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: This monograph, focusing on North Korea, analyzes some of the economic, political, and security issues associated with Korean unification. The analysis considers the numerous puzzles and paradoxes that obscure the North Korean system, especially that system's structure and functioning as a "rent-seeking economy. We also consider how the system might unravel, leading to the possibility of reunification, and what the attendant capital costs of reunification would be under differing circumstances and assumptions. Our estimates of these costs are then compared with those by other institutions and analysts. Consideration is given to points of relevance and nonrelevance between the German experience with unification in the 1990s and that which might impend in Korea. Finally, the monograph concludes by briefly assessing the problems that a reunified Korea would confront relating to possession of weapons of mass destruction, its relations with neighboring countries, especially China, and its alliance with the United States.

North Korean Paradoxes: Circumstances, Costs, and Consequences of Korean Unification