Archive for the ‘DPRK organizations’ Category

New loyalty campaign in North Korea, to boost the 5-year plan

Saturday, May 28th, 2016

By Benjamin Katzeff Silberstein

Just as one mass campaign ended (the “70-day battle”), another one begins. This time, it’s a 200-day campaign to boost the economy and fulfill the 5-year plan. Perhaps a grim premonition of what is to come as the 5-year plan is implemented further. Yonhap:

North Korea kicked off a new loyalty campaign to get people to work more as part of its five-year economic program announced at its seventh ruling party congress, state controlled media said Sunday.

According to the Korean Central News Agency (KCNA), a meeting of ruling Workers’ Party of Korea (WPK), government, economic and military officials was held Thursday through Saturday, where participants agreed to launch the “200-day campaign of loyalty” that can bolster growth.

The announcement comes on the back of Pyongyang concluding its “70-day campaign of loyalty” program just before the start of the rare congress that took place early this month. That campaign ran from mid-February to May 2.

The new effort is being pursued as the United Nations sanctions take bite, and the country finds itself more and more isolated from the outside world. The global body slapped its toughest sanctions to date on the reclusive country for its fourth nuclear test in January and the firing off of a long-range missile the following month.

The KCNA said that leading members at last week’s gathering in Pyongyang concurred on the need to join forces to bring about the successful conclusion of the new campaign in accordance with the guidance put forth by North Korean leader Kim Jong-un.

Kim outlined his new five-year economic growth plan running from this year to 2020 and called on North Koreans to meet the growth goals.

Article source:
N. Korea kicks off new loyalty campaign to prop up economy
Yonhap News 
2016-05-29

Here is a statement from the Pyongyang Times (2016-5-30):

Joint conference takes measures for five-year economic development strategy, declares 200-day campaign

A joint conference of Party, government and military officials was held between May 26 and 28 in Pyongyang to discuss the ways to implement the tasks set forth at the Seventh Congress of the Workers’ Party of Korea.

It was attended by senior officials Pak Pong Ju, Choe Thae Bok, Pak Yong Sik, O Su Yong, Kwak Pom Gi, Ri Man Gon and Jo Yon Jun and other officials from Party and military organs, the Cabinet, working people’s organizations, ministries, national agencies, local Party and government organs and major industrial establishments.

The joint conference, the first of its kind in the history of the WPK, discussed scientific and realistic ways to carry through the national five-year strategy for economic development put forward at the Seventh WPK Congress and important measures to achieve the grand objective for building a socialist power by inspiring all the service personnel and people to the campaign to create the Mallima speed.

Premier Pak Pong Ju, member of the Presidium of the Political Bureau of the WPK Central Committee, delivered a report.

He said the Party, army and people are faced with the important and honourable task of accomplishing the cause of a socialist power as early as possible when the independent ideal and desire of the people are being translated into reality in an all-round way under the banner of Kimilsungism-Kimjongilism.

In the five-year period, he noted, we should resolve the energy problem, put the vanguard sectors and key economic industries on a normal track and increase agricultural and light industrial production by adhering to the Party’s new line of simultaneously promoting the two fronts, thereby radically improving the people’s standards of living.

Specifying the targets for implementing the five-year strategy by major indices, he pointed to the issues to be settled in all sectors of an economic giant building, including the concentration on easing power shortage, the master key in economic development and improved livelihood of the people.

To thoroughly implement the important tasks set forth at the Seventh Party Congress, he pointed out, it is imperative to enhance the state’s function as the organizer of the economy and establish a Korean-style economic management method embodying the Juche idea in an all-round way.

“Officials of the Cabinet, ministries and national agencies should work out phased plans for implementing the economic development strategy in a realistic manner on the basis of the Party’s line and policy, arrange economic work scrupulously and make persistent efforts to carry them through,” he stressed.

“Economic work should be planned and directed in such a way as to concentrate efforts on the main link and activate the economy as a whole. All sectors and all units have to establish strict discipline and order whereby they place all economic work under the control of the Cabinet and work according to its unified planning and direction in line with the requirements of the Cabinet-responsibility system and Cabinet-centred system.

“Relevant sectors and units should establish Korean-style economic management methods as required by developing reality, while factories, enterprises and cooperative organizations have to map out business strategies and conduct business activities on their own initiatives and in a creative manner in keeping with the requirements of the socialist system of enterprises managing themselves on their own responsibility, thereby putting production on track and expanding and developing it.”

As part of the joint conference, meetings were held by each economic sector.

The meetings discussed the tasks to be tackled by each sector and unit, presenting lots of innovative and creative ideas.

As he wound up the joint conference, the Premier said that it fully discussed scientific and realistic measures and ways to implement the tasks of the Congress, stressing that all the participants came to have firm confidence and optimism through the conference that they could well attain the targets of the five-year strategy.

He called on all officials to plan and command economic work of their sectors and units in a three-dimensional way and at lightning speed and carry out the tasks of the Congress at the risk of their lives as the standard-bearers of their ranks and buglers of advance, thereby fulfilling their honourable mission as commanding officials in the glorious era of Kim Jong Un.

At the conference, a 200-day campaign of loyalty was declared for making a breakthrough in the implementation of the five-year strategy.

On the other hand, a meeting of members of Party guidance teams for the 200-day campaign was held on May 28, where the significance of the campaign was mentioned and steps related to the campaign were emphasized.

Read out at the meeting were the names of members of the central and provincial headquarters of the Party guidance teams and those who would be dispatched.

Speakers expressed their resolve to keep up the heightened spirit of having brought about great victory in the 70-day campaign so as to win triumphs uninterruptedly from the outset of the new campaign, thereby making a tangible contribution to demonstrating once again the mettle and stamina of Juche Korea rushing forward towards a socialist power.

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Foreign Trade report on Slovenian delegation

Tuesday, May 17th, 2016

According to Foreign Trade (2016 v. 2, p.7):

News from DPRK Chamber of Commerce in 2015

The DPRK Chamber of Commerce invited a delegation of the Slovenian Chamber of Commerce headed by Yan Mishra, director of the external cooperation agency, to discuss the issues related with developing nongovernmental economic exchanges and trade and investment in the Wonsan-Mt Kumgang International Tourist Zone.

During their stay the delegation exchanged opinions about the practical issues arising in realizing economic exchanges and trade between the businesses of the two countries and agreed to develop bilateral relationship and cooperation to activate non-governmental economic exchanges.

And they discussed the issues about a possible visit to Pyongyang in 2016 by a delegation of the Slovenian Chamber of Commerce comprising businesses that wish economic exchanges and trade with the DPRK and its presentation of rolling stock and electric products like tractor, timber transporter and motor generator at the forthcoming Pyongyang International Trade Fair.

Another agenda item of discussion was a possible participation by the trade companies of the DPRK in the international trade fair to be held in Slovenia in 2016 and their visit to factories in the country.

The investment policy and environment in the DPRK and the work of economic development parks like the Wonsan-Mt Kumgang International Tourist Zone were introduced, and possibilities of investment and cooperation by businesses of the two countries in these parks were discussed.

In addition, the DPRK Chamber of Commerce arranged meetings between tens of local organs like the Korean Association for the Research and Development of Greening, Plant Import and Export Company, Kumsu Corporation, Korea Titanium Development and Trading Company, Central Imports Exchange Company and members of the Slovenian delegation so that they can exchange opinions on the matters of mutual concern.

DPRK Chamber of Commerce
Add: Central District, Pyongyang, DPR Korea
Tel: 0085-02-3815926
Fax: 0085-02-3814654

Screenshot of the article here.

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North Korea’s 7th Party Congress and the economy

Saturday, May 14th, 2016

By Benjamin Katzeff Silberstein

The 7th Party Congress is over, and it turned out to be an affair focused on personal appointments and formalities rather than concrete policy. This post is an attempt to gather some of the news about the congress, some international but mostly domestic coverage and Kim Jong-un’s speeches, particularly that pertaining to economic matters.

Day 1  (5/6/2016) and before 

The congress opened on Friday May 6th. This is how Rodong Sinmun covered the opening:

The Seventh Congress of the Workers’ Party of Korea (WPK) opened here with splendor Friday.

Kim Jong Un, first secretary of the WPK, was present there.

The congress was attended by delegates with the right to vote and speak elected at the provincial party conferences and officials of party, armed forces and power organs, economic organs, working people’s organizations and those in the fields of science, education, public health, literature and arts and media nominated at the provincial party conferences as observers.

Also present there were congratulatory groups of Koreans in Japan and the General Association of Koreans in China for celebrating the Seventh Congress of the WPK.

Kim Jong Un made an opening address.

He in his address, reflecting the infinite loyalty and ardent reverence of the delegates, Party members, service personnel of the Korean People’s Army (KPA) and all other people across the country, extended the noblest tribute and greatest glory to the great Comrades Kim Il Sung and Kim Jong Il.

[…]

The congress sent congratulatory messages to the service personnel of the Korean People’s Army and the Korean People’s Internal Security Forces who performed distinguished feats in defending the party congress and to the working people and officials of the institutions, industrial establishments and cooperative farms who performed brilliant labor feats in the 70-day campaign of loyalty.

The congress approved the following agenda items:

1.Review of the work of the C.C., the WPK.

2.Review of the work of the Central Audit Commission of the WPK.

3.On revising the Rules of the WPK.

4.On electing Kim Jong Un to the top post of the WPK.

5.Election to the central leadership organ of the WPK.

The congress started the discussion on the first agenda item.

Kim Jong Un began the report on the work of the C.C., the WPK.

The presentation of the report will go on at the second day-sitting.

In his opening address to the congress, carried by KCNA, Kim Jong-un highlighted both national prosperity and hardship:

Today we are holding the historic Seventh Congress of the Workers’ Party of Korea amid the grand struggle in which the whole Party, the entire army and all the people, filled with iron nerves and confidence to achieve the final victory of the Juche revolution as soon as possible, are making an all-out, general onward march courageously, thwarting all manner of threats and desperate challenges by the imperialists.

[…]

The Seventh Congress of the WPK has been convened at a historic time when the phase of leap forward in implementing the cause of the Juche revolution is being opened up.

The last decades since the Sixth Congress of the WPK were characterized by grim struggle and glorious victory on the part of our Party and people.

During the period under review the situation of our revolution was very grave and complex.

In the unprecedentedly hard times when the world socialist system collapsed and the allied imperialist forces concentrated their anti-socialist offensive on our Republic, our Party and people were compelled to fight against them single-handed.

The imperialists strained the situation constantly for decades to keep our people from living at peace even for a moment and blocked all the pathways to economic development and existence through all manner of blockade, pressure and sanctions.

In the face of harsh and manifold difficulties and ordeals and the hardships and sufferings worse than those during a war, our Party and people were united more firmly around the Central Committee of the WPK, holding the President and the General in high esteem as the centre of unity and leadership, and made strenuous efforts to defend and advance the socialist cause, following only the revolutionary line of Juche put forward by the great leaders as they braved the storm of history without the slightest hesitation or vacillation.

[…]

This year when the Seventh Congress of the WPK is held, our service personnel and people achieved great successes in the first hydrogen bomb test and the launch of earth observation satellite Kwangmyongsong 4 which served as landmarks in the nation’s history spanning 5 000 years, thus raising the dignity and might of Juche Korea to the highest level possible; in high spirits, they conducted a dynamic 70-day campaign of loyalty to perform great feats and make unprecedented labour successes in all fields of socialist construction.

All the service personnel and people throughout the country displayed the spirit of carrying out the policies of the WPK to the death in response to its militant call for launching the 70-day campaign, thereby making the greatest successes and leap forward in all sectors of the national economy and achieving the brilliant result of exceeding the targets of the campaign set by the WPK.

[…]

Kim also spoke about economic achievements, and said that North Korea’s economic plans had been fulfilled ahead of schedule (my emphasis):

During the campaign, the electric-power, coal-mining and metallurgical industries and rail transport sector strove hard for increased output and transport to bring about a surge in production, and many units in different sectors of the national economy including the machine-building, chemical, building-materials and light industries and agriculture raised a strong wind to ensure modernization and domestic production of our style and bring about an upswing in production, thus making the distinguished achievement of carrying out the first half-year and yearly national economic plans ahead of schedule.

Our heroic working class of Kim Il Sung and Kim Jong Il, scientists and technicians waged an unyielding struggle on the principle of giving priority to self-development to develop and manufacture new machines and equipment based on local efforts and technology, thereby presenting them as gifts to the Congress of the motherly Party. Others across the country wonderfully completed lots of major construction projects, which will be highly conducive to developing the economy and improving the people’s living standards, in a short span of time before the Congress to send reports of loyalty to the Central Committee of the WPK.

But reporters from abroad were in Pyongyang a few days before the congress opened and delivered some interesting dispatches. The Washington Post’s Anna Fifield, for example, visited Jangchon Cooperative Farm near Pyongyang on May 4th. Note that no one at the farm seems to have spoken to reporters about Kim Jong-un’s experimental agriculture reforms — if they have been implemented on a large scale, this would seem a good opportunity to express gratitude and pride in them.

The farm, which Kim visited in June, was deemed to be a shining example of progress, given that it is apparently used as a model for other agricultural cooperatives across the country. So reporters were taken down roads bustling with people to the conspicuously deserted complex.

[…]

Apparently, a total of 3,000 people live in this cooperative. But apart from a few people working in greenhouses and a handful more repairing roofs or painting lampposts, almost no one was around. Inside a science building, lab equipment sat like museum pieces.

[…]

What about these garden plots in front of the houses? They were household gardens, the minders said. Never mind that one house had a garden of only cabbages, another of only cucumbers, the next entirely squash.

Agriculture has been one of the areas where there has been significant change in recent years. Kim Jong Un’s regime has changed the quota system to allow farmers to keep between 30 and 60 percent of their crops, either to eat or to sell for profit in the markets. Economic analysts have been watching these changes­ keenly, part of a broader, if tentative, move toward marketization.

Full article:
A model farm – with few farmers – in North Korea 
Washington Post
Anna Fifield
2016-05-04

On the first day, the congress also sent a congratulatory message to “working people and officials” who participated in the 70-day campaign, carried by KCNA:

The 70-day campaign was a great one for consolidating the single-minded unity of the party, army and people of the DPRK as firm as a rock, bringing about a great innovation and leap forward in building a thriving nation, foiling the vicious moves of the hostile forces to put pressure on the DPRK and stifle it and fully demonstrating the dignity and might of the great Paektusan nation, the message said, and went on:

The Central Committee of the WPK together with its Central Military Commission made public joint slogans in order to glorify this year in which its Seventh Congress is to be held as a year of great heyday in building a thriving nation, ardently appealed to all party members to stage the 70-day campaign in the letter to them and clearly indicated the orientation and ways for winning victory in the on-going general advance.

Unprecedented achievements have been made in the above-said campaign thanks to the heroic struggle of the working people and officials who turned out to greet the Seventh Congress of the WPK out of their boundless loyalty and warm patriotism toward the party.

The Seventh Congress of the WPK extended warm congratulations to the working people and officials of the institutions, industrial establishments and co-op farms who creditably fulfilled the tasks before them during the campaign by sharing the thought, will and pace with the party and fully displaying matchless heroism and self-sacrificing spirit.

Day 2 (5/7/2016) 

On the second day of the congress, Kim gave a report on the work of the KWP Central Committee:

The demise of Kim Il Sung was the biggest grief and loss to our party and people and the biggest trial for our revolution.

After the greatest loss to the nation, the imperialists and their followers have reached the height in their political and military pressure, moves for provoking a war and economic blockade. To cap it all, the country was hit by severe natural disasters, bringing untold hardships and trial to the economic construction and people’s living.

When the world was concerned about the fate of the DPRK and when the imperialist reactionaries were foolishly trumpeting about “change in line” and “collapse of social system”, leader Kim Jong Il solemnly declared his iron will to invariably defend and carry to completion the revolutionary cause of Juche started by the President no matter how arduous the road of the revolution might be, and wisely led the revolution and construction only as intended by the President and the way he did.

By carrying forward the cause of the President under the wise guidance of Kim Jong Il, the WPK has firmly maintained the Songun revolutionary line, the path of winning the steady victory of the Korean revolution, and enforced the Songun politics in an all-round way.

[…]

As required by the prevailing situation and the developing revolution, the WPK advanced the strategic line of simultaneously pushing forward the economic construction and the building of nuclear force and worked hard for its implementation.

The WPK organized and waged an all-people general onward movement for building a thriving people’s paradise as planned and desired by the great leaders and thus ushered in the new era of the prosperity of the country.

The entire party and all the people have achieved the single-minded unity of the whole society in which they are united closely around the leader in thinking and purpose and sense of moral obligation. This is the great success and feat achieved by our party during the period under review.

Our party and people dynamically waged the drive to implement the strategic line of socialist economic construction to lay firm material and technical foundations of self-supporting national economy and provide a springboard from which to build an economic giant.

In delivering this report, Kim mentioned (for the first time during the congress) the new 5-year plan (2016-2020) (emphasis added):

In order to successfully build a socialist power under the banner of modeling the whole society on Kimilsungism-Kimjongilism, it is necessary to strengthen the people’s government and enhance its function and role and, at the same time, thoroughly carry out the general line of our party to dynamically conduct the three revolutions–ideological, technical and cultural.

It is imperative to carry through the five-year strategy for the state economic development from 2016 to 2020.

Kim had a busy second day, and also delivered a review of the KWP’s work (also carried by KCNA):

As required by the prevailing situation and the developing revolution, the WPK advanced the strategic line of simultaneously pushing forward the economic construction and the building of nuclear force and worked hard for its implementation.

[…]

A big stride has been made in the economic and cultural construction.

Raw materials, fuel and power bases of the self-supporting economy have been reinforced and Juche-based production processes introduced into core fields and the structure of industrial sectors further improved.

Is Kim perhaps alluding to changes in agricultural management in the following section? (my emphasis):

 A successful innovation was witnessed in the development of communications service and production processes, technical equipment and operation means have been further modernized in various fields including transport and building-materials industry.

A high-pitched campaign for bringing about a radical turn in seed selection, potato farming, double cropping and scientific farming was waged in the field of agriculture to provide a guarantee for increasing grain production.

Modern stock-breeding bases, fish farms, vegetable greenhouses, mushroom farms and vast thriving orchards were built across the country.

In fisheries a campaign for carrying out the Party’s idea of creating a new history of sea of gold has been waged to make a breakthrough in the development of the fishing industry.

Technical updating and the work for ensuring the local supply of raw and other materials has been positively conducted in factories and enterprises in the field of light industry to ensure increased production and supply of quality consumer goods for people.

Many monumental edifices representing the era of the Workers’ Party to which the Juche-oriented architectural idea was applied were built to lay a solid foundation for socialist economic construction and improvement of the people’s living standards.

Able scientists and technicians grew in number while the material and technical foundation for the scientific researches was consolidated despite economic hardship, bringing about radical development of the science and technology.

Fresh progress was made in the education as required by the IT era with the enforcement of the universal 12-year compulsory education and the establishment of the remote education system.

In another speech, Kim “set forth tasks for completing [the] socialist cause.” KCNA published the speech the same day it was given, and Kim does mention some goals connected to economic matters. This is, to my knowledge, the first statement where Kim actually elaborates somewhat on the five-year plan (my emphasis added):

We should attach importance to talents and attain the goal of turning all people into scientific and technological talents.

It is necessary to lay a firm material and technological foundation of the state and bring about a turn in improving the people’s living standard.

It is necessary to work out a phased strategy for the development of the national economy in a scientific and realistic way and carry out it without fail.

As an immediate task we should thoroughly carry out the five-year strategy for the state economic development from 2016 to 2020.

Note that Kim mentions “external economic relations” before any other matters when discussing the priorities of the five-year plan:

It is necessary to expand and develop external economic relations.

One could speculate whether the following pronouncement alludes to the enterprise management changes under Kim Jong-un — the true meaning of the statement seems to hinge on how one interprets “responsible”:

We should conduct the state unified guidance and strategic management of the economic work in a responsible manner.

The two statements above are the only ones that directly concern economic policy. They are fairly vague, but Kim’s expansions of special economic zones and management reforms come to mind.

Other parts of the speech are not necessarily interesting because of their connection to the economy. This is presumably a reference to the problem of people illegally watching foreign movies and tv-series (my emphasis):

We should usher in an overall efflorescence in the socialist literature and arts.

It is necessary to shatter the imperialist ideological and cultural poisoning and strictly preserve our socialist culture and lifestyle.

We should establish strong moral discipline throughout the society.

It is necessary to further increase the might of the politico-ideological power and military power.

We should more firmly cement the harmonious whole of the party and the popular masses.

We should detect and shatter all moves of the enemies to destabilize our socialism in good time and firmly defend our ideology and social system, class position and single-minded unity.

During the second day, Kim continued his review of the KWP’s work in another speech, and was no stranger to recognizing North Korea’s problems. In affirming North Korea’s “independence,” Kim struck a familiar chord and repeated a suspicion against foreign “aid” that both his grandfather and father often spoke of (my emphasis):

He noted that in the period under review, a radical change was made in the world political structure and correlation of forces and the international circumstances of the Korean revolution remained very complicated.

[…]

For global independence, it is important for each country and nation to maintain their sovereignty, holding aloft the banner of independence against imperialism.

The core of the struggle against imperialism is to frustrate the moves of the U.S. and its followers for aggression and war and defend the global peace and security.

Underscoring the need to conduct a vigorous struggle to get the aggressive military blocs, the root of military confrontation and war, dissolved and the military bases for aggression removed from other countries and thus build a new peaceful world, he continued:

All countries and nations aspiring after independence should never harbor any expectation and illusion about the imperialists’ cunning double-dealing tactics and hypocritical “aid”, but preserve the Juche character and national identity.

The progressive mankind of the world should vigorously struggle for international justice, irrespective of differences in political view, religious belief and economic and cultural development.

It is sometimes difficult to understand how the North Korean regime conceives of the logic behind Byungjin (parallel development of nuclear weapons and the economy), but the following passage gives a hint — with nuclear weapons, the country will be in a stronger position to negotiate its standing in all other areas as well:

Since it retained the status of a full-fledged independent power, a nuclear power, the DPRK will develop its external relations in conformity with the status.

Day 3 (5/8/2016)

On the third day, one of the main statements concerned the work of the auditing commission of the KWP. If one were to speculate, it may not be completely far-fetched to connect this emphasis on internal financial control with the anti-corruption drive launched earlier this year. This is what the designated rapporteur had to say about the work of the commission:

The reporter said the Party Central Auditing Commission confirmed that the party finance has properly performed its mission and duty and all financial activities have been conducted correctly on the principle of the party in the period under review on the basis of the audit data and reports of the review of the work of the auditing commissions submitted to the provincial party conferences.

He underlined the need to steadily improve the party’s financial management as required by the new era of the Juche revolution.

Kim Jong-un made a concluding review on the last day of the congress, also carried by KCNA (emphasis added):

It is necessary to continue to carry out the party’s strategic line of simultaneously pushing forward the economic construction and the building of nuclear force [byungjin].

This strategic line is the most revolutionary and scientific one reflecting the lawful requirements of building a thriving socialist nation and the specific conditions of our country.

Byungjin was also front and center in the decision adopted on the review of the Party by the congress (also carried by KCNA) (emphasis added):

We will consolidate the position of the political and military power and fly the flag of victory on the eminence of the scientific and technological power, an economic giant and a highly civilized nation.

We will take the general line of socialist construction and the principle of self-development as the constant strategic line, win a great victory in building a thriving socialist nation and successfully realize the historic cause of modeling the whole society on Kimilsungism and Kimjongilism.

We will make a new leap forward in the development of the country’s science and technology, open up an era prospering with science and bring about a revolutionary turn in socialist construction in a short span of time.

We will work out the phased strategy for the national economic development in a scientific and realistic manner and carry it out without fail and carry through the five-year strategy for the state economic development from 2016 to 2020 for the present.

We will accelerate the building of a highly civilized socialist country and thus bring up all the people to be able men for the socialist construction with profound knowledge and cultural attainments, and provide them with conditions and environment for leading a wealthy and a highly civilized life to their heart’s content.

International media was not allowed in to witness the congress proceedings for most of the event, but that probably made for more interesting dispatches anyway. Reuters noted the increasing prevalence of electric bikes in Pyongyang:

While pedal-powered bikes still predominate on Pyongyang’s wide avenues, the electric bike trend began in the last year, locals and foreign residents of the North Korean capital said.

On Saturday, a Reuters journalist covering the congress saw six of the bikes in the space of 10 minutes.

“You can carry luggage,” said Kim Chol Jin, a computer science student at Kim Chaek University of Technology, who was riding his electric bike along Mirae Scientists Street.

“My wife bought me this to help shorten my commute,” he told Reuters journalists, who were accompanied by a government guide.

The proliferation of electric bicycles follows another recent local consumer trend: a surge in residential usage of LED light bulbs and solar panels, to get around the country’s chronic electricity shortage.

A bike made by a Chinese company called Anqi was for sale this week in Pyongyang’s Kwangbok Department Store for 2.62 million won – around $330 at the unofficial exchange rate of 8,000 won to the dollar. While that is well beyond the reach of the average North Korean, an expanding gray market economy has given rise to a growing consumer class known as “donju”, or “masters of money”.

Full article:
Power to the people: electric bikes take off in North Korea
Reuters
James Pearson
2016-05-08

Day four (5/9/2016) 

The 7th Party Congress concluded with a statement calling for a “general offensive toward complete victory of socialism,” also carried by KCNA (emphasis added):

It stressed that the main idea of the decision made at the 7th Congress of the WPK is to arouse the entire party, the whole country, the entire army and all the people again to the struggle for winning the final victory in the building of a thriving socialist nation as soon as possible [a rather ambiguous timeline, to say the least…] and thus make them wage a general offensive in the period up to the 8th Congress.

The 7th WPK Congress called upon all the servicepersons, youths and other people to launch a Mallima speed campaign of rapid progress and innovation for the implementation of its decision in every sector and unit, the appeal said, adding:

The entire party, the whole country and all the servicepersons and civilians should dash toward the high eminence of a thriving nation at the speed of Mallima.

And if anyone ever thought that the core characteristics of North Korea’s political system were ambiguous:

Never tolerate but mercilessly squash any element contrary to the idea and intention of the respected Comrade Kim Jong Un and any slightest act of breaking our single-minded unity and backbiting at our Party’s policies.

Science and technology were prevalent themes in much of the rhetoric from the congress:

Let us build an economic and highly-civilized power by dint of science and technology and thus make the Democratic People’s Republic of Korea, our beloved motherland, the envy of the whole world.

This whole paragraph is one sentence:

Let us put the nation’s industry and agriculture on a modern, scientific and IT basis our own way and at the earliest date with our technology, efforts and resources and thus raise the level of the national economy to that of the most developed countries under the banner of self-development-first principle for turning everything of the country into wealth of socialism hard to find in other parts of the world, making the latest science and technology our possessions and creating everything with our materials.

Byungjin again:

Let all the people implement more thoroughly and steadily the Party’s line of simultaneously developing the two fronts, each holding arms in one hand and a hammer or a sickle in the other.

The cooperative farm that Washington Post visited got a special shot-out:

Let us raise the level of every factory and farm to that of the January 18 General Machinery Plant and the Jangchon Vegetable Co-op Farm and build every structure into such spectacular edifice as the Sci-Tech Complex and Mirae Scientists Street.

Beyond the congress

How much did this all cost the North Korean state? A Korea University scholar has attempted a calculation, as reported by Yonhap, and lands at a figure of more than $200 million, placing policy choices such as not increasing imports to close the gap between food need and availability, for example:

North Korea probably spent more than US$200 million on the just-ended ruling party congress, which will further burden the already impoverished country, a local scholar who keeps track of developments in the reclusive country said Friday.

Korea University’s Nam Sung-wook made the claim in an analysis of the four daylong Seventh Congress of the Workers’ Party of Korea (WPK) that ended Monday. He described the rare convention as a “political show.”

[…]

n the assessment, the academic argued the communist country spent at least the amount he estimated in the past six months for the “self coronation” of leader Kim Jong-un.

He said the move’s sole aim seems to be the consolidation of the hereditary power succession. The current leader inherited the country after the sudden death of his father in late 2011, while the late Kim Jong-il took over after his own father, the North’s founder Kim Il-sung, died in July 1994.

“Ultimately, the huge amount of money spent will result in a greater burden for North Koreans,” he said.

[…]

In another paper, professor Yang Moon-soo of the University of North Korean Studies in Seoul said the Pyongyang regime will likely pursue a market-friendly economic policy for the time being.

Cho Bong-hyun, a researcher at the state-run Industrial Bank of Korea (IBK), on the other hand, said the five-year economic development plan issued by Kim Jong-un at the party congress will turn out to be a failure and will eventually come to haunt the regime down the road.

Full article:
N. Korea spends over $200 mln on Workers’ Party congress: scholar
Yonhap News
2016-05-13

This blog looks forward to closely following the implementation of the five-year plan!

UPDATE 1: The National Committee on North Korea has posted all of Kim Jong-un’s speeches.

UPDATE 2: Bob Carlin writes about his thoughts on the congress in 38 North.

UPDATE 3: Ruediger Frank writes about the economic aspects of the congress here. Here is the speech (PDF) to which Dr. Frank refers.

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New Party Central Auditing Commission inaugurated

Wednesday, May 11th, 2016

New-central-auditing-commission

According to the Pyongyang Times (2016-5-10):

The First Plenary Session of the 7th Central Auditing Commission of the Workers’ Party of Korea was held on May 9.

The event was attended by the members of the Party Central Auditing Commission who have been elected at the Seventh WPK Congress.

There was an election of the chairman and vice-chairman of the Party Central Auditing Commission.

Choe Sung Ho was elected chairman with Pak Myong Sun as his deputy.

According to the Ministry of Unification, the Party Central Auditing Commission, as its name suggests, inspects the party’s financial management.

This is interesting because this story originated in KCNA, though no pictures were released. However, the KCNA story was picked up by the Pyongyang Times, and this second version does contain pictures indicating that Kim Jong-un ran the meeting (See pictures at the top), even though he is not mentioned in the text of the article.

I am not sure of the meeting room location or where the Auditing Commission is physically located, but the meeting did not take place in Conference Hall No. 1 next to the Central Committee Building, Kim Jong-un’s official office.

Kim’s meeting at the Auditing Commission has not been reported in the Rodong Sinmun, the KWP newspaper, to the best of my knowledge.

The cheap and fast analysis suggests that as this is Kim Jong-un’s first committee meeting following the party congress, he is making a priority of understanding/controlling party finances in an effort to be a more assertive party leader (he was just named party chairman after all). Following a thorough party audit, Kim will be in a better position to allocate party financial rents to key supporters as well as to critically engage other cadres over party operations.

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Nobel Prize winners visit PUST

Saturday, May 7th, 2016

According to a press release put out by PUST, Professor Aaron Ciechanover (Chemistry 2004), Professor Finn Kydland (Economics, 2004), and Dr. Sir Richard Robert (Medicine, 1993) visited the campus in Pyongyang.

PUST2016-NLvisit - 7

PUST2016-NLvisit - 6

PUST2016-NLvisit - 2c

You can read the press release for additional information.

While in Pyongyang, the laureates made some [misguided] comments on US sanctions. According to Deutcsh Welle:

Nobel medicine prize winner Richard Roberts, Nobel economics prize winner Finn Kydland and Nobel chemistry prize winner Aaron Ciechanover have described how United Nations sanctions and a lack of internet access are hampering North Korean scientists.

Speaking to reporters following their visit to Pyongyang, the three laureates from Norway, Britain and Israel called for a rollback of many of the international restrictions that have been placed on the Communist state.

“You don’t pressurize via making people sicker,” said Ciechanover: “That’s not the right way to go.”

Roberts described how North Korean academic institutions suffered from a lack of modern scientific equipment. He said restrictions on internet use prevented most scientists from collaborating with colleagues in other countries, or accessing the latest scientific literature.

“So this embargo is really hurting the scientists in some major ways, and I think that’s a great shame,” Roberts added.

He said there was a strong desire for more international exchanges. During the trip, at least two North Korean students were invited to the West.

The Western scientists visited hospitals, universities and research institutes in Pyongyang and met with students and academics. They described clean and modern facilities – a stark contrast to other accounts, which describe the country as brutally impoverished.

The trip, which has been described as an exercise in “silent diplomacy,” was planned more than two years ago with help from the International Peace Foundation (IPF). In turn the Vienna-based organization received an unsolicited email from the Korean National Peace Committee.

Notice that Kydland, the economist, is not quoted in reference to the sanctions. UN Sanctions do not impede economic or social progress so much as North Korea’s actual economic, trade, and investment policies. North Korea has only itself to blame for the state of its economy. Finally, there is no UN embargo on the DPRK, only targeted sanctions on entities that all members of the UNSC agree are involved in the country’s weapons programs. The US, but not UN, has imposed an embargo of “dual use goods” going to the DPRK, but this is aimed at the country’s military, and applies to countries other than the DPRK.

The doctors also demonstrated an ignorance of socialist health economics when they visited the Okryo Children’s Hospital. According to the New York Times:

But the laureates suggested Saturday that the United Nations sanctions imposed on the North because of its nuclear program should be eased. At the Okryu Children’s Hospital in Pyongyang, a showcase medical center that Kim Jong-un visited during its construction in 2013, Mr. Ciechanover said that there were 300 beds and a capacity for 300 outpatients, but that doctors administered only about 60 tests a day, a low figure that he attributed to the sanctions. Doctors faced shortages of medicine and took the view that “you give only what you have to,” he said.

The United Nations sanctions do not apply to medicine, but they restrict the North’s access to foreign currency, and the government is known to channel its limited resources toward the military.

Also, some BBC reporters covering the PUST visit were expelled.

Here is coverage on KCTV.

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BBC journalists staying in “Beverly Hills” of Pyongyang (UPDATED)

Monday, May 2nd, 2016

UPDATE 1 (2016-5-11): When this blog post was published, I had assumed that the BBC journalists were in the DPRK to cover the seventh party congress, but they were not. These BBC reporters were covering a trip by three nobel prize winners to PUST and other places in North Korea. A second BBC crew was covering the congress. The BBC crew mentioned in this blog post below was expelled. The second BBC crew covering the congress was not affected. This explains why this crew was kept in different residential quarters than other reporters covering the congress who stayed primarily in the Yanggakdo and Koryo Hotels.

ORIGINAL POST (2016-5-2): A BBC reporter took a picture of “Guesthouse No. 24” in the housing compound supposedly under control of the International Department of the KWP:

Guesthouse-24

This area is in Pothonggang District near the new “General Satellite Control Center” (and the Pyongyang City branch of the Ministry of State Security).

Guesthouse-24-google-earth

The article mentions that other journalists are staying here as well, but it is unclear just who all is there at this time.

Presumably Pyongyang’s hotels are filled with people that western journalists would like to interview for their stories on the historic KWP Congress this week, so this would be a nice, comfortable and isolated place to keep foreign journalists under control.

Anna Fifield reports that journalists covering the congress are being spread across town. Some are in the Yanggakdo Hotel and others are in the Koryo Hotel.

It is still unclear where the local delegates to the conference are being kept. Here is what Rodong Sinmun had to say:

Senior Party, State, Army Officials Visit Lodging Quarters of Participants in WPK Congress

Senior party, state and army officials Tuesday visited the lodging quarters of the participants in the Seventh Congress of the Workers’ Party of Korea (WPK).

Senior party, state and army officials Kim Yong Nam, Pak Pong Ju, Choe Ryong Hae, Choe Thae Bok, Pak Yong Sik, Yang Hyong Sop, Kwak Pom Gi, O Su Yong, Kim Phyong Hae and Kim Yong Chol and officials of party and armed forces organs visited the lodging quarters to meet the participants.

They referred to the fact that all service personnel and people of the DPRK have waged a dynamic struggle for the final victory in building a thriving socialist nation, registering special events and achievements by leaps and bounds one after another under the guidance of Marshal Kim Jong Un.

They called on all the participants to play a vanguard role in the drive to implement the idea and line of the Party in the future, too, bearing deep in mind the undying exploits the peerlessly great men of Mt. Paektu performed for the founding and development of the Party.

If I had to guess, I would say 4.25 Hotel in Mirim, but who knows at this point.

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Kim Jong-un’s Party Congress prep: construction projects

Tuesday, April 19th, 2016

By Benjamin Katzeff Silberstein

Kim Jong-un has made at least two announcements recently, as the Korean Worker’s Party heads for its 7th Party Congress in May, about construction projects to be done. One of them is an orphanage in Ryanggang province, Daily NK reports:

Projects underway to promote Kim Jong Un’s legacy as a leader ahead of the 7th Party Congress in May are said to be in full swing across the nation. One such project taking place in Ryanggang Province calls for the full mobilization of residents to build an orphanage as an expression of the leader’s “love for the next generation,” Daily NK has learned.

“Authorities have recently been harassing residents saying that the orphanage under construction next to Kim Jong Suk Teachers’ College in Yonbong-dong needs to be ready for the Marshal’s (Kim Jong Un) inspection by the time of the Party Congress,” a source in Ryanggang Province told Daily NK on Thursday. “The provincial party office has been hurrying people along, claiming the construction must be completed before the event.”

Progress was said to be slow during the winter, which was unseasonably cold, but construction efforts are now appearing to ramp up.

The project is being driven by the provincial head secretary and other cadres from the provincial Party and People’s Committee and is being promoted as a means to express loyalty to the leader, who has emphasized his “love for children,” said the source.

She added that cadres associated with the efforts, who have confidently stated that the facility will see completion before the Party Congress, have also been intensifying crackdowns on those seeking to avoid mobilization, out of concern that failure to complete the project on time may lead to issues of accountability.

“Vendors who are busy trying to make a living in the market were often able to get out (of mobilization) with bribes, but even that isn’t easy now,” a separate source in Ryanggang Province explained.

“The price for skipping a day of mobilization is now up to 10 RMB (13,000 KPW) a day per head, so some find it more affordable to just go to the construction site.”

The 13,000 KPW demanded is enough to purchase approximately 2kg of rice based on current prices, which is far from negligible for most members of the public. The higher price tag in effect acts as a tool to turn up the heat on people for mobilization.

The pressure to complete the project before the major political gathering has led to mobilization of students in the afternoons and workers at state-run factory as well.

The near full mobilization also involves specialized colleges, meaning that among the younger generation, stormtroopers (who are working on a railway project in Samjiyon) are seemingly the only group among ordinary residents that are exempt from the orphanage project.

Full article:
Kim Jong Un calls for construction of new orphanage in time for Party Congress
Kang Mi Jin
Daily NK
2016-04-19

IFES at Kyungnam University has also published an analysis of the news about the Ryomyong street project, which Curtis has already written about in this blog. They note that the recent sanctions do not seem to have altered plans for the project. Kim Jong-un’s rhetoric instead highlights the project as a blow against the international community and the US — North Korea will go full steam ahead on its own policies and no outside pressure can hold them back (my emphasis below):

On March 18, the state media Korean Central News Agency (KCNA) reported that Kim Jong Un declared the construction of ‘Ryomyong Street’, which is to be built between Kumsusan Palace of the Sun and the Ryonghung Crossroads in Pyongyang. The street’s name signifies a place where ‘the dawn breaks in the Korean revolution’. Kim also mentioned that the area is to be surrounded by magnificent skyscrapers and multi-level buildings that fit the geographical characteristics surrounding the palace, displaying the Party’s idea of giving importance to science and talents in socialist Korea.
[…]
Along these lines, Kim put emphasis on the policy of securing building materials in constructing the new street and to diversify the size, design and color of decorative objects on the exterior of buildings. He also instructed for the mobilization of ‘soldier-builders’ who previously worked on the construction of Mirae Scientists Street. The construction of the new street shall be carried out with “Mallima speed” during the country’s ‘70-day campaign’ in run-up to the Party Congress scheduled for this upcoming May. The news report also stated that “the party, state, and society should render positive assistance to the construction and the Cabinet, commissions, ministries and national institutions take the lead in this work.”

According to the report, Kim Jong Un also said that “The construction of the street is not merely for formation of a street but serves as a political occasion of clearly showing the spirit of the DPRK standing up and keeping up with the world, despite all sorts of sanctions and pressure by U.S. imperialists and their followers, the appearance of the country advancing to realize the great ideal of the people and truth that the DPRK is able to be well-off in its own way and nothing is impossible for it to do.” The construction of the street appears in part as a means to show off the strength of ‘Songun’ Korea, following in the footsteps of Kim Jong Il’s policy.

Despite the strong sanctions imposed upon the country by the international community, North Korea is striving to achieve some form of economic success. The 70-day campaign has been initiated in the run-up to the Seventh Congress of the Workers’ Party. North Korean media are boasting about the country’s successes on the production front since the campaign’s initiation, saying “under the Juche ideology, people are working hard especially in the fields of electricity, coal, metal, and railroad transportation that they have achieved great success in the [campaign’s] first week.”

Full article here:
North Korea to Construct ‘Ryomyong Street’ Despite Sanctions
Institute for Far Eastern Studies
03-29-2016

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North Korean reforestation in practice

Friday, April 8th, 2016

By Benjamin Katzeff Silberstein

On this blog, we’ve often written about forestry issues in North Korea. It’s a particularly interesting area from an economic point of view, because it embodies many of the fundamental problems with central planning in North Korea. DailyNK reports on how these problems continue to show up in the current reforestation campaign:

“On Arbor Day (March 2), the grounds still hadn’t thawed from the winter cold, so no matter how hard you try, the trees aren’t able to secure their roots,” a source from North Hamgyong Province told Daily NK on Wednesday. “There’s not enough manpower to dig through the frozen ground, and the tree and forest management offices are all for show. So from the initial planting stage, we’re unable to find healthy saplings to plant.”

(See this post for some pictures from the Russian embassy’s activities on Arbor Day).

Sources in Ryanggang Province and South Hamgyong Province corroborated this news.

“On top of that, those from above are pushing the citizenry to plant tens of thousands of trees in time for the ‘70-Day Battle’, so some people find tree segments without roots and just place them in the soil, before reporting them as progress made,” he added. “You can even see people who don’t have the money to buy these saplings, going out at night to uproot those planted elsewhere and transferring them to new areas that have been designated for forestation that month.”

North Korea has for many years pushed for reforestation in the spring with all-out campaigns, but the results have been negligible so far, according to the source. This is because the majority of the trees planted each year are unable to survive due to poor soil conditions and problems with sapling health. Even those that manage to survive do not last long in the absence of proper care.

Not only that, some people quietly cut down the trees to use for firewood, while others uproot them to cultivate the corn needed to feed their families, as many are planted on small mountain plots that were previously used by individuals to grow produce.

A defector with three decades of experience participating in reforestation campaigns in the North explained that such efforts are destined to fail as long as people are struggling to resolve fundamental necessities like securing enough food and fuel for heat.

“Outside of Pyongyang, people in the North don’t use gas to heat their homes, so they’re out looking for coal or firewood. Without enough coal in the rural areas, they have no choice but to go to the mountains and chop down trees,” said the source, who declined to be identified, adding that the situation is no different when the land needs to be cleared for crops.

South Korea previously supported the North’s reforestation efforts, the defector noted, adding that, “more than 100,000 trees were sent over during that time, but they probably all ended up in cadres’ furnaces,” emphasizing how futile these campaigns are when more pressing needs exist.

If the central government orders that trees must be planted, they must be planted, no matter the conditions on the ground. The problem, of course, is much deeper than just a lack of tree plantation efforts. As long as North Korea’s structural energy and food problems aren’t alleviated, campaigns like this one are bound to have little success in the long run.

Full article here:
Another year, another misguided attempt at reforestation
Kim Ga Young
DailyNK 
2016-04-07

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9th Plenary Meeting of 13th SPA Presidium Held

Wednesday, March 30th, 2016

According to KCNA (2016-3-30):

The 9th plenary meeting of the 13th Presidium of the Supreme People’s Assembly (SPA) of the DPRK took place at the Mansudae Assembly Hall Wednesday.

The plenary meeting was attended by members of the SPA Presidium.

Officials concerned were present there as observers.

Discussed at the meeting were review of the implementation of the state budget for Juche 104 (2015) of the DPRK and the state budget for Juche 105 (2016).

A report was made at the meeting.

According to the report, the state budget for last year was correctly carried out.

The plan for state budgetary revenue was over-fulfilled 1.3 percent or an increase of 5 percent over the previous year.

The plan for local budgetary revenue was fulfilled at 113.8 percent while that for state budgetary expenditure was carried out at 99.9 percent.

15.9 percent of the total expenditure was allocated for national defence while 47.5 percent for building an economic power and the improvement of the standard of people’s living.

Investment in the fields of science and technology showed a 4.7 percent increase over that last year.

36.6 percent of the total expenditure was earmarked for cultural construction including education, public health, sports and literature and arts.

The state budgetary revenue for this year is expected to go up 4.1 percent out of which transaction revenue will hold 3.3 percent, the revenue from the profits of state enterprises 4.5 percent, the revenue from the profits of cooperative enterprises 1.5 percent, that from real estate rent 4 percent, that from social insurance 1.1 percent, that from the sale of properties and price difference 2.5 percent and other revenue 1.3 percent. The revenue from economic trade zone is expected to grow 4.1 percent.

Out of the state budgetary revenue the national budgetary revenue will account for 76.8 percent while that from local areas 23.2 percent.

The state budgetary expenditure is expected to go up 5.6 percent over last year out of which 4.8 percent will go to industries, 4.3 percent to agriculture, 6.9 percent to fisheries, 13.7 percent to capital construction and 7.5 percent to forestry.

It was decided to increase expenditure in the field of science and technology 5.2 percent, the field of education 8.1 percent, the field of public health 3.8 percent, the field of sports 4.1 percent and the field of culture 7.4 percent.

15.8 percent of the total expenditure will be spent for national defence.

A large amount of educational aid fund and stipends will be sent for the education of Korean children in Japan.

A decision of the Presidium of the SPA “On approving the review of the fulfillment of the Juche 104 (2015) state budget of the DPRK” and a decree of the Presidium of the SPA “On the Juche 105 (2016) state budget of the DPRK” were adopted at the meeting.

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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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