[AdmSmith]

They are way too optimistic: IMEMO forecast reunified Korea to see annual GDP growth of 3.5 percent before reunification (2011-2020), 2 percent during the process of reunification (early 2020s) and 5-6 percent in the final stage (late 2020s). The think tank projected that reunification would lay the groundwork for a new leap for the Korean economy.

GDP(USD) population GDP/capita
North 28.2 bn, 24.0 M, 1 200
South 1164 bn, 48.9 M, 23 800

GDP per capita South/North = 19.8 !

If we assume a peaceful collapse and then a reunification I would guess that the employment figures for North would be 10-20 % (i.e unemployment 80 - 90 %) the first year, then it will slowly go up to 50-60 % employment. Since the total population in N is about 50 % of S, this gives a total unemployment figure in the region of 30 % or so for the combined country.

The employment figures for North would not be higher than 70 % of the figures for the South for many many years. North has to replace its workforce that has irreparable damages in their brains due to malnutrition. Add the lack of normal education.

So the GDP of North will shrink some 40 % the first 2 (?) years and then the investments from South will slowly increase it by the fantastic figure of say 8 % the coming years. In order to get 50 % of the South GDP per capita it will then take about 40 years ( 1.08**37 = 20/0.6 x 50 %)

This assumes that South has 0 growth, if South is growing at 3 % then it will take about 60 years until North will have 50 % of the Southern economy and about 76 years until they have the same. This is about two generations of Norks.

A difficult task.

[AdmSmith]

here http://www.cireq.umontreal.ca/personnel/hunt_german_unification.pdf is the story for Germany.

[SunkenCiv]

Russia is the expert on collapse, after all. :’) Thanks AdmSmith.