North Korean Economy Watch

According to Agence France-Presse:

The UN food body on Saturday said it had approved $200 million of food aid for North Korea, targeting the country’s most vulnerable people who remain dependent on external assistance.

The World Food Programme (WFP) executive board has this week approved a new two-year operation for North Korea starting on July 1, WFP spokesman Marcus Prior said.

“It will target about 2.4 million people – almost all children, and pregnant and nursing women – with about 207,000 [206,800] metric tons of food assistance at a cost of US$200 million,” he said in an email to AFP.

The WFP will continue to focus on the nutritional needs of young children and their mothers through food which will be manufactured in the North using ingredients imported by the food body, he said.

“WFP remains very concerned about the long-term intellectual and physical development of young children in particular who are malnourished due to a diet lacking in key proteins, fats and micronutrients,” added Prior.

In March, UN resident coordinator in North Korea Desiree Jongsma said timely imports from the WFP had contributed to avoiding a crisis this year but two thirds of the nation’s 24 million population were still chronically food insecure.

Nearly 28 percent of children under five in the North suffer from chronic malnutrition and four percent are acutely malnourished, according to a UN national nutrition survey last year.

Overall production for the main 2012 harvest and early season crops this year was expected to reach 5.8 million tonnes, up 10 percent on 2011-2012, UN agencies said in November.

But the poverty-stricken country is still struggling to eradicate malnutrition and provide its people with vital protein, the UN’s Food and Agriculture Organization and WFP said.

North Korea suffered regular chronic food shortages under the Kim dynasty, with the situation exacerbated by floods, droughts and mismanagement. During a famine in the mid to late-1990s, hundreds of thousands died.

International food aid, especially that from South Korea and the United States, has been drastically cut over the past several years amid tensions over the communist state’s nuclear and missile programmes.

The US last provided food aid to North Korea from late 2008 to March 2009. Some 170,000 tonnes out of an expected 500,000 tonnes was delivered, until Pyongyang expelled US workers monitoring the distribution.

Here is the official announcement.

Quarterly bulletin for WFP’s operation Nutrition Support to Women and Children in DPR Korea (Q1, 2013)

DPRK National Nutrition Survey (October 2012)

Read the full story here:
UN food body approves $200 mn food aid to N. Korea
Agence France-Presse
2013-6-8

According to the Chicago Tribune:

Hall Healy, chairman of the Wisconsin-based International Crane Foundation, has been engaged for years in the effort to protect the migratory cranes in North Korea and restore their habitats. Since 2008, the group has been raising money and coordinating efforts to help a farming community on the Anbyon Plain, roughly 60 miles north of the DMZ.

Through helping the Anbyon farmers, Healy said they are also helping the cranes. When there’s more food for the farmers, there’s also more rice left over in the fields for the cranes, Healy said. The birds also benefit from a pond that was recently built and stocked with fish.

“You have to work with the people,” Healy said. “And if the people have needs, and they always do, you have to help them first.”

Founded in 1973, the International Crane Foundation works in countries around the world to protect the 15 species of cranes in existence.

The North Korea project — which focuses on the red-crowned and white-naped cranes — has special meaning for Healy, who’s been closely involved since its inception. He’s traveled to the DMZ more than a dozen times, and to the Anbyon Plain twice — most recently in November 2011. He plans to return in the fall.

Anbyon was targeted as a priority area, out of concern that a large wetlands area south of the DMZ, near Seoul, could be developed soon, Healy said. If that development occurs, Anbyon would give cranes a reliable haven.

Over the past five years, the foundation has raised about $200,000, including in-kind services, for machinery, fertilizer, training and building supplies, Healy said. Partnering with other groups — including the State Academy of Sciences in Pyongyang, North Korea, the Anbyon farming cooperative, BirdLife International and the Germany-based Hanns Seidel Foundation — it has turned that relatively small amount of money into significant results, Healy said.

So far, it’s worked out well for the farmers. The primary crop in Anbyon is rice, Healy said, but the farmers are also now planting fruit trees and raising livestock. Organic fertilizer, new machinery and sustainable farming techniques have improved the crop yield and the health of the soil, he said.

On the crane side, it’s still a work in progress. Last winter, cranes circled but did not land in Anbyon. But they landed the two years previous, Healy said, and better results are expected this year.

Wildlife conservation that directly benefits people is becoming a more popular approach, said Jeff Walk, an ornithologist and director of science for the Nature Conservancy in Illinois. And cranes are an excellent focus, he said, because people are naturally drawn to them.

“It’s a good thing. You need that hook with people,” Walk said. “We call them ‘an umbrella species.’ You work to protect them and a whole other community benefits, too.”

Compared with working in other countries, Healy said communication with the North Korean farmers has been limited and indirect. Through the United Nations mission in New York, the International Crane Foundation communicates with the State Academy of Sciences in Pyongyang, instead of directly with the farming cooperative.

Healy worked previously as president of the DMZ Forum, a New York-based group focused on ecological preservation in the DMZ.

Seung-ho Lee, current president of the DMZ Forum, said conservation work in North Korea is inherently “a trust-building process” with people who have been largely cut off from the Western world. The Anbyon project is effective because it yields results without ideology or politics, he said.

“It’s a very useful approach,” Lee said. “To give them a sense of volunteerism and work, but to also give them a real product.”

Previous post on the International Crane Foundation here.

Read the full story here:
Saving the cranes: Hope flies in North Korea
Chicago Tribune
Gregory Trotter
2013-6-7

According to Yonhap:

A United Nations organization supporting child birth has provided US$500,000 worth of medical aid to North Korean mothers and children, a report said Wednesday.

The United Nations Population Fund (UNFPA) shipped drugs and medical equipment for mothers with newborn babies in the North last month, the report by the Washington-based Radio Free Asia said.

The goods were sent to about 300 health facilities in the country and the UNFPA tapped into the U.N.’s Central Emergency Response Fund in order to provide the assistance, it said.

With a budget of $10 million, the UNFPA has been leading a five-year project to help pregnant North Korean women and conduct a census in the communist country since 2011.

Maternal death in the North reached 77 in 2008, up 40 percent from 54 recorded in the 1990s, according to the UNFPA. The rate refers to the number of women dying from child birth-related complications per 100,000 live births.

Read the full story here:
UNFPA provides US$500,000 in medical aid to N. Korean mothers
Yonhap
2013-5-22

According to Yonhap:

Eight out of every 10 North Korean families are suffering malnutrition with little access to protein foods, a U.S. media report said Tuesday.

In its survey of 87 North Korean families from January to March, the World Food Program (WFP) found that 80 percent of them were undernourished mainly due to a lack of protein intake, the Washington-based Voice of America (VOA) said.

About 38 percent of those surveyed were not able to eat high-protein foods during the one week before the survey, such as meat, fish, eggs or beans, said the report, monitored in Seoul.

Quoting the WFP report, the VOA said the North Korean families, on average, eat meat 1.3 days a week or beans 1.2 days per week.

The report also said about 14 percent of the 86 hospitalized North Korean children under age 5 whom its aid workers visited during the January-March period were in serious malnutrition conditions.

Meanwhile, AmeriCares, a U.S. non-profit aid group, is about to send 10.5 tons of drugs in humanitarian assistance to the North this week, another U.S. media report said.

The aid package, which includes antibiotics, stomach medicines and dermatology drugs, will be shipped later this week to six hospitals in Pyongyang and other areas, the Washington-based Radio Free Asia reported. The shipment will also include personal hygiene items like toothbrushes and soaps, it said.

The RFA said the latest aid has no political consideration and is solely for humanitarian purposes.

AmeriCares began its aid to the North in 1997 as the first American private group to do so. Last year, it sent US$7 million worth of medicine for flood victims in the impoverished country.

Read the full story here:
Eight out of 10 N. Korean families undernourished: report
Yonhap
2013-5-7

According to the Hankyoreh:

While North Korea prohibited members of the Corporate Association of Kaesong Industrial Complex (CAKIC) from entering the North, it granted access to representatives of the Eugene Bell Foundation. The foundation has been providing humanitarian and medical aid to North Korea for some time.

On Apr. 18, the Eugene Bell Foundation announced that a group of nine people who had been staying in Beijing waiting for their North Korean visas, including Chairman Stephen Linton and a group of donors to the foundation, finally received their visas that afternoon and boarded a plane bound for Pyongyang.

“Even this morning, it was unclear whether they would be allowed to enter the country, but fortunately the visas were issued in the afternoon,” a representative of the foundation said.

This is being seen as showing that North Korea is linking the Kaesong Industrial Complex issue with the current political situation on the Korean peninsula, but that it is willing to receive humanitarian support. Particularly noteworthy is the fact that the group visiting North Korea includes eight Americans and one French person, but no South Korean nationals.

The Eugene Bell Foundation, which operates tuberculosis clinics in eight areas in North Korea, including Pyongyang and Nampo, has sent representatives to North Korea twice each year in order to assess whether the tuberculosis medicine that it provides is being used properly. These visits continued to take place during the Lee Myung-bak administration (2008-Feb. 2013).

On Mar. 22, the foundation sent North Korea 678 million won (USD$604,267) worth of tuberculosis medicine in keeping with the principles of Park Geun-hye’s trust-building process for the Korean peninsula, which does not link humanitarian aid with the North Korean nuclear weapons issue. This medication left Pyeongtaek harbor and arrived at Nampo harbor on Apr. 4 by way of Dalian, China.

Meanwhile, the owners of the businesses at the Kaesong complex that were prohibited from entering the North on Apr. 17 have decided to try once again to visit the North on Apr. 20 via the CIQ (customs, immigration, and quarantine) office in Paju, Gyeonggi Province.

The Ministry of Unification announced on Apr. 18 that eight more employees who had been staying in Kaesong had returned to South Korea through the CIQ office. This brought the number of South Korean employees still remaining in the complex two weeks after North Korea blocked traffic from entering to 197, less than one fourth of the original total.

Read the full story here:

N. Korea allows entrance to foreign aid group
Hankyoreh
Gil Yun-hyung
2013-4-19

According to the Irish Times:

Irish NGO Concern has temporarily suspended its aid work in North Korea due to the increasing threat of war. The suspension takes place with immediate effect due to fears over staff safety.

The non-governmental organisation has 14 workers in the area. Eleven of them are from North Korea, while there are also three international workers from Nepal, India and Sweden. The only Irish Concern employee in the area left a number of months ago.

Concern’s overseas director of aid Paul O’Brien said the organisation had a meeting with the Department of Foreign Affairs last week, where the decision was made.“Two of our international staff are outside the area now and we can’t really function without them. We will return to work once it settles down there,” he said.

Mr O’Brien said he hopes things will settle in the country by the time former leader Kim Il-Sung’s birthday takes place on April 15th. The birthday is celebrated as a public holiday where North Koreans celebrate the life of their “Eternal President”, who died in 1994.

Read the full story here:
Concern suspends North Korea operations
Irish
Jason Kennedy
2013-4-8

According to Yonhap:

Under the approval, Eugene Bell, a South Korean charity group, will ship tuberculosis medicine worth 678 million won (US$606,500 to eight tuberculosis clinics run by the South Korean group in North Korea. The shipment is expected to be delivered in April, the official said.

This marks the first aid package approved by the ministry since Park took office on Feb. 25. The last aid request was granted in November last year under President Lee Myung-bak.

…

“The approval is strictly for humanitarian purposes and should not be read as a message to condone North Korea’s recent provocations,” Kim said.

“The planned medicine aid can help cure about 500 multidrug-resistant tuberculosis patients in the North whose lives would be at serious risk without the medicine,” the spokesman said. It is difficult for North Korea to produce quality medicine to cure the difficult type of tuberculosis, he added.

…

President Park has repeatedly said despite relations with the North, she will continue to allow humanitarian aid to less-privileged North Koreans as part of her signature North Korean policy to build trust with the country. She, however, pledged to sternly respond to any provocations by the North.

“The spread of multidrug-resistant tuberculosis is so serious that North Korea is judged to have missed the crucial ‘golden time’ to root out the tuberculosis,” Stephen Linton, the chairman of Eugene Bell, said in a news conference in November following a two-week visit to the country.

The charity foundation has been running a medical service program for tuberculosis patients in the North since 2000 and sends drugs on a regular basis to the impoverished country.

Read the full story here:
Seoul approves first private-level aid provision to N. Korea under new administration
Yonhap
2013-3-22

Reuters reports on Chinese oil exports to the DPRK:

China did not export any crude oil to North Korea in February, customs data showed on Thursday, marking the first absence of deliveries since the same month in 2012.

Crude oil is the largest commodity by value that is supplied to North Korea under Beijing’s aid programme. It was not immediately clear if the lack of supply represented a unilateral action by China to punish North Korea for its nuclear test on Feb. 12.

Customs data showed the last time China missed monthly supply shipments was in February 2012. There were also no exports in February 2011.

…

Beijing normally supplies between 30,000 to 50,000 tonnes of crude oil to North Korea every month (222,000 to 370,000 barrels). Exports in 2012 totalled 523,041 tonnes, China General Administration of Customs data shows.

At $100 per barrel, China’s annual crude oil supplies last year would have been worth about $380 million.

Officials at the Ministry of Commerce were either not aware of the customs figures or declined comment. The ministry is a key agency that oversees the aid programme, which includes supplying commodities such as crude oil and diesel fuel.

Oil trading officials with knowledge of China’s oil aid to North Korea told Reuters last week that the ministry had some internal discussions about how to respond following Pyongyang’s latest nuclear test.

One of them said there may be “some kind of curb” in supplies but declined to elaborate.

The customs data showed a small quantity of diesel fuel flowed to North Korea in February amounting to about 4,000 tonnes (31,200 barrels). For the whole of 2012 China supplied 31,050 tonnes of diesel and 56,093 tonnes of gasoline to North Korea, customs data shows.

Prior to 2011, China suspended crude sales to North Korea in early 2007 and in September 2006, which also coincided with a nuclear test in October that year.

Read the full story here:
China did not export any crude in Feb to N.Korea (CORRECTED)
Reuters
Chen Aizhu
2013-3-21

Comrade Kim Goes Flying
“Comrade Kim” can now be seen in the USA. According to a Koryo Tours email:

Miami International Film Festival (screening dates: 8th and 9th March 2013)
San Francisco CAAM Festival (screening dates: 16th, 23rd and 24th March 2013)

Nicholas Bonner (co-director/co-producer of the film) will be at the Miami screenings and the San Francisco screening on 16th March – and would love to see you there.

The film will also be shown at various other festivals throughout the US later in the year – we will add the screenings to our website: www.comradekimgoesflying.com

For press please contact the film’s publicist:
David Magdael
dmagdael@tcdm-associates.com
Phone (+1) 213 624 7827

Pyongyang Charity Fun Run!

According to a Koryo Tours email:

Koryo Tours are proud to announce the very first charity Fun Run to be held in DPRK (North Korea) on May 1st 2013.

The Fun Run is open to any tourists in Pyongyang at the time so if you’re on the May Day Long Tour or the May Day Short Tour then you can join in! There will be a 5km route as well as a 10km one for those who are up for more of a challenge – we will be running (or jogging/ walking/ limping – delete as applicable) in the Manyongdae District in Sports Street. Tourists taking part in the fun run won’t miss out on any of the other activities – after the run we’ll return to the hotel to freshen up before starting the day’s sightseeing itinerary kicking things off with a visit to the Mansundae Grand Monument before heading to Taesongsan Park where the locals hold May Day celebrations.

The aim of the run is to raise money to buy milk powder for the children in the Nampo Orphanage on the west coast, a place we’ve worked with regularly. There will be a minimum donation of EUR 20 per runner but if you’d like to try and raise more we of course encourage you to do so – and please note that donations from non-participating tourists are also greatly received by us and the children!

The weather on the morning of May 1st should be pleasantly cool, we’ll provide water and a FUN RUN T-shirt so all you need is some suitable footwear/ clothing.

If you’d like to be part of the first ever Fun Run in North Korea or need any more information about our May Day Tours then please send an email to info@koryogroup.com

Institute for Far Eastern studies (IFES)
2013-1-31

The total amount of assistance provided to North Korea by the South Korean government and private organizations in 2012 decreased by 28 percent against 2011, which marks six years of continuous decline.

The Ministry of Unification revealed on January 27 that the total amount of South Korean assistance to North Korea tallied 14.1 billion KRW (13 million USD), with 2.3 billion KRW (2.12 million USD) of government aid for vaccines and medical trainings and 11.8 billion KRW (10.89 million USD) from the private sector for medical supplies. This is a 28.1 percent drop from the previous year’s total of 1.96 billion KRW (18.09 million USD).

The South Korean government sent about 6.5 billion KRW (6 million USD) of medical supplies to North Korea via UNICEF and the private sector sent about 13.1 billion KRW (12.1 million USD) of malaria prevention supplies, powdered milk, soy milk, and flour.

Last year was the lowest record for humanitarian assistance to North Korea in sixteen years. Prior to this low was 1996, which recorded 3.6 billion KRW (3.3 million USD).

Lee Myung-bak administration’s aid to North Korea for the last five years reached a total of 257.5 billion KRW (236.2 million USD), with 102.4 billion KRW (93.94 million USD) in government funds and 155.1 billion KRW (142.3 million USD) from the private sector. This is equal to only 20 percent of the Roh Moo-hyun administration’s 1.275 trillion KRW (1.17 billion USD), and 44 percent of the Kim Dae-jung administration’s 582.9 billion KRW (534.8 million USD) of total aid to North Korea.

The highest record for South Korean humanitarian aid to North Korea was in 2006 at 298 billion KRW (273.4 million USD), in both government and private sector aid and continued to remain at a high level in 2007 with 289 billion KRW (265.1 million USD) in 2007. However, with the launch of the Lee Myung-bak government in 2008, it dropped to 116 billion KRW (106 million USD), and continued the downward slide recording 67.1 billion KRW (61.6 million USD) in 2009; 40.4 billion KRW (37.06 million USD) in 2010; 19.1 billion KRW in 2011 (17.5 million USD); and 14.1 billion KRW (12.9 million USD) in 2012.

The source of the drop in humanitarian assistance can be attributed to deadlocked inter-Korean relations followed by the shooting death of a Mount Kumgang tourist in 2008; long-range rocket launch and second nuclear test in 2009; and Cheonan and Yeonpyeong Island incidents in 2010.

From 1995 to 2012, the total amount of humanitarian aid to North Korea from the South Korean government was 1.48 trillion KRW (1.36 billion USD) and from the private sector was 871 billion KRW (799.1 million USD), equating to about 2.347 trillion KRW (2.15 billion USD) in total.

Meanwhile, international humanitarian aid to North Korea increased 30 percent in 2012 against the previous year. According to the United Nation’s Office for the Coordination of Humanitarian Affairs (OCHA), total aid to North Korea in 2012 was 113 million USD while the previous year reached 89.2 million USD. It quadrupled to the total amount, 24.4 million USD of 2010.

Nineteen countries joined in the effort to provide humanitarian aid to North Korea such as South Korea, Norway, Switzerland, Canada, Russia, Brazil, and Sweden. In 2010, there were only six countries, and it later increased to seventeen countries in 2011. The OCHA announced that the humanitarian aid provided in 2012 focused mainly on improving the food supply and nutrition, and provided agricultural support.

UPDATE: Here is a similar report in Yonhap (2013-1-27):

South Korea’s humanitarian aid to North Korea dropped 28 percent to a record 16-year low last year, the unification ministry said Sunday, as the cross-border relations remained chilled under Seoul’s outgoing government of President Lee Myung-bak.

Seoul’s humanitarian aid to the impoverished North totaled 14.1 billion won (US$13.1 million), compared with 19.6 billion won a year earlier. Last year’s amount is the lowest since 1996 when only 3.6 billion won was provided to the North in humanitarian aid.

The sharp drop came as relations between the two Koreas remained frozen since the North sank a South Korean warship near their Yellow Sea border in March 2010 and then shelled a border island in November that year. Pyongyang’s nuclear test and rocket launches also affected their ties.

The total amount of assistance the South provided the North during the five years of President Lee was 257.5 billion won, including 155.1 billion won of civilian aid. The total amount is only 20 percent of the aid sent during the presidency of Lee’s predecessor, the former late President Roh Moo-hyun.