Mediation Analysis: The Use of Regional Science Methods to Resolve Conflicts

For the last few decades, security has become a major issue which threatens human well-being. We, as peace scientists, have tried to develop methods which can cope with international conflicts. The purpose of this paper is to illuminate how some methods developed in Regional Science, namely comparative cost analysis, input-output, industrial complex and others, can be used to help resolve the US-North Korea conflict.North Korea has developed nuclear weapons, which is of great concern to neighboring countries. We suggest steel industry and associated developments in North Korea supported by the neighboring countries can be a full compensation for North Korea's giving up nuclear weapons and will lead North Korea to become deeply involved in the global economy. North Korea's advantages of iron ore, coal, and cheap labor force turn out to be a $55-60 cost advantage per ton of steel over the giant steel companies in South Korea and China. Its steel and related activities could generate at least 70,000 new jobs which will be enough to boost the stagnated North Korean economy to a healthy level.