North Korea: The world’s next source of cheap resources and labor?
It just might be according to this AP report.
“They are very skillful and hardworking,” said Felix Abt, a Swiss businessman who oversees two ventures in Pyongyang, one that makes business and game software for sale in Europe and another that makes antibiotics and painkillers for the domestic market. “It’s sometimes faster to get licenses and necessary approvals here than it is in China or Vietnam.”
Barrett said that even as the U.N. Security Council debated the latest sanctions on the North, he got inquiries from investors interested in its rich mineral resources and low-cost manufacturing work force.
Barrett claims that rising labor costs are causing investors to cool on China, and that the NORKs have everything it takes to take off economically and performed the same economic miracles as their estranged cousins to the South.
But obstacles still remain. Most international trade currently is through state companies, and national leaders are still wary about relaxing their grip on the economy. Despite all of this this, economic and political realities may very well end up dragging North Korea kicking and screaming into relative economic prosperity.
The only question left is whether it is in the best interests of the world to have an economically powerful North Korea.
“They are very skillful and hardworking,” said Felix Abt, a Swiss businessman who oversees two ventures in Pyongyang, one that makes business and game software for sale in Europe and another that makes antibiotics and painkillers for the domestic market. “It’s sometimes faster to get licenses and necessary approvals here than it is in China or Vietnam.”
What will our future be like with multinational corporations continuously outsourcing labor to the low-bidder anywhere in the world? Who benefits and who pays the price?
November 6th, 2006 at 11:20 amBloomberg columnist William Pesek Jr. recently wrote an interesting article about this, which you can read here.
November 6th, 2006 at 11:49 amNorth Korea Vs. China In IT Offsourcing
Just read a fascinating report on North Korea’s outsourcing industry, written by GPI Consultancy Dutch IT sourcing consulting firm out of Rotterdam, (big h/t to China Rises: Notes From the Middle Kingdom). A few months ago, I sat next to
December 11th, 2006 at 3:33 pm