The massive construction of heavy industries, especially on the northeastern coast, would have been unthinkable without Russian oil acquired under very favorable barter terms. Mines and industrial production facilities became the backbone of DPRK's economic development. The mountainous north has a wealth of natural resources and a highly trained and motivated labor force. Pyongyang became a modern city, with wide boulevards, elegant theaters, high-rise apartment buildings, a subway system, and monuments to rival Paris. What is more, adherence to the ideology meant that resources were equitably distributed among the population.
Salaries are among the most egalitarian in the world.
Citizens are guaranteed work and receive free housing, food staples, education, and child and health care. It was sustainable only as long as geopolitical Cold War structures remained intact. All of this has left the DPRK more isolated than ever. Without Soviet inputs, progress began to falter. Shortages of fuel, energy, and raw materials have reduced industrial production to 20 or 30 percent of former capacity.