However, there are no agricultural machines, no chemical fertilizers and no high-quality seeds, not to mention a lack of markets. In such structural circumstances an incentive system does not work at all. If the industrial sector adopts the incentive system in a move to economic reform, it would experience failure similar to the agriculture sector due to raw material and energy shortages. China instituted its reform and opening policy simultaneously, so on the whole it has been more effective. But North Korea can barely adopt a domestic economic reform policy, because North Korea ' s economic situation is so miserable.
China remains stable and strong if many flies come in.
But North Korea cannot long maintain its present form, even if only one fly comes in. Learning from China, North Korea should adopt a system similar to that of Shenzhen. When Shenzhen was first conceived, it had multiple boarder lines, with passage available for only certain people, thus ensuring social management. In light of North Korea's reclusive nature, Kim Jong Il's two trips to China are important events, but perhaps it is time for him to do more than just visit China. Her research areas are foreign investment, trade and economic relations between China and the Korean Peninsula.