Archive for the ‘Civil society’ Category

N Korea stages Mass for Pope

Sunday, April 10th, 2005

BBC
4/10/2005

A memorial Mass for Pope John Paul II has been held at a Catholic church in North Korea’s capital, Pyongyang.

The service was filmed by a US company and shown on South Korean television after being given the green light by the North Korean government.

There are an estimated 3,000-4,000 Roman Catholics in North Korea.

But many Christian analysts believe that churches in North Korea are merely propaganda fronts aimed primarily at appeasing a foreign audience.

“The churches in the capital were created for foreigners, and in no way indicate any degree of religious freedom for the North Korea population,” said Elizabeth Batha, International Advocate for the charity Christian Solidarity Worldwide.

“Those caught following religious beliefs, particularly Christianity, are subject to severe punishments, including horrific torture, confinement in brutal prison camps and execution.”

According to the BBC correspondent in Seoul, North Korean citizens are taught from birth to show almost religious devotion to the country’s ruling dynasty, and there is no tolerance for independent religious activity.

No clergy

The state media waited until 5 April before finally announcing the death of the pontiff, three days after he died.

“When I first heard about the Pope passing away I was very surprised, although of course I knew already that he had been sick,” said Kim Yong-il, a church official at the Chang Chung Church in Pyongyang.

At the church, established in 1988, regular prayer services are held every Sunday.

North Korea does not have any seminaries to train its own priests, and the memorial for the Pope was reportedly celebrated by an ethnic Korean priest from the US.

The North Korean Catholics’ Association sent a message of condolence to the Vatican after learning of his death.

It is not clear how many Catholics live in the country, but North Korean authorities put their number at about 4,000, while a government-approved group based on a traditional religious movement allegedly has at least 10 times as many followers.

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WFP on DPRK Food Aid

Wednesday, April 6th, 2005

NK Zone
Scott Bruce
4/6/005

Tony Banbury, WFP Regional Director for Asia, said: “There were three main themes that emerged in my mind from this trip. The first is that the people in the DPRK are still in great need of food aid … The second main theme I’d like to share with you is that the situation, in terms of the amount of WFP food aid going into the country these past several months, has been very good…. The last issue that is very important to touch upon is the issue of monitoring, and WFP’s operating conditions…. they [the DPRK government] started putting more limits, as of September of last year, on our operating conditions, on our monitoring.”

Tony Banbury: I’m very happy to have a chance to meet you again, and pass on some reflections on the World Food Programme’s operation in the DPRK, and some of the observations from this visit that I’ve just completed. It was the third visit I’ve made to the country. The purpose this time was, as always, to observe the WFP operation, see for myself first-hand what the situation is like, not just in Pyongyang but also on the ground among the 6.5 million WFP beneficiaries. And also to have discussions with the government on the WFP operation and how we might be able to improve it.

We met of course with government officials – senior government officials – donors, NGOs, UN agencies; then in the field with local officials, beneficiary institution leaders, beneficiaries themselves in their homes, etc. So in a relatively brief period we were able to meet with a wide cross-section of people, international and Korean, and see a lot. So I think we were able to get a pretty good impression about what the situation is like now.

We spent a couple of days in Pyongyang, but then also did a field trip to Chagang province – primarily Huichon city. This is a province that WFP had been working in for quite some time, but then access to the province was cut off by DPRK officials at the end of last year, and its just been re-established. Its again open, we’re again able to monitor our food aid there. When access was cut off we of course stopped delivering food aid – we have a consistent “no access, no food aid” policy. Now that access has been restored our food aid is again going back in. We ourselves brought a small amount of assistance with us, to a “baby home”. We brought some Rice Milk Blend, which is a highly fortified blended food that, mixed into porridge, is primarily for young children. Much more assistance will be again flowing in the coming days.

While there, we were also able to visit a Public Distribution Centre, which is not something we’re often able to do, and that was a positive thing. In fact, more and more frequently, we are able to visit PDCs now. And we visited a co-operative farm, and met with the vice-chairman of the farm. That also is a rather unusual event for WFP. Normally we are not able to visit co-operative farms. We had a very good visit there on this trip.

There were three main themes that emerged in my mind from this trip. The first is that the people in the DPRK are still in great need of food aid – particularly the most vulnerable people whom we’re trying to help. We have a lot of statistical data to back that up, as a result of the hundreds and hundreds of monitoring visits we do, as well as a nutrition survey that was carried out by UNICEF and WFP in the DPRK last October. Perhaps you’re familiar with those statistics – we can provide them for you if you want.

But my observation that people are still in need was based on much more sort of individualistic circumstances, on people that I saw. We met one woman who had a newborn baby and a four-year old daughter. We went to her home. And she had stopped sending her four-year to the nursery school because WFP assistance had been stopped. And now that WFP assistance was starting again, she said she would start sending her daughter back to school. In the meantime, though, the family was existing essentially on maize porridge and acorn meal. They find acorns in the forest and dry them and boil them into meal. It’s a very sour, bitter taste that they don’t particularly like. But its one of the few options they have at this time of year. This family had no access to meats of any kind, except on major holidays or special occasions. They had run out of vegetable oil, which is an important source of fat – nutritious fat – especially for young children and nursing women. Occasionally they were able to get some beans from their in-laws. The husband’s parents live in a rural area and occasionally send beans, but at the time we visited there was none in the household. So this one family was clearly in a very difficult circumstance.

We met with another family, another woman, and her food situation was more or less the same: no chicken, no meat, no eggs etc. And we asked: “do you raise any livestock – pigs, chickens, etc?” She replied that they could not afford to raise a pig, they were so poor. They had no left-over food to give a pig. This is an indication of the condition of your average family in an average North Korean city now.

On the drive up to Huichon city, the river was still frozen over at a certain part, hard-frozen. People were walking across it, riding bicycles across it. Then, a few kilometres further on, the river was running freely, but obviously still very cold. And there were people in the river with their pant-legs rolled up, trying to catch fish. I promise you that water was very, very cold, and it would have been hard simply to walk in. And these people were working, barefoot, with their pant-legs rolled up, trying to catch fish. That’s one small indication – nonetheless a very telling indication – of the lengths to which people in North Korea are going to try to get some food.

On top of this, the Public Distribution System has just recently cut its ration size for the average North Korean from 300 grams a day to 250 grams a day. This glass here [holds up small glass containing rice] has 250 grams of rice. That is what people are living on in North Korea, day after day. Without any meat, proteins, vegetables – except perhaps what they’re able to hunt in the forests or get from relatives in the countryside.

They are obviously suffering from, in many cases, severe malnutrition. The statistics from the nutrition survey are quite clear in that respect. More than a third of the population is chronically malnourished. About a third of the mothers in North Korea are malnourished and anaemic. So there is a continuing, very serious food crisis in the country. That’s clear from the statistics, and its very clear based on observations. And it’s hard to imagine anyone visiting the country would conclude differently.

One last comment on the food situation: the economic reforms, which I imagine you’re all familiar with, are having an impact – in fact a big impact. As a result, some people are doing very, very well. In Pyongyang you can see more and more cars – imported cars. And restaurants, and people eating in restaurants, where a meal may cost the equivalent of five to seven times an average monthly wage. Some Koreans are doing very well, and are able to afford that. But that is a very thin stratum of society, at the very top. The large numbers, the masses of the people in the country, are living on an average wage of 2,000-3,000 won per month, more or less one euro. So the people who have that wage, and are obliged to go into the markets to buy – or try to buy – commodities to supplement what they get from the PDCs [Public Distribution Centres], to supplement this bit of rice [holds up glass containing rice], are ill-able to afford, for instance, vegetable oil, which as I mentioned a moment ago is such an important part of a diet. A litre of oil is a month’s wage, or two months wages – I’m sorry, but I forget the exact statistic now, but it’s far beyond the affordability of the average working family. So they’re highly dependent on either humanitarian assistance, or, if they have close relatives living in the countryside who are producing excess food in their kitchen gardens and are able to transfer it.

It was very clear talking to the local officials and the people in Chagang province that they were extremely pleased that WFP food was returning. They had obviously suffered. A local official spoke in very clear and direct terms about the difficulties experienced after the WFP assistance was cut off. And he was literally ecstatic that the assistance was being resumed. The families that we spoke to were likewise very pleased. I mentioned the food aid is influencing the decisions of households, such as the woman’s decision to take her daughter out of school and to send her back. So the food aid is highly appreciated by local officials and the population.

The second main theme I’d like to share with you is that the situation, in terms of the amount of WFP food aid going into the country these past several months, has been very good. We’ve been fortunate. We’ve been in a position to feed all 6.5 million intended beneficiaries – that’s about a third of the population – as a result of generous donations from Japan, ROK [Republic of Korea], others; we have had a very good what we call “pipeline” – stocks of food. That’s the good news.

The bad news is those stocks are close to running out. In fact, we have already had to make some cutbacks. We’ve stopped giving vegetable oil to 900,000 elderly people. As of next week we’ll have to stop providing vegetable oil rations to kindergarten children, nurseries and pregnant and nursing women. This vegetable oil is enriched with vitamins; it’s an extremely important part of the diet for people in the situation that they are in in North Korea. Withdrawing it doesn’t just make cooking more difficult; it actually has a very significant nutritional impact on the recipients. And that’s happening now.

In May, WFP will stop providing pulses to 1.2 million women and children; and in June, we’ll stop providing cereals – our main commodity – to about one million primary school children, pregnant and nursing women, elderly people and particularly vulnerable urban households. This is assuming we don’t get additional contributions very soon.

So, as good as things have been these past few months, they’re about to get much, much worse. The supplies from the crops that come in at the end of the year last a bit, but the lean season – the hardest season for people in North Korea in terms of food supply, when they have very little left over from the previous year’s crops – is just about to start. So it’s a very bad confluence of events where we’re about to run out of food, and they’re about to run out of their own food. Unless we get on a very urgent basis new contributions in the coming weeks, we’re going to face these very serious cuts that I was just mentioning. And in my view the impact of those cuts could be extremely tragic, truly tragic, for the families, the children, the elderly, the very vulnerable people who WFP is trying to reach.

The last issue that is very important to touch upon is the issue of monitoring, and WFP’s operating conditions. WFP has struggled with this issue from the first day we started working in the country in the mid-90s. It is a perpetual quest of ours to improve the monitoring conditions. In the course of 2003 and 2004 we had, in fact, made some great progress. We steadily increased the number of monitoring visits we were able to conduct. On average, over the years, it went from the low 200s to more than 500 visits per month. We were able to access much different kinds of information, a much wider variety of information. Not just how much food you need, but what your sources of income are, your sources of food – where else do you get food – what you are consuming, what you go forage for in the forest.

This gave us a much better understanding of household-level food security. WFP used to look at the food security issue from a national perspective: what’s the total national requirement, what’s the total national production, and then we’d look at helping to fill the gap. Now we are much more focused on household-level food security. What are individual households’ experiences, who are the most vulnerable – is it the elderly, is it the urban poor, is it the children, is it the pregnant women? And as a result of the improvements in our monitoring in 2003-2004, we have developed a much better understanding of that. So we are better able to target our assistance to the people who need it the most.

It seems, though, that as a result of the improvements in our monitoring, there were certain segments of the North Korean authorities that were uncomfortable with WFP activities: the very large number of visits we were making, the intrusiveness of those visits – our visits into households, the very detailed questions we were asking. We were told by the North Korean authorities that this was making the people uncomfortable, and some parts of the government itself uncomfortable. So they decided to change our operating conditions. And they started putting more limits, as of September of last year, on our operating conditions, on our monitoring. And, for instance, reduced the number of visits we’re able to make from more than 500 a month to down to around 300 a month. They also closed off some counties, although as I said our access to most has been re-established. They also told us we should not ask certain types of questions which were not directly related to food aid.

We understand their concerns. I understand if I was living in my country and some foreigner decided to come up unannounced to my front door and say “let me into your kitchen, I want to ask you a half-an-hour’s worth of detailed questions about you and your family and your family’s practices”, I’d have some doubts. So I understand that.

But we have also worked very hard to try to explain to the North Korean authorities the importance of having confidence that our food is reaching the people who need it. There are different ways to have that confidence. One way is to follow the type of practices we had in 2003-2004. But there are other ways. And in the past few months we have been having very intensive discussions with the North Korean authorities about different ways to develop the same or even greater confidence about how food aid is being used, where its going, instead of the past practice of these rather intrusive visits.

So, for instance, we are looking at having much more frequent visits to Public Distribution Centres. I indicated a few moments ago that those have been very limited. Now if we can go and observe people receiving assistance directly, and talk to them at the PDCs about their situation – similar types of questions but in a more public setting – that’s one way we can get information.

Another way we can get the required information is to have focus group discussions, where, instead of one person in her living room with three government officials and three WFP people there – a rather intimidating setting – we can gather a larger number of beneficiaries and talk to them in a group setting and allow them to talk among themselves, where they might be more confident in sharing common experiences.

Another important way that we expect to have this greater confidence in where food aid is going is through baseline surveys. Where, instead of doing household visits on a regular basis across the entire year, we would do three surveys a year. We would have household visits, but a rather intensive number over a short period.

The fourth and perhaps most important element of this new system that we are discussing with the government is a commodity tracking system, where we would use an internal technical logistics commodity tracking system that includes software – in WFP we call it COMPAS and use it around the world – that helps us track a bag of food aid from the point it enters the country to the point its distributed to the beneficiary. Technical logisticians can explain how this system works using computer tracking methods, where we know where the food is the whole way through the system.

We have discussed all of this with the North Korean authorities. They agree in principle on the need for us to have the confidence we demand on how the food aid is being used. They agree in principle to develop this new system, where we would have improved quality of monitoring, even if the quantity of visits is reduced. And they agree in principle with the elements that I have just mentioned. We are now in the process – our country team there, the country director Richard Ragan who I think some of you have met – are in the process now of trying to roll this out at the provincial level. Starting in April, officials from all the 158 counties where we deliver our assistance, where we have access, will be getting training from WFP on this new approach.

So it’s not a done deal yet. We have still to implement the agreement in principle. But I’m very pleased that the government has extended its agreement in principle, has shown its understanding of our need to have confidence in the use of the food aid. It’s a point that we have stressed in very explicit terms. And we have likewise stressed that if we do not have that confidence, WFP and our donors will perhaps not be in a position to provide the type of assistance we have been providing. But there is a high level of understanding, I would say, in the government on WFP’s position, and I’m cautiously confident, cautiously optimistic, that in the coming weeks and months we will have successful implementation of this new monitoring system.

I am also equally sure that there will be some adjustments and changes to it on the ground as we go into implementation. That’s to be expected, even desirable, if we can make some improvements on the ground. The key point, though, is whether WFP will in the end be able to say with confidence “we know how the food aid is being used”. If we are successful in implementing the agreement in principle, we will have a better understanding of the use of this food aid than before, as a result primarily of this commodity tracking system. We’ll have a better picture of the food aid from its entry into the country to its final consumption. What appeared to us to be a big problem in the latter part of last year has in fact turned into a very good opportunity for WFP. And I think we’ll emerge in a stronger position as a result of the changes.

I’d like to make two final comments and then open it up to you all for questions. In my conversations with the government we discussed the issue of OCHA, the [UN] Office for the Coordination of Humanitarian Affairs. It was reported in the press a few weeks back that the government had decided to close the OCHA office in Pyongyang. I was assured categorically and repeatedly by authoritative officials from the foreign ministry that there has been no decision to close the OCHA office in the DPRK. They made that very clear to me and asked me to pass that on to our colleagues at the UN in New York, Geneva and Rome, and also to all of you. The OCHA office in the DPRK is not being closed.

The DPRK government had said that they didn’t see a need for the OCHA official in Pyongyang, whose contract ends in August, to continue, because they thought that his role was just tied to the CAP [Consolidated Appeals Process], which the DPRK government has said they no longer want. When the acting Humanitarian Coordinator, Mr. Ragan, explained in greater detail to the government that the role of OCHA went beyond the CAP, they expressed understanding, and an openness and a willingness to allow an OCHA presence to continue in the country. This is an issue that will be discussed when a new UN Resident Coordinator/Humanitarian Coordinator arrives in the country in April. But as of now there is an OCHA official and there is no decision to close the OCHA office.

The last point I’d like to make is on issue which I’m frankly surprised continues to appear again and again in the press: reports of WFP food aid in the markets, and pictures of WFP food aid bags in the markets. This is nonsense. The economy in North Korea is so bad that they re-use everything. And the bags that WFP uses for food aid are very sturdy, heavy-duty bags that are designed to last a long time so they won’t burst open and have the food aid spill out and get wasted. These bags can last years and years. They are being used for all kinds of things in the DPRK. They are being used for tablecloths. Does this mean that WFP is providing tablecloths to the people of North Korea? No.

We saw in a warehouse a WFP bag that said “Wheat – Gift of Russia to the people of North Korea”, and it was filled with locally produced beans. They re-use these bags, and the fact that a WFP bag shows up in a market in North Korea or any other country does not in any way suggest WFP food aid is being diverted to the markets. And it is frankly irresponsible for people to suggest it does. Because it is ignoring completely the reality and the facts of how the economy works and the habits of people – which are to use every last item of value in the country they can. And these bags are, frankly, valuable items and do get re-used. I’m pleased they get re-used. It would be nonsensical to think that as soon as the food is consumed they’re somehow throwing these bags out. It’s simply not the case. So, for NGOs who constantly repeat this, I encourage you to ask any of them to go to North Korea and see for themselves – or you to see for yourselves – that this is just utter nonsense. And if any of you have a report and think this is happening, or are tempted to report it, please contact Mr [Gerald] Bourke [WFP Public Information Officer in Beijing] or myself and we’ll be happy to repeat that this is just not happening.

I’d be happy to answer any questions anyone might have. Thanks.

Morgenavisen Jyllands-Posten (Denmark): I noted you said that people in the cities have to rely either on food aid or relatives in the countryside. Does this mean that people in the countryside are better off than those in the cities?

Banbury: It’s a multi-tiered economy in North Korea. There is this thin stratum of elite that I referred to who are doing quite well. There then are the workers, basically, who were employed in factories and live in urban environments. Many of these factories are no longer producing anything. And these workers used to be able to rely upon a guaranteed state salary. That state salary is often no longer coming – they have to rely on the production of the factory to pay their salaries. If the factory is not producing, the salary’s not there. Many of these factories are sitting idle and the workers are in fact no longer even employed. These people are indeed very vulnerable. They’re a new category of vulnerable people that WFP started paying close attention to about a year ago, or 18 months ago, after these economic reforms.

In the countryside, it’s a real mixed story. The farmers tend to be better off, at least in terms of their food situation. We do not generally provide food assistance to farmers. Their daily ration from the government is 600 grams, compared to the 250 grams, or in some cases 200 grams, that other people get. 600 grams a day is probably still much less than any of us in this room consume, particularly if you consider all the commodities we consume – not just grain. But relative to other people in North Korea, the farmers tend to be better off. However, there’s an interesting dynamic occurring now, and this became apparent to us during our visit to the co-operative farm and talking to others: there is such a thing as a cash crop in North Korea now. That never existed in the past. Farmers can get more money producing vegetables, fruits, and selling those in the market, than in producing the staple grains such as maize or rice or potatoes.

There are people who are not in a good situation. This is particularly true of children, or elderly people. When we visit hospitals or “baby homes” [orphanages] and identify the particularly malnourished and ask where they’re from, it surprises us to find that sometimes they come from co-operative farms, farming families. And it’s a little unclear to me what is the explanation for that. Oftentimes malnutrition is as much a result of care practices as food availability. Its hygiene, its the diet itself – what is fed, not just the total quantity – but also are you trying to ensure that the children get some protein, some animal fat. So, as a general matter, farmers are the best off in terms of food. But it’s a mixed picture.

Public Radio International: The areas where WFP was cut off from monitoring: any idea why those particular areas were chosen? Do you think it was arbitrary, that the government was trying to make a point that it didn’t want you doing as much visiting as you had done? Or was there some reason why those particular areas were chosen?

Banbury: The short answer is we don’t know. We heard all kinds of speculation. None of it was based on reality as far as I could tell. It was a brief period of cut-off, and one of the interesting points that I should have mentioned earlier is that when WFP assistance was no longer being provided to those counties, the assistance was not made up by state authorities. We asked about that: How did you get by? Did you reduce the ration? Did you get more food? And, in fact, they just had to do with less. Which also tells you something. This area where we were is known for its production of tools. They don’t produce much food. It’s a very hilly, mountainous area, it’s a very food insecure area, and they trade tools with other provinces in exchange for grains. But they were not able to make up the difference at all, and they really suffered as a result. Which raises real concerns for us – they’re longstanding concerns – about the food security situation in the counties to which we don’t have access.

Public Radio International: Are you at all concerned that food aid is going to become a political tool as the United States and other countries start putting more pressure on North Korea to come back to negotiating table? You’re running out of stocks at the moment. How confident are you that the US and other major donors are going to continue to give the way they have been?

Banbury: WFP is of course always concerned if food aid is used in any way in a political manner. We believe strongly that decisions on food aid should be made on purely humanitarian grounds. The US has consistently said – the President of the United States has said, the Secretary of State has consistently said – they will not use food aid as a weapon. And I believe that is the United States policy. In our discussions with the US, they have repeatedly, repeatedly stressed the monitoring issue. As there have been problems, the US contributions have reflected those problems. I’m quite hopeful that, as we’re able to implement this new monitoring system I was talking about, the US will have the confidence that we have that its improved and they’ll give more than they have been giving. That’s certainly our hope and expectation.

Asahi Shimbun: North Korea cut the PDS ration from 300 to 250 grams. Why? Did North Korean officials give you an explanation?

Banbury: Its simply because they do not have enough food. Its lack of availability of food – food supply.

Asahi Shimbun: But according to WFP reports, harvests are better, no?

Banbury: There were also cuts last year. There are cuts basically every year, depending on the time of the year. It’s no surprise that they’ve cut it to 250. I think that’s something we more or less expected. It was just a question of when. And as I mentioned, in some cases the ration has been cut to 200 grams a day. That’s a very clear indication of the continued food shortages in the country. If they had the food – particularly now during the winter months, and its very cold there – they would be giving the food, I believe.

Asahi Shimbun: We can see this ration cut transferred to the army?

Banbury: WFP did not see that. I believe that the army is being well fed. It’s only natural to assume that the North Korean authorities are providing adequate food to their army. There’s a standing policy to put the needs of the army first. That’s the North Korean policy. So it only makes sense to assume that the army is being well fed.

One thing that’s very important for all of us to keep in mind is that food is needed in the country right now very badly. But it’s the people who need the food, not the government, and not the army. The government’s going to be okay; the army is going to be okay. I’m not worried about them. I am very worried about the people in North Korea, these very poor people in rural areas, in urban areas. Imagine eating maize porridge and dried acorn meal every day, day after day, and not having anything else to feed your child. Imagine not having fat or protein to feed your child. They’re in a very difficult situation.

EFE (Spanish news agency): You mention that North Korea is running out of food. Is WFP preparing any campaign to get more food from private donors? Are you going to call for more donations from the West – Europe, America – or other main donors like China, Japan, South Korea. My second question is: do you think the nuclear crisis is directly affecting the lives of the North Koreans?

Banbury: WFP will be appealing to a very wide cross-section of donors and potential donors to urgently provide new donations to our operation in North Korea. We particularly need cash donations, because we need cash to buy food in the region in order to get it into the country in time to avoid the looming cuts that I was talking about. We will be appealing to traditional donors. Though you mentioned China as a traditional donor, China has never provided any assistance through WFP to North Korea. But we will be talking to the main donors that we have traditionally relied upon. That’s the United States, South Korea and Japan. We have also received important donations in the past from the European Union, from Australia, from Italy and a number of others. So we will be appealing to the big donors, the medium donors, the little donors, and those who have not donated in the past.

And we will be appealing to the private sector in South Korea. We have started a campaign in South Korea to raise resources for the programme in North Korea. We believe that there is a strong sense of solidarity between the people in South Korea and the people in North Korea, and a concern among the people in South Korea for the situation of the average person in North Korea. His Excellency President Kim Dae Jung, former president of South Korea, has agreed to serve as the honorary chairman of the World Food Programme’s Senior Advisory Council in South Korea. This is a private sector grouping that will be working to raise funds from the private sector, and President Kim Dae Jung’s role in that is obviously a very important one.

With respect to your second question, it would really be political speculation for me, and I prefer to avoid the realm of politics as well as speculation, so I don’t feel comfortable answering your question. Just perhaps to make an appeal that, in making decisions on providing assistance to North Korea, humanitarian concerns take precedence, because as I said a moment ago, its not the government that needs the food, it’s the people of North Korea who need the food.

Associated Press: Two questions. The first is: we’ve heard about these economic reforms, and you mentioned them again today. Can you tell us whether you see that they are having an effect on the average North Korean, say, in food terms, the bottom 90 per cent? Do they appear to be having an influence on food production, food availability to the general public? Second, on the new monitoring system: it sounds as if you’re settling in for the very long term. Do you see this situation in North Korea just becoming a decades-long situation where the outside world is going to have to continue to feed ordinary North Koreans? Or do you see a time when North Korea can produce enough or buy enough from abroad to feed its people?

Banbury: With respect to your first question, there clearly is a very significant impact. In fact, there are many different kinds of impacts. The main one, though, is that salaries of workers, government officials etc. have risen, giving them more income. But prices of basic commodities – foodstuffs – have risen much more dramatically. So their purchasing power has decreased. They’re less able to buy things. That’s very clear. The prices of foodstuffs have doubled, tripled, quadrupled. The prices of staples, vegetable oil, meat, the high-value items. For people who are able to benefit from the economy somehow – the winners – they’re able to make money, whether its from working in a restaurant, or through trading, then they’re doing okay. But for people who are relying upon traditional income sources, they’re clearly in a worse position. And that’s making us think that – and in fact this relates to your second question – maybe instead of 6.5 million people, WFP should be feeding 7.5 or 8.5 million people in North Korea. Because the number 6.5 million more or less is the same as we were providing assistance to when the reforms were implemented. And the number of winners compared to the number of losers in the economy as a result of these reforms is much smaller.

With respect to your second question, it’s always the happiest day of WFP’s involvement in a country when it’s no longer needed there. In the case of China – we have been providing assistance in China for 25 years – assistance will end this year. WFP will no longer provide humanitarian assistance in China after 2005. And that’s a great thing. In the case of DPRK, one day we will stop providing assistance there. In some countries – Ethiopia, for example – it’s gone on for decades and decades. I hope that won’t be the case in the DPRK. But until there are significant changes in the economy that allow people to earn a living wage and provide for their families, I think our assistance will be required. And its absence would be a very serious hardship on literally millions and millions of people. I hope its not long, I hope its next year that we can leave. My guess is it’ll be a little more than that.

Danish Radio: You said maybe you should be feeding 7.5 million, or 8.5 million. Why is the number still 6.5 million?

Banbury: The number this year is in fact larger than last year. The number is based on our best assessment of the economic conditions in the country and the most vulnerable people. We are providing assistance now to especially vulnerable urban households, which is a new category of beneficiaries for WFP. Two years ago we were not providing assistance to them because they had this guaranteed state salary, and prices were flat. So our numbers do change according to circumstances. Each year we come up with a new programme for the next year on how many people we think need our assistance. Depending on developments this year, and on our assessment that will be done in September-October, we may well change that.

But it will also depend to a very large degree on the government. And as I repeatedly stressed to the officials there, they need to help us help them – help their people. They have to create the necessary conditions to allow us to operate with confidence. And if they do not do so, then it would be harder to justify continued increases in the numbers of people. It would be easy to justify in terms of their need. It would be harder to justify to our donors why we would want to continue to expand if the North Korean authorities are trying to constrict our operating conditions. But, based on my cautious optimism that we will have a better monitoring system in place in the coming weeks and months, and the changing economic conditions, next year we may well try to provide assistance to more.

Danish Radio: How many more?

Banbury: It’s too early to tell. It’s a very technical assessment. It’s based on visits to all the provinces, it’s based on a crop assessment, its based on analysis of all the household visits we do. We don’t just whistle it up – it’s a scientific assessment.

Deutsche Presse-Agentur (German news agency): Two questions: Do you have any numbers now for the inflation rate? And what about the exchange rate – black market and official rate, the difference? And the second question: last year Japan gave a very generous donation to the WFP programme, I think because of the Koizumi visit at that time. So at that time I think somehow political considerations influenced WFP in a very positive way. But that also means that maybe political considerations can influence WFP’s programme this year in a negative way.

Banbury: We have some pretty good statistics on inflation that we can share with you after the meeting. I don’t have them in front of me. And it varies very much according to the commodity. Some commodities have seen very steep rises; some have seen more moderate rises. But we can give you the specifics.

In terms of the [market] exchange rate, I think it’s about 3,000 won per euro, and the official rate is 180 won to the euro.

The average salary for a worker or mid-level government official is about 2,000 won per month – less than a euro at the market rate. Think about getting by on a euro a month. Okay, prices are lower there, but they’re not that much lower. A euro a month, and that rice a day [points to glass of rice] – these people are suffering. People have talked about how the situation is improving, they’re producing more food – but the people we saw, their situation is not improving.

With respect to your second question: the government of Japan announced a very generous donation last year – 250,000 tonnes, which is equal to basically half our annual requirement. They have so far provided 125,000 tonnes, half of what they promised. We hope very much that they will soon be in a position to provide the other half. Obviously we’re having discussions with them about that, the second half of the contribution.

Different governments decide to provide assistance for different reasons. For WFP – a humanitarian organisation, with only humanitarian considerations – we are very grateful for Japan’s contribution. We understand that the Japanese government and the Japanese people have certain concerns and sensitivities with respect to their bilateral relations and the issue of Japanese people who are missing, who have been abducted. Those are very understandable, legitimate concerns, and it’s not for WFP to question them. We respect whatever decision the government will take. But we hope they will provide the second half of the contribution.

Agence France Presse: I’m wondering why the market-driven reforms for the agricultural sector don’t lead to an increase in production, since now they’re also allowed to raise cash crops and sell in the markets. It’s a little bit the same thing that happened in China 20 years ago. But then, at the same time, why is production of food in general not increasing?

Banbury: I can guess, and give you my best sense. I may be wrong, though. It’s my impression that there’s not necessarily increased production, but a diversified production. The grain supply may be more or less stable, but where there is an ability to produce more, farmers are increasingly interested in producing cash crops – something they can go sell in the market and don’t need to turn over to the state at a lower price. I think farmers are also, if they’re able to meet their quota – this is just sort of common sense, based on human nature – rather than put in more effort to produce additional stocks for the government that they’ll get little benefit from, they’ll diversify and produce cash crops either on the co-operative farm, that keeps some of it, or on their own family plots. There are a lot more family gardens now than there used to be, where families, anyone who has a little land, are growing something. For their own consumption, or to sell in the market if they have enough. The production is being diversified and channeled into the private markets. As I said earlier, the total grain supply, I don’t think, is growing. I don’t know if it’ll shrink, but there’s more attention into these other areas.

In addition, there are still very severe shortages of inputs into the farming sector. Fertiliser is a big problem this year. Fuel for tractors: big, big problem. Tractors themselves certainly a big problem, for lack of spare parts. And even when they produce, their post-harvest losses tend to be very high because of lack of equipment to move the crops from the field into the storage facilities, and lack of adequate storage facilities. So, to produce more and more grain, they might have a point of diminishing returns because they’re frankly not able to get it into storage facilities, and store it. That’s my impression. I’m not an expert. I may be wrong, as I said. But I think that’s what’s happening.

Kyodo News: My question is regarding North Korea’s attitude towards international aid. I’ve heard that from September they began calling for longer- term development aid, and that may be why you have problems with monitoring. Did you notice any changes in their attitude, or is that still what they’re saying?

Banbury: The North Korean authorities still say that they would like to transition to more long-term development assistance. However, at the same time, they reaffirm their commitment to humanitarian assistance – certainly WFP humanitarian assistance. They want us to meet the entire target that we have for the year; they want us to bring in all the food that we’ve said we will try to bring in. They are trying to improve our operating conditions. So they remain quite committed to the WFP programme, even though I think it would be their preference to transition to more development assistance. But to achieve that, they’re going to have to convince some donors that that’s the way to go. I think they’re going to continue receiving humanitarian assistance – and wanting to receive it – until they successfully make that transition. And so far, the development assistance isn’t there.

Deutsche Presse-Agentur: Do you think that in the next couple of months the Public Distribution System will maybe run out of stocks?

Banbury: I don’t think the Public Distribution System will entirely run out. I think it’s entirely possible that the ration will be reduced further: 250 grams down to 200, or whatever; fewer commodities. But I think its unlikely, in my experience, to my knowledge of the past, they’ve never totally stopped. So that’s probably unlikely. But WFP assistance, that could completely run out. So much of that assistance is going to really vulnerable populations. Kids who should not be eating only maize; kids who really need protein. You go to these “baby homes”, these orphanages and schools, and you know…Someone once said “a hungry child knows no politics”, and its clear that those kids need assistance. And the elderly too. I mean, my goodness, these elderly people…it breaks your heart to see them…eating maize and acorn meal.

Deutsche Presse-Agentur: One more question, on the nuclear issue. There’s been a kind of hardening of the political attitude of the North Korean government. In your talks with the North Korean side, did you discover a similar hardening? Is the political climate different now than before?

Banbury: The climate for WFP, I think, is better now than it was eight months ago, or seven months ago. There was a period in the latter third of last year, where, as a result I think of several factors, the overall climate became more difficult. And WFP was impacted by that. But as a result of very determined efforts on the part of WFP and our team in Pyongyang, the government understands that we are not a political actor; we are a humanitarian actor with a humanitarian agenda, who is really trying to help needy North Korean people. And they appreciate that, I believe. As a result, we enjoy quite good support from our interlocutors in the government. Of course, we do not meet with all segments of the government. There are different parts of the government with different responsibilities. But with the part that we’re working with, I think, the relationship is better. They were a bit caught, perhaps, in the past. The fact that they’re now able to work in a more constructive manner with us on technical matters suggests that perhaps there’s a generally improved climate.

Thank you very much.

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North Korea: Market forces have female faces

Wednesday, April 6th, 2005

Asia Times
Andrei Lankov
4/6/2005

A defector from the North, a typical tough Korean auntie with trademark permed hair, smiled when asked about “men’s role” in North Korean families: “Well, in 1997-98 men became useless. They went to their jobs, but there was nothing to be done there, so they came back. Meanwhile their wives went to distant places to trade and kept families going.”

Indeed, the sudden increase in the economic strength and status of women is one of manifold changes that have taken place North Korea over the past 10 or 15 years. The old Stalinist society is dead. It has died a slow but natural death over the past decade and, in spite of Pyongyang’s frequent and loud protestation to the contrary, capitalism has been reborn in North Korea. The old socialist state-managed economy of steel mills and coal mines hardly functions at all, and the ongoing economic activity is largely private in nature.

But the new North Korean capitalism of dirty marketplaces, charcoal trucks and badly dressed vendors with huge sacks of merchandise on their backs demonstrates one surprising feature: it has a distinctly female face. Women are over-represented among the leaders of the growing post-Stalinist economy – a least on the lower level, among the market traders and small-time entrepreneurs.

This partially reflects a growth pattern of North Korean neo-capitalism. Unlike the restoration of capitalism in the former Soviet Union or China, the “post-socialist capitalism” of North Korea is not an affair planned and encouraged by people from the top tiers of the late communist hierarchy. Rather, it is capitalism from below, which grows in spite of government’s attempts to reverse the process and turn the clock back.

Until around 1990, the markets and private trade of all kinds played a very moderate role in North Korean society. Most people were content with what they were officially allocated through the elaborate public distribution system, and did not want to look for more opportunities. The government also did its best to suppress the capitalist spirit. The rations were not too generous, but still sufficient for survival.

And then things began to fall apart. The collapse of the Union of Soviet Socialist Republics brought a sudden end to the flow of the Soviet aid (which was, incidentally, happily accepted but never publicly admitted by the North Korean side). This triggered an implosion of the North Korean economy. In the early 1990s people discovered that the rations were not enough for survival, and thus something had to be done. In a matter of years acute shortages of food developed into a large-scale famine, and in 1994-96 the public distribution system ceased to function in most parts of the country.

But men still felt bound to their jobs by their obligations and rations (distributed through workplaces). Actually, rations were not forthcoming, but this did not matter. Being used to the stability of the previous decades, the North Koreans saw the situation as merely a temporary crisis that soon would be overcome somehow. No doubt, they reasoned, one day everything will go back to the “normal” (that is, Stalinist) state of affairs. So men believed that it would be wise to keep their jobs in order to resume their careers after eventual normalization of the situation. The ubiquitous “organizational life” also played its role: a North Korean adult is required to attend endless indoctrination sessions and meetings, and these requirements are more demanding for males than for females.

Women enjoyed more freedom. By the standard of the communist countries, North Korea has always had an unusually high percentage of housewives among its married women (for example, in the northern border city of Sinuiju, up to 70% of married women were estimated to be housewives in the 1980s). While in most other communist countries women were encouraged to continue work after marriage, in North Korea the government did not really mind when married women quit their jobs to become full-time housewives.

Thus when the economic crisis began, women were first to take up market activities of all kinds. This came very naturally. In some cases they began by selling those household items they could do without, or by selling homemade food. Eventually, this developed into larger businesses. While men continued to go to their plants (which by the mid-1990s had usually ceased to operate) women plunged into market activity. In North Korea such trade involved long journeys in open trucks, and nights spent on concrete floors or under the open skies; they often bribed predatory local officials. And, of course, women had the ability to move heavy material, since the vendor’s back tends to be her major method of transportation.

This tendency was especially pronounced among low- and middle- income families. The elite received rations even through the famine years of 1996-99, so the women of North Korea’s top 5% usually continued with their old lifestyle. Nonetheless, some of them began to use their ability to get goods cheaply. Quite often, the wives of high-level cadres were and still are involved in resale of merchandise that is first purchased from their husbands’ factories at cheap official prices. It is remarkable that in the case of North Korea such activities are carried out not so much by the cadres themselves, but by their wives. Cadres had to be careful, since it was not clear what was the official approach to the new situation of nascent capitalism. Thus it was assumed that women would be safer in such undertakings since they did not, and still do not, quite belong to the official social hierarchy.

But for the cadres’ wives, these market operations were a way to move from being affluent to being rich. The lesser folks had to do something just to stay alive.

Perhaps, had the state given its formal approval to nascent capitalism (as did the still formally “communist” state of China), the men would be far more active. But Pyongyang officialdom still seems to be uncertain what to do with the crumbling system, and it is afraid to give to unconditional approval to capitalism. Thus men are left behind and capitalism is left to women.

This led to a change in the gender roles inside families. On paper, communism appeared very feminist, but real life in the communist states was an altogether different matter, and among the communist countries North Korea was remarkable for the strength of its patriarchal stereotypes. Men, especially in the more conservative northeastern part of the country, seldom did anything at home, with all household chores being exclusively the female domain. But in the new situation, when men did not have much to do while their wives struggled to keep the family fed and clothed, many men changed their attitude that housework was something beneath their dignity (at least this is what recent research among the defectors seem to suggest). As one female defector put it, “When men went to outside jobs and earned something, they used to be very boastful. But now they cannot do it and they become sort of useless, like a streetlight in the middle of the day. So a man now tries to help his wife in her work as best as he can” to keep the family going.

Recently, when it is increasingly clear that the “old times” are not going to return, some men are bold enough to risk breaking their ties with official employment. But they often go to market not as businessmen in their own right but rather as aides to their wives who have amassed great experience over the past decade. Being newcomers, males are relegated to subordinate positions – at least temporarily. Or alternatively, they are involved in more dangerous and stressful kinds of activity, such as smuggling goods across the badly protected border with China. As one woman defector said: “Men usually do smuggling. Men are better in big things, you know”.

Economic difficulties and change in money-earning patterns as well as new lifestyle and related opportunities in some cases led to family breakdowns. In South Korea the economic crisis of 1998 resulted in a mushrooming divorce rate. In the North, the nearly simultaneous Great Famine had the same impact, even if in many cases the divorce was not officially recognized.

Of course, we are talking about a great disaster here, and a large part of the estimated 600,000-900,000 people who perished in those years were women. Of the survivors, not all women became winners, bold entrepreneurs or successful managers: some were dragged into prostitution, which has made a powerful comeback recently, and many more had to survive on whatever meager food was available. But still, it seems that years of crisis changed the social roles in North Korean families. For many women, the social disaster became the time when they showed their strength, will and intelligence not just to survive, but also to succeed.

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N Korea football violence erupts

Wednesday, March 30th, 2005

BBC
3/30/2005

North Korean soldiers and riot police had to step in after violence erupted when the home side lost a World Cup qualifying match to Iran, say reports.

Bottles, stones and chairs were thrown on to the pitch in Pyongyang after a North Korean player was sent off.

Violence then spilled over outside the stadium and thousands of angry fans reportedly prevented Iranian players from boarding the team bus.

North Korea, which lost 2-0, is bottom of its World Cup qualifying group.

It has already lost to Japan and Bahrain and must win its three remaining matches to stand a chance of making it through to next year’s World Cup finals in Germany.

Wednesday’s violence erupted in the second half of the match at the Kim Il-sung stadium, which was broadcast on international satellite television.

North Korean players and fans became upset when one of their players was blocked by an Iranian defender and fell near the goal, Japanese news agency Kyodo reported.

Demanding a penalty, they rushed Syrian referee Mohamed Kousa, who instead gave a North Korean player a red card, according to Kyodo.

‘Severe punishment’

The unrest continued after the final whistle, and match officials were unable to leave the pitch for more than 20 minutes as objects were thrown at them.

As the violence continued outside the stadium, riot police stepped in and managed to push the crowd back so that the Iranian team could leave.

“The atmosphere on the pitch and outside the pitch was not a sports atmosphere,” Iran’s coach Branko Ivankovic was quoted by Reuters news agency as saying.

“It is very disappointing when you feel your life is not safe. My players tried to get to the bus after the game but it was not possible – it was a very dangerous situation.”

A North Korean defector and former football official told Reuters that his homeland had an organised society and such behaviour was unlikely to be tolerated.

“I have never seen anything like this myself,” he said. “The people responsible are likely to be tracked down and severely punished.”

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U.S. Team Says North Korea Suppresses Religion

Thursday, March 24th, 2005

Reuters
Robert Evans
3/24/2005

North Korea represses religion and has an official ideology that is a form of secular humanism, a U.S. government agency said on Thursday.

The United States Commission on International Religious Freedom (USCIRF) said interviews with North Korean refugees showed a pattern of arrest, imprisonment, torture and execution for public expressions of religion.

“Any reappearance of Christianity, possibly permeating from northern China to where many thousands of North Koreans fled from famine in the 1990s, is rigorously repressed,” USCIRF North Korean researcher David Hawk told a news conference.

Only two active churches, with one more to be built, and one Buddhist temple were known to exist — all in the capital, Pyongyang, and apparently serving the foreign diplomatic and business community there.

USIRC vice-chair Felice D. Gaer said a full report on the findings from interviews with some 30 ordinary North Koreans among some 6,000 who have escaped to South Korea since 2000 would be published later this year.

Information, published in part by USIRC last summer, would be a useful contribution to debate at the current session of the United Nations Human Rights Commission, where North Korea is under fire from mainly Western countries, she said.

The 53-member Commission narrowly agreed in 2004 for the first time to appoint a special investigator for North Korea — Thai jurist Vitit Muntarbhorn. The government in Pyongyang has refused to cooperate with him.

A similar resolution — proposed last year by the European Union with U.S. backing — is expected at the Commission next month after Vitit has presented his own report.

Hawk was asked if the North Korean attitude toward secular humanism was any different to its stance on theistic religion. Secular humanism is a widespread philosophy that aims to promote human cooperation and morality without reference to a deity. North Korea’s official ideology is called Juche.

“Juche thought is a form of secular humanism,” he said, referring to the North Korean system of strict obedience to the national leader — currently Kim Jong Il, son of the country’s first communist chief Kim Il Sung. Secular humanism, which emerged from the 18th century European Enlightenment and inspired some early U.S. leaders, is currently under assault in the United States from Christian evangelicals who have the ear of President Bush.

Officials of secular and humanist organizations accredited to the UN and to the Human Rights Commission have long complained that religious freedom issues are privileged there at the expense of the freedom to reject religion.

Roy Brown, President of the International Humanist and Ethical Union, said a report to the Commission on “defamation of religions” by a Senegalese rights investigator appeared to suggest that secularists were a danger to religious freedom.

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Welcome to capitalism, North Korean comrades

Saturday, December 4th, 2004

Asia Times
Andrei Lankov
12/4/2004

A creeping revolution, both social and economic, is under way in North Korea and it seems there’s no turning back. For decades, the country served as the closest possible approximation of an ideal Stalinist state. But the changes in its economy that have taken place after 1990 have transformed the country completely and, perhaps, irreversibly.

For decades, Pyongyang propaganda presented North Korea as an embodiment of economic self-sufficiency, completely independent from any other country. This image sold well, especially in the more credulous part of the Third World and among the ever-credulous leftist academics. The secret of its supposed self-sufficiency was simple: the country received large amounts of direct and indirect aid from the Soviet Union and China, but never admitted this in public. Though frequently annoyed by such “ingratitude”, neither Moscow nor Beijing made much noise since both communist giants wanted to maintain, at least superficially, friendly relations with their small, capricious ally.

But collapse of the Soviet Union made clear that claims of self-sufficiency were unfounded. From 1991, the North Korean economy went into free fall. Throughout 1991-99, the gross national product (GNP) of the Democratic People’s Republic of Korea (DPRK) nearly halved. The situation became unbearable in 1996, when the country was struck by a famine that took, by the best available estimates, about 600,000 lives. The famine could have been prevented by a Chinese-style agricultural reform, but this option was politically impossible: such a reform would undermine the government’s ability to control the populace.

The control on daily lives was lost anyway. What we have seen in North Korea over the past 10 years can be best described as collapse of what used to be rigid Stalinism from below. In the Soviet Union of the late 1950s and in China of the late 1970s, Stalinism-Maoism was dismantled from above, through a chain of deliberate reforms planned and implemented by the government. In North Korea the same thing happened, but the system disintegrated from below, despite weak and ineffectual attempts to keep it intact.

In the 1960s, North Korea was unique in being the only nation in the world where markets were outlawed. The retail trade in a strict sense almost ceased to exist since virtually everything, from socks to apples, was distributed through an elaborate public distribution system with money payments being rather symbolic. The rations depended on a person’s position in the intricate social hierarchy, which eventually became semi-hereditary. In Kim Il-sung’s North Korea, there was almost nothing that could be sold on market since production outside the state economy was almost non-existent.

Unlike governments of other communist countries, until the late 1980s the North Korean government did not even allow its farmers to cultivate kitchen gardens – the individual plot was limited to merely 20-30 square meters, hardly enough to grow enough chili pepper. This was done on purpose. In many other communist countries, farmers had bigger plots and made their living from them, ignoring their work obligations to the state-run cooperative farms. Without their own plots, farmers would work more for the state – or so believed the North Korean government. In the utopia constructed by Kim Il-sung, every single man or woman was supposed to work for the state, and was rewarded for his and her efforts with officially approved rations and salaries.

In 1969, Kim himself admitted that the anti-market policy had been a failure. Thus private markets were gradually legalized, but remained small and strictly controlled. However, as late as late 1980s, markets were still considered inappropriate for a “socialist paradise”. They were something to be ashamed of, so they were pushed to the margins of the city. Until the early 1990s, most markets were in places more or less hidden from view, inside residential blocks and behind high concrete walls. In Pyongyang, the main city market was set up under a huge viaduct at the easternmost part of the North Korean capital, as far from the city center as possible.

However, the economic disaster of 1991-95, and especially the subsequent famine, changed the situation. Markets began to spread across the country with amazing speed. From 1995-97, nearly all plants and factories ceased to operate. The rations were not issued anymore: in most areas people still received ration coupons but these could not be exchanged for food or other rationed goods. Only in Pyongyang and some other politically important areas did food continue to be distributed. But even there, the norms were dramatically watered down. In such a situation, the ability and willingness to engage in some private business became the major guarantee of physical survival.

The government also relaxed the restrictions on domestic travel. Since around 1960, every North Korean who ventured outside his native county was required to have a special “travel permit” (an exception was made for one-day travel to neighboring counties). However, in the mid-1990s, the authorities began to turn a blind eye to unauthorized travel. It is not clear whether it was a deliberate relaxation or just inability to enforce regulations when the state bureaucracy was demoralized. After all, a bribe of some US$5 would buy such a permit from a police officer.

The tidal wave of small trade flooded the country, which once came very close to creating a non-money-based economy. People left their native places in huge numbers. Many sought places where food was more available while others enthusiastically took up the barter trade, including smuggling of goods to and from China. Women were especially prominent in the new small businesses. Many North Korean women were housewives or held less-demanding jobs than men. Their husbands continued to go to their factories, which had come to a standstill. The males received rationing coupons that were hardly worth the paper on which they were printed. But North Korean men still saw the situation as temporary and were afraid to lose the trappings of a proper state-sponsored job that for decades had been a condition for survival in their society. While men were waiting for resumption of “normal life”, whiling away their time in idle plants, the women embarked on frenetic business activity. Soon some of these women began to make sums that far exceeded their husbands’ wages.

The booming markets are not the only place for retail trade. A new service industry has risen from the ashes: private canteens, food stalls and inns operate near the markets. Even prostitution, completely eradicated around 1950, made a powerful comeback as desperate women were eager to sell sexual services to the newly rich merchants. Since no banking institution would serve private commercial operations, illegal money lenders appeared. In the late 1990s they would charge their borrowers monthly interests of 30-40%. This reflected very high risks: these lenders had virtually no protection against the state, criminals and, above all, bad debtors.

In North Korea, which for decades was so different, this meant a revolution. The new situation undermined the government’s ability to control the populace. People involved in the new market activities are independent from (or inured to) subtle government pressures that had ensured compliance for decades. One cannot promote or demote a vendor, transfer him or her to a better or worse job, nor determine his or her type of residence (though admittedly, most people still live in the houses they received when the old system was still operating).

The growth of new markets also undermined some pillars of old North Korean hierarchy. Of course, many people who became affluent in the new system came from the old hierarchy – as was the case in most post-communist countries. Officials or managers of state-run enterprises found manifold ways to make an extra won. These managers often sold their factories’ products on the market. But many hitherto discriminated-against groups managed to rise to prominence during this decade. The access to foreign currency was very important, and in North Korea there were three major groups who had access to some investment capital: the Japanese-Koreans, Chinese-Koreans and Korean-Chinese.

The Japanese-Koreans moved into the country in the 1960s (there were some 95,000 of them – with family members, children and grandchildren, their current number can be estimated at 200,000-250,000). These people have relatives in Japan who are willing to send them money. Traditionally, the authorities looked at Japanese-Koreans with suspicion. At the same time, since money transfers from Japan have been a major source of hard currency for Pyongyang, their activities were often tolerated. This particular group even enjoyed some special rights, being privileged and discriminated against at the same time. When the old system of state control and distribution collapsed, Japanese-Koreans began to invest their money into a multitude of trade adventures. It did not hurt that many of them still had the first-hand experience of living in a capitalist society.

Another group were people with relatives in China. The economic growth of China meant that the relatives could also help their poor relatives in North Korea. In most cases, this was not in the form of money transfers, but assistance in business and trade. The local ethnic Chinese were in an even better position to exploit the new opportunities. For decades, they have constituted the only group of the country’s inhabitants who could travel overseas as private citizens more or less at their will. Even in earlier times, the ethnic Chinese used this unique position to earn extra money by small-scale and part-time smuggling. In the 1990s, they switched to large operations. There is an irony in the sudden economic advance of these groups. For decades, their overseas connections have made them suspect and led to systematic discrimination against them. In the 1990s, however, the same connections became the source of their prosperity.

Until recently, the government did not try to lead, but simply followed the events. The much-trumpeted reforms of 2002 by and large were hardly anything more than the admission of the situation that had been existing for a few years by then. The official abolition (or near-abolition) of the public distribution system did not count for much, since this system ceased to operate outside Pyongyang around 1995.

But the North Korean economy has indeed come a long way from its Stalinist ways. Now the government has neither money nor support nor the political will to revive the Stalinist-style central economy. There is no way back, only forward. Stalinism is dead. Welcome to capitalism, comrades!

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N Korea makes World Heritage List

Thursday, July 1st, 2004

BBC
7/1/2004

A complex of ancient tombs across North Korea and China has been recognised by the UN’s World Heritage List.

Two sites from the Koguryo dynasty – one in each country – are recognised for their special cultural value. It is North Korea’s first entry on the list.

The UN’s cultural body, Unesco, says it is trying to balance the bias towards Western sites on the list so far.

Forty-eight sites are being considered for the list by the World Heritage Committee at a meeting in China.

Political agenda

The annual meeting, where the sites are being discussed, is taking place Suzhou and will last until 7 July.

An official said the final choice should be limited to 30, but political considerations may mean it exceeds that.

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Foreign investors brave North Korea

Tuesday, April 13th, 2004

BBC
Lucy Jones
4/13/2004

“Got any nuclear weapons for sale?” is the response Briton Roger Barrett usually gets when he tells people at Beijing cocktail parties that he invests in North Korea.
The country’s admission to a nuclear weapons programme and its listing on George W Bush’s “axis of evil” means most people are staying well away.

But Mr Barrett, 49, a former troop commander in the British army who has 10 years experience of doing business in North Korea, recently opened a branch of his consultancy firm, Korea Business Consultants, in Pyongyang.

A self-confessed “business adventurer”, he says there is growing interest in the country after Chairman Kim Jong-il introduced economic reforms in 2002.

It’s like China in the eighties… The market reforms are very evident. It’s an exciting time to join the market.

Robert Barrett, Korea Business Consultants 
He is also the enthusiastic publisher of what must be North Korea’s only business publication – the DPRK Business News Bulletin – which features some of the 250 companies he advises.

“It’s like China in the eighties… The market reforms are very evident. It’s an exciting time to join the market,” he says.

Mr Barrett is not alone.

Even in the middle of a nuclear crisis there are foreign investors in the country, and their numbers are increasing.

They say North Korea is a mineral rich country that needs everything and insist they have to get there first.

They also believe the 2002 economic reform is for real and that the country is gradually moving towards becoming a market economy.

Poverty

The little data there is on the country’s economy is hardly encouraging, though.

There has been a devastating famine and the UN says malnutrition is still widespread.

There are chronic heating and water shortages, and most North Koreans are paid less than £5 a month.

The country also has an appalling human rights record.

A BBC documentary on the country’s gulags this year contained allegations that chemical experiments are being carried out on political prisoners.

Meanwhile, the US says it is “highly likely” that North Korea is involved in state-sponsored trafficking of heroin.

In the political arena, the second round of six-nation talks aimed at resolving the nuclear crisis ended in Beijing in February without agreement, which means US and Japanese sanctions will remain in place.
‘Communism’ tourism

But the foreign entrepreneurs in North Korea are not put off.

Some are helped by UN employees who have worked in Pyongyang (among the few people to have had contact with the regime there) and many have a track record in China.

Pack a torch, conduct business meetings on the street to avoid big brother listening in and have plenty of “Asian patience” for the endless red-tape, they advise.

An Austrian company is reportedly buying pianos from the North Koreans, a French television station uses North Korean artists to produce cartoons, while a Singapore-based firm is developing forestry and tourism.

The Singaporeans intend to offer “adventure” stays on their North Korean forestry plantations.

Meanwhile, Western tourist agencies are gearing up to offer the last chance to see communism in action, and Fila and Heineken have reportedly entered into sponsorship deals with the North Korean regime.

North Korean labour

A German, Jan Holtermann owner of the computer firm KCC Europe, is putting North Korea online.

He hopes that by being there first he will be able to eventually tap into North Korean computer talent.

The country’s small number of internet users currently dial-up to Chinese providers, a costly process at about £1 a minute.

Mr Holtermann’s customers, who he hopes will number 2,000 by the end of the year, will have unlimited access for £400 a month.

As only a few North Koreans are permitted to have telephones, and as the internet service is costly, Mr Holtermann expects his customers to be government ministries, news agencies and aid organisations.

He has invested £530,000 in the venture, intending to get first pick when North Korean software programmers come onto the market.

“They are very talented,” he says.

“It’s this capacity we want to sell in Europe.”

The parcel delivery company DHL has operated in Pyongyang since 1997, when it was invited there by the government, and now has North Korean light manufacturing, textile and beverage companies on its books.

It sees itself as contributing to the country’s “slow but increasingly visible” economic reform programme.

British consultants

Former bank employee Mr Barrett is convinced North Korea is opening up much quicker than people think.

There are opportunities in banking, minerals, agriculture and telecommunications, he insists.

“There is the odd story of something going wrong,” he says.

“But when you walk around you notice construction going on.

“The people are feeling a change.”

High level contacts

But how to do business with one of the most isolationist regimes on earth?

Contacts are essential, say businessmen.

Though even knowing a North Korean minister is not enough, says Gerald Khor of Singapore-based forestry company Maxgro Holdings.

“You have to go above the ministers to the cabinet. You don’t have to know a member but you need to know people who can influence them,” he says.

“It is very important to get the favour of the dear leader (Kim Jong-il). Because when he says something, it gets done.”

Through a former UN employee, Maxgro got Kim Jong-il’s attention and has invested $2m in forestry, agreeing the state gets 30% of the profits.

“Kim Jong-il is an environmentalist,” Mr Khor says.

“We are confident we’ll get a return.

“We have dwindling supplies and this is high quality wood.”

To locate the forests elsewhere would cost much more, he adds.

Forced to change

Economic reforms introduced by the government in 2002 are seen as the first move away from central planning since the country adopted communism in 1945.

The government has been forced to change in order to survive, especially now it can no longer barter with Eastern Europe and the former Soviet Union, experts say.

“There is no real option not to carry out these reforms,” says UK-based Keith Bennett, who has taken trade missions to Pyongyang.

“But people don’t know where they will lead.

Chinese leaders have impressed on Kim Jong-il that there can be economic reform without fundamental political change.”

Way up on North Korea’s border with Russia and China is the Tumen economic zone, which was established in 1991 with UN help to lure investors.

The project has only had limited success and may indicate the type of problems those investing elsewhere in North Korea may face.

The North Korean section of the zone, Rajin-Songbong, hosts foreign-run hotels, telecommunications and restaurants, but that is about all.

“The North Koreans have sometimes been very co-operative and sometimes not, maybe because of policy change,” says Tsogtsaikhan Gombo, from the UN’s development agency.

“They were also disappointed when they didn’t see the investment.”

Vibrant Chinese economic zones nearby have put up fierce competition.

But even opening the door just slightly to let in capitalism has greatly improved the lives of the 150,000 people living in the zone, says Mr Gombo.

And many foreigners insist that small investments elsewhere in the country may have similar results.

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Ex-N Korea football coach defects

Thursday, March 11th, 2004

BBC
3/11/2004

The former coach of North Korea’s national football team has defected to the South, according to the Yonhap news agency.

It reports that the South Korean intelligence service has had 56-year-old Mun Ki-nam in protective custody since he arrived in Seoul in January

He coached the North Korean team from 1999 to 2000.

An unnamed government official said Mr Mun escaped from the North in August last year, along with his wife and four children.

He reportedly took refuge at South Korea’s embassy in Beijing in mid-January.

Mr Mun was also involved in coaching a pan-Korean side which took part in a youth football championship in Portugal in 1991.

Another North Korean football coach, Yun Myong-chan, defected to the South in 1999.

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Summary of DPRK technological efforts

Monday, December 1st, 2003

From the Office of the National Counterintelligence Executive:

North Korea: Channeling Foreign Information Technology, Information to Regime Goals Pyongyang is working with Koreans abroad and other foreign partners in information technology (IT) ventures, sending software developers overseas for exposure to international trends, granting scientists access to foreign data, and developing new sources of overseas information in a bid to develop the economy. Cellular telephones and Web pages are accessible to some North Koreans, while foreigners in Pyongyang have access to foreign television news and an Internet café. While such steps are opening windows on the world, however, Democratic People’s Republic of Korea (DPRK) oficials are largely limiting such exposure to areas required for economic development. Moreover, they are applying IT tools to develop new means of indoctrinating the public in North Korea and reaching audiences overseas.

Working With Foreign Partners in IT Ventures
North Korea is promoting cooperative ventures with foreign partners to develop IT, which DPRK media have repeatedly described as a priority area in science and technology. An editorial in the 10 November 2003 issue of the party newspaper Nodong Sinmun, for example, named IT as the first of three technical fields, along with nanotechnology and bioengineering, to which “primary efforts should be directed.”

North Korean media suggest that officials have grasped the potential of leveraging IT for national development. A recent article in the government’s newspaper asserted that (1) “IT trade surpasses the automobile and crude oil industries” and (2) “IT goods are more favorable in developing countries than they are in the developed nations” (Minju Choson, 7 March).

ROK analysts, such as those who compiled a survey of Pyongyang’s IT industry (Puhkan-ui IT Hyonhwang-mit Nambuk Kyoryu Hyomnyok Pangan, 1 January), have suggested that DPRK policies for promoting a domestic IT industry reflect the nation’s lack of capital, dearth of natural resources, and relative abundance of technical talent.  Hoonnet.com CEO Kim Pom-hun, whose extensive experience in North Korea includes residence in Pyongyang from December 2001 to October 2002, has assessed North Korean IT manpower as resembling “an open mine with the world’s best reserves of high-quality ore” ( Wolgan Choson, 1 January).

Pyongyang is partnering with Koreans in South Korea, Japan, and China, as well as Chinese, in ventures to develop both software and hardware, including:

  • The Morning-Panda Joint Venture Company in Pyongyang, a partnership between North Korea’s Electronic Products Development Company and China’s Panda Electronic Group, which began making computers in late 2002.
  • The Pyongyang Informatics Center (PIC) and South Korea’s Pohang University of Science and Technology (PUST), which are cooperating to develop virtual reality technology. In addition:
  • The ROK’s Hanabiz.com and PIC launched the Hana Program Center in Dandong, China, in August 2001 (http://hanabiz.com/history.html) for joint software development and training of DPRK programmers.
  •  IMRI—ROK manufacturer of computer peripherals—and CGS—a Tokyo-based software company affiliated with the pro-Pyongyang General Association of Korean Residents in Japan (GAKRJ, a.k.a. Chosen Soren)—joined hands in July 2000 to form UNIKOTECH (Unification of Korea Technologies) to develop and market software. Both partners maintain links to North Korean IT enterprises.
  • The ROK’s Samsung Electronics and the DPRK’s Korea Computer Center (KCC) have been developing software together at a Samsung research center in Beijing since March 2000 (Chonja Sinmun, 15 October).

Venturing Overseas To acquire information on foreign IT trends and to promote their domestic industry, North Koreans have begun venturing overseas in recent years.

  • State Software Industry General Bureau Director Han U-ch’ol led a DPRK delegation in late September 2003 to the China International Software and Information Service Fair in Dalian. The North Koreans joined specialists from China and South Korea in describing conditions in their respective IT industries and calling for mutual cooperation. Participants from China and the two Koreas expanded on the theme of cooperation at the IT Exchange Symposium, sponsored by the Dalian Information Industry Association, Pyongyang’s State Software Industry General Bureau, and Seoul’s Korea Advanced Institute of Science and Technology (KAIST). Dalian Alios Technical Consulting, a company run by Chinese Korean Yi Sung-nam, hosted the exchange (www.kotra.or.kr, 15 October, http://hanabiz.com, 9 October).
  • Pyongyang opened, in April 2002 in Beijing, its first foreign exhibition of DPRK software products developed by Kim Il-song University, Korea Computer Center (KCC), PIC, and other centers of software development (DPRK Korea Infobank, 16 May 2002).
  • KCC Deputy Chief Technician Kim Ki-ch’ol led a delegation of DPRK computer technicians to the World PC Expo 2001, held in September 2001 outside Tokyo. KCC has worked with Digiko Soft—a company run by a Korean resident of Japan—to develop commercial software. Through Digiko Soft, the expo was the first show in Japan “of computer software developed in [North] Korea” (Choson Sinbo, 22 October, 1 October 2001).
  • KCC computer programmers Chong Song-hwa and Sim Song-ho won first place in August 2003 in a world championship software competition of go—an Asian game of strategy—held in Japan. KCC teams have visited Japan and China on at least eight occasions since 1997 to compete in program contests for go, taking first prize three times.

Gaining Access to Foreign Data North Korea has been acquiring foreign technical information from a variety of sources in recent years, benefiting from developments in technology, warming ties between the Koreas, and longstanding sympathies of many Korean residents in Japan.

  • Authorities have held the annual Pyongyang International Scientific and Technological Book Exhibition since 2001, bringing foreign vendors and organizations related to S&T publications to North Korea (KCNA, 18 August).
  • The Trade and Economy Institute, advertised as North Korea’s “sole consulting service provider” on international trade, has been exchanging information with “many countries via Internet” since September 2002 (Foreign Trade of the Democratic People’s Republic of Korea, 1 April).
  • According to PUST President Pak Ch’an-mo, who has extensive DPRK contacts in academic and scientific circles, North Korea has been purchasing technical books from amazon.com and from South Korea (Kwahak-kwa Kisul, 1 April).
  • Pro-Pyongyang Korean residents of Japan have long sent technical literature to North Korea.
  • ROK organizations, including PUST and IT publisher youngjin.com, have been donating technical publications on IT in recent years to DPRK counterparts as a means of earning good will and contributing to the eventual unification of Korea (Chonja Sinmun, 11 August).

Cell Phones, Web Pages, and NHK
Within North Korea, the advance of IT technology has been suggested by a number of recent developments:

  • Approximately 3,000 residents of Pyongyang and Nason have reportedly purchased cell phone service since November 2002 (The People’s Korea, 1 March).
  • Installation of a nationwide optical-fiber cable network in 2000, launch of the Kwangmyong 2000 Intranet the same year, and establishment of computer networks have made available domestic access to extensive technical databases maintained by the Central Scientific and Technological Information Agency, the Grand People’s Study House, and other repositories of technical information.
  • Via North Korea’s Silibank Web site (www.silibank.com), established in Shenyang, China, in September 2001, registered foreign users can exchange e-mails with DPRK members.
  • In August 2002, Kim Pom-hun, CEO of the ROK IT company Hoonnet.com, opened an Internet café in Pyongyang, the only place in North Korea for the public to access the Internet. Most customers of the service, which uses an optical cable linking Pyongyang and Shanghai via Sinuiju, are foreign diplomatic officials or international agency staffers; steep fees reportedly keep most Koreans from going on line (Wolgan Choson, 1 January).
  • Foreign guests in Pyongyang hotels have had access to foreign news broadcasts of Britain’s BBC and Japan’s NHK since May 2003, according to a Japanese television report (TBS Television, 2 September).

Limiting Information to Technical Areas, Harnessing IT for Domestic Indoctrination and Foreign Propaganda Development of the nation, rather than empowerment of the individual, appears to be driving DPRK efforts to develop domestic IT infrastructure and industry. Officials, scientists, and traders can now access and exchange information pertinent to their duties within the domestic Kwangmyong Intranet. Those with a “need to know” can even surf the worldwide Web for the latest foreign data. While Kim Chong-il reportedly watches CNN and NHK satellite broadcasts (Kin Seinichi no Ryorinin, 30 June) and supposedly surfs the Internet, the public has no such freedom to learn of the outside world without the filter of official propaganda.

Indeed, Pyongyang is using IT to indoctrinate the public and put its propaganda before foreign audiences. In addition to studying the party line through regular group reading of Nodong Sinmun in hard copy, a practice for indoctrinating members of work units throughout North Korea, the installation of computer networks now brings the newspaper to some workplaces on line, as the photograph below shows:

Moreover, Pyongyang has put its propaganda on the Internet.

  • KCNA offers Pyongyang’s line in English, Korean, and Spanish at a Web site in Japan at www.kcna.co.jp.
  • News and views of the General Association of Korean Residents in Japan and its affiliated organizations appear on the group’s site at www.chongryon.com.
  • DPRK media, including newspapers Minju Choson and Nodong Sinmun, have appeared on sites originating in China, such as www.dprkorea.com and www.uriminzokkiri.com.
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