“Securing economic profit,” fundamental to economic management

Institute for Far Eastern Studies (IFES)

North Korea recently announced that the legitimacy and vitality of the “Economic Management in Our Style” policy has been clearly proven at many factories and business, and that ‘socialist principles’ and the ‘securing economic profit’ based on objective economic laws are the fundamental demands which must be adhered to in economic management.

On October 22, 2014, the Rodong Sinmun published an independently written article entitled, “The Fundamental Demands of Establishing Economic Management in Our Style,” which stated, “In a socialist society where the means of production are socially owned and where the economy develops according to the guiding plans of the country, the problem of how the economy is lead and managed carries an especially important meaning.”

The article first mentions, “With relation to means of production, socialist ownership is the foundation of a socialist economy, and a socialist economy is developed through collective labor.” The article continues, emphasizing, “Adhering to socialist principles in an economic enterprise means to support and hold fast to socialist ownership and to thoroughly realize the principles of collectivism.”

More specifically, the article stated, “In terms of economic leadership and management, we must adhere to and support socialist ownership, put national and societal gains above all else while also securing as much profit as possible for producers.” It continues, “The entire process of production and management must become one which fosters the spirit of collectivism in workers and laborers and which elevates the public’s willpower and creativity so that they may fulfill their roles and feel ownership responsibility.”

The article also mentioned, “Economic guidance and management must coincide with objective economic laws and scientific logic in order to guarantee the highest amount of real economic profit.” This was pointed out as another one of the fundamental demands of the “Economic Management in Our Style” policy.

With regards to economic law, the article says, “Objective economic laws affect a socialist economy, and the process of satisfying those demands is equal to ‘economic construction’ or an ‘economic development process’.” The article continues, “In order to guarantee real economic profits, economic laws and related economic spaces must be put to use effectively. Such economic laws include the law of value, the law of distribution through labor, and the law of planned, balanced development of the people’s economy through economic leadership, management, production and economic activities.

Moreover, the article specifically emphasized production relations with scientific technology. “In terms of economic guidance and company management, efforts first must be made to advance scientific technology, and all processes and factors relating to production and management must be made scientific. All businesses should actively pursue research and development in new technology and progress towards becoming a company where scientific technology and production are integrated – a technology-intensive business.” It also argues that today’s rapid economic development spurs further development in scientific technology, which occurs through the processes of wide acceptance in production and the active realization of technological guidance in production.

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