Vulnerability and opportunity
Archetype: Small and exposed. Small states with narrow economies and few buffers. One of 25 nations with a similar pattern of results.
Exposed over 10 years: higher vulnerability, lower opportunity than the median nation.
Main drivers of vulnerability over 10 years: Global financial crisis, Geoeconomic confrontation, AI diffusion shock. Highest exposure indicators: share of oil and gas use not met by domestic production; share of exports going to china and the united states; land border with russia or belarus; low real gdp per head; earthquake, storm, flood, drought and volcanic hazards named for the nation.
Downside scenarios: load test
Change in North Korea’s capability index under each scenario at Standard Severe and current plans, largest fall first.
| Scenario | Exposure | Change | No response | Best practice | Rank shift | Bands lost | Weakest point |
|---|---|---|---|---|---|---|---|
| Global financial crisis S03 | High 1.00 | −1.15 | −1.19 | −0.60 | ▼ 10 | 24 | Political Institutions & Civic Participation 0 · Inception |
| Geoeconomic confrontation S01 | High 1.00 | −1.10 | −1.19 | −0.61 | ▼ 19 | 22 | Semiconductors & Advanced Computing 0 · Inception |
| AI diffusion shock S13 | High 1.00 | −1.09 | −1.20 | −0.59 | ▼ 12 | 25 | Artificial Intelligence 0 · Inception |
| Energy supply shock S09 | High 1.00 | −0.97 | −1.13 | −0.56 | ▼ 6 | 19 | Monetary & Currency Capability 0 · Inception |
| Pandemic S14 | High 0.77 | −0.95 | −1.13 | −0.52 | ▼ 4 | 21 | Fiscal Capacity & Public Finance 0 · Inception |
| Sovereign funding crisis S04 | High 0.75 | −0.92 | −0.95 | −0.46 | 0 | 20 | Political Institutions & Civic Participation 0 · Inception |
| Chokepoint closure S05 | High 1.00 | −0.87 | −1.13 | −0.52 | ▼ 8 | 18 | Trade Facilitation & Logistics 0.8 · Inception |
| Single-supplier cut-off S02 | High 1.00 | −0.77 | −0.92 | −0.44 | ▼ 9 | 18 | Global Value Chain Position 0 · Inception |
| Disaster in the core S10 | High 0.83 | −0.72 | −0.88 | −0.39 | ▼ 6 | 19 | Financial System Depth & Access 0 · Inception |
| Infrastructure collapse S12 | High 0.62 | −0.66 | −0.85 | −0.39 | ▲ 3 | 19 | Financial Stability & Crisis Management 0 · Inception |
| Food and water shock S11 | Medium 0.46 | −0.50 | −0.61 | −0.27 | 0 | 16 | Fiscal Capacity & Public Finance 1.2 · Inception |
| Legitimacy crisis S07 | Medium 0.44 | −0.40 | −0.43 | −0.20 | ▲ 5 | 8 | Political Institutions & Civic Participation 0 · Inception |
| Mass displacement S08 | Low 0.26 | −0.19 | −0.23 | −0.10 | ▲ 2 | 10 | Political Institutions & Civic Participation 0.4 · Inception |
| Hybrid campaign S06 | Low 0.15 | −0.11 | −0.17 | −0.07 | ▲ 1 | 8 | Communications & Digital Infrastructure 3.6 · Nascent |
Where each scenario lands
Change in each of the nine capability domains, in points. Darker is a larger fall.
| Scenario | CT | SI | NS | HC | II | GI | FS | PI | TI |
|---|---|---|---|---|---|---|---|---|---|
| Global financial crisis | −0.72 | −0.72 | −0.72 | −1.44 | −1.36 | −1.31 | −1.03 | −1.71 | −1.31 |
| Geoeconomic confrontation | −1.60 | −0.67 | −0.67 | · | −1.51 | −1.25 | −1.06 | −1.41 | −1.74 |
| AI diffusion shock | −1.48 | −0.66 | −0.66 | −1.76 | −1.27 | −1.41 | −1.02 | −0.83 | −0.71 |
| Energy supply shock | −0.25 | −1.49 | −0.62 | −0.62 | −0.62 | −1.19 | −1.13 | −1.49 | −1.35 |
| Pandemic | −1.04 | −0.52 | −0.47 | −1.26 | −1.10 | −1.10 | −0.94 | −1.01 | −1.08 |
| Sovereign funding crisis | −0.11 | −0.85 | −0.53 | −1.18 | −1.05 | −1.21 | −1.13 | −0.98 | −1.20 |
| Chokepoint closure | −0.11 | −1.46 | −1.35 | · | −0.66 | −1.26 | −0.56 | −1.03 | −1.41 |
| Single-supplier cut-off | −1.58 | −0.42 | −0.61 | −0.67 | · | −1.17 | · | −1.28 | −1.22 |
| Disaster in the core | −0.05 | −1.50 | −0.50 | −1.11 | −0.50 | −1.17 | −0.67 | −0.50 | −0.50 |
| Infrastructure collapse | −0.85 | −0.99 | −0.39 | −0.35 | −0.35 | −0.84 | −0.68 | −0.78 | −0.71 |
| Food and water shock | −0.06 | −0.58 | −0.29 | −0.70 | −0.67 | −0.69 | −0.34 | −0.56 | −0.66 |
| Legitimacy crisis | −0.30 | · | −0.66 | −0.30 | −0.70 | −0.82 | −0.80 | · | · |
| Mass displacement | · | −0.19 | −0.16 | −0.38 | −0.31 | −0.43 | −0.18 | −0.02 | · |
| Hybrid campaign | −0.08 | −0.18 | −0.21 | · | −0.20 | −0.19 | · | −0.08 | −0.08 |
Columns: CT Critical Technology · SI Strategic Infrastructure · NS National Security · HC Human Capital · II Information & Influence · GI Governance & Integrity · FS Financial Strength · PI Production & Innovation · TI Trade & Investment.
Upside scenarios: capture test
Net position in each upside scenario: what North Korea is ready to capture, less what it stands to lose.
| Scenario | Position | Net | Capture | Loss | Readiness | Rank | Binding capability |
|---|---|---|---|---|---|---|---|
| Energy abundance S16 ↗ | Gainer | +15.7 | 16.5 | 0.9 | 17 | 68 | Technology Adoption & Diffusion 2 · Inception |
| 100-day pandemic defence S24 ↗ | Gainer | +10.9 | 14.3 | 3.4 | 21 | 85 | Research Talent & Knowledge Creation 3 · Nascent |
| Middle East settlement S21 ↗ | Gainer | +10.5 | 12.6 | 2.1 | 21 | 77 | Trade Facilitation & Logistics 3 · Nascent |
| Emerging-market breakout S20 ↗ | Gainer | +10.3 | 10.6 | 0.3 | 16 | 76 | Investment Attraction & Projection 1 · Inception |
| Sovereign debt reset S19 ↗ | Mixed | −1.5 | 2.8 | 4.3 | 7 | 159 | Transparency, Oversight & Accountability 0.3 · Inception |
| Yield revolution S22 ↗ | Mixed | −7.6 | 9.8 | 17.4 | 16 | 136 | Technology Adoption & Diffusion 2 · Inception |
| Digital state leapfrog S23 ↗ | Loser | −11.9 | 6.0 | 17.9 | 9 | 164 | Transparency, Oversight & Accountability 0.3 · Inception |
| Great-power détente S18 ↗ | Loser | −25.7 | 6.2 | 31.9 | 8 | 190 | Investment Attraction & Projection 1 · Inception |
| Superintelligence takeoff S15 ↗ | Loser | −26.5 | 8.8 | 35.4 | 13 | 144 | Artificial Intelligence 1.7 · Inception |
| Biomedical breakthroughs S17 ↗ | Loser | −33.8 | 10.3 | 44.1 | 19 | 195 | Regulatory Governance & Strategic Controls 2.7 · Inception |