RISE OF THE DISLOYAL: INCREASING RESENTMENT IN NORTH KOREA

Why has loyalty to the Kim Family Regime and the Worker’s Party diminished over the past twenty years despite a rise in the average standard of living, greater social mobility, and a regime policy of benign neglect towards marketization? Unthinkable in the Kim Il Sung era, the increase in expressions of resentment toward the North Korean authorities represents a shift in the ideology, behavior, and motivation of the population. Four critical factors have heightened tensions between state and society in North Korea, leading to a reduction in loyalty among the general population. The author considers the impact of labor mobilizations, the declining importance of party membership, the influence of foreign media, and the rise of rent seeking and extractive policies. While all play a role, it is important and possible to identify the primary cause. Extractive policies and rent-seeking position the regime and the people in a directly adversarial relationship. All tiers and agencies of the government have become complicit in efforts to siphon off profits, control market actors through crony capitalism, rent seek, over-regulate, and compete against private market actors, causing the residents to express frustration and resentment towards a government that does not have their interests at heart.     

Fiscal rules in the Canadian provinces: Abject failure or qualified success?

Most Canadian provinces have introduced legislation to require politicians of all ideological stripes to meet annual balanced budget (BB) targets. Critics of this type of legislation argue that it is unnecessary, confining, and subject to manipulation. We examine provincial balanced budget legislation before and after the Great Recession and argue that the response of provinces needs to be evaluated taking into account the multiple objectives of fiscal policy and the behavioural changes that the rules introduce, including creative non‐compliance. Rules should be evaluated on their ability to contribute to good fiscal governance rather than on their stringency.