North Korean Economic Development and the Evolution of the North Korean-Soviet Alliance, 1955–1964

Abstract

This article looks at the Soviet-North Korean alliance from the mid-1950s to the early 1960s, with a focus on the often understudied connection between international politics and domestic economic development strategies. It traces and explains the changes in bilateral relations, from a relatively disinterested provision of assistance on the Soviet part and the desire to emulate the USSR on the part of North Korea, to an investment interest of the Soviet Union in the North Korean economic policies, and back to the Soviet Union as a donor of aid aiming to retain the DPRK within its orbit, with North Korea striving to assert self-sufficiency and distance itself. The article also explores the differences in the position of North Korea and the Soviet Union on economic matters and the disputes over prioritizing heavy industry development that took place at the time. Based on a variety of primary sources, it shows how the alliance dynamics was reflected in the economic sphere. It argues that economic matters played a significant role in the cooling of bilateral relations by the mid-1960s.