Archive for the ‘International Aid’ Category

Russia wants sanctions on North Korea to ease

Thursday, September 27th, 2018

Benjamin Katzeff Silberstein

I don’t think we have systematic, rigid data enough to prove that Russian sanctions implementation overall on North Korea has eased even though the Russian government’s line on easing international sanctions has gone on consistently for months. But still, it’s only logical that a government working for sanctions pressure to ease would at the very least make sanctions implementation oversight and rigor less of a priority. Wall Street Journal:

Mr. Pompeo used his opening address to swipe at permanent Security Council members Russia and China for violating U.N. sanctions involving the sale of petroleum products in excess of North Korea’s maximum 500,000-barrel allowance and for providing other forms of economic relief.

“The members of this Council must set the example on that effort, and we must all hold each other accountable,” Mr. Pompeo said, calling for an end of ship-to-ship transfers of petroleum products, linked to Chinese and Russian entities, and a halt to hosting of North Korean laborers, a reference to the thousands of workers who have been granted permission to work in Russia.

“This violates the spirit and the letter of the Security Council resolutions that we all agreed to uphold,” he told the Council.

Mr. Lavrov used his address to bash the U.S. and its allies for exerting excessive pressure on North Korea, saying it was unacceptable for sanctions to be used as a form of “collective punishment.”

Mr. Lavrov defended North Korea’s call for economic relief, saying Pyongyang has taken meaningful steps toward implementing its promise to give up its nuclear weapons and urged the U.N. Security Council to send a “positive signal” in return.

“Negotiations are a two-way street,” Mr. Lavrov said, adding that Russia would draft a proposal to allow certain economic projects in North Korea to be exempt from sanctions.

Mr. Lavrov said such projects would be in the interest of all parties and would ease the “extreme socioeconomic and humanitarian suffering” caused by the sweeping sanctions regime currently in place. He also took aim at the U.S. for implementing secondary sanctions, which he described as “illicit practices” that undermine the sovereignty of other nations.

It’ll be interesting to see what these economic projects are specifically. My bet is on infrastructure and railway renovations and possibly new construction,  or perhaps ones centering around the Rason port and special economic zone.

Full article:
Russia’s Lavrov Calls for U.N. to Ease North Korea Sanctions
Jessica Donati
Wall Street Journal
2018-09-27

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Moon: North Korea wants to join international financial institutions

Wednesday, September 26th, 2018

Benjamin Katzeff Silberstein

NK News reports some of the comments that Kim Jong-un made to Moon Jae-in on the topic:

Speaking at a discussion hosted by the Council on Foreign Relations (CFR), the Asia Society Policy Institute, and Korea Society, Moon said Seoul plans to support the DPRK’s national economic development should sanctions be lifted following “substantive denuclearization.”

“South Korea intends to take the initiative in putting its weight behind the North Korean economic development, including in the construction of infrastructure,” the South Korean President said. “I believe that will also provide fresh vitality and growth for the South Korean economy.”

The South Korean President said, however, that there would be “a number of limitations” should Seoul work to help Pyongyang’s national economic development, stressing the necessity for support from international financial institutions.

“I think international funds supporting North Korea’s infrastructure will need to be created,” Moon added. “Other international agencies including the WB (World Bank), the World Economic Forum, and the Asian Development Bank should aid North Korea.”

Pyongyang is willing to accept support from international organizations, Moon said, including the International Monetary Fund (IMF).

“I’ve confirmed that the North Korean side has the will to engage in reform and opening by joining several international organizations such as IMF and World Bank,” he said.

South Korean finance minister Kim Dong-yeon in May announced that Seoul was seeking shortcuts to allow North Korea to receive funding and support from International Financial Institutions (IFIs), including the European Bank for Reconstruction and Development (EBRD).

Full article:

North Korea wants to join IMF and World Bank, pursue economic reform: Moon
Dagyum Ji
NK News
2018-09-26

As I’ve written about elsewhere, North Korea joining the IMF and/or the World Bank would entail a number of structural reforms that should, at least in theory, improve the health of the economy. The requirements to improve transparency in economic data would also be crucial, not just for those outside of North Korea interested in its economic situation, but also for the North Korean government itself, which likely does not have a very full picture of many of the most important economic indicators in the economy.

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Red Cross warns of heatwave threatening North Korea’s food production

Friday, August 10th, 2018

Benjamin Katzeff Silberstein

Full press release:

Beijing/Geneva, 10 August 2018 – A heatwave in the Democratic People’s Republic of Korea (DPRK) will have serious health consequences for children and elderly people unless urgent action is taken.

There has been no rainfall in DPRK since early July and temperatures are averaging 39 degrees C (102.2 degrees F) across the country. The next rain is expected in mid-August. Any threat to food security will have a serious effect on an already vulnerable and stressed population – a similar dry spell in 2017 caused a 7.2 per cent drop in food production at a vital point of the harvest cycle.

Joseph Muyambo, Programme Manager for the International Federation of Red Cross and Red Crescent Societies (IFRC) in Pyongyang, said: “This is not yet classified as a drought, but rice, maize and other crops are already withering in the fields, with potentially catastrophic effects for the people of DPRK.

“We cannot and must not let this situation become a full-blown food security crisis. We know that previous serious dry spells have disrupted the food supply to a point where it has caused serious health problems and malnutrition across the country.

“It’s children aged under 5 who will suffer the most. High levels of malnutrition can cause impaired physical and cognitive growth, and this is completely unacceptable. The lives of elderly people and those already suffering from illnesses are also at risk during this heatwave.”

Today, IFRC released 213,474 Swiss francs from its Disaster Relief Emergency Fund to help the DPRK Red Cross to support more than 13,700 of the most vulnerable people at risk from the heatwave.

The Red Cross has deployed emergency response teams and 20 water pumps to irrigate fields in the hardest-hit areas, while staff and volunteers are helping to raise awareness of the signs, symptoms and treatment of heat-related illnesses.

Even before the current crisis, more than 10 million people – 40 per cent of DPRK’s population – needed humanitarian assistance. This worrying situation has been exacerbated by the impact of international sanctions on DPRK, which have made it difficult for aid and supplies to get into the country and to reach people who desperately need support.

The press statement can be found here, on the IFRC website.

International bodies have previously warned of looming food shortages and poor harvests in North Korea, only to later see crop yields come out larger than expected. Let’s hope that’s the case this time as well. It’s also worth remembering that it’s not bad weather per se that threatens North Korean food production, but poor institutions and bad agricultural policies that lay at the core of the problem.

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South Korean officials in North Korea for joint forest inspection

Wednesday, August 8th, 2018

Benjamin Katzeff Silberstein

Yonhap reports:

A group of South Korean officials left for North Korea on Wednesday to conduct a joint inspection of forests and protect trees from harmful insects and diseases, the unification ministry said.

The officials led by a senior forest agency policymaker crossed into Mount Kumgang on the North’s east coast, where they will jointly examine the forests there, according to the ministry.

They will return home later in the afternoon.

The one-day trip follows up on the agreement reached during working-level inter-Korean talks early last month for forestry cooperation.

They agreed to cooperate in protecting forests along the inter-Korean border and in other areas from damage caused by harmful insects and diseases.

The two Koreas conducted a similar on-site inspection in July 2015 near Mount Kumgang. Two months later, they carried out efforts to fight insects and other damage, which was said to have cost them over 100 million won (US$89,400).

Meanwhile, the North will send six transport officials to the South on Thursday to hold a meeting and discuss details related to their cooperation in modernizing and possibly connecting railways over their border, the ministry said.

The meeting, the second of its kind, will be held at the Customs, Immigration and Quarantine (CIQ) office in Paju, just south of the inter-Korean border.

It came after their first meeting in Kaesong last month to discuss the outcome of an inspection of the conditions of the 15.3 kilometer-long railways from the North’s border town to the Military Demarcation Line (MDL) that separates the two Koreas.

Article source:
S. Korean officials visit N. Korea for joint inspection of forests
Yonhap News
2018-08-08

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North Korea warns of humanitarian disaster following heat wave

Thursday, August 2nd, 2018

Benjamin Katzeff Silberstein

Reuters:

North Korea on Thursday called for an “all-out battle” against record temperatures that threaten crops in a country already grappling with tough international sanctions over its nuclear weapons program.

North Korea on Thursday called for an “all-out battle” against record temperatures that threaten crops in a country already grappling with tough international sanctions over its nuclear weapons program.

Similar past warnings in state media have served to drum up foreign assistance and boost domestic unity.

“I think the message was a precautionary one to minimize any impact on daily life,” said Dong Yong-seung, who runs Good Farmers, a group based in Seoul, capital of neighboring South Korea, that explores farm projects with the North.

But the mention of unprecedented weather, and a series of related articles, suggest the heat wave could further strain its capacity to respond to natural disasters, said Kim Young-hee, a defector from North Korea and an expert on its economy at Korea Finance Corp in Seoul.

The warning comes after North Korean leader Kim Jong Un announced in April a shift in focus from nuclear programs to the economy, and held an unprecedented June summit with U.S. President Donald Trump in Singapore.

Since then, the young leader has toured industrial facilities and special economic zones near the North’s border with China, a move experts saw as a bid to spur economic development nationwide.

“He has been highlighting his people-loving image and priority on the economy but the reality is he doesn’t have the institutions to take a proper response to heat, other than opening underground shelters,” added Kim, the economist.

GOOD CROP CONDITIONS

Drought and floods have long been a seasonal threat in North Korea, which lacks irrigation systems and other infrastructure to ward off natural disasters.

Last year, the U.N. Food and Agriculture Organisation warned of the North’s worst drought in 16 years, but late summer rains and privately produced crops helped avert acute shortages.

There appear to be no immediate signs of major suffering in the North, with rice prices stable around 62 U.S. cents per kg through the year to Tuesday, a Reuters analysis of data compiled by the Daily NK website showed.

The website is run by defectors who gather prices through telephone calls to traders in the North, gaining a rare glimpse into the lives of ordinary citizens.

Crops are good this year because there was little flooding to disrupt the early spring planting season, said Kang Mi-jin of the Daily NK, based in Seoul.

“They say nothing remains where water flowed away, but there is something to harvest after the heat,” Kang said, citing defectors. “Market prices are mainly determined by Chinese supplies and private produce, rather than crop conditions.”

The October harvest would reveal any havoc wreaked by the weather, Kim Young-hee added.

Full article and source:
Sanctions-hit North Korea warns of natural disaster brought by heat wave
Hyonhee Shin
Reuters
2018-08-02

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North Korean-Chinese efforts at scaling back sanctions

Tuesday, July 3rd, 2018

Benjamin Katzeff Silberstein

The following is from Mainichi Shimbun on a North Korean economic delegation trip to China, where it supposedly met with Chinese foreign ministry officials to discuss economic cooperation. Since I don’t read Japanese, I’ve pasted what google translate generated, mostly for my own record-keeping…

[Beijing / Urushima Koji] China has activated diplomatic offensives toward easing sanctions against North Korea. At the end of June, at the end of June, a draft statement for the media to seek relief of sanctions on the UN Security Council was distributed to the Security Council with Russia. At the working-level level in the mid-day and the morning, North Korea’s Kim Bong-tae and foreign minister of foreign affairs have accepted the visit and it seems that they are discussing economic support with a view to easing sanctions due to denuclearization.

According to a source in the middle of the morning, Mr. Kim arrived at Pyongyang airport from Pyongyang this morning. Mr. Kim is said to have been in China, who has led the economic delegation to visit. China’s Ministry of Foreign Affairs Mr. Rikuo avoided confirming the visiting information at a regular press conference the same afternoon, but on the other hand, “While the middle morning is a friendly neighboring country, each level, normal in each field We are maintaining a regular visit. ”

Following the US-North Korea summit meeting in Singapore, China is expected to ease sanctions ahead of the United States and it is believed that it is aimed at advancing negotiations with the US with trade friction etc. advantageously by placing North Korea on the side.

 In the mid-day border zone, there were projects that could support economic assistance to North Korea in the form of technical cooperation even before the easing of sanctions, and negotiation at the worker level was necessary. The Chinese government will maintain normal interaction and cooperation with Korea (North Korea) on the premise that it does not violate international obligations (such as the Security Council sanctions) “(Mr. Shuo Qi · so = = Deputy Press Bureau Director of the Ministry of Foreign Affairs) and It’s a posture.

North Korea’s Kim Jung-eun, the chairman of the Korean Workers’ Party, visited a cosmetic factory in Shinwigu, North Pyongan Province, which borders the mid-day border. Prior to this, he is showing a willingness to emphasize the redevelopment of the mid-North Korean border, such as visiting the area around the economic zones in the same way that it had jointly developed with China.

Source:
North Korea seeks easing sanctions Economic support consultation?
Mainichi Shimbun
2018-07-03

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UN foresees “surge” in humanitarian aid to North Korea

Thursday, June 28th, 2018

Benjamin Katzeff Silberstein

In an interview by UN News, the UN resident coordinator for North Korea foresees that humanitarian aid will increase dramatically as relations (may) warm with the international community:

“For the UN, obviously it would mean a lot,” Tapan Mishra, the UN Resident Coordinator in the Democratic People’s Republic of Korea (DPRK), told UN News, explaining that the 12 June summit between the leaders of DPRK and the United States not only opens up new opportunities for denuclearization and global peace, but would also help UN agencies to raise more funding to meet the country’s humanitarian needs.

He said that humanitarian funding for North Korea has declined dramatically since 2012. In 2017, only 31 per cent of the requested funding has been received. In 2018, the funding situation is even more alarming. Today, only 9 per cent or $10 million of the requested $111 million has been received to assist 6 million vulnerable people in DPRK through the 2018 Needs and Priorities Plan.

The lack of funding has already forced UN agencies to prioritize and scale down lifesaving programming. Chronic food insecurity and malnutrition remains widespread. Around 10.3 million people, or 41 per cent of the total population, are undernourished.

In this exclusive interview, Mr. Mishra talked about how the UN aid operations have continued to deliver despite the operational constraints, how economic sanctions have had unintended consequences for the lives of ordinary North Koreans and how the recent breakthrough to the political deadlock is giving rise to optimism among the people there.

Mr. Mishra leads the UN Humanitarian Country Team, consisting of six agencies on the ground – the UN Development Programme (UNDP), UN Children’s Fund (UNICEF), the World Food Programme (WFP), the UN Population Fund(UNFPA), the Food and Agriculture Organization (FAO), and the World Health Organization (WHO); international non-governmental organizations and other international organizations engaged in humanitarian activities – with many other agencies supporting from outside.

Tapan Mishra: It’s a very important time. Regarding the recent summit that happened in Singapore between the leaders of DPR Korea and the US: it opens up new opportunities for global peace and hopefully stability and denuclearization. And for the UN, obviously, it would mean a lot. This is what we’ve been looking forward to: to have a diplomatic dialogue replace the possible threats of confrontation. And therefore, we hope to see a lot of support of the United Nations in DPRK to serve the people who are most needy and vulnerable, especially from a humanitarian perspective, right away.

The work of the UN could change depending on the “asks” that are made on the UN. The Secretary-General mentioned that the UN stands ready to serve. I see immediately there’ll be a huge surge in terms of humanitarian support that is needed.

As the Secretary-General has noted in his statement, relevant parts of the UN system stand ready to support this process in any way, including verification if requested by the key parties.  If there are other opportunities in the future moving from humanitarian to development, we would be able to look forward to making adjustments in our presence and our work in the future as well.

UN News: Can you describe what the UN country team does now to provide support to ordinary people there?

Tapan Mishra:At the moment, the United Nations Humanitarian Country Team in DPRK is primarily focused on providing humanitarian support to the most needy and vulnerable people. Of the 25.1 million people that are there, we are targeting in 2018 to support about 6 million people who need support – in terms of food security, nutrition, health, water, sanitation and hygiene. That’s what the UN country team and various agencies are providing in DPRK, with the support of the Office for the Coordination of Humanitarian Affairs (OCHA).

UN News: There is a UN strategic framework for DPRK that looks ahead to 2021. So, does that have to be changed according to the recent evolving diplomatic situation?

Tapan Mishra:We, all UN agencies, have signed the strategic framework with the Government of DPRK for the five years from 2017 to 2021. This strategic framework is the equivalent of the UN Development Assistance Framework (UNDAF) in a normal country. The situation in DPRK is quite unique. We could expand from humanitarian to possibly development in the future when the opportunity is right.

The strategic framework is more towards food and nutrition; security; social development services, which includes health, education, water, sanitation, hygiene, et cetera; and resilience sustainability, which includes energy, environment, climate change and disaster risk management.

So, when this scenario changes in terms of moving away from the humanitarian, which is our primary work currently, it may need to be adapted accordingly.

UN News: Do you mean that the recent political situation will be reflected on the strategic framework in the future?

Tapan Mishra:It depends. As you see, the Secretary-General has very clearly stated that the relevant UN agencies stand ready to serve, whether it’s for the verification, or for other support required. If there are adjustments that need to be made, it will be made at the appropriate time.

UN News: Can you describe what life is like for average citizens in North Korea?

Tapan Mishra:The humanitarian situation remains grim for millions of civilians in the country. There are children who are affected by acute malnutrition. Chronic food insecurity and malnutrition remains widespread, driven by the limited availability of arable land – only 17% of land is arable – lack of access to modern agricultural equipment and fertilizers, and recurrent natural disasters. Chronic malnutrition is devastating to young children. A staggering number of children – over a quarter (27.9%) of children under-five –  are stunted.

This will affect them for the rest of their lives. And we have programmes for supporting kindergartens, children, infants, as well as pregnant and lactating mothers, the elderly, and people with disability. So, for them, life is challenging and difficult. There are gaps that need to be met with humanitarian assistance. Therefore, we are – you may have seen the needs and priorities document for 2018 – looking for support from donors to provide us financial assistance to be able to provide humanitarian aid to the people in need.

UN News: How much have economic sanctions affected everyday life in North Korea?

Tapan Mishra:I have raised this issue, not only with the Chair of the UN Sanctions Committee (1718 Committee) that there are unintended consequences of the sanctions that are being seen in terms of the work that we do in the UN and other humanitarian agencies. And we have received good support from the Committee to look into these issues.

UN News: Looking over the last two decades, how has the UN humanitarian operation coped with the fluctuating political situation on the Korean Peninsula?

Tapan Mishra:That’s a very insightful question. In the last two decades, there has been ups and downs. Right now, we’re on a down. In the last three years, the receipt of humanitarian funding has been between only 20 and 30 per cent of the funding that we have requested. And this year, despite all these positive political directions, the funding currently is only at 9 per cent of the $111 million we are seeking.

UN News: So, do you expect that if the positive political development continues, more humanitarian funding will come?

Tapan Mishra:I really hope so. Now that the positive political doors are opening, the summit that perhaps opened the door of complete and verifiable denuclearization, we are hoping that Member States will support the UN and other agencies in providing humanitarian support to the most vulnerable population. And again, hopefully, that will lead to a new increase in the humanitarian support that we are receiving.

UN News: How does a deterioration in the political situation impact the humanitarian operation?

Tapan Mishra:Two or three things. First, humanitarian funding was very badly affected. That really impedes our ability to provide the support needed. So, agencies had to cut down on their programmes because there has been no funding. Second, we’ve had unintended consequences of sanctions. Even humanitarian aid has got affected. Third, the banking channel that we had for getting money in the country completely collapsed. We don’t have an option right now and we are looking for one. So, these three have been major challenges for us if we are to be able to provide the humanitarian assistance in the most effective manner.

UN News: Have you seen any changes in the level of cooperation or contact you have with the Government since last year?

Tapan Mishra: Over the past years, the UN and partners have invested heavily in building confidence and understanding by the government for humanitarian actors and humanitarian interventions. Agencies work according to “no access, no aid”, an approach which is understood and accepted by the authorities. This continued, principled and robust engagement has translated into better access, better monitoring, better programming, and better cooperation.

UN News: Have you seen any optimism among the ordinary North Koreans recently?

Tapan Mishra: Certainly. I haven’t been to DPRK after the summit but I will be going there soon. But what I hear from people, and I’ve been noticing there is a visible optimism and I’m sure everybody is looking forward to moving towards a better and more prosperous future with peace and stability ahead. So, I’m sure there is optimism, not only among the people in DPRK, but among the people in the world. So, this is an era of new peace and stability on the Peninsula, which will bring in hopefully global peace and development.

UN News: Any message you’d like to convey?

Tapan Mishra:The UN has been working there for a long time and, despite all the challenges, we have been serving on the mandates that we’ve had. We stand ready on the ground to do more as needed and we look forward to the support of all Member States in carrying out our mandate, by helping us get more humanitarian funding support, by helping us ensure that the unintended consequences of sanctions is reduced or completely overcome. And hopefully, peace and development will come in the future on the Peninsula. And hopefully, we will have a much better situation globally.

Article source:
INTERVIEW: UN’s top official in North Korea foresees ‘surge’ in humanitarian aid
UN News
2018-06-28

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Recap: South Korea’s economic plans for North Korea

Monday, May 28th, 2018

Benjamin Katzeff Silberstein

In this post, I’ll be collecting news and information on Moon Jae-in’s plans and ideas for economic development in North Korea. I’ve had to take a little break from blogging for the past couple of weeks due to travel, so the articles here won’t necessarily be recent or up-to-date, especially since up-to-date regarding the Korean peninsula these days seems to extend only to the last five minutes or so.

For the contents of the Panmunjom Declaration that have to do with the North Korean economy, feel free to check out this post, where I make the case (which still holds, I would argue) for why infrastructure is the most plainly obvious as of now for economic cooperation with North Korea in the wake of the latest warming of ties.

Infrastructure was an important component of the famed USB-stick that Moon handed to Kim at the first inter-Korean summit this year. Hankyoreh:

South President Moon Jae-in ordered a joint inter-Korean research effort to examine future economic cooperation ahead of the anticipated lifting of international sanctions against North Korea following an upcoming North Korea-US summit, which will follow up the inter-Korean summit that was held on Apr. 27.

Speaking on Apr. 30 at the first Blue House senior secretaries’ and aides’ meeting since the inter-Korean summit, President Moon said he “look[ed] forward to us being able to carry out a joint inter-Korean research effort for implementation of the Oct. 4 Summit Declaration [of 2007] and inter-Korean economic cooperation,” a key Blue House official reported.“He was saying we need joint research to examine what kinds of economic cooperation the South and North can engage in ahead of [sanctions against North Korea] being lifted,” the official explained.

During their summit, President Moon also personally gave North Korean leader Kim Jong-un a pamphlet on his “new economic vision” and a USB device containing a presentation video, the Blue House reported.

The materials reportedly contained details on power plant construction and other economic cooperation measures that could be implemented once inter-Korean relations gain momentum and sanctions against North Korea are lifted.During the Apr. 30 meeting, President Moon described the Panmunjeom Declaration as “a peace declaration proclaiming to the world that there will be no more threat of war or nuclear weapons on the Korean Peninsula.”

Article source:
South Korean President Moon Jae-in orders joint research effort for inter-Korean economic cooperation
Seong Yeon-cheol
Hankyoreh
2018-05-01

New York Times noted the somewhat ironic fact that Kim received Moon’s plan on a USB-stick, an item whose use by its own citizens the North Korean regime has long cracked down on:

For years, Kim Jong-un, North Korea’s leader, has been cracking down on USB flash drives that activists smuggle into his isolated country to poison his people’s minds with outside influences, like South Korean K-pop music.

But last month, when he met with the South’s president, Moon Jae-in, Mr. Moon handed him a USB drive that contained quite a different message.

In charts and video clips, Mr. Moon’s memory stick laid out a “new economic map for the Korean Peninsula,” including new railways and power plants for the impoverished North, should Mr. Kim abandon his nuclear weapons, according to South Korean officials.

Mr. Moon based his sales pitch on the belief that Mr. Kim wants to become the North Korean equivalent of Deng Xiaoping, who oversaw the economic liberalization of China. In this view, Mr. Kim may be willing to transform his pariah state by trading in his nuclear arsenal for diplomatic and economic incentives he needs to achieve prosperity.

[…]

“Kim Jong-un’s desire to develop his country’s economy is as strong as, and even stronger than, his desire for nuclear weapons,” said Lee Jong-seok, a former unification minister of South Korea. “But he knows he cannot achieve the kind of rapid economic growth in China that he envisions for his country while keeping his nuclear weapons — because of the sanctions.”

[…]

Vilified as he was, however, Mr. Kim has also shown signs of being a reformer, granting farms and factories more autonomy, allowing more markets to open, and setting off a building boom in his showcase capital, Pyongyang. He exhorts his country to follow “international development trends” and “global standards” and even admits failing to deliver on his promise that his long-suffering people would “no longer have to tighten their belts.”

“My desires were burning all the time, but I spent the past year feeling anxious and remorseful for the lack of my ability,” Mr. Kim said in a nationally broadcast speech last year, a startling admission for a member of the family that has ruled North Korea with the help of a personality cult since its founding in 1948.

After meeting him, Mr. Moon called Mr. Kim “open-minded and practical.”

Nowhere is Mr. Kim’s dilemma better seen than in his policy of “byungjin,” or parallel advance, which seeks a nuclear arsenal and economic development simultaneously. Under that policy, Mr. Kim has rapidly developed his country’s nuclear weapons and ballistic missile programs, arguing that a nuclear deterrent would make his country feel secure enough to focus on rebuilding the economy. But the world has responded by imposing crippling sanctions.

[…]

If Mr. Kim pursues the route of economic reform, energy and transportation are the two areas where he most needs outside help. In his meeting with Mr. Moon, Mr. Kim admitted to the “embarrassing” condition of his roads and railways, South Korean officials said.

Trains running on electricity remain North Korea’s main means of transport, carrying 90 percent of its cargo and 60 percent of its passenger traffic, according to Ahn Byung-min, a senior analyst at the South’s government-funded Korea Transport Institute. But its rail systems are so decrepit that its fastest train, which runs to the Chinese border from Pyongyang, travels at 28 miles an hour. Other trains run at less than half that speed, Mr. Ahn said.

Lacking cash for oil imports, North Korea produces all its electricity from hydroelectric dams and coal-burning power plants. But the country’s power industry is trapped in a vicious cycle, energy experts say. Chronic electricity shortages make it difficult to produce coal and transport it to power plants. People in search of firewood for heat and cooking have denuded their hills, causing floods and droughts and making silt pile up at dams. That cuts down hydroelectric generation.

North Korea’s electricity generation amounts to only 4.4 percent of South Korea’s, according to Park Eun-jeong, an analyst at the South’s Korea Development Bank. The country prioritizes supplying electricity to lighting statues of Mr. Kim’s father and grandfather, who had ruled before him, while passengers wait for hours in trains unable to move because of power shortages, according to defectors from the country.

“Electricity is the Achilles’ heel for North Korea,” said Lee Jong-heon, an energy analyst in Seoul.

Mr. Moon’s proposal to modernize the North’s roads and railways and link them to the South’s is not meant to help just North Korea.

South Korean policymakers say that the two Koreas must first integrate their economies to make an eventual reunification less chaotic. They also envision building trans-Korean railways to find faster and cheaper routes to export South Korean goods to China, Russia and Europe, and bring Russian oil and gas into the South through pipelines for its power-hungry economy.

Full article and source:
South Korea Hands Kim Jong-un a Path to Prosperity on a USB Drive
Choe Sang-hun
New York Times
2018-05-10

Moon’s plan consists of three “economic belts”, as South China Morning Post notes, with infrastructure links that carry great potential gains for China and Russia as well:

President Moon Jae-in gave the North’s leader Kim Jong-un a USB drive containing a “New Economic Map of the Korean Peninsula” at the fortified border village of Panmunjom on April 27.

The initiative included three economic belts – one connecting the west coast of the peninsula to China, making the region a centre of logistics; one connecting the east coast to Russia for energy cooperation and one on the current border to promote tourism.

Whilst sources at the South Korean presidential office did not give further details about the information contained in the drive, they confirmed that the plan was in line with Moon’s “Berlin speech” last year when he outlined his basic approach to the north on a visit to the German capital.

During last year’s presidential election campaign, Moon pledged to merge the two Koreas’ economies in a single market to lay the foundations for unification.

Park Byeong-seug, a South Korean lawmaker from Moon’s ruling Democratic Party of Korea, said the proposal was in line with Moon’s campaign promises.

“The concept of the three belts was one of President Moon’s pledges during the election last year,” Park said.

“The new economic map includes railway links between the two Koreas and China’s northeast stretching all the way to Europe.”

One part of the plan would involve the construction of a rail link starting in Mokpo on the southwest tip of the peninsula, passing through Seoul and Pyongyang and the North’s Special Administrative Region of Sinuiju, before reaching Beijing.

Beijing is likely to welcome Seoul’s proposal as it accords with the core Chinese national interest of enhancing sustainable economic development and boosting the country’s northeastern rust belt.

Cheng Xiaohe, a deputy director at the centre for international strategic studies at Renmin University said Beijing may try to incorporate the plan into its Belt and Road Initiative.

“The northeast has been China’s weakest link and seen poor economic development for years. A rail link could make a real difference to the region,” Cheng said.

Improving the area’s logistics would also benefit China as its access to the open seas in that part of the world is physically blocked by the Korean peninsula and Russia’s far east.

North Korea’s economy is also closely tied to the northeast of China and opening up the reclusive state’s markets could provide new opportunities for the Chinese provinces on its border.

Lu Chao, a research fellow at Liaoning Academy of Social Sciences, said: “The plan would have a huge impact on China’s northeastern region as it would transform the region as a centre of logistics in East Asia, which could function as a driving force for the rapid economic growth of the region.”

“The northeast is the region with the greatest economic potential in China. A railway connection would bring a myriad of investments from overseas and would help the economy take off.”

[…]

South Korea would have to allow its allies and the UN to mediate any easing of sanctions before it could establish any economic cooperation with the North.

Moon Chung-in, a special foreign affairs and national security adviser in Seoul, said last month that Seoul’s economic incentives would compensate Pyongyang for freezing its missile programme, disclosing its nuclear capacity and allowing international inspections within its borders.

Full article and source:
Seoul offers Kim Jong-un grand bargain to link North and South Korean economies with China
Lee Jeong-ho
South China Morning Post
2018-05-07

Not surprisingly, Hyundai Asan is hoping to get in on whatever action may come. CNN:

Hyundai Group said Tuesday [May 8th] that it’s setting up a task force to prepare for the potential restarting of economic projects in North Korea.

The announcement comes shortly after a historic summit between South Korean President Moon Jae-in and North Korean supreme leader Kim Jong Un at which they committed themselves to rebuilding ties after years of tensions.

Hyundai Group, which split from the Hyundai Motor Group in 2000, was involved in various business projects in North Korea in the past, including a mountain resort and the Kaesong industrial complex, where North Korean workers made goods for South Korean companies.

“Hyundai needs to be ready when/if the two Koreas agree on terms and inter-Korean economic cooperation resumes,” a company spokesman said.

Hyundai will be closely monitoring the planned summit between Kim and US President Donald Trump that’s expected to take place in the coming weeks, as well as any potential changes to the heavy sanctions in place on North Korea’s economy, the spokesman said.

The Kaesong complex, a symbol of cooperation between the two Koreas, was closed as relations deteriorated in 2016. More than 120 South Korean companies had a presence there, employing tens of thousands of North Koreans and providing a steady stream of foreign currency to the regime in Pyongyang.

Hyundai also previously operated a tourist resort at North Korea’s Mount Kumgang, near the border with South Korea. It was shut down in 2008 after a South Korean tourist was killed by a North Korean soldier.

The company’s ties to North Korea go back to Hyundai’s late founder, Chung Ju-young, who was born there.

Last week, South Korean Deputy Prime Minister Kim Dong-yeon said the country’s government was “considering various scenarios” for economic cooperation between the two Koreas.

“The government is preparing response plans to different scenarios in terms of how and how fast to pursue [economic cooperation] and how to procure the resources for it,” he said.

South Korea’s government has allocated about $900 million to fund economic projects that involve both countries this year, according to the minister.

Full article and source:
Hyundai Group is getting ready to do business in North Korea again
Daniel Shane
CNN
2018-05-08

To be sure, preparations and planning are well underway in Seoul. Reuters:

South Korea’s finance minister said on Wednesday [May 2nd] the government was discussing how to finance possible economic projects with North Korea, although any projects with Pyongyang must first be approved by the international community.

“We’re internally carrying out preparations, in terms of what to prepare, and how to cooperate with the international community, and how to finance (possible inter-Korea projects),” Kim Dong-yeon told reporters in Sejong.

“But we need support from the international community and need to watch the (upcoming) summit between the United States and North Korea,” Kim said, without elaborating on specifics of any government financing.

Kim’s comments come after South Korean President Moon Jae-in and his North Korean counterpart Kim Jong Un agreed last Friday on a common goal of a “nuclear free” peninsula, and to “adopt practical steps towards the connection and modernization of the railways and roads”.

Many speculate that the two Koreas will start joint infrastructure projects as soon as international sanctions on North Korea are lifted. Currently, North Korea is under sanctions imposed by the U.N. Security Council to stop its nuclear weapons and missiles programs.

Kim also said there was a rise in the number of Chinese tourists in March although the services sector has not yet recovered from a drop in such visitors due to tensions between the two countries.

“The number of Chinese tourists is noticeably increasing since March, although it hasn’t recovered to the pre-Thaad level,” Kim said.

Tourist numbers plunged last year after South Korea angered China by deploying a U.S. Terminal High Altitude Area Defence (THAAD) system that features radar which Beijing believes could be used to penetrate its territory.

Full article and source:
South Korea considers financing of possible inter-Korea projects: finance minister
Reuters
2018-05-02

To be continued and updated…

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Tuberculosis in North Korea

Wednesday, April 11th, 2018

Benjamin Katzeff Silberstein

Some interesting (and disturbing) numbers and facts in this article by Bloomberg. One wonders just how many TB treatments one of Kim Jong-un’s yachts could pay for…

While the rogue state’s nuclear ambitions have long inspired angst—and led to economic sanctions—the threat of TB, the planet’s biggest infectious killer, has garnered less attention. With more than 100,000 cases in 2016, North Korea is on the World Health Organization’s list of nations with the greatest incidence of the deadly lung disease, and doctors warn that an explosion in multidrug-resistant strains could be coming.

In February, the Global Fund to Fight AIDS, Tuberculosis and Malaria, the biggest financial contributor to TB control in the Democratic People’s Republic of Korea since 2010, announced that it will close its programs there in June, citing challenges working in the country. The closure of programs is likely to lead to “massive stock outs of quality-assured TB drugs nationwide,” wrote Harvard Medical School doctors in an open letter to the Global Fund, published on March 14 in the British medical journal the Lancet. Such privation in the past has “led to the rapid creation of drug-resistant TB strains, as doctors ration pills and patients take incomplete regimens,” they wrote.

Infections that can’t be cured with standard drugs are already rife in the country. No nationally representative survey has been conducted to measure the incidence among North Korea’s 25 million people, but according to WHO estimates, 5,700 of the country’s 130,000 TB infections in 2016 were caused by bacteria resistant to the antibiotic rifampicin or at least two other key TB medications.

That may be a gross underestimate, according to a study published last year in the Journal of Korean Medical Science that analyzed hundreds of patient sputum samples. More than three-quarters of those that tested positive for TB contained multidrug-resistant strains, and two samples contained extremely drug-resistant strains—a form almost impossible to treat in resource-poor countries such as North Korea. Treatment for patients with multidrug-resistant TB, or MDR-TB, commonly lasts two years or longer and typically involves six months of daily injections and a regimen of about 14,000 pills, including some that are toxic.

Treatment regimens that are too short or rely on inferior or inappropriate medicines are the fastest route to drug resistance, says Jennifer Furin, a Harvard-trained doctor and researcher, who’s cared for TB patients for 23 years. Cutting funding to programs in North Korea, she says, will undermine disease-control efforts beyond North Korea.

“This will be a disaster that the global health community will pay for later,” Furin says. “This is a politically created problem that will turn into a health catastrophe, not just for the people living in the DPRK, but for everybody in the region.”

Chinese authorities are on alert for cases among migrant workers from North Korea. Still, many people who’ve been exposed to TB develop a latent infection with no symptoms, making it difficult to stop at borders.

Dandong, a city in China’s northeastern Liaoning province and separated from North Korea by a river, is a main entry point for migrant workers. Quarantine officials identified 33 TB cases among 9,500 North Koreans screened from 2012 to 2014, according to a government report published in 2014 that recommended heightened surveillance in the Dandong area. Local authorities pledged in December to beef up border screening and epidemic management.

Just as HIV has helped spread TB in sub-Saharan Africa, chronic malnutrition is fueling the epidemic in North Korea, according to Kwonjune Seung, who was among the authors of the open letter to the Global Fund published in the Lancet. Seung visits a dozen TB centers in North Korea twice a year as medical director of the Eugene Bell Foundation, a Christian charity focusing on treating North Korean patients. A spillover of MDR-TB from North Korea “would take decades to clean up and could detrimentally affect the public health of bordering countries like China and South Korea,” Seung and his colleagues wrote in their letter.

More than 38 countries contribute to the Global Fund, including South Korea and the U.S.; in late March, Congress approved $1.35 billion in funding for the 2018 financial year. The Global Fund defended its decision to suspend its programs in North Korea, saying in an email that it was fully aware of the risks that might arise from disorderly closure of its grants and that it’s working with Unicef to accommodate mitigating actions. The decision to withdraw from the country wasn’t taken in response to pressure but rather influenced by concerns about the “unique operating environment” in North Korea, it said. The closed environment prevents donors from properly assuring effective use of grants and resources and managing risks. As of last August, the Global Fund’s internal performance reviewers gave the North Korea program a B1, or “adequate,” rating.

In an open letter to the Geneva-based organization published on March 13 by the Korean Central News Agency, North Korea’s official news agency, Kim Hyong Hun, the country’s vice minister of public health, accused the Global Fund of bowing to the “pressure of some hostile forces.” President Trump has been trying to enlist other nations in a campaign of sanctions against North Korea.

“The decision to suspend the Global Fund projects in North Korea, with almost no transparency or publicity, runs counter to the ethical aspiration of the global health community, which is to prevent death and suffering due to disease, irrespective of the government under which people live,” Seung and his colleagues wrote in the Lancet.

Furin sees it as another dimension of the tensions between Trump and North Korean leader Kim Jong Un, whom the U.S. president nicknamed “Little Rocket Man” after the nation tested its missile capabilities in September. The two nations are slated to meet in an historic summit as early as May. “You can’t help but think global powers are very concerned about North Korea’s erratic behavior, and this is a way to punish the country,” she says. “But this is a weapon of destruction in and of itself. TB is an airborne disease. It doesn’t stay within borders.”

Article source:
North Korea’s Other ‘Weapon’ Is Poised to Explode
Fiona Li, Peter Martin and Dandan Li
Bloomberg News
2018-04-11

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UNICEF warns of child malnutrition in North Korea following sanctions

Tuesday, January 30th, 2018

By Benjamin Katzeff Silberstein

Few or no policies come without unintended consequences. For aid institutions such as UNICEF, sanctions have led to goods being more difficult to bring to North Korea, since both banks and transportation companies are reluctant to have anything to do with the country:

Under United Nations Security Council resolutions, humanitarian supplies or operations are exempt from sanctions, Omar Abdi, UNICEF deputy executive director, said.

“But what happens is that of course the banks, the companies that provide goods or ship goods are very careful. They don’t want to take any risk of later on being associated (with) breaking the sanctions,” Abdi told a news briefing.

“That is what makes it more difficult for us to bring things. So it takes a little bit longer, especially in getting money into the country. But also in shipping goods to DPRK. There are not many shipping lines that operate in that area,” he said, referring to the Democratic People’s Republic of Korea.

Sanctions on fuel have been tightened, making it more scarce and expensive, Abdi added.

Reuters, citing three Western European intelligence sources, reported exclusively last week that North Korea shipped coal to Russia last year which was then delivered to South Korea and Japan in a likely violation of U.N. sanctions.

“We are projecting that at some point during the year 60,000 children will become severely malnourished. This is the malnutrition that potentially can lead to death. It’s protein and calorie malnutrition,” said Manuel Fontaine, director of UNICEF emergency programs worldwide.

“So the trend is worrying, it’s not getting any better.”

In all, 200,000 North Korean children suffer from acute malnutrition, including 60,000 with the most severe form that can be lethal, according to UNICEF.

UNICEF had projected 60,000 children would suffer severe acute malnutrition last year, and reached 39,000 of them with therapeutic feeding, spokesman Christophe Boulierac said.

“Diarrhoea related to poor sanitation and hygiene and acute malnutrition remains a leading cause of death among young children,” it said in Tuesday’s appeal to donors that gave no toll.

UNICEF is seeking $16.5 million this year to provide nutrition, health and water to North Koreans but faces “operational challenges” due to the tense political context and “unintended consequences” of sanctions, it said.

It cited “disruptions to banking channels, delays in clearing relief items at entry ports, difficulty securing suppliers and a 160 percent increase in fuel prices”.

“It’s a very close, and tightly monitored intervention which is purely humanitarian in its essence,” Fontaine said.

Full article:
60,000 North Korean children may starve, sanctions slow aid: UNICEF
Stephanie Nebehay
Reuters
2018-01-30

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