A/HRC/7/20 page 6 no genuine people’s participation - a key determinant of sustainable development advocated by the world community. Those who are regarded as dissidents are marginalized, discriminated against and persecuted. The gap between the haves and the have-nots is on the increase, as seen in the food situation below, and the country suffers from the lack of resource and power distribution, which shape the potential for human development. 9. In 2004 the national expenditure budget was some 351 billion won, with military expenditure at 15.6 per cent, allocation for people’s economy at 41.3 per cent, social and cultural sector allocation at 40.8 per cent and administrative expenditure at 2.3 per cent.6 The share of military expenditure, direct and indirect, is more than meets the eye as follows: “The military expenditure burden may seem light, at first glance, but in the case of the DPRK, the share of the people’s economy accounted for by the government sector is immense …, so it is thought that the ratio of military expenditure on the economy of the DPRK is extremely large, and it would be (no) exaggeration to say that this is acting as a drag on the economic recovery.”7 10. Moreover, the country adheres to a “military first” policy, with millions involved in the military machinery and industry - this depletes the resources of the country in favour of militarization, in the face of many shortages and deprivations suffered by the population. It is estimated that the armed forces total over 1 million armed personnel, with another 7.7 million reserve component.8 11. It may be recalled that from 2006 the militarization drive was manifested by various missile and nuclear tests carried out by the authorities of the country which led to global condemnation. These acts undermined the possibility of aid from other countries which reconsidered their contributions. While the six-party talks have progressed gradually on the denuclearization front, the parallel issue of overall demilitarization and a shift from pro-military budget to pro-people budget has not yet been addressed. 12. The economic crisis faced by the country is illustrated by the rampant shortages of food and other basic necessities referred to below, particularly since the mid-1990s. The social security framework on which the country prided itself as part of a socialist system in the past, is now in serious decline.9 6 North-East Asia Economic Databook, p. 51. 7 North-East Asia Economic Databook, pp. 51-52. 8 Library of Congress … (note 3 above), p. 18. 9 “White Paper on Human Rights in North Korea 2007”, Korean Institute for National Unification, Seoul, 2007, pp. xix-xx.