North Korea has an industrialised, near-autarkic, highly centralized command economy. North Korea is one of only two states (along with Cuba) with an almost entirely government-planned, state-owned economy. The Central Planning Committee prepares, supervises and implements economic plans, while a General Bureau of Provincial Industry in each region is responsible for the management of local manufacturing facilities, production, resource allocation and sales.
North Korea's isolation policy means that international trade is highly restricted. North Korea passed a law in 1984 allowing for foreign investment through joint ventures, but failed to attract any significant investment. In 1991, it established the Rason Economic Special Zone, in an attempt to attract foreign investment from China and Russia. Chinese and Russian companies have purchased rights to use the ports at Rason. Chinese investors are renovating a road from Rason to China, and Russian railway workers are renovating the railway from Rason to Russia, from where it continues onto the Trans-Siberian Railway.
Until 1998, the United Nations published HDI and GDP per capita figures for North Korea, which stood at a medium level of human development at 0.766 (ranked 75th) and a GDP per capita of $4,058. The average salary was about $47 per month in 2004. The average official salary in 2011 was equivalent to $2 per month while the actual monthly income seems to be around $15 because most North Koreans earn money in illegal small businesses: trade, subsistence farming, and handicrafts. The illegal economy is dominated by women because men have to attend their places of official work even though most of the factories are non-functioning. It is estimated that in the early 2000s, the average North Korean family drew some 80% of its income from small businesses that are legal in market economies but illegal in North Korea.
Despite substantial economic problems, quality of life was improving and
