North Korea's policy of making its people miserable

From the Independent comes this depressing story of North Korea's devaluation of its currency.   Key quote:

Famine, compounded by a series of natural disasters, is thought to have claimed 2-3 million lives inside the country since the mid-1990s. Mr Kim has responded with a series of limited Chinese-style reforms designed to loosen central control over the economy.

The reforms have increased wealth disparities and incubated a growing class of wealthier farmers and merchants who are evading state controls and using bribery to keep government officials in line, say Pyongyang watchers. In January, the government failed in its attempt to rein in the reforms by limiting or closing private market.

"Currency reform was probably the only option left to neutralise the wealthy merchant class," a North Korean defector and analyst, Cho Myong-chol, told Chosun Ilbo yesterday. "The latest measure has made everyone poor again and possibly raised the North Korean government's hopes of regaining control over its people."

This is a great example of a nation intentionally stymieing growth as a means of political control.  It's also a nice counter to those who argue that economic reform is inherently more important than political reform.  I don't see either happening in the DPRK, but it is hard to imagine a move like this taking place in a more accountable system.