Posted on 06/16/2018 10:09:34 AM PDT by GonzoII
To modernise North Korea’s economy, outside aid and investment – a great deal of it – will be needed from governments, multilateral agencies and private investors. .
Will North Korea become the next big thing for investors now that the Donald Trump and Kim Jong-un summit has ended with handshakes and a “walkabout” (rather than a walkout) by the two leaders?
The question is not premature, even if denuclearisation of the Korean peninsula is some way off. The general verdict on the Singapore summit is that there is still a long way to go before we can say Trump’s “art of the deal” has paid off. But the economic and financial implications of the summit are more immediate.
Save a reversal of the Singapore agreement, Pyongyang and Seoul will emphasise economic and military matters. Kim has emphasised his desire to modernise North Korea’s economy, but he cannot afford to do so alone.
Nor will South Korea be able to pick up the tab in the same way West Germany did for East Germany when the two halves of the divided nation were reunified. Outside aid and investment – a great deal of it – will be needed from governments, multilateral agencies and private investors.
Besides South Korea, this will come from China, Japan and maybe the United States and Europe so far as official aid is concerned. Multilateral aid will flow in time. But the more intriguing question is how will private investment flow into the hermit kingdom?
(Excerpt) Read more at scmp.com ...
Very interesting is the dominant view in Seoul is that the Singapore summit would not have taken place had Hillary Clinton been the President of the United States.
Oh that is so not true. SKorea business people are lined up to deal in N.Korea. Russia certainly and also the other Asian countries. If this continues to be the real deal happening, and I think that it is, all sorts of business and industry will want to go there. It's just a matter of the people there adjusting to the changes at a pace they can handle.. and currently this week their Propaganda machinery is all about doing just that.
Japan model. The empire will have his place for the respect of the people.
Emperor not empire.
One question: What was the previous big thing?
East Germany?
Regards,
I would say yes along with Eastern Europe in general, add to that the telecom boom and .com boom. We might even say another big thing for investors is the USA with are new and friendly business environment.
are=our
“The only people likely to invest in NK are the Chinese.”
You make a strong point about the political risk to investing in North Korea. It would be a tough sell to the board of directors of any big company. People are going to have to see new rules and good numbers in writing, and it will likely take years for the North Koreans to get new laws and rules in place.
I think that in addition to China though, South Korean companies will also significantly invest in the North, if the door opens. The article anticipates that most of the money for development would be raised on the Chinese and Korean stock markets, by their big companies. There is a lot of patriotic fervor, and family nostalgia to motivate them, and Korean entrepreneurs are dynamic risk takers. Also, they have some Japanese-like incest between the big industrial conglomerates and the Government Ministries, so the Government can coordinate some private investment to support policy. They also already have some experience doing this, with some little free trade zone industrial parks along the border. Apparently, the North Koreans have earned a reputation as super employees.
Except for big mining companies, the rest of the world might be more apt to sub-contract their exposure with local partners.
The Japanese will be an interesting case. I think that the rules would have to be favorable to lure them in, but they could do a lot if they chose to. I’m pretty sure that they will dutifully chip in some amount though, as part of the team, with Government guarantees.
Why not give them a good burger like a Double Double from In-N-Out instead of that bland nothing burger? Whataburger is the worst thing about Texas and that includes the humidity and all the dead armadillos on the road.
What makes these burger joints good is the bread.
McD’s and their 5c Sesame Seed bread is crap.
You're basically tempting God to zap you with a lightning bolt with these statements! I will pray to God and tell him you were foolish, you know not what you say, but no guarantees.
Sorry Tex, Whataburger is all hat and no cattle.
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