Obama urged to engage N.K. economically to complement denuclearization efforts

The Barack Obama administration should engage North Korea economically on a long-term basis to complement the short-term efforts for its denuclearization, a report said Thursday.

"Sanctions have been tried for decades, and at times have been useful in moving Pyongyang back to negotiations," said the report written by a task force commissioned by the Asia Society. "But their long-term effect has been to harden the DPRK`s resistance to international cooperation and reinforce its isolation from the liberalizing influence of global economic integration."

DPRK is North Korea`s official name, Democratic People`s Republic of Korea, according to Yonhap News.

"Sanctions alone will not create a lasting solution to the North Korean conundrum, and must be complemented by other long-term strategic approaches," said the report titled "North Korea Inside Out: The Case for Economic Engagement."

The proposal comes as the Obama administration is leading international efforts to sanction North Korea for its nuclear and missile tests earlier this year.

U.S. Secretary of State Hillary Clinton Wednesday said that the U.S. will not lift sanctions on North Korea nor normalize ties unless Pyongyang takes irreversible steps toward its denuclearization.

The top U.S. diplomat also said, "Within the framework of the six-party talks, we are prepared to meet bilaterally with North Korea. But North Korea`s return to the negotiating table is not enough."

The North`s apparent reconciliatory gesture came when Chinese Premier Wen Jiabao visited Pyongyang for talks with Kim to sign agreements for provision of fresh aid and construction of a bridge linking the sides over the Aprok River, which is the natural border between the regional communist allies.

Ri Gun, the North`s deputy chief to the six-party talks, will arrive in New York Friday to attend seminars and possibly meet with U.S. officials to prepare for a visit to Pyongyang by Stephen Bosworth, the U.S. point man on North Korea policy, for a breakthrough in bilateral ties.

"The United States needs a long-term strategy aimed at transforming North Korea`s intentions and behavior to complement the short-term focus on the DPRK`s nuclear capabilities," the report said. "A central piece of that strategy is to engage North Korea in the process of economic integration with the economy."

The report called on the U.S. to pursue academic exchanges, cooperation with nongovernmental organizations and engagement with the International Monetary Fund and other international institutions, although "North Korean decision-makers may rebuff initial proposals for cooperation."

"There are no guarantees that even if they welcome economic engagement they will be able to win over those who enjoy special protection and status under the command economy," it said.

Despite the difficulties involved, economic engagement may initiate significant changes in the North, it said.

"The very process of economic engagement with the U.S. has the potential to catalyze fundamental changes in North Korean political, economy and foreign relations, while at the same time allowing the U.S. to learn more about its internal dynamics and refine its policies accordingly," the report said.

It cited North Korea`s economic assets "that can contribute to a new growth path: an educated labor force, a rich supply of minerals, a long history as an industrial country, and neighbors like the ROK and China who are eager to do business."