North Korean Economy Watch

Read the full report here (PDF). Previous reports here.

According to the UN WFP/FAO Press Release (on Thanksgiving day!):

ROME/PYONGYANG – A nationwide assessment by two United Nations agencies shows an increase in staple food production in the Democratic People’s Republic of Korea (DPRK) for the third year running.

The report, however, notes that although rates of child malnutrition have steadily declined over the past 10 years, rates of stunting caused by malnutrition during the first 1,000 days of a child’s life remain high and micronutrient deficiencies are of particular concern.

The joint Crop and Food Security Assessment Mission to the DPRK by the Food and Agriculture Organization (FAO) and World Food Programme (WFP) visited all nine agricultural provinces in late September and early October around the main annual cereal harvest.

Total food production is estimated at about 5.03 million metric tons (including milled rice) in 2013, which is about a 5 percent increase over the previous year. Despite the improved harvest, the food security situation is still unsatisfactory with 84 percent of households having borderline or poor food consumption.

The mission observed immense logistical challenges for the public food distribution system and expressed concerns about the timeliness and consistency of distributions. Markets and informal mechanisms of bartering and other forms of exchange are believed to be of increasing importance for access to food by families, particularly in urban areas.

“Despite continued improvement in agricultural production, the food system in the DPRK remains highly vulnerable to shocks and serious shortages exist particularly in the production of protein-rich foods,” said Kisan Gunjal, FAO economist and co-leader of the mission. “In the interest of increased protein consumption and to reverse the downward trend of soybean production, the price paid to farmers for soybean should be increased.”

Since 1998, WFP in partnership with the government has produced blended fortified foods and nutritious biscuits for children and pregnant or nursing women. WFP has recommended a shift to a new product – Rice Soya Milk Blend – for children in nurseries to reduce stunting and wasting.

“Improving the diversity and quality of food provided through the child institution system is essential to improving children’s nutrition,” said WFP DPRK Country Director Dierk Stegen. “We want to produce Rice Soya Milk Blend but can only do so if we receive sufficient donor support.”

Despite a small reduction in the area planted, overall crop production in 2013/14 is estimated to increase due to generally favourable weather conditions that resulted in a higher rice crop.

The aggregate production from cooperative farms, plots on sloping land and household gardens estimated by the mission includes the 2013 main season harvest and the forecast for 2014 early season crops. Unusually early and heavy rains in July and early August compromised maize and soybean yields but had little effect on paddy.

The report estimated cereal import requirements at 340,000 metric tons for the 2013/14 marketing year (November/October). Assuming the official import target of 300,000 metric tons of cereals is met, there remains an uncovered food deficit of 40,000 metric tons for the current marketing year.

While this food gap is the narrowest in many years, it needs to be bridged either through additional purchases by the government and/or international support to avoid increased undernourishment during the current marketing year.

To improve food security and nutrition, the report recommends national and international support for sustainable farming practices, better price and market incentives for farmers and improvements in farm mechanization.

In nutrition, the report recommends that efforts should go toward improving dietary diversity and feeding practices for young children and women through strategies such as behavioural change, market reform and encouraging livestock and fish production; strengthening treatment of severe and moderate acute malnutrition; and better hygiene and sanitation practices.

High-Resolution photographs from DPRK can be downloaded here.

Here is Wall Street Journal and Assocaited Press.

Yonhap points out that this report offers more evidence that the DPRK has continued to  implement its “6.28 Policy“. According to the article:

North Korea is offering incentives to farmers who are productive, while cutting food rations for those who under-perform, a United Nations agency said Friday.

According to the 2013 North Korea food production report by the World Food Programme (WFP), many cooperative farms across the country are giving incentives to members in the form of extra rations.

It said the move seems to be aimed at getting people to produce more and inject some spirit of competitiveness into the farming sector. The findings are based on interviews carried by the WFP and the Food and Agriculture Organization of the United Nations, which sent a fact-finding team to the communist country from late September through mid October. The organizations talked to people from 77 households from 51 cooperative farms.

The country suffers from chronic food shortage with local food output unable to meet demand without foreign assistance.

It said productive farmers have been known to take home 65 kilograms worth of extra rations for a three month period from the cooperative he or she works for, depending on output.

The WFP findings, on the other hand, showed some people have not received food rations from the state for up to four months.

The food program, meanwhile, said that North Korea’s rice production is expected to reach a little over 2.90 million tons this fall, up 8.2 percent compared to 2.68 million tons tallied in 2012.

It said output per hectare of rice paddy reached 5.3 tons on average, up from 4.8 tons the year before.

The WFP said of the total population, 16 percent are not suffering from food shortages, although conditions for the rest are not as good.

It said from November of this year to October 2014, the communist country will need an extra 340,000 tons of food to sufficiently feed its people.

According to Yonhap:

North Korea’s crop imports from China more than doubled to hit a yearly high in September, data showed Wednesday.

According to the data compiled by Kwon Tae-jin, a senior researcher at the Korea Rural Economic Institute, North Korea imported 67,208 tons of grains and legumes such as flour, rice, corn and bean in September from its neighboring country, compared with 26,804 tons a month earlier.

The surge was attributed mainly to Pyongyang’s increased imports of corn. The impoverished nation bought a total of 50,613 tons of corn last month, nearly nine times the amount imported the previous month, the data showed.

“The big increase in imports would either mean that Pyongyang is running out of its stock amid the regime’s efforts to increase the ration to people since this spring or that it is try to stabilize market prices,” Kwon said.

“Factoring in the forecast of good harvests for the autumn, the North is expected to enjoy a relatively stable supply of crops at least for the rest of the year,” he added.

Read the full story here:
N. Korea’s crop imports from China hit annual high in Sept.
Yonhap
2013-10-30

According to KCNA (2013-10-28):

Agreements on Cooperation between Governments of DPRK, Mongolia Signed

Pyongyang, October 28 (KCNA) — An agreement on cooperation in the fields of industry and agriculture and an agreement on cooperation in the fields of culture, sports and tourism were signed here on Monday between the governments of the DPRK and Mongolia.

Present there from the DPRK side were Kim Yong Nam, president of the Presidium of the DPRK Supreme People’s Assembly, Pak Ui Chun, minister of Foreign Affairs, Ri Ryong Nam, minister of Foreign Trade, Kim Jong Suk, chairwoman of the Korean Committee for Cultural Relations with Foreign Countries, Pak Kil Yon, vice-minister of Foreign Affairs, Kwak Il Ryong, vice-minister of Land and Maritime Transport, Hong Kyu, DPRK ambassador to Mongolia, Jong Song Chan, vice general director of the General Bureau of Software Industry of the DPRK, and officials concerned.

Present from the Mongolian side were Mongolian President Tsakhiagiin Elbegdorj, Luvsanvandan Bold, minister of Foreign Affairs and Trade, Manibadrakh Ganbold, Mongolian ambassador to the DPRK, Khaltmaa Battulga, minister of Industry and Agriculture, Tsagaandari Enkhtuvshin, secretary general of the National Security Council, Tserendejid Byambajav, chief of the General Staff of the Armed Forces, Khabshai Erjan, vice-minister of Road Transport, Lundeg Purevsuren, national security and foreign policy advisor to the President, Amgalanbaatar Ganbaatar, advisor for mass liaison and mass policy to the President, Pureb Altangerel, secretary of state for the Ministry of Culture, Sports and Tourism, officials concerned and staff members of the Mongolian embassy here.

The agreement on cooperation in the fields of industry and agriculture was inked by Ri Ryong Nam, minister of Foreign Trade, and Khaltmaa Battulga, minister of Industry and Agriculture, and the agreement on cooperation in the fields of culture, sports and tourism by Kim Jong Suk, chairwoman of the Korean Committee for Cultural Relations with Foreign Countries, and Luvsanvandan Bold, minister of Foreign Affairs and Trade, on behalf of the governments of the DPRK and Mongolia.

Meanwhile, the 2013-2015 plan for exchange in the IT field between the General Bureau of Software Industry of the DPRK and the IT, Post and Telecommunication Bureau of Mongolia was signed.

According to Yonhap, the DPRK’s food imports increased over the summer:

North Korea’s crop imports from China rose 16.5 percent in August from the previous month, data showed Tuesday, indicating stability in food supply for people in the impoverished nation.

According to the data compiled by Kwon Tae-jin, a researcher at the Korea Rural Economic Institute, North Korea imported 26,804 tons of grains such as flour, rice, corn and bean in August from its neighboring country, compared with 22,988 tons a month earlier.

The North spent a total of US$15.4 million to buy the crops that month, the largest monthly spending for the year, the data showed.

August also marked the seventh consecutive month that the North’s crop imports topped 20,000 tons.

“Since February, the North has imported more than 20,000 tons of crops per month from its strongest ally,” Kwon said.

“Factoring in the forecast of good harvests for the autumn thanks to good weather conditions, the North is expected to enjoy a relatively stable supply of crops at least for the rest of the year,” he added.

Meanwhile, North Korea’s fertilizer imports from China totaled 183,639 tons in the January-August period, down 27.1 percent from the same period a year earlier, according to the data.

North Korea’s domestic food production is also apparently higher. According to Yonhap:

North Korea’s grain harvest is expected to grow about 8 percent this year from 2012 thanks to relatively favorable weather conditions, a source with the knowledge of food situation in the communist nation said Wednesday.

The North is estimated to produce as much as 5.3 million tons of grains this year, a 7.7 percent increase from 4.92 million tons last year, the source said on the condition of anonymity.

This year’s estimated grain harvest roughly meets with the North’s annual demand of 5.4 million tons. The annual demand was calculated by South Korea’s state-run Korea Rural Economic Institute.

“Grain harvest in North Korea this year is much better than last year because there were no big natural disasters, except for heavy rains in July this year,” the source said.

Despite the positive assessments of the DPRK’s food supply, the UN warns more food assistance is needed. According to Yonhap:

North Korea remains one of the 34 countries in the world that require external assistance to properly feed their people, a media report said Friday.

The Voice of America said the October issue of Crop Prospects and Food Situation by the Food and Agriculture Organization (FAO) estimated that there will be some 2.8 million “vulnerable” people in the communist country needing assistance until this year’s fall harvest.

The Washington-based media outlet said that judging by official estimates tallied by the United Nations organization, Pyongyang’s spring cereal harvest for 2013, mainly winter, wheat and barley, fell shy of the initial forecast, and that this is the main reason for the current shortage.

The country had reported improved harvests in the fall of 2012.

The U.N. agency also said people in the country are experiencing “widespread lack of access” to food caused in part by past floods.

The latest findings added that overall conditions in the North have not changed vis-a-vis July when the last food situation report was released.

At the time, the North was the only country in East Asia to be placed on the list requiring external aid. Others on the list of the 34 countries were in Africa and Central Asia.

The FAO, meanwhile, estimated that the North has been able to secure 328,000 tons of various grain from November of 2012 to early last month. This is equal to 65 percent of the 507,000 tons of grain Pyongyang needs to properly feed its population.

Read the full stories here:
N. Korea’s crop imports from China up 16 pct in Aug.
Yonhap
2013-10-1

N. Korea’s grain harvest seen improving: source
Yonhap
2013-10-2

N. Korea needs external aid to feed its people: report
Yonhap
2013-10-4

Here is a recent article in KCNA on economic advancements. I post as a reference to what the North Koreans are most proud of when it comes to economic management.

DPRK Directs Efforts to Developing Economy

Pyongyang, August 16 (KCNA) — Marshal Kim Jong Un, in the 2013 New Year Address, set the building of a strong economy as a key issue in accomplishing the cause of building a thriving socialist nation.

In response to his New Year Address, the people in the Democratic People’s Republic of Korea have made fresh upsurge in all economic sectors in the spirit of the “Masikryong Speed”.

Readjustment of the West Sea Barrage-Sinchon-Kangryong and Ongjin waterways was finished in ten days, while more than 1,000 hectares of fruit field has come into being in Pukchong County, South Hamgyong Province.

The Pyongyang Essential Foodstuff Factory and the Phyongsong Synthetic Leather Factory have become streamlined and the Vitamin C Factory and the Turf Research Center of the State Academy of Science were newly built on a modern basis.

Lots of industrial establishments across the country finished the first half-yearly assignments ahead of schedule.

The country’s science witnessed big achievements during the first half of the year.

The 10th national sci-tech presentation and show in the field of nano-technology and national sci-tech presentation in the field of mining industry took place, and an IT presentation was held on the occasion of the 50th anniversary of the Central Agency for Information of Science and Technology.

More than 140,000 hectares of land were afforested, 590 kilometers of roads repaired and 2,100 kilometers of riversides improved.

The Victorious Fatherland Liberation War Museum was newly built in a wonderful way on the occasion of the 60th anniversary of the Korean people’s victory in the Fatherland Liberation War (June 1950-July 1953).

The Rungna People’s Sports Park and Pyongyang International Football School were also built in Pyongyang.

A wave of innovations have been registered in building the Masik Pass Ski Resort, the reclamation project of the Sepho Tableland, the expansion project of the Kosan Fruit Farm and the construction of the second-stage Huichon Power Station.

The same is true with the construction sites of apartment houses for scientists, children’s hospital, dental hospital, Munsu Wading Pool and Mirim Riding Club.

All these projects are carried on as part of the efforts for implementing the plan of Kim Jong Un on turning the country into an economic giant.

Institute for Far Eastern Studies (IFES)
2013-8-16

North Korea began to develop the wasteland in Gangwon Province from the late 2012 into a large-scale livestock-breeding base and is reported to be at the final stage of construction.

North Korean Workers’ Party newspaper Rodong Sinmun reported on August 2, “Soldier-builders and shock brigaders are busy building the Sepho tableland in time to celebrate the 65th anniversary of the establishment of the Republic.”

North Korea will celebrate the 65th anniversary of birth of its regime on September 9, and there are speculations that the flat wastelands of Sepho, Pyonggang and Ichon districts will be transformed into pastures in time for the anniversary.

Meanwhile, young people in the North, including soldiers and personnel in various agencies drafted the ‘shock brigade’ organizations, as they were brought into the construction project to meet the deadline of completion by early next month.

So far, about 20,000 ㏊ of natural grassland is being developed into artificial grassland over a period of six months and is about 96 percent complete, reported the Rodong Sinmun.

Furthermore, to prepare for the seasonal torrential rain in the region, approximately 230 ㎞of drainage system was constructed, and 50,000 tonnes of fertilizer made out of manure and compost was produced, to prepare for the autumn sowing.

Rodong Sinmun, reported on July 3, “As of the end of June, more than 10,000 jongbo (roughly about 9,917 ha) of natural land were cleaned up,” which reveals that in just over a month, land converted to pastureland had doubled in size.

At the North Korean Workers’ Party Central Committee Politburo meeting in February,a decision was reached that “the battle to open the Sepho Tableland and development of grassland must be completed by this year, in time to commemorate the 60th anniversary of the Armistice Agreement and 65th anniversary of establishment of the North Korean government.”

Kim Jong Un has directly ordered the development of Sepho Tableland to improve the lives of the North Korean people. Kim Jong Un has entered his second year in power and it is critical that the projects that he embarked on produce good results.

As an accomplishment of his first year, the construction of Huichon Power Station, Pyongyang Folk Park and Changjon Street in Pyongyang could be named, although these projects were originally launched by his father, Kim Jong Il.

Kim Yong Nam, the 85-year-old chairman of the Presidium of the Supreme People’s Assembly has visited the construction site of Sepho Tableland and encouraged workers on the site. DPRK Premier Pak Pong Ju and the KPA vice-marshal Choe Ryong Hae are also reported to have visited the site, signifying the great importance of Sepho for the North Korean regime.

The Bank of Korea has published its estimated aggregate data on the North Korean Economy for 2012.

You can download the report in English here.

You can download the report in Korean here.

It has been cataloged with previous reports (and many others) on my DPRK economic statistics page.

Here is what Reuters analysis of the data:

North Korea’s economy expanded for a second successive year in 2012, South Korea’s central bank said on Friday, bolstering the claims of new leader Kim Jong-un to be pursuing economic growth alongside strengthening the country’s nuclear deterrence.

The economy of the reclusive and impoverished nation grew 1.3 percent in 2012 as nearly all sectors saw improvement compared to a 0.8 percent annual growth the year before, said the Bank of Korea, one of the few sources of estimates about the economic performance of the North, which does not publish data.

Agriculture, farming and fisheries rose 3.9 percent last year in North Korea on the back of expanded use of fertiliser and an increase in pig and chicken farms, according to the Bank of Korea data, compared to a 5.3 percent growth in 2011.

Livestock farming rose 12.3 percent on an annual basis.

North Korean industrial output and manufacturing both expanded for the first time since 2008 after shrinking for three straight years, rising 1.3 percent and 1.6 percent respectively in 2012 compared to a year ago.

Despite the rise in output, North Korea remains one of the poorest countries on earth and its economy is around a thirtieth the size of industrial powerhouse South Korea.

…

The Bank of Korea data showed that North Korea’s total trade was worth $6.81 billion in 2012, with exports up an annual 3.3 percent, mostly on the back of chemical products and animal products. Imports were up 10.2 percent.

Trade with South Korea, which the Bank of Korea exempts from North Korea’s trade statistics, was worth $1.97 billion dollars last year, up 15 percent from a year ago. Almost all of that trade comes from the closed Kaesong industrial park.

Here is coverage by the Institute for Far Eastern Studies (IFES):

The Bank of (South) Korea released a report on the economic growth estimation of North Korea in 2012. North Korean economy recorded positive growth for two consecutive years. Per capita gross national income (GNI) rose by 2.7 percent to 1,371,000 KPW against the previous year. However, the gap between the South and North has not narrowed.

Last year, North Korea’s gross domestic product (GDP) growth was estimated to be 1.3 percent. This is the highest level since the financial crisis of 2008 when it surpassed the South Korean economic growth and reached the 3.1 percent growth.

Agricultural production improvement as well as international aid in heavy oil in 2008 permitted the North Korean economy to rebound brieflybut it began to decline resulting in minus growth in 2009 (-0.9 percent), 2010 (-0.5 percent), and 2011 (0.8 percent).

Agriculture, forestry and fishery industries last year made robust growth as well as manufacturing, engendering the boost in the economy. The construction of the Huichon Power Station was completed last year and it is considered to have attributed to the improvement in the power situation.

In terms of industries that accounted for the growth, agriculture, forestry and fishery made up about 23.4 percent of the nominal GDP, recording a production increase by 3.9 percent. Production of livestock such as swine and poultry husbandry rose by 12.3 percent and rice and corn production also increased due to improved fertilizer supply.

Production in manufacturing (21.9 percent of North Korean GDP) made a 1.6 percent increase. The rate of manufacturing production increased by 2.6 percent in 2008 but began to decline from 2009 at -3.0 percent; 2010, -0.3 percent; and 2011, -3.0 percent.

Production improved in food, tobacco and light industries by 4.7 percent, and heavy chemical industries rose by 0.2 percent. Mining (14 percent of GDP) also rose by 0.8 percent due to improvement in coal production. Electricity, gas and water supply (3.5 percent of GDP) also increased by 1.6 percent from the expansion of hydroelectric and thermal power generation. Service industry (29.4 percent of GDP) rose by 0.1 percent. Government services dropped by 0.2 percent but transportation and communication, wholesale and retail, food and lodging services increased by 2.0 and 2.2 percent, respectively. However, construction (7.8 percent of GDP) fell by 1.6 percent due to the decrease in the civil construction such as road works.

Last year, North Korea’s gross national income (nominal GNI) was estimated to be 33.5 trillion KPW. Compared to South Korea’s 1.28 quadrillion KRW, this is a ratio of about 1 to 38.2. By dividing the GNI by North Korean population, per capita gross national income is calculated to be 1,371,000 KRW. Compared to South Korea’s (25,589,000 KRW) it is 1 to 18.7. This is comparable to the figures recorded in 2011 (1 to 18.6).

North Korea’s foreign trade volume (based on only import and export excluding the inter-Korean trade) increased 7.1 percent to 6.81 billion USD. North Korea’s exports (2.88 billion USD) increased by 3.3 percent, mainly in chemical products (38.0 percent) and animal products (23.6 percent). As for imports (3.93 billion USD), textiles (17.6 percent) and transport equipment (6.2 percent) increased by 10.2 percent.

Last year, the size of trade between North-South Korea rose by 15.7 percent over the previous year at 1.97 billion USD. Import and export to and from the Kaesong Industrial Complex accounted for 99.5 percent of the total amount. North Korea’s export increased 12.1 percent — mainly machinery (28.2 percent) and electrical and electronic equipment (16.1 percent) — and imports to South Korea increased by 17.5 percent — electrical and electronic products (25.8 percent) and textiles (12.8 percent).

Here is additional coverage in the Wall Street Journal‘s Korea Real Time, Bloomberg, Straits Times, Foreign Policy.

Read the full stories here:
North Korea posts 2nd successive year of growth-Bank of Korea
Reuters
Christine Kim
2013-7-12

According to Bloomberg:

China banned its fishing fleet from working in waters off North Korea’s east coast after the totalitarian regime demanded Chinese vessels buy fuel from North Korean suppliers.

The North decreed late last month that Chinese ships, which previously made their own fueling arrangements, had to abide by the rule, China’s Agriculture Ministry said in a June 28 announcement that was posted to its website today.

“Fishing boat owners and and businesses believe that the North Korean decision will have a serious effect on production and operations and job security, causing huge potential risks,” the ministry said.

The statement reflected Chinese concerns after North Korea seized a Chinese fishing boat and its crew on May 5 and demanded a 600,000 yuan ($97,800) ransom. The ship and crew were freed later in May after Chinese diplomats negotiated their release, the official Xinhua News Agency reported.

Here is coverage in The Guardian.

Read the full story here:
China Bans Its Fishing Fleet From Waters Off Eastern North Korea
Bloomberg
2013-7-8

Institute for Far Eastern Studies (IFES)
2013-7-5

Compared to last year, the activities of Kim Jong Un for the first half of 2013 revealed that he took part in more public activities with working groups rather than senior officials.

According to the ROK Ministry of Unification (MOU), Kim Jong Un has made 95 public appearances, which is an increase of 117 percent compared to the previous year of 81 public activities.

In particular, Kim took part in military related activities the most (29 times) as the U.S. and South Korea held joint military exercises (Key Resolve and Foal Eagle) in the earlier part of this year. His other public activities were economic related (28 times), social and cultural (18 times), political (14 times), and attendance at various performances (8 times).

However, starting from April 1, Chairman Kim’s military-related activities from first quarter to second quarter decreased from 50 to 15 percent while his economy-related activities increased from 10 to 50 percent.

Furthermore, economy-related activities this year entailed visitations to production units in machinery factories, cooperative farms, and business enterprises and complexes. The previous year saw mainly entertainment-related activities.

Compared to his father Kim Jong Il, on his onsite inspections Kim Jong Un was accompanied by an entourage consisting of proportionally more working-level officials rather than senior officials. While his first year inspections were accompanied by senior officials, the group accompanying Kim Jong Un are younger and experienced officials in the field. In particular, Choe Hwi, first vice department director of the Korean Workers’ Party Central Committee, is seen with Kim Jong Un the most. Choe Hwi is a graduate of Kim Il Sung University and served as secretary of the Youth League and senior deputy director of the Korean Workers’ Party politburo.

Meanwhile, South Korea’s Unification Ministry estimated the amount of rice reserve in North Korea remains the same as last year, although there is regional variation. Grain imports are at 75 percent against the previous year, and the food ration and situation range widely by region. The market price for 1 kg of rice is 5,000 KPW, which is valued at approximately 1.667 USD, or about 600 g per one USD or 8,000 KRW.

In addition, the MOU assesses that North Korea is making changes in its economic management under the name of “Our Method of Economic Management,” with relatively heavy focus on agriculture, light, and distribution industries. The North Korean leadership seems to recognize the importance of production output in the economic sector. However, it will be impossible to observe immediate results without improvements in raw materials, power, machines, and equipment.

On the other hand, the MOU analyzes that the North Korean leadership is placing more attention on the agricultural sector and improving production and supply of fertilizer since it shows an immediately visible result in the agricultural sector, especially to the North Korean residents. In this regard, the military is also increasingly emphasizing “self-reliance” and the need for “solving food issues on its own.”

According to the Daily NK:

Experimental farm policy changes are set to fail in the Hyesan region of Yangkang Province, Daily NK has learned, after totally unsuitable areas were designated for the experimental farming and some new tenets of agricultural policy stalled on the drawing board.

A source from Hyesan in Yangkang Province told Daily NK on the 5th, “Some areas of Hyesan were designated as places to implement the farm management improvement policy on an experimental basis, and additional manpower was brought in for those areas. However, the areas are on steep slopes or in places where the soil is full of rocks, so farming there is impossible.”

“Soldiers and shock troops are mobilized daily to do the farming work, but tractors and agricultural equipment can’t be used on the experimental fields, so it is just making everyone angry.”

“Despite the fact that things are like this, the [authorities] just keep going on about nothing being impossible if we attain the Marshal [Kim Jong Eun]’s ‘masikryeong speed’ and how we must fulfill the annual plan,” the source went on.

Sources say that the authorities have set in place the basis of a new agricultural management method, one that involves smaller work units (from 10-25 people down to 4-6 people) and a 70-30 split with the state in the distribution of output. Creating experimental areas for the implementation of the plan can be seen as marking the launch of the so-called ‘June 28th Policy.’ However, while farmers were excited by the plan in the beginning and harbored great expectations, the passing of time has undermined their interest.

The source said, “Initially, farm workers welcomed the fact that they would get paid out of production by the cooperative farm. They wanted to work hard. However, now everything has returned to how it used to be. The number of people losing hope for this cooperative farm is growing with the passing of time.”

Meanwhile, the idea of leasing land to non-farmers to cultivate has also fallen by the wayside. According to the source, “They don’t even mention that any more. Some cadres claim, ‘We’re going to do that from next year for sure,’ but nobody believes a word of it.”

Additional information:

1. You can read previous posts about the June 28 economic adjustment measures here.

2. This CanCor report contains additional helpful information.

Read the full story here:
Agricultural Madness Angers Farmers
Daily NK
Lee Sang Yong
2013-7-5