Archive for the ‘UN’ Category

North Korea’s food situation: worse, but maybe just back to normal

Thursday, April 28th, 2016

By Benjamin Katzeff Silberstein

Some days ago, the Food and Agriculture Organization (FAO) sounded the alarm bells on North Korean food production. The drought of last summer, among other factors, has caused North Korea’s food production to drop for the first time since 2010. (Recall that in the past years, both North Korean media outlets and some analysts touted Kim Jong-un’s agricultural reforms — the former claimed that food production was increasing despite the drought. It seems they spoke too soon).

Numbers like this, however, matter little without context. After all, five years is not a very long measurement period. Analysts like Marcus Noland have noted that the years following 2010 were probably exceptionally good. The current downturn might be best contextualized as a return to lower but more normal levels of food production.

How does the latest food production figure look in a larger context? The short answer is: not that bad, even though the downward trend is obviously problematic. Let us take a brief look at North Korean food production figures over the past few years. All following numbers show food production figures in millions of milled cereal equivalent tons:

  • 2008/2009: 3.3
  • 2010/2011: 4.5
  • 2012/2013: 4.9
  • 2013/2014: 5.03
  • 2014/2015: 5.08
  • 2015/2016: 5.06

(Sources for all figures except the 2015/2016 figure can be found here, in a piece I wrote for 38 North late last year. It seems the calculation I made for 2015/2016 was off by 0.01 million tonnes.)

In other words, yes, the latest food production estimate represents a decrease, but it’s not that big. North Korean food production is still far larger than it’s been for most of the 2000s.

It is also interesting to note the striking variation in North Korean government food imports. Marcus Noland and Stephan Haggard wrote in Famine in North Korea that the government downsized food imports as a response to increasing aid flows. Whatever the rationale might be behind the regime’s food import policies, they tend to vary greatly from year to year. In 2012/2013, the country imported almost 400,000 tonnes of cereal. In the mid-2000s, imports were close to one million tonnes, and they dropped to under 300,000 tonnes in 2008/2009.  In 2011/2012, imports climbed to 700,000 tons.

For 2015/2016, FAO projects a gap of need versus production of 684,000 tonnes, but government imports stand at around 300,000 tonnes, a relatively low figure in a historical context. Thus, North Korea is left with an uncovered deficit of 384,000 tonnes. Presumably, this wouldn’t be prohibitively expensive to cover by doubling cereal imports. The economy seems far more healthy today than it was in 2011-2012, and still, it managed to import more than double its planned imports of 2015-2016.

All in all, North Korea’s food production appears to be far from sufficient or stable, but the situation does not appear acute in a historical context. Indeed, one could argue that it’s a matter of policy choices and priorities: the regime could choose to increase imports to offset the decline in production, but its funds are spent elsewhere. And, of course, more efficient agricultural policies overall would make North Korean agriculture and food markets far more resilient to weather variations.

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North Korean market condition since new international sanctions

Wednesday, March 23rd, 2016

Institute for Far Eastern Studies (IFES)

It has been almost two weeks since the enforcement of new sanctions imposed by the United Nations Security Council (UNSC), and so far North Korea’s domestic economy seems calm. Following the sanctions, North Korea has been preparing for the 7th Party Congress in May with its 70-day campaign (or ‘speed battle’). In order for the people to focus on the preparation, the government has reduced the business hours of markets and has begun controlling the street markets (i.e., ‘grasshopper’ markets).

In particular, it was expected that the sanctions would reduce the inflow of goods into the country which would then lead to a rapid rise in market prices and exchange rates, but so far the market prices appear to have remained relatively stable. According to the Daily NK, a South Korean online newspaper reporting on North Korea, 1kg of rice is selling for 5,100 KPW, 5,150 KPW, and 5,080 KPW in Pyongyang, Sinuiju, and Hyesan, respectively. These prices are relatively similar to the prices prior to when the sanctions were in full effect (i.e., 5,100 KPW in Pyongyang and Sinuiju, and 5,260 KPW in Hyesan).

The exchange rate appears no different. One US dollar exchanges for 8,150 KPW in Pyongyang, 8,200 KPW in Sinuiju, and 8,170 KPW in Hyesan. The rate has been only slightly reduced compared to the rate prior to when the sanctions were put in place (i.e., 8,200 KPW in Pyongyang, and 8,290 KPW in Sinuiju, and Hyesan).

The reason for the stability in the market and the exchange rate is because even though the market hours have been reduced due to the 70-day campaign, the markets actually are running better than before and in some regions the price has gone down for some goods, presumably because some of these items that were exported in large scale via China have been circulated in the North Korean domestic market.

Also, aside from the underground resources (i.e., minerals) — the sanctioned items that used to account for most of the exports — other goods are still sold accordingly, which helps in stabilizing the market. Furthermore, the improvement of the domestic market cannot be taken lightly when considering the stability of the markets. In other words, unless markets are completely closed, people in North Korea wouldn’t consider it an issue.

Meanwhile, despite the international community’s sanctions against the country, including that of the UN Security Council, North Korea is claiming overproduction in areas such as electrical power and minerals in the run-up to the Seventh Party Congress in May. The North Korean propaganda media ‘DPRK Today’ has mentioned about production and the country’s success in confronting the imposed sanctions.

More specifically, since the initiation of the 70-day campaign last month (February 23rd), in order to boost economic success, Namhung Youth Chemical Complex has reportedly turned out 60% more fertilizer; Pyongyang Railway Bureau increased the traffic by 40%; Ryongyang Mine increased its production of magnesite by 20%; and 2.8 Jiktong Youth Coal Mine produced 7,200t beyond its quota. In addition, Kim Jong Suk Textile Mill reportedly has seen more than 40 labors complete the plan for the first half of the year, while Baekdu Hero’s Youth Power Plant has reached 37,000m2 in dam construction. Previously on March 3rd, the Korean Central Broadcasting radio reported that many of the production targets for February in the national economy have been surpassed.

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The UNSC sanctions and the North Korean economy

Friday, March 11th, 2016

By Benjamin Katzeff Silberstein

In the past few days, Daily NK has carried a number of interesting reports on how the latest round of UNSC sanctions have impacted the domestic economy in North Korea. Below, I’ve gathered a compendium of sorts. I’ll continue updating it as more stories surface.

Only a short while after the sanctions were announced, trucks carrying mineral exports were blocked from entering China. Some businesspeople were apparently surprised at China’s relatively forceful implementation of the sanctions, given that little impact had been seen from past sanctions:

Chinese authorities began prohibiting mineral exports from North Korea on March 1st in a move not strictly related to the passing of UN Security Council Resolution 2270, which outlines sanctions against North Korea. North Korean authorities and foreign-earning currency enterprises tied to the military did not see this move coming and expressed embarrassment and shock.

In a telephone conversation with the Daily NK on March 4, a source from North Pyongan Province said, “Beginning on March 1, mineral exports such as coal and ore have not been allowed to pass through Chinese customs into China. Trucks loaded with mineral deposits have been idly waiting in front of Chinese customs near Dandong. The foreign trading companies are simply waiting for instructions from the higher authorities.”

Full story:
Trucks loaded with mineral exports blocked from entering China
Seol Song Ah
Daily NK
2016-03-07

A few days later, Daily NK reported that “panic” had begun to set in, not just among high-level businesspeople and traders involved in the mineral extraction industry, but also among market vendors who worry that they won’t be able to buy products for import from China:

“The news that the UN resolution containing sanctions against North Korea passed unanimously is spreading like wildfire through [domestic] cell phones. People in the North had little interest in sanctions in the past, but these days they are expressing concern that ‘this time things are going to be different,’” a source in South Pyongan Province reported to Daily NK on March 7.

A source in North Hamgyong Province corroborated this news, reporting the same developments on the ground in that region.

“Sinuiju is known as the gateway to China and the ultimate symbol of friendly relations between our two nations. That’s why news of its closure to mineral exports is causing dismay,” she explained, adding that a rumor has also taken off that international customs offices in other border towns such as North Hamgyong’s Rajin and Hoeryong will be shuttered.

Further anxiety is being stoked by the fact that trusted allies such as China and Russia are participating in the sanctions and the fact that residents are getting detailed information about the resolution’s specific clauses.

“People are further concerned because things have apparently changed significantly since China helped the country to overcome the difficulties during the ‘Arduous March,’ [famine] in the mid 1990s. People from all over the country are concerned that China might shut the border down totally. If that happens, it will become difficult for everyone to make a living,” the source indicated.

“Wholesalers and market vendors are feeling the most vulnerable to the UN sanctions. Their greatest fear is that they won’t be able to buy products. Merchants who have been selling Chinese products at cheap prices are expecting a cost increase and have momentarily discontinued sales.”

Full story:
Panic sets in as sanctions specifics circulate 
Daily NK
Choi Song Min
2016-03-08

Not just mineral exports to China have taken a hit. Food products specialties like hairy crab, frequently imported to cities like Yanji in China from North Korea’s northern fishing cities like Rajin, are now being sold at domestic markets instead:

“These days items that were previously hard to find because they were earmarked for export are suddenly emerging at the markets,” a source from North Hamgyong Province told Daily NK on Thursday. “The price haven’t gone down enough yet, so you don’t see too many people actually buying them. But you do see flocks of curious people coming out to the markets to see all the delicacies for sale.”

She added, “High-end marine goods like roe, sea urchin eggs, hairy crab, and jumbo shrimp and produce like pine nuts, bracken, and salted pine mushrooms were once considered to be strictly for export, but now they’re easy to find. The number of such products, referred to as ‘sent back goods,’ at Sunam Market and other markets around Chongjin is growing by the day.”

Additional sources in both North and South Hwanghae Provinces reported the same developments in those regions.

Despite the sanctions that have already kicked in, products from China are still flowing into North Korea. however, the goods sold in bulk to China–minerals like coal, marine products, etc.– have nowhere to go and are therefore making their way back into the country.

Full story:
Would-be food exports to China popping up in jangmadang
Choi Song Min
Daily NK
2016-03-11

Politically, too, the topic of sanctions has become highly sensitive. According to reports by Daily NK, surveillance authorities have increased their focus on certain groups that they deem as more likely than others to speak out about the added pressures from the sanctions:

The boost in surveillance is interpreted as a move by the regime to nip in the bud any rumblings of political unrest engendered by members of society more likely to speak out about the pressure squeezing North Korea. Those tracing the lines of the circumstances leading to this pressure, namely a volley of sanctions lobbed at North Korea by the international community in response to its nuclear test and rocket launch, are a threat to the regime’s authoritarian grip over the population.

A source with the Ministry of People’s Security [MPS, or North Korea’s equivalent of a police force] informed Daily NK on March 8 that internal orders came down at the beginning of March for the MPS to survey and track the recent movements of those anyone ascribed to the “wavering” cohort. Two separate sources in the same province verified this information, but Daily NK has not yet confirmed if the same orders are in effect in other provinces.

Full story:
MPS steps up surveillance to suppress potential ‘pot stirrers’
Kang Mi Jin
Daily NK
2016-03-11

(UPDATE 2016-02-18): a couple of days ago, Daily NK published another piece on this topic. They note that market prices have remained relatively stable, and that many people don’t seem to treat this sanctions round as anything out of the ordinary:

Market prices in North Korea have remained relatively stable despite stronger sanctions enforced by the international community, including China, as well as greater limitations on market operationsdue to nationwide preparation for Pyongyang’s May Party Congress.

Multiple Daily NK sources within the country have confirmed that rice prices in Pyongyang, South Pyongan Province’s Sinuiju, and Ryanggang Province’s Hyesan are trading at 5,100 KPW, 5,150 KPW, and 5,080 KPW per kilogram, respectively, similar to levels before sanctions were stepped up (5,100 KPW, 5,100 KPW, 5,260 KPW).

This is also the case on the foreign exchange front, with 1 USD trading for 8,150 KPW in Pyongyang, 8,200 KPW in Sinuiju, and 8,170 KPW in Hyesan, showing some signs of strengthening for the local currency from pre-sanction rates (Pyongyang 8,200 KPW, Sinuiju·Hyesan 8,290 KPW).

“There had been concern we would see fewer goods in the market because of UN sanctions, but in reality, there hasn’t been much difference,” a source from North Pyongan Province told Daily NK in a telephone conversation on Sunday. “The state is placing restrictions on opening hours for the market for the ‘70-day battle’ (mobilization for the Party Congress), but the markets have remained lively, and there’s not much change in terms of market prices.”

Further confirming trends previously reported by Daily NK last week, an additional source in North Hamgyong Province reported yesterday that some people had stocked up food worried about sanctions from the UN, but that this hasn’t led to a violent gyration in prices. “Actually, in some regions, we’re seeing prices of certain products drop,” he noted.

This price stability seen in the marketplace, in spite of the sanctions having kicked in earlier this month, can be attributed to the fact that most products are still trading as they would have save one of the North’s main export items: minerals.

The simple reality that people have experienced similar times before is also at play. “In the past, people who had stockpiled food during other sanctions discovered that after the political climate evened out a bit they were unable to get their money’s worth for everything they bought. This is why we’re seeing less of it,” a source from Ryanggang Province explained. “Initially there was a little bit of noise, but in general people are remaining calm.”

Full article:
Market prices so far showing resilience against sanctions
Daily NK
Kang Mi Jin
2016-03-14

Also, Marcus Noland recently launched a “Black Market Contest” at the Witness to Transformation blog, letting readers bet on what will happen with the unofficial exchange rate as a result of the sanctions:

The exchange rate issue has re-emerged with the imposition of sanctions. My colleague Steph Haggard leans toward the view that the imposition of a broader set of sanctions, particularly with respect to mining, together with enhanced Chinese enforcement will generate a balance of payments cum financial crisis with uncertain implications for political stability. I am more skeptical of both the additional coverage and the likely Chinese rigor in enforcement.

But this is an empirical issue. If the sanctions bite, then one would expect to see their effects manifested in the black market rate on the won. So we decided to offer up this conundrum to the wisdom of the crowd, or at least of our readership, in this Witness to Transformation Black Market Contest. Yes, you can ply your wits against North Korean loan sharks and black market traders. Or maybe the North Korean monetary authorities. Here’s how it works.

Steph thinks that within two months, evidence of the impact of sanctions should begin to emerge. So the object of the contest is to guess the black market won-dollar rate two months hence. Since the sanctions resolution passed 2 March, we will use the first DailyNK average rate applying to the post-2 May period as the reference. So you have the next month to analyze trade data, contact spies in Dandong, or call in favors in Switzerland to inform your estimate. Whoever guesses closest to the May black market rate wins. In the event of a tie, whoever submitted their entry first wins.

Please list your estimate in the comments section below. The entry period closes 15 April.

Full article:
Witness to Transformation Black Market Contest
Witness to Transformation blog
Marcus Noland
2016-03-16

(UPDATE 2016-05-02): DailyNK continues to cover domestic prices in the context of the sanctions. In late April, vegetable prices rose, but rice prices remain notably stabile:

Despite these high prices, movements on the rice and foreign currency front have remained relatively stable, leading people to believe the spike in vegetables will be short lived.

“Vegetables are not export items and therefore their prices are determined by domestic supply and demand,” the Pyongyang-based source noted. “However strong the sanctions may be, rice prices have nonetheless remained the same and, under these conditions, not many will choose to eat expensive cabbages over rice,” the source added, suggesting that prices are likely to return to normal as the markets readjust for supply and demand.

Full article here:
Vegetable prices spikes, rice remains stabile 
Daily NK
Kang Mi Jin
2016-04-28

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North Korea emphasizes economic independence amid pending international sanctions

Thursday, March 10th, 2016

Institute for Far Eastern Studies (IFES)

With the soon-to-be announced UN Security Council’s sanctions against the DPRK in response to the country’s recent provocations, North Korea is urging economic independence through its ‘speed battle’ to confront the resolution.

On February 29, the state-sponsored Rodong Sinmun newspaper emphasized that “against the sanctions, building an independent national economy based on today’s modern technology is the utmost important mission for us . . . as without strong self-reliant economy, we cannot move towards autonomy.”

The newspaper also defined the building of the independent national economy as “a historical mission that is challenging but needs to be achieved for a bright future.”

Such claims by the DPRK can be interpreted as a means to unite the country behind the Party and prepare the people for the upcoming sanctions, as the UN Security Council is about to pass the most impactful sanctions against the country ever.

North Korea is also urging its people to join the ‘70-day campaign’ to greet the upcoming Seventh Congress of the Workers’ Party of Korea, which is to be held in May. The 70-day campaign is a ‘speed battle’ (as it is traditionally known), which is a socialist mobilization technique employed to increase people’s performance in order to meet economic production or construction targets in the building of a strong country. This technique was first introduced in North Korea’s economic planning back in the early 1970s. The newspaper emphasized that the goal of this year’s 70 day-long campaign is to overcome the struggle in solidifying the Party under the monolithic leadership based on the philosophies of Kim Il Sung and Kim Jong Il – i.e., Kimilsungism-Kimjongilism.

The 70-day speed battle will be a good opportunity to observe the leadership capabilities of Kim Jong Un following the era of his late father Kim Jong Il. With the international community gearing towards announcing sanctions against North Korea due to the country’s latest nuclear test (of possibly a hydrogen bomb) and launch of a long range missile, economic stabilization of the country through robust policy can be regarded as a ‘battle’ related to Kim’s leadership. That is, the 70-day speed battle is not just an ordinary economic mobilization campaign, but 70 days of establishing Kim Jong Un as ‘leader’ as the Party Congress approaches.

On the same day (February 29), the Choson Sinbo (the pro-North Korean newspaper published in Japan) emphasized in a column that “the initial bill on sanctioning the DPRK has been drafted for the fifth time. . . . which shows that no sanctions can compromise Choson [DPRK] from building an autonomous strong nation.”

The newspaper criticized the United States saying “the United States has shown the most savage and brutal side of imperialism by asking China to join the sanctions against the DPRK with such terms that completely isolates the DPRK from the world, aiming for the country to be unable to exist and ultimately collapse as a state.”

The newspaper also said that the claim that the UN sanctions will not affect the North Korean people’s livelihoods is completely hypocritical and cunning, and expressed disappointment with China’s agreement to the sanctions.

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Russian food donation to North Korea

Tuesday, March 1st, 2016

By Benjamin Katzeff Silberstein

The World Food Program (WFP) has announced that Russia has donated 4 million dollars worth of wheat to feed particularly vulnerable populations in North Korea. According to the WFP, the amount will contribute to feeding about 620,000 people for four months. I’ve pasted the WFP press statement below, but interested readers should also check out the Facebook post of the Russian Embassy in Pyongyang, which has pictures of the delivery ceremony. WFP’s statement:

PYONGYANG – A ship carrying wheat donated by the Russian Federation successfully delivered its cargo in the port of Nampo today. The wheat will help the United Nations World Food Programme (WFP) to meet the nutritional needs of more than 620,000 children and women for a period of four months.

“Russia takes an active part in WFP’s operations in general, and in particular in its activities in DPRK. We highly appreciate WFP’s efforts aimed at providing aid to the most vulnerable strata of the country’s population, including children and pregnant and nursing women. We know that the Koreans feel deep gratitude because of this timely and valuable help. We consider it important that Russian flour and wheat are used to produce nutritious cereals and biscuits in local factories,” said Alexander Matsegora, Russian Ambassador to the Democratic People’s Republic of Korea (DPRK).

The wheat will be used in locally-produced fortified biscuits and “cereal milk blend” – a specially designed flour fortified with essential micronutrients, which is used to make pancakes or bread.

“I would like to thank the Russian Government for this generous donation and its continued commitment. The Russian contribution is timely following a poor harvest after last year’s drought and comes at the end of the cold and harsh winter. WFP’s assistance is crucial to ensure young children grow into healthy adults by giving them the nutritious food they need,” said Darlene Tymo, WFP’s Representative and Country Director in DPRK.

The wheat was procured by WFP thanks to a contribution of USD 4 million from the Russian Federation. In the last five years, Russia has donated a total of USD 22 million to WFP in DPRK.

Almost a third of children under five in DPRK do not have enough diversity in their diet and are short for their age – a condition known as stunting. If children miss out on crucial vitamins and minerals in the first few years of their lives, it can affect long-term development and growth. WFP’s nutrition assistance helps to provide vital nutrients to children, as well as to pregnant and nursing mothers.

Full statement here:
Russian Contribution Support WFP Nutrition Assistance In DPRK
World Food Program
03-01-2016

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UN releases emergency funds to North Korea

Tuesday, February 2nd, 2016

By Benjamin Katzeff Silberstein 

From a press statement today by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA):

UN EMERGENCY FUND RELEASES US$ 8 MILLION TO ASSIST MOST VULNERABLE WOMEN AND CHILDREN IN DPRK

(Bangkok, 2 February 2016)

United Nations Secretary-General Ban Ki-moon on 29 January 2016 released US$ 8 million from the UN Central Emergency Response Fund (CERF) for severely underfunded aid operations in the People’s Democratic Republic of Korea (DPRK). These funds will enable life-saving assistance for more than 2.2 million people most vulnerable and at risk of malnutrition.

The DPRK was one of nine countries to receive such grants within the overall $100 million allocation to underfunded emergencies. Undernutrition is a fundamental cause of maternal and child death and disease: in DPRK, chronic malnutrition (stunting) among under-five children is at 27.9 per cent, while 4 per cent of under-five children are acutely malnourished (wasting).

Around 70 per cent of the population, or 18 million people, are considered food insecure. Food production in the country is hampered by a lack of agricultural inputs and is highly vulnerable to shocks, particularly natural disasters. Due to drought in 2015, 11 per cent of the main harvest was lost.

Health service delivery, including reproductive health, remains inadequate, with many areas of the country not equipped with the facilities, equipment or medicines to meet people’s basic health needs. Under-five children and low-birth-weight newborns are vulnerable to life-threatening diseases, such as pneumonia and diarrhoea if they do not receive proper treatment or basic food, vitamins and micronutrients.

Full press statement available here.

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Tumen Triangle tribulations: The unfulfilled promise of Chinese, Russian and North Korean cooperation

Thursday, November 12th, 2015

Andray Abrahamian has published a report with the US-Korea Institute on developments in the Tumen Triangle.

Here is the report description:

The Tumen Triangle region-where North Korea, China and Russia meet-is, in many ways, the story of regional integration being held back by the political concerns of Pyongyang, Beijing and Moscow. There are long-term forces at work here, such as Moscow’s concerns over Chinese dominance in the sparsely populated Russian Far East. This legacy of mistrust frames cross-border interactions and despite recent warm relations, major cross-border cooperation remains limited.

In this USKI Special Report, Andray Abrahamian, Director of Research at Choson Exchange examines historical legacies, contemporary relations and shifting strategic priorities between the three countries. The report then focuses trade and investment in the Tumen Triangle region, particularly how the Yanbian Korean Autonomous Prefecture and Primorsky Krai interact with and affect Rason Special City, the center of the Rason Special Economic Zone.

You can download the report here (PDF).

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North Korean food shortage news roundup: October and November (updated)

Tuesday, November 10th, 2015

By Benjamin Katzeff Silberstein

This summer and fall has seen a somewhat contradictory stream of information about the North Korean food situation. First there were the drought warnings, which were closely followed by regime sources claiming that harvests were actually getting better thanks to agricultural reforms. During the fall, however, the picture painted by multilateral institutions like the Food and Agriculture Organization (FAO) and the World Food Program (WFP) has been one of dire and continued problems.

In early October, the FAO said that North Korea’s staple food production could go down by 14 percent during the year compared to last year, as AFP reported:

North Korea’s staple food production could plummet by 14 percent this year because of bad weather, sparking fears of exacerbating chronic food shortages in the impoverished nation, according to the UN agricultural agency.

The gloomy forecast from the Food and Agriculture Organization comes as the reclusive communist country prepares for a lavish military parade Saturday to mark the 70th anniversary of the ruling Workers’ Party.

The North is expected to produce 3.7 million tonnes of rice and corn this year, down from 4.3 million tonnes last year, according to a report from the FAO early warning system.

Pyongyang plans to import 500,000 tonnes of rice and corn from abroad, the FAO said, but it will not be enough to feed its 25 million people.

The country, plagued by regular droughts, will face a total shortfall of 1.2 million tonnes of its staples.

State media reported in early June the country’s main rice-growing areas had been badly hit by the “worst drought in 100 years”.

North Korea saw significant rainfall later, but analysts said the prospects for this year were still grim.

Full story here:
North Korea food production could drop 14%: FAO 
Yahoo News/AFP
10-9-2015

Later last month, the FAO reiterated its concerns over North Korea in its yearly report on the state of agriculture in the world. Voice of America:

More than 26 percent of children in North Korea’s countryside are underweight, a U.N. Food and Agriculture Organization report says.

The agency, in its recently released “State of Food and Agriculture 2015” report, also estimated that there are twice as many undernourished children in the communist country’s rural areas as in its cities.

Andre Croppenstedt, an FAO researcher who wrote the report, told VOA that “it’s normal to have a much higher percentage of children underweight in rural areas as opposed to urban areas,” but that the gap “is perhaps a little larger than usual” in North Korea.

The North Korean ratio is the 24th highest among the 123 low-income developing countries. Among East Asian countries, North Korea’s ratio ranked fifth, after East Timor, Cambodia, Papua New Guinea and Laos.

Read the full story here:
FAO: 1 in 4 Rural North Korean Children Underweight
Kim Hyunjin
Voice of America
10-22-2015

And last month, WFP announced it was extending its aid to North Korea over next year due to expected food shortages. Voice of America again:

The United Nations’ food agency plans to extend aid to North Korea amid reports that the communist country is facing food shortages next year.

Damian Kean, a regional spokesperson for the World Food Program (WFP), told VOA this week the agency plans to extend the current food aid program for another six months.

“This current program cycle is supposed to be finished this December. What we decided to do is to extend the program until the middle of next year,” said Kean.

He added that the agency needs an additional $23.3 million to fund the extension.

The WFP is conducting an assessment of the nutritional status of North Koreans to determine if further assistance is needed after June of next year, Kean said.

The agency launched a two-year food aid program in July 2013, and it had already extended the program through the end of this year.

According to Kean, the food shortages are affecting the most vulnerable groups, including young children and pregnant women.  More than 30 percent of North Korean children under five are experiencing stunted growth because of malnutrition, and more than a third of pregnant women and breastfeeding women are suffering from anemia.

Full story here:
UN to extend aid to North Korea
Kim Hyunjin
Voice of America
11-03-2015

This all suggests, as one might have expected, that North Korean claims of successful agricultural reforms may not have been the whole truth. At the very minimum, had such reforms had a strong and positive impact, harvests shouldn’t be declining compared with last year. Or harvests could just be stronger than what they would have been after the drought absent economic reforms. In any case, North Korean claims of a growing harvest do not seem to have held out.

UPDATE 10-10-2015:

Marcus Noland at the Peterson Institute’s Witness to Transformation Blog offers an interesting theory on these numbers: they aren’t that bad when compared with output over the last decade.

Last week Yonhap ran a story titled “N.K. may suffer severe food shortage next year: S. Korean expert” in which Kwon Tae-jin, formerly of the Korea Rural Economics Institute and now at the GS&J Institute, argued that North Korea may be facing its greatest food shortage of the Kim Jong Un era. Numerous articles, citing reports from the UN system, have highlighted high rates of malnutrition, particularly among vulnerable groups such as children.

The problem is that while the situation appears to be deteriorating relative to last year, as shown in the chart above, the FAO forecast of actual food availability per capita for 2015-16 actually represents a slight improvement over conditions for most of this decade.

Detailed data from the FAO displayed in the table below confirm that while production is forecasted to decline for coarse grains, maize, and rice, only in the case of rice is output forecasted to be below the 2011-13 average, and in this case, increased imports are expected to offset most of the shortfall.

Full story here:
Is North Korean food insecurity being hyped? 
Marcus Noland
Witness to Transformation
10-10-2015

What I wonder still is what this says about the progress of reforms, even if the figures aren’t particularly alarming. Also, the trend has been an increase in harvest figures over the past few years. So even if these figures aren’t particularly out of range, they still go against a trend of growth.

 

UPDATE (11-27-2015): Daily NK interviews one person in the country who says that this year saw a bumper harvest despite weather conditions, but not thanks to state reforms. The article says it’s not thanks to increases in collective farm harvests that things are going better, but because those tending individual plots have found better farming methods:

However, the number of people working hard to ensure the success of the rice harvests on collective farms is dropping. This is in large part due to the fact that despite reassurances from the state that farmers will receive sizable allocations of the harvest for their own use, for the past several years this has not been the case.

After “repeated failures by the authorities to fulfill stated promises,” he asserted, farmers have concluded that it makes no difference to them personally whether the collective farms do well or not.

Read the full article:
Despite Mother Nature, a bumper year for rice harvest
Lee Sang Yong
DailyNK
11-26-2015

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World Food Program North Korea funds down

Monday, October 5th, 2015

By Benjamin Katzeff Silberstein 

Voice of America reports:

The U.N. food aid agency said Thursday that its aid to North Korea’s vulnerable people dropped 44 percent last month because of a lack of funds.

A World Food Program spokesman said the organization in September provided 2,105 tons of food to 742,000 people who depend on external assistance, including pregnant women and children.

Last month’s amount was also significantly less than what the U.N. agency planned to provide. The agency’s goal was to provide 10,000 tons of food to 1.8 million people every month.

Recently, the agency scaled down distribution areas to 69 counties and cities across the country.

“The main reason for distributing less food in September was insufficient funding resources,” wrote Damian Kean, WFP’s regional communications officer, in an email to VOA.

To fund projects this year, the agency needs about $167.8 million, but it has secured only half of the amount so far, according to the agency’s website.

The FAO has also highlighted the problem. As mentioned in another post, while the North Korean government claims success for agricultural reforms and claims that the drought impact was very limited, international aid agencies paint a different picture. But data confusion is nothing unusual for North Korea, and perhaps the picture will change as both the North Korean government and multilateral agencies continue to reassess the situation.

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Cash-strapped World Food Program Cuts Aid to N. Korea

Voice of America

10-01-2015

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World Food Program cuts aid to DPRK

Thursday, October 1st, 2015

According to Voice of America:

The U.N. food aid agency said Thursday that its aid to North Korea’s vulnerable people dropped 44 percent last month because of a lack of funds.

A World Food Program spokesman said the organization in September provided 2,105 tons of food to 742,000 people who depend on external assistance, including pregnant women and children.

Last month’s amount was also significantly less than what the U.N. agency planned to provide. The agency’s goal was to provide 10,000 tons of food to 1.8 million people every month.

Recently, the agency scaled down distribution areas to 69 counties and cities across the country.

“The main reason for distributing less food in September was insufficient funding resources,” wrote Damian Kean, WFP’s regional communications officer, in an email to VOA.

To fund projects this year, the agency needs about $167.8 million, but it has secured only half of the amount so far, according to the agency’s website.

The food aid cut came as the communist country has been reducing food rations. Last month, North Korea distributed an average of 250 grams of daily rations per person, a 21 percent decline from a three-year average, according to the U.N.’s Food and Agriculture Organization. The figure was less than half of the minimum amount recommended by the U.N. FAO officials blamed poor crop production caused by drought for the cut.

Experts warn that North Korea could face further food shortages next year.

“North Korea has not imported enough food this year, nor did it get significant aid,” said Kwon Tae-jin, an economic analyst in Seoul who specializes in North Korea’s agriculture.

The FAO said North Korea needs 421,000 tons of food from the outside world by the end of the month to feed its citizens this year.

Read the full story here:
Cash-strapped World Food Program Cuts Aid to N. Korea
VOA
Kim Hyunjin
2015-10-1

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