The
Ryugyong Hotel, the tallest building in North Korea
(unfinished
and unoccupied since 1987)
Published on Newsmax. #TRUMPING #ARTOFTHEDEAL
The
Trump-Kim meeting could end-up being nothing or be the beginning of
everything.
President
Trump surprised the world by agreeing to meet with North Korean
dictator, Kim Jong Un.
Trump
realizes that his three predecessors tried and failed to change the
trajectory towards a nuclear North Korea. He also realizes that Iran
and Islamic terrorists will be the primary beneficiaries of a nuclear
North Korea.
Destabilization
of the Korean Peninsula, the Pacific Rim, the Middle East, and
potentially the rest of the world is totally unacceptable. Something
new and different had to be tried, short of an apocalyptic war.
Trump’s
“saber rattling” is
part
of
his bare knuckled approach to business - intimidate then negotiate.
Trump
could
suggest
Kim Jong Un
be inspired by Chinese Premier Deng Xiaoping.
Modern
China’s economic revolution happened because Deng launched “Gaige
Kaitang”
(Reforms
and Openness). He broke away from the stagnating allegiance to Mao’s
teachings in order to create his own form of market capitalism.
Deng’s
first step, in August 1980, was establishing Special Economic Zones
(SEZs)
that
allowed western market and management methods to enter China. The
zones ignited the economic engines,
and foreign partnering, that propel China’s economy to this day.
Trump,
along with China and South Korea, could offer to facilitate
co-prosperity in
exchange for Kim
totally
dismantling research and development of nuclear weapons and missiles.
In
fits and starts, North
Korea has
reached
out for foreign investment and knowledge over
the years.
They have established their own mini-version
of SEZs. The challenge is to
create enough oversight and boldness
to stimulate
real economic reform and openness. The
goal is creating China
style
reforms,
instead
of
Lenin's New Economic Policy in the USSR during the 1920s, which
was a
cynical attempt to exploit Western naivete
and steal resources.
South
Korean companies could enter
North
Korea and become
major employers of North Koreans. These companies could also begin
the long process of improving North Korea's infrastructure. Viable
roads, rails and bridges are needed to support the supply chains to
support successful SEZ factories.
South
Koreans
are realistic
about co-prosperity. The Kaeson Industrial Region SEZ
failed
in 2013 because the North Korean government expected South Korean
companies to act like parastatals and become another cog in
Communism.
The new North Korean SEZs must
be based upon the
lessons
learned from Kaeson.
Trump
could embrace and offer to foster expansion of
the Choson Exchanges. North Korea is already
sending
some of their "best and brightest", on
“Choson Fellowships”,
to China, Indonesia and other Asian countries to learn about private
sector management. North
Korea
needs
western
companies in its
SEZs so Choson
graduates
can apply their new knowledge.
The
Soviets failed when they tried to append capitalist principles to
dysfunctional state-run industries and unrealistic five-year plans.
North Korea needs to understand the truism that state-run companies
will fail no matter how many outside ideas are introduced. Official
statist
principles absorb and destroy free market ideas like white cells
attacking infection. Only through independent
and viable SEZs will North Koreans realize the benefits of these
early
forays into the world beyond their borders.
President
Trump
could suggest that
North Korea be
open
to South Korean partnerships to fully realize the potential of its
vast natural wealth. North Korea has reserves of more than 200
mineral types distributed over 80% of its territory. Developing these
natural resources could dramatically increase the wealth of North
Korea. South Korea and China would benefit from access to these
minerals. Revenue from mineral exports could fund improvements in the
North's agriculture that would bring real nutrition to its people.
The
bottom line is that the
regional powers - China
and South Korea - have a vested interest in bringing North Korea into
the family of nations. Real economic development will improve the
health and well-being of the North Korean people. Reuniting families
and opening economic exchange would be the first steps toward
reuniting an ancient culture, benefiting
the region and the world. Openness and interaction offer North
Koreans a better future than living in an isolated pariah state.
President
Trump
knows
that the “art of the deal” is making
sure all parties have a solid
tangible
interest in making the deal a lasting reality, and
that
any agreement must adhere to Ronald Reagan’s maxim: “trust but
verify”.
[Scot
Faulkner advises corporations and governments on how to save billions
of dollars by achieving dramatic and sustainable cost reductions
while
improving operational and service excellence. He served as the Chief
Administrative Officer of the U.S. House of Representatives. He also
served on the White House Staff, and as an Executive Branch
Appointee.]
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