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Economic Analysis Letters

Open Access Journal Article

Financial Exclusion of the Smallest Economies in the World

by Anders Lundvig Hansen a  and  Luís Lima Santos b,*
a
The Salford School of Business, University of Salford, Salford, Manchester, United Kingdom
b
CiTUR – Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, Leiria, Portugal
*
Author to whom correspondence should be addressed.
JEA  2025 4(3):116; https://doi.org/10.58567/jea04030008
Received: 22 March 2025 / Accepted: 7 July 2025 / Published Online: 17 July 2025
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Abstract

North Korea's extreme financial exclusion severely hinders economic growth, perpetuating poverty and inequality. This study examines financial exclusion in the country, shaped by its isolationist policies, international sanctions, and a rudimentary financial system. Through a literature review and mixed-method analysis, incorporating data from the World Bank, IMF, academic sources, and NGOs, the research highlights how financial exclusion limits economic development. North Korea's self-reliance ideology, strict internal policies, and global sanctions exacerbate its financial isolation, restricting access to formal banking and financial services. As a result, North Koreans rely on informal financial networks, cross-border trade, remittances, and even cryptocurrencies to navigate these constraints. Additionally, the regime employs sophisticated money-laundering techniques to evade sanctions and integrate illicit funds into the formal economy, funding its nuclear ambitions. The study recommends humanitarian pathways to alleviate financial exclusion, advocating for a conditional easing of sanctions in exchange for compliance with international demands. Strengthening anti-money laundering frameworks is also crucial to curb illicit financial activities. Addressing financial exclusion in North Korea requires a balanced approach that supports the population while enforcing measures against regime-led financial crimes.

Keywords: Financial Exclusion; Global Sanctions; Poverty; Inequality; North Korea;
Copyright: © 2025 by Lundvig Hansen and Lima Santos. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
Cite This Paper
APA Style
Lundvig Hansen, A., & Lima Santos, L. (2025). Financial Exclusion of the Smallest Economies in the World. Journal of Economic Analysis, 4(3), 116. doi:10.58567/jea04030008
ACS Style
Lundvig Hansen, A.; Lima Santos, L. Financial Exclusion of the Smallest Economies in the World. Journal of Economic Analysis, 2025, 4, 116. doi:10.58567/jea04030008
AMA Style
Lundvig Hansen A, Lima Santos L. Financial Exclusion of the Smallest Economies in the World. Journal of Economic Analysis; 2025, 4(3):116. doi:10.58567/jea04030008
Chicago/Turabian Style
Lundvig Hansen, Anders; Lima Santos, Luís 2025. "Financial Exclusion of the Smallest Economies in the World" Journal of Economic Analysis 4, no.3:116. doi:10.58567/jea04030008

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ACS Style
Lundvig Hansen, A.; Lima Santos, L. Financial Exclusion of the Smallest Economies in the World. Journal of Economic Analysis, 2025, 4, 116. doi:10.58567/jea04030008
AMA Style
Lundvig Hansen A, Lima Santos L. Financial Exclusion of the Smallest Economies in the World. Journal of Economic Analysis; 2025, 4(3):116. doi:10.58567/jea04030008
Chicago/Turabian Style
Lundvig Hansen, Anders; Lima Santos, Luís 2025. "Financial Exclusion of the Smallest Economies in the World" Journal of Economic Analysis 4, no.3:116. doi:10.58567/jea04030008
APA style
Lundvig Hansen, A., & Lima Santos, L. (2025). Financial Exclusion of the Smallest Economies in the World. Journal of Economic Analysis, 4(3), 116. doi:10.58567/jea04030008

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