North Korean Economy Watch

Yonhap
9/24/2007

North Korea is becoming more transparent and effective in dealing with disasters, spurred by both internal and external factors, an Asia-Pacific regional specialist said in his latest paper.

Dr. Alexandre Mansourov, a securities studies professor at the Asia-Pacific Center for Security Studies (APCSS) in Hawaii, noted five trends in the North Korean government’s responses over the past decade to nationwide shocks, including floods, typhoons, drought and avian influenza outbreaks.

Increasing transparency is one of the trends, with Pyongyang more quickly admitting to disasters that have struck the nation, he said in a paper (download here) released last week through the Korea Economic Institute in Washington.

It took North Korea several years to admit the impact of natural disasters in the mid-1990s that led to massive starvation and chronic food shortages. But in August 2000, when it was hit by Typhoon Prapiroon, North Korea released the news three weeks after it occurred, and in the two following years, when other typhoons struck, North Korea reported it within three to six days, Mansourov said.

Pyongyang immediately acknowledged flooding in August 2007, he said.

“Observers agree that the timeliness, details, and amount of coverage of flood damage and rehabilitation work in August 2007 is unprecedented.”

North Korea is also showing institutional knowledge and a capacity for disaster management, with new organizations growing out of a decade of learning and experience, such as various provincial centers, the professor said.

The North Korean Red Cross Society has been exceptional, he said, working with the International Federation of Red Cross and Red Crescent Societies, and has made itself the leading agency in disaster preparedness and response.

Inter-agency coordination has also increased, with deputy prime minister-level working groups working closely together in each disaster since the flood of 2001, as there are preventive programs through which basic relief supplies are stored in town and villages.

For example, the 10-year strategy against avian influenza, worked out by the emergency commission in 2005, would have been unthinkable a decade ago, Mansourov wrote.

Another notable trend is the increasing cooperation between the North Korean government and international humanitarian community, gradually allowing joint needs assessments and monitoring, he noted.

Mansourov argued that external factors helped bring about the changes.

“International factors did make a difference in what happened in (North Korea), especially through the introduction of innovative ideas and dissemination of best humanitarian practices,” in addition to foreign aid, he said.

The scholar also argued that while the country’s top leader, Kim Jong-il, does control any institutional changes, there is also adaptation driven by needs.

“There has been some degree of autonomous institutional learning and adaptation; it is incremental in nature and caused by both positive and negative feedback from the environment regarding institutional performance in crisis situations,” he said.

Yonhap
9/21/2007

North Korea is at serious risk from contagious diseases following damage from recent floods, an official from North Korea’s Red Cross told a newspaper in Japan on Friday.

In an interview with the Chosun Sinbo, a pro-North Korean newspaper in Japan, Kim Eun-chul, a vice secretary-general at the Red Cross Society of North Korea, said, “What we are most concerned with now is the spread of infectious diseases in the severely damaged areas.”

“The destruction of the water supply facilities could result in various diseases including skin diseases and diarrhea, as well as flue.”

Kim showed his anxiety, saying that the communist country would not be able to cope with the diseases when they broke out, as many of the North’s public health centers are also destroyed from floods.

“More than 560 hospitals were destroyed and 2,100 medical offices were damaged. The medical supplies were wet and useless. We can’t even read charts as they were soaked,” he said.

“New patients with diarrhea are reported one after another. We are now relying solely on the emergency medicines provided by the International Federation of the Red Cross and Red Crescent (IFRC).”

The IFRC shipped US$1,69 million worth of medical aid to North Korea earlier this month, which can be used for three months, according to Kim.

Korea Herald
Ahn Hyo Lim
8/24/2007

An international vaccine agency and North Korea have agreed to launch a joint project to fight diseases common among children in developing countries.

The International Vaccine Institute, based in Seoul, said yesterday that they will cooperate to conduct pilot vaccinations against Japanese encephalitis and haemophilus influenzae type b, which causes meningitis, on some 3,000 North Korean children by early next year.

Their project will also involve the establishment of a reference diagnostic laboratory in the communist country.

“Creation of a reference laboratory for diagnosis of Hib and Japanese encephalitis should not only help improve clinical management of children with these infections, but should also assist DPRK health authorities to better estimate the burden of these diseases in the DPRK,” said Dr. John Clemens, IVI director general.

Officials of the global vaccine R&D organization will visit Beijing later in the month to meet with North Korean health officials and discuss details of how they will cooperate, including the provision of vaccines and equipment, and the opening of the lab.

Haemophilus influenzae type b is the leading cause of bacterial meningitis among infants and children worldwide, killing an estimated 386,000 children every year.

Japanese encephalitis, primarily infects children in endemic areas across Asia, leaving approximately 60 percent of those who develop clinical illness either dead or neurologically disabled.

The IVI is an international organization devoted exclusively to developing and introducing new and improved vaccines to protect the world’s poorest people, especially children in developing countries.

It was established in 1997 as an initiative of the United Nations Development Program.

Institute for Far Eastern Studies (IFES)
8/1/2007

INTER-KOREAN RELATIONS

Following two days of talks between economic representatives of the two Koreas at the Kaesong Industrial Complex, South Korea announced on July 7 that it would begin shipping raw materials to the North in exchange for DPRK natural resources. South Korea shipped 800,000 USD of polyester fabric on July 25, and is set to send the rest of the materials by the end of November. North Korea accepted South Korean prices for the goods, and will pay transportation, cargo working, and demurrage costs, as well. South Korea will pay for shipping, insurance, and the use of port facilities. On 28 July, a South Korean delegation left for the North in order to conduct on-site surveys of three zinc and magnesite mines. The team will spend two weeks in North Korea.

It was reported on 17 July that North Korea proposed a joint fishing zone north of the ‘Northern Limit Line’ dividing North and South territorial waters to the west of the peninsula. Seoul turned down the offer.

Inter-Korean military talks broke down early on 26 July after only three days of negotiations as North Korea insisted on the redrawing of the Northern Limit Line.

North Korea demanded on 27 July that workers in the Kaesong Industrial Complex be given a 15 percent pay raise. The North Korean workers will not work overtime, weekends or holidays beginning in August unless the raise is granted.

It was reported by the Korea International Trade Association on 26 July that inter-Korean trade was up 28.6 percent in the first six months of 2007, totaling 720 million USD.

RUSSIA-DPRK INVESTMENT

It was reported on 19 July that Russia and North Korea have agreed to connect Khasan and Najin by rail, enlisting investment from Russian oil companies interested in an inactive refinery at Najin Port capable of processing up to 120,000 barrels per day. The project is estimated to cost over two billion USD.

MONGOLIA-DPRK RELATIONS

During a four-day visit to Mongolia by Kim Yong-nam beginning on 20 July, the two countries signed protocols on cooperation on health and science, trade and sea transport, and labor exchange issues. This follows on the heals of an agreement to allow South Korean trains to travel through North Korean territory on to Mongolia in route to Russia and Europe.

JAPAN-DPRK PROPAGANDA

Japan took one step further to recover abductees in North Korea this month when the government began broadcasting propaganda into the DPRK intended for Japanese citizens. The broadcasts are made in Korean and Japanese (30 minutes each) daily, and updated once per week.

U.S.-DPRK PEACE PROSPECTS

U.S. Ambassador to the ROK Alexander Vershbow stated that Washington was prepared to negotiate a permanent peace regime on the Korean Peninsula by the end of the year if North Korea were to completely abandon its nuclear ambitions.

EGYPT-DPRK INVESTMENT

The Egyptian company Orascom Construction Industries announced a 115 million USD deal with North Korea’s state-owned Pyongyang Myongdang Trading Corporation to purchase a 50 percent state in Sangwon Cement. To put this in perspective, the deal in worth more than four times the amount of frozen DPRK funds that had caused six-party talks to break down and delayed the implementation of the February 13 agreement.

NORTH KOREAN SOCIETY

The Economist reported on 7 July that, according to foreigners living in the North’s capital, concern for petty law appears to be weakening. Citizens are reportedly smoking in smoke-free zones, sitting on escalator rails, and even blocking traffic by selling wares on the streets.

It was reported on July 11 that a letter sent earlier in the year by the North Korean Red Cross indicated severe shortages of medical supplies. The letter stated that North Korea would accept any medicine, even if it was past expiration, and accept all consequences for any problems that arose from using outdated supplies. The (South) Korea Pharmaceutical Manufacturers Association had no choice but to reject the request.

Events were held on July 11 in North Korea in order to promote women’s health and well-being issues. Marking World Population Day, a North Korean official stated that the DPRK has cooperated with the UN Population Fund since 1986, and is now in the fourth phase of cooperation.

Seeing entertainment venues as a “threat to society”, North Korean security forces have been implementing a shutdown of karaoke bars and Internet cafes. These venues mainly cater to traders in the northern regions of the country.

It was reported on July 13 that construction of North Korea’s first all-English language university was nearing completion. The Pyongyang University of Science and Technology, funded largely by ROK and U.S. Christian evangelical groups, will hold 2600 students and offer undergraduate and post-graduate degrees in business administration, information technology, and agriculture.

Local elections were held on 29 July for DPRK provincial, city, and country People’s Assemblies. 100 percent of 27,390 candidates were approved with a 99.82 percent turnout reported.

Bloomberg
Bradley K. Martin
7/26/2007

To make painkillers and antibiotics in his factory in Pyongyang, Swiss businessman Felix Abt needs reagents, chemicals used to test for toxic impurities. Abt can’t get them now — because the world refuses to sell North Korea a product that is also used to manufacture biological weapons.

Such sanctions on trade with the regime of Kim Jong Il — some dating back to the Korean War — may be the next diplomatic battleground after North Korea bowed to pressure last week and shut down five nuclear facilities at Yongbyon.

North Korea said July 16 that ending sanctions, and its removal from a U.S. list of countries that sponsor terrorism, are prerequisites for further progress in the negotiations to end its nuclear weapons program. The U.S., meanwhile, says the next step is for North Korea to disclose all its nuclear capabilities, followed by a permanent dismantling of Yongbyon.

North Korea is playing a “tactical game,” said David Straub, a Korea specialist at Johns Hopkins University’s School of Advanced International Studies in Washington. After shutting down Yongbyon and receiving a pledge of 950,000 tons of oil, the reclusive nation will try to “force the U.S. and others to lift sanctions,” Straub said in an e-mail exchange.

While many of the post-Korean war sanctions were lifted between 1994 and 2000 by President Bill Clinton, Americans are prohibited from exporting “dual-use” products or technologies, a wide range of items that might have military as well as civilian applications — including reagents and even aluminum bicycle tubing, which might be used to make rockets.

UN Sanctions

Much of the world joined the sanctions regime after North Korea tested an atomic device last October. The United Nations called on member states to stop trade in weapons, “dual-use” items and luxury goods. Japan went further, stopping used-car exports and banning port calls by North Korean vessels.

Now that North Korea has shut its facilities at Yongbyon and allowed in international inspectors, the haggling will begin on the next steps. If its demands aren’t met, North Korea could kick out the inspectors and restart the plants, as it did in 2002.

“The Bush administration must choose between settling for a temporary closure of the nuclear sites and taking a strategic decision to coexist” with North Korea, said Kim Myong Chol, Tokyo-based president of the Center for Korean-American Peace, who for three decades has encouraged foreign reporters to consider him an informal North Korean spokesman. “Otherwise, the agreement will break up, leaving the U.S. with little to show.”

‘Contentious Issue’

Sanctions represent “a multiplicity of issues that could become contentious,” said economist Marcus Noland, North Korea specialist at the Peterson Institute for International Economics in Washington, in an e-mail exchange. China has already called for the lifting of the UN sanctions imposed Oct. 14.

North Korea agreed with the U.S., South Korea, Russia, China and Japan on Feb. 13 to close its Yongbyon reactor, which produced weapons-grade plutonium, and to eventually declare and disable all of its atomic programs. Working groups will meet in August before another round of talks in September.

If the U.S. insists on a list of all the country’s nuclear facilities without starting to negotiate on sanctions, North Korea might consider that “a spoiler” for the talks ahead, Kim Myong Chol said.

Swiss businessman Abt said that in the past he could get around U.S. sanctions for his North Korean pharmaceutical factory by buying supplies from other countries. The UN sanctions shut off those sources.

Using Old Stocks

“Luckily, we have enough stock of reagents, but when it runs out we would not be able to guarantee the safety of our pharmaceuticals any longer,” he said.

Abt, 52, is president of Pyongsu Pharma Joint Venture Co., an enterprise with ties to the Ministry of Public Health that makes painkillers and antibiotics for humanitarian organizations in North Korea. He is also president of Pyongyang’s European Business Association.

“The same is true in many other civilian industries,” said Abt, who moved to North Korea from Vietnam five years ago. Gold mines are affected too, he said: “If they cannot import cyanide, they can’t extract the gold.” Cyanide is another “dual-use” product, part of the process for making some chemical weapons, he said.

All this has “a highly negative impact” on the economy at a time when the regime has announced it wants to focus on development, Abt said. Foreigners are showing “more and more interest in doing business here,” Abt said, predicting that North Korea will eventually be regarded as a successor to Vietnam as “the newest emerging market.”

KCNA
7/25/2007

The world medical circles call for producing natural medicines today when various synthetic medicines are rampant.

The Unphasan Pharmaceutical Institute of the DPRK has developed and perfected natural medicines efficacious for the diseases such as arteriosclerosis, hyperlipemia, diabetes, obesity, hyperuricemia, hepatitis and pancreatitis which should be treated for a long time. Now the medicines are being applied to clinical treatment.

Director of the institute Sonu Su Yong told KCNA that the research team has developed medicines with natural substances as their main raw material and they are made an effective use in the treatment of diseases.

He went on to say:

To prevent the break of immune systems by anticancer agent, antituberclosis agent and other medicines, the team has made immune activator-Immunoton injection from fish skin. The injection is efficacious for the treatment and prevention of diseases including the acute and chronic hepatitis and pancreatitis.

Discle is potent for hyperlipemia. It, which has no side effect and prevents the disease from returning, is more effective than Symbastatin.

High-Ins is made of various natural substances. It improves insulin selectivity. It is good for the treatment of diabetes.

Health food Defatty is potent for simplex obesity which has not high lipid in blood. Among the newly developed medicines are health food Lipohepa for liver, health food Kumsanjong for hyperuricemia, health food Chitosan for hyperlipemia and osteoarthrosis and combined enzyme health food Dipansin for the digestive diseases. They are all patented medicines made by the institute with natural medical stuffs.

Korea Herald
7/19/2007

The international Red Cross will continue to help North Korea in treating measles-related illnesses, including medicine aid, the organization said Wednesday in its program update, Yonhan News Agency reported.

In the first phase of a joint immunization plan, the International Federation of Red Cross and North Korea campaigned to vaccinate 6 million children between 6 months and 15 years old.

“The DPRK Red Cross and the federation are contributing 10.2 million doses of vitamin A. The federation is also contributing 262,000 doses of ampicillin to health facilities in four provinces for the treatment of measels-related complications,” the update said.

DPRK stands for Democratic People’s Republic of Korea, an official name of North Korea.

Korea Times
Lee Jin-woo
5/23/2007

A middle-aged American doctor who grew up in South Korea has stressed that it’s time to move on to helping North Korea with public health issues.

“North Korea’s food situation is at least better. We need to move on to public health issues including rebuilding the North’s nine provincial and 200 county hospitals,” John A. Linton of Yonsei University’s Severance Hospital in Seoul told The Korea Times in an interview on Monday. The 47-year-old doctor heads the hospital’s international health care center.

Linton, who is well-known for his Korean name Yin Yo-han and thick South Jeolla Province accent, proposed a three-stage medical support program for North Korea from the South Korean government.

“Number one, we need to help them with a vaccination program, which should be followed by supplies of diagnostic equipment,” he said. “The final stage should be an exchange of doctors between the two Koreas.”

He said North Korean doctors need basic diagnostic equipment _ ultrasound and x-ray machines, and clinical pathology supplies _ as well as more operating theaters.

“You have to have a healthy population in the North, for them to survive and become competitive enough to receive economic finance and business opportunities.”

He hoped that large-scale medical support to the North on a regular basis would be discussed during ministerial talks between the two Koreas in the near future.

“Nobody can argue with health care,” he said. “North Korea has been an enemy, but now at the same time they are brothers. Even if they are an enemy, you must help them.”

Linton, who visited the North 17 times between 1997 and 2003 to help eradicate tuberculosis in the Stalinist state, said it should be South Korea, not the United Nations or the World Health Organization (WHO), that needs to take the lead in helping the North.

“You have to be very, very careful with the U.N. and WHO. They treat the two Koreas as two separate countries differently,” he said. “Eventually policy should be looking towards unification. South Koreans should take the lead.”

Asked whether he is a big fan of South Korea’s engagement policy toward Pyongyang, dubbed the `Sunshine policy,’ he said he supports it wholeheartedly. Linton, however, emphasized the need to guarantee transparency in the process.

“We should not encourage some of the North Korean leadership as middle management is very corrupt. We should not reward corrupt people there. That’s not for us that’s for North Korea.”

His dedication toward helping the North was initiated by his mother, who worked to eradicate tuberculosis in Suncheon in South Jeolla Province for some 40 years. She decided to donate ambulances to North Korea in 1997.

“When we got there in Pyongyang, we suddenly received a special request from North Korea asking for assistance treating TB throughout the whole country,” he said. “We visited the entire country while helping them fight TB.”

In his autobiography published last year, Linton recalled his unforgettable experiences as an interpreter during the bloody Kwangju pro-democracy movement in May 1980.

He served as a translator to people who occupied the provincial capital against the then military regime led by former President Chun Doo-hwan.

“Immediately following this experience, I was labeled as an insurgent ,” he said. “The American embassy in Seoul asked me to leave Korea, just for translating for three to four hours for reporters.”

He said his experience in Kwangju changed his personal life and made him understand what injustice is and how dangerous newspapers are.

He said such a great sacrifice should never ever happen again on the Korean Peninsula.

Eugene Bell Foundation (Hat tip D.”S.”B.)
207 C Street, SE, Washington, DC 20003   
TEL: 202-393-0645   
FAX: 202-543-2390
For more information:
Alice Jean Suh; alice@eugenebell.org;
+1-202-329-2410

EugeneBell Returns from 2007 Spring Visit to North Korea Initiates Maternal and Infant Care and Children’s Care Programs

The Eugene Bell Foundation earlier this month visited 17 medical institutions in the Democratic People’s Republic of Korea (North Korea) and launched two groundbreaking community health projects targeting the country’s most vulnerable groups: new mothers and infants, and school-aged children.  From May 1-12, EugeneBell’s chairman, Dr. Stephen Linton, and four delegation members visited city, district, and county medical institutions in North Korea’s South Pyongan Province. All 17 institutions received shipments of assistance as part of EugeneBell’s Partner Package Program 

New Maternal and Infant Care Program and Children’s Care Program

EugeneBell confirmed the new programs’ first deliveries of instructional materials, equipment and supplies at two local hospitals in Sunchon and Anju, cities in South Pyongan Province. These new programs will be implemented in three steps to ensure transparency. Our delegation received agreements from the medical staff at both institutions to implement the first step, with the understanding that progress to the second and third steps will require proof of adherence to EugeneBell’s standards on further visits. These new programs signify groundbreaking advances in EugeneBell’s work. In addition to providing training, equipment and supplies for entire institutions, these programs have also tailored assistance to individual patients. For the first time, EugeneBell will partner with doctors at the most basic level of care in North Korea’s system. All citizens in North Korea are assigned family care physicians. EugeneBell’s new programs will strengthen the ability of family doctors to treat individual patients more effectively and transparently.  “I am very excited about this new opportunity to help insure that pregnant women receive the best care possible from early pregnancy through child-birth,” said Dr. Linton. “We hope to help North Korean caregivers manage child health from the womb all the way through grade school, the most critical period for human development.”  The initial phase of these two new programs received an enthusiastic welcome from hospital staffs. EugeneBell plans to extend this effort to other local hospitals as funding becomes available.

Equipment and Training Upgrades for Local Hospitals Dramatically Improve Local Healthcare

During this visit the delegation was able to evaluate the effectiveness of a program to upgrade diagnostic and surgical capacity at seven out of 40 plus medical facilities supported by EugeneBell. The delegation was impressed at the level of technical sophistication achieved by North Korean caregivers after receiving comprehensive training manuals last year. Through self-study North Korean technicians had, in a surprisingly short time, mastered the use of complex diagnostic equipment and had even made minor repairs.  “It was very impressive,” said Dr. Linton, “to see North Korean technicians operating advanced equipment previously unfamiliar to them. More impressive was the level of cooperation between hospitals that had received the same equipment. When we first started this program, these hospitals were empty because patients had little hope of receiving adequate treatment.  Now that they have new equipment, previously empty hospitals are filled to capacity. Patients wait in line to be examined by the new equipment. “It’s worth the effort to watch these hospitals come back to life.”

Support for Children with Tuberculosis

On this visit the delegation found a new emphasis on treating children with tuberculosis. Several new children’s wards have been established to provide better care for young patients in South Pyongan Province, Nampo City and Pyongyang City. Children are particularly at risk of tuberculosis when their immune systems are weakened by poor nutrition. In response to the new emphasis on childhood tuberculosis by North Korea’s health authorities, EugeneBell will include a system for providing assistance directly to young patients this fall.

Medical Institutions Visited

During May 1st - 12th EugeneBell visited 17 North Korean medical institutions in: South Pyongan Province and Nampo City, South Pyongan Province Tuberculosis Hospital (TBH), Children’s Ward-South Pyongan TBH, South Pyongan Province Children’s Hospital, Anju City Tuberculosis Care Center (TBCC), Pyongsong City TBCC, Bukchang County TBCC, Sunchon City TBCC, Daean County TBCC, Ryonggang County TBCC, Anju City People’s Hospital, Sunchon City People’s Hospital, Daean County People’s Hospital, Chollima County People’s Hospital, Nampo City TBH, Nampo City TBCC, Waudo District People’s Hospital, Hanggu District People’s Hospital 

Total Results of Support in Spring 2007: $ 1,793,717.21 This spring EugeneBell shipped a total of $1,793,717.21 worth of medical goods to 45 medical institutions in North Pyongan Province, South Pyongan Province, Pyongyang City and Nampo City.  

EugeneBell in Action

1. New mother and infant at the Anju City People’s Hospital, part of EugeneBell’s new Maternal and Infant Care Program.

2. Children in Anju City being given health physicals, part of EugeneBell’s new Children’s Care Program.

3. Grade school students are examined at a mobile X-ray vehicle donated through EugeneBell to Nampo Tuberculosis Hospital.

4. Dr. Linton interviews a young patient at the Children’s Tuberculosis Ward at Nampo Tuberculosis Care Center.

5. A patient is examined with a sonogram donated through EugeneBell at Daean People’s Hospital.

   
6. Dr. Linton (left) delivers medical supplies and equipment to Chollima People’s Hospital in South Pyongan Province. In the spring of 2007 EugeneBell shipped almost 1,800,000 dollars of medical assistance to 40 odd medical facilities.

7. Through EugeneBell donors sent 2,200 sets of Patient Necessities Kits to long-term patients in sixteen tuberculosis care centers. EugeneBell does everything possible to identify donors to recipients.

KCNA
5/7/2007

Renovation work of sanatoriums in Kyongsong County of North Hamgyong Province, Samchon County of South Hwanghae Province, Thongchon County of Kangwon Province and other parts of the DPRK are progressing apace so as to deliver better medical service to people. 

The Kim Jong Suk Sanatorium has facelifted various buildings including the balneotheraphy building and furnished them with more convalescence and treatment facilities. 

In the Talchon Disabled Soldiers Sanatorium, the renovation project for the existing buildings including the general infirmary and the infirmary for disabled soldiers has been wound up and preparations for building 50 houses similar to rural dwelling houses are being made so that working people may lodge there and receive spa treatment. 

Besides, tens of sanatoriums including Chongsan Medicinal Spring Water Sanatorium and Naegok Spa Sanatorium across the country are changing their looks as the days go by.