Interview: How bribery holds North Korea’s market economy together

Dr. Andrew Yeo and Dr. Justin Hastings, two researchers who conducted interviews with North Korean defectors, have revealed that bribery is a pervasive aspect of daily life in the country's hybrid socialist-market system. In their follow-up study, the researchers defined bribery as "a way to get something in short supply or to cut through administrative red tape," and explained how it functions within North Korea's market economy.

Bribery comes in two forms: horizontal and vertical. Horizontal bribery occurs between people of roughly equal status, such as ordinary residents and low-level local officials. For instance, a defector recounted paying cigarettes to a doctor as thanks for a vaccine because the doctor's salary was insufficient to make a living. Horizontal bribery is driven by mutual social support and helps keep services running that the state cannot provide, enabling private businesses to thrive.

Vertical bribery, on the other hand, involves hierarchies where the recipient has significant power over the payer. This can include bribes to high-ranking officials to move large volumes of cargo or reduce prison sentences. The moral line is generally drawn at necessity, with both parties seeing the bribe as reasonable if it fits the task or addresses the recipient's needs, such as providing necessities like food or firewood.

In both horizontal and vertical bribery, social dynamics and how people judge the other person's needs play a critical role in shaping the transaction.