a measure of intellectual achievement and level of education. Both Koreas share the phonetic writing system called Chosongul in the north and Hangul south of the DMZ. The official Romanization differs in the two countries, with North Korea using a slightly modified McCune-Reischauer system, and the South using the Revised Romanization of Korean. The move toward prohibiting both Roman and Chinese based characters in North Korea has led to the creation of a number of words and phrases not common in the southern half of the peninsula or in Korean communities abroad. Literacy Education in North Korea is free of charge, compulsory until the secondary level, and is controlled by the government. The state also used to provide school uniforms free of charge until the early 1990s. Heuristics is actively applied in order to develop the independence and creativity of students. Compulsory education lasts eleven years, and encompasses one year of preschool, four years of primary education and six years of secondary education. The school curriculum has both academic and political content. Primary schools are known as people's schools, and children attend them from the age of 6 to 9. Then from age 10 to 16, they attend either a regular secondary school or a special secondary school, depending on their specialties. Higher education is not compulsory in North Korea. It is composed of two systems: academic higher education and higher education for continuing education. The academic higher education system includes three kinds of institutions: universities, professional schools, and technical schools. Graduate schools for master's and doctoral level studies are attached to universities, and are for students who want to continue their education.