North Korea’s natural resource risks: Kim Jong-il’s own take

By Benjamin Katzeff Silberstein

As North Korea debates and experiments in economic strategies, it’s always interesting to go back and look at older debates of a similar nature. While reading vol. 14 of Kim Jong-il’s Collected Works (Sonjib) I stumbled upon an interesting speech attributed to Kim from 1995.* Whether it was foresight or just common logic of political economy, Kim actually warned of the risks of North Korea becoming a mere natural resource exporter to other countries, without reaping the full benefits of trade. Recall that one of the charges against Jang Song-taek was selling out the country’s natural resources for his own benefit. The issue itself, of course, is much older.

In the speech, given to an audience of Central Committee functionaries, Kim attacks cadres that have a faulty understanding of foreign trade under socialism, and think only about how their own “units” (단위) can make foreign currency profits (p. 8). He also emphasizes the need to calculate all the costs involved with foreign trade, including production costs at home, to calculate actual profit.

The most interesting part, in my opinion, however, is where Kim gets to the natural resource question. Kim states that natural resources shouldn’t just be sold to other countries, but processed (가공) domestically to the greatest extent possible (p. 10). He says that “now, capitalists are buying natural resources at a cheap price from our country, processing them and selling them to a higher price.”

Kim complains that it’s a grave crime that capitalists are pocketing their own wallets by selling off North Korea’s own resources by processing them, and that North Korea could become mere suppliers to monopoly capitalism if it doesn’t start processing their natural resources itself. He also states that those who just sell off natural resources without processing are just like slaves to foreign countries.

Kim also warns people about thinking that foreign currency can be earned “for free.” “The imperialists and capitalists never give anything to anyone for free,” Kim states, and says that if capitalists say they have anything to give, it is because they have their own desires” (p. 11).

This speech is a reminder that North Korea has grappled with how to handle its natural resources for a long time, and it suggests that controversies abounded in the 1990s as well.

*These works are sometimes edited after the fact, sometimes several times over, but this edition is from 2000, published by the Worker’s Party Publisher (N’odongd’ang chulpan’sa). All translations are my own, and if anyone has any corrections to offer, please get in touch.

Share

Comments are closed.


An affiliate of 38 North