This section of the Library is devoted not so much to special papers directly related to North Korea as it is to several outstanding economists and their works (or works about them) that have a direct bearing on North Korea, both the present and the future. We provide this information as a way to get people thinking seriously about the economic issues of the current situation and for the future development of the country. It is our strong belief that North Korea needs a new economic system, one that is realistic and that conforms to God's requirements. A new nation requires a new foundation. Economics is a major part of that foundation--theory, policy and practice. No foundation can be solid unless it is built on the truth of God, the Rock.

For further thought on the importance of economics in a Christian world view, especially as it pertains to North Korea, we invite you to review the series of short articles by Fr. Archer Torrey posted in the Articles section.

The economists presented in this section may or may not be Christian; however, we judge their work to of vital importance and relevant to God's purposes.

As we receive research papers dedicated to the issues of economics as it applies to North Korea, we will post those here as well.

Henry George
Henry George demonstrated the unique and critical place of land in the economy. He showed that land is the foundation of all development and is not the result of human effort. Every parcel of land is unique and has value deriving from the community, not the efforts of individuals. The value of a piece of land is based on its location. Some of this value derives from nature and some from the community. George proposed a "single tax" on the value of land, no taxes on improvements. Such a tax would more properly be thought of as a land rent, returning to the community (the taxing or renting entity) the value derived from the community as a whole. A tax on improvements--the work of human effort--is a regressive tax that discourages development while a tax on land values promotes development and economic prosperity.

Fr. Archer Torrey has shown how George's ideas are in concert with Biblical principles and embody a practical way to implement the Old Testament law concerning the land of Israel in a modern, international context.

George's primary work is Progress and Poverty. All of his works are available through the Robert Schalkenbach Foundation, www.schalkenbalk.org. Additional information and related writings are available through the Henry George Association, www.henrygeorge.org.

Fr. Torrey's contribution to Georgist economics are presented in his book, Biblical Economics, which is available from the publisher, Xlibris at www.xlibris.org or 1-888-795-4274.


Ludwig von Mises and the Austrian School
The Austrian School of economists are dedicated to free market principles and have demonstrated the value of this approach. Ludwig von Mises is the premier personage in this group. He showed back in the 1930s that Socialism was not a tenable system of economics and that socialist systems would inevitably collapse of their inherent contradictions and their ignoring of human nature. The critical difference between Georgist and Austrian economics is that the Austrian economists view land in the same way as all other property which George does not. On all other points, the Georgists and the Austrians would most likely agree.

Ben Torrey believes that a marriage of these two schools of thought is critical, that it would fill out Georgist theories while balancing Austrian. Both can be shown to be Biblical and both need to be undergirded with Biblical precepts, especially concerning human relationships and sin.

The works of Ludwig von Mises, Freidrich A. Hayek, Murray Rothbard, Leonard Read and others are widely available and well worth studying, especially in relation to new economic foundations for North Korea.

Pertinent web sites:
+ The Ludwig von Mises Institute
+ The Hayek Center for Multidisciplinary Research
+ The Foundation for Economic Education .


Janos Kornai
Janos Kornai is a Hungarian economist who lived in and studied socialist economies. He has documented attempts to implement socialism and the inevitable results. He has shown that attempts to reform socialist economies will inevitably fail. His work is not just theoretical nor did he set out to discredit socialism. It is based entirely on empirical data culled over a lifetime of study. He is currently an emeritus professor at Harvard University.

His primary work is The Socialist System: The Political Economy of Communism. Other works are Vision and Reality, Market and State; Highways and Byways: Studies on Reform and Post Communist Transition; Reforming the State: Fiscal and Welfare Reform in Post-Socialist Countries and others. His work is of great importance in contemplating the future of North Korea. They are widely available.

Some of his papers are available at
+ http://econpapers.repec.org/RAS/pko198.htm
and
+ http://www.colbud.hu/fellows/kornai.shtml .


+ Institute for International Economics [website]
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