Archive for the ‘International Aid’ Category

Two Koreas to make on-site inspection of N. Korean highway

Thursday, November 29th, 2007

Yonhap
11/29/2007

Working-level officials from the two Koreas have agreed to begin an on-site inspection next month of a dilapidated North Korean highway that the countries earlier agreed to jointly repair, South Korea’s Unification Ministry said on Thursday.

The two-day working-level meeting involving four officials from each side started on Wednesday in the North Korean border town of Kaesong, home of an inter-Korean industrial complex. The repair of the highway, which runs between Kaesong and Pyongyang, the North’s capital, is part of an agreement reached at the inter-Korean prime ministerial talks held in Seoul from Nov. 14-16.

South Korean Prime Minister Han Duck-soo and North Korean Prime Minister Kim Yong-il ended their talks by sealing an eight-article accord, covering a variety of issues including economic projects, security, resource development, agriculture and social, cultural and sports exchanges.

“At the working-level contact, the two Koreas agreed to make a joint on-site inspection of the Pyongyang-Kaesong Highway from Dec. 11-27 in order to start its repair work from next year,” a ministry official said.

Some 20 officials from each side will participate in the highway inspection, and they will also jointly make a final report, the official said.

In conducting the inspection, the South will provide survey equipment and materials, while the North will provide various data and conveniences, the official said.

The two sides also agreed to hold the first meeting of the inter-Korean road cooperation committee in February to discuss issues based on the results of the joint inspection. Topics of discussion will include the scope and method of repair work and the joint use of the highway, according to the official.

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North Korean Market Research

Friday, November 23rd, 2007

Daily NK
Yoon Il Geun
11/23/2007

Unlike its external gesture towards openness as observed in the case of a recent agreement to expand South-North economic cooperation, the North Korean authorities regulate market activities at home.

On October 3rd, the Workers Party delivered a public message that urges the North Korean people to have a proper understanding about the market and to eradicate anti-socialist activities which threaten people’s interest. According to the message, the state bans females who are less than 40 years old from doing business and orders them to get back to factory complexes.

In regard to the recent regulation imposed on the market, many experts on North Korean affairs explain that the North Korean authorities are trying to hold in check a nouveau riche class who have made a fortune in the market and stop the infiltration of foreign culture and news into the society.

Experts believe that the North has decided to regulate the market, the very source of living of its people because it posed a treat to the Kim regime.

◆ The growth of the market since the mid 1990s

In 1990s, the country’s economy collapsed and the state failed to distribute food to its people. Many starved to death, and those survived turned to the market

In those days, despite the state’s tight regulation, the North Korean people had to make their living by either selling in the market or smuggling to China anything they could find in the sea, mountain or river such as fish, pine mushrooms, hemp, alluvial gold, etc. Some even stole metal such as copper and white gold from refineries or dismantled equipments from plants or factory complexes, and smuggled them to China.

Many North Koreans were able to secure the minimum amount of purchasing power by selling national resources overseas. Moreover, many defectors started to send money to their remaining family members in the North, and helped secure the purchasing power of their family. It was around this time when Chinese goods started to flow into North Korea and a new type of market began to grow. The new type of market differed from the state-approved farmer’s markets in the past. For the first time, it became possible for North Koreans to earn bread for a day in the market.

◆ The growth of a new type of market

On July 1, 2002, the nearly bankrupted country adopted an economic improvement measure designed to improve the competitiveness of factory complexes. As many individuals illegally sold national resources overseas and factories were shut down, the state ran short of revenue and became unable to give wages to workers, officials and college professors. In order to solve the shortage, the state began to issue paper money to fill national treasury.

Unfortunately, that increased workers’ wage 10 to 15 times on average. Moreover, the exchange rate which was about 220 won per dollar on June 30, 2002 increased to 1,800 won per dollar nine months after the adoption of the July 1st Economic Management Reform Measure.

Foreign Policy, an American magazine of global politics listed North Korea once again this year as one of the world’s worst currencies and pointed out the problem of the country’s skyrocketing inflation. The magazine also pointed out that the price for rice has increased by 550 percent since the adoption of the July 1st Economic Management Reform Measure. It should be noted that rice is one of those items whose prices have increased the least.

◆ The more the market grows, the more it threatens the regime

As inflation continued, more people turned to the market to make a living and started to manage their economic life independently. Having noticed that, the authorities began to worry what kinds of changes the market would bring about.

The authorities’ foremost concern lies in the rapid spread of foreign information through the market. As North Koreans’ preference for products from South Korea and Japan increases, so does their interest in these two countries. Many defectors say that a countless number of foreign VCDs have been circulated among people through the market.

In addition, the state has lost authority as more people relied on the market and became self-sufficient and individualistic. Prevalent corruption has also undermined its authority.

Lastly, illegal activities have increased so much that they are threatening public security. In fact, the North Korean people nowadays would do anything to make money.

For instance, many party cadres, hospital workers and Red-Cross personnel are stealing aid supplies sent by the United Nations and advanced countries, and army personnel are selling military provisions including rice in the market. Furthermore, many violent crime incidents and lootings are taking place in the areas not under the government control.

“The army and gangsters are savagely looting the market” says a woman in her 50s says recalling her visit to Hwanghae Province prior to coming to Dangdong, China.

◆ The impact of adopting market regulatory measures

The growth of the market will likely deepen the crisis of the Kim regime. Any measure designed to restrict the market would backfire among people.

Since the second half of the year, the North Korean authorities have been promoting market regulatory measures in the hope of protecting the regime. Some have raised a possibility that the North might try to restore its public distribution system using international aid. However, unless the North continues to open its door, the country would never secure an amount of food enough to run the distribution system again.

“Kim Jong Il is aware of the importance of the market for people’s survival, so he tacitly approves its existence. However, when he feels that capitalism is spreading too quickly, he would try to control it.” says Gao Jingzhu, professor of Korean studies at Yanbian University.

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South Korea contributes more than US$4 million to First Environmental Project between Two Koreas

Thursday, November 22nd, 2007

According to Environmentalexpert.com:

The United Nations Environment Programme and the Republic of Korea today signed an agreement for establishing a Trust Fund that addresses key environmental issues in the Democratic People’s Republic of Korea (DPRK). The Republic of Korea will contribute US$4.4 million in total for this project. The first venture of its kind on the environment between the two Koreas, the Trust Fund will tackle forest depletion, declining water quality, air pollution, land degradation and biodiversity in DPR Korea. It will also support eco-housing initiatives as well as conservation and management of the Taedong watershed, environmental education, integrated environmental monitoring system, clean development mechanism and renewable energy technology.

‘This multilateral cooperation with UNEP is of great significance for both South and North Korea and a huge step forward in addressing pressing environmental issues in DPR Korea,’said LEE Kyoo-Yong, Ph.D., Minister of Environment of the Republic of Korea.

The past decade has seen declining forests in DPR Korea due to timber production, firewood consumption, wild fires and insect attacks associated with drought, population growth and conversion of land to agricultural production. Pollution of rivers and streams has become severe in recent years, particularly in the Taedong River, which flows through central Pyongyang. DPR Korea’s reliance on coal for power generation, industrial processes and domestic heating also led to serious air pollution, particularly in cities like Pyongyang and Hamhung.

To counter this, the country has encouraged community, youth and children’s groups to establish tree nurseries and to participate in campaigns such as the National Tree Planting Day on March 2 every year. The government is currently strengthening legal control on effluent from factories by applying the’Polluter Pays Principle’ and has initiated mass media campaigns to inform the public of the need for water conservation.
Environmental protection was also recognized as a priority issue and a prerequisite for sustainable development after a series of natural disasters in the mid-1990s led to a critical drop in yields of major crops. In 1998, DPR Korea revised its constitution and designated environmental protection as a priority over all productive practices and identified it as a prerequisite for sustainable development. National laws on forests, fisheries, water resources and marine pollution were also adopted.

‘This agreement will build on the momentum that DPR Korea has begun. It will also go a long way in strengthening the spirit of cooperation between the two countries,’ said UN Under-Secretary General and UNEP Executive Director Achim Steiner.

Since 2000, UNEP has been working in partnership with the National Coordinating Committee for Environment and UNDP to strengthen the capacity of the national government for environmental assessment and monitoring and implementation of Multilateral Environmental Agreements. In 2004, UNEP and DPR Korea signed a Framework Agreement for Cooperation in Environment. The first DPR Korea State of the Environment report was also launched that year.

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Joint Korea Prime Ministerial meeting wrap up

Thursday, November 15th, 2007

Korean PMs ‘agree rail-link deal’
BBC

11/15/2007

A regular freight train service over the heavily-armed border between North and South Korea could start before the end of the year, officials say.

The deal, on the second day of talks between prime ministers from the two countries, marks the first agreed schedule for the train link.

The South has pushed for reliable transport links to supply the factories its firms run in the North.

It follows an agreement made last month at a summit of the countries’ leaders.

‘Shared understanding’

North Korean Prime Minister Kim Yong-il and his counterpart from the South, Han Duck-soo, are spending three days in discussions in the South’s capital, Seoul.

The South’s Unification Ministry spokesman, Kim Nam-shik, said the two sides were now trying to set a specific date for starting the rail service.

The 25km (16 mile) track runs from the heavily-guarded border to a joint industrial complex in the North’s city of Kaesong.

“Both sides shared an understanding that it would be meaningful in further vitalising the Kaesong industrial complex,” said the spokesman.

The meeting – the first at prime ministerial level for 15 years – follows October’s historic summit in Pyongyang between the two countries’ leaders.

Divided families

The summit between the North’s Kim Jong-il and the South’s President Roh Moo-hyun was only the second such meeting since the Korean peninsula was partitioned over half a century ago.

The two leaders signed an accord calling for greater peace and economic partnership, despite the two countries remaining technically at war with each other.

They also agreed in principle for the regular cargo rail service to be established.

The prime ministers are using their meeting to discuss more specific proposals.

One key issue is the establishment of a joint fishing area around the disputed western sea border – the scene of naval clashes in the past – and a new economic zone around the North Korean port of Haeju.

The South also hopes to increase the number of reunion meetings for families separated when the peninsula was split.

Prime ministerial meetings between the two Koreas were suspended in 1992 amid growing concern over Pyongyang’s nuclear ambitions.

 

Ministerial infidelity
Joong Ang Daily

11/16/2007
Lee Yang-soo

The prime minister of North Korea holds one of the top positions in the country’s hierarchy, officially fourth in political power.

Many believe, however, that the prime minister may actually be about 20th in actual influence, as there are plenty of hidden power elites in the political and army circles.

The post of prime minister in North Korea was created after the introduction of the state president in 1972. Since then, eight people have occupied the post. Among them, the person who impressed us the most was Yeon Hyung-muk, who held the job from 1988 to 1992.

The prime minister of North Korea faces tough and dangerous working conditions.

Kim Il Sung emphasized the significance of the post by insisting that the “prime minister is the general of the nation’s economy.” The prime minister, in turn, has often been made the scapegoat for the people’s discontent about the country’s struggling economy.

And to make a bad situation worse, the public economy always took a backseat to the military economy, which led to nuclear and missile development.

One after another, numerous ministers have stepped down in dishonor or suffered incurable illness.

After the dishonorable withdrawal of former Prime Minister Li Gun-mo (1986-1988), Li’s successor, Yeon Hyung-muk, was demoted after four years to the post of candidate member for the Political Bureau Presidium, or secretary of Jagangdo Provincial Party. In addition, Prime Minister Park Bong-ju was demoted last April to manager of a small-town company.

Since assuming the reins of government, Kim Jong-il has recruited people who know the economy well to the top posts.

However, he took a “military first” attitude whenever the cabinet, the Workers Party, and army were in discord over the issue of opening and reform.

In contrast, the president of the People’s Republic of China, Jiang Zemin, gave Zhu Rongji, premier of the state council, a carte blanche to decide every affair in public administration and the national economy.

For example, when rumors spread that the yuan would be further devalued, he consulted Zhu. At that time, Zhu’s nickname was “emperor of the Chinese economy.” China has shown great fidelity to the principle that the “prime minister is the general of the national economy.”

Come to think of it, South Korea has had 27 prime ministers since 1972, representing its own infidelity to the prime minister. Six of one, half a dozen of the other.

 

Koreas agree to open cargo railway, but key issues remain unresolved
Yonhap

Kim Hyun
11/15/2007

South and North Korea agreed Thursday to open a cross-border cargo railway by the end of this year — resuming the service halted more than half a century ago — as part of economic cooperation projects agreed upon in their leaders’ recent summit.

Seoul proposed Dec. 11 as the date to start the railway service through the demilitarized zone, a Unification Ministry official said on condition of anonymity. But North Korea’s response was not yet known.

The agreement to open a freight railway came on the second day of talks between South Korean Prime Minister Han Duck-soo and North Korean Premier Kim Yong-il in Seoul. The rare prime ministerial talks were aimed at devising concrete plans to implement wide-ranging accords reached between the leaders of the Koreas.

In their summit in early October, President Roh Moo-hyun and North Korean leader Kim Jong-il agreed on a slew of economic cooperation and peace projects. They also agreed that the agreements should be implemented through two follow-up talks — one between prime ministers and the other between defense ministers.

“There is a growing understanding between the sides for the start of the cargo rail service,” Kim Nam-shik, a spokesman for the Unification Ministry, told reporters. He said that the project “seemed highly possible,” even though more consultations are needed to secure a military guarantee by North Korea.

The 20-km cross-border route between South Korea’s Munsan and the North’s Bongdong will allow the mass transport of goods from a joint industrial complex in North Korea to the South, Seoul officials say.

The Koreas also agreed to set up a joint committee to create a peace zone in the disputed border area in the West Sea, part of key summit accords to reduce tension, the ministry spokesman said. Bloody skirmishes occurred in 1999 and 2002 near the disputed sea border, which North Korea does not acknowledge. The western sea border was unilaterally drawn by the U.S.-led United Nations Command at the end of the 1950-53 Korean War. Pyongyang has called for a new line to be drawn further south.

The peace project in the West Sea will likely include the creation of a joint fishing area in the western sea border area, and the establishment of an economic special zone in Haeju in southwestern North Korea, which will transform the naval base area into an economic stronghold.

The Koreas also made progress in social and cultural areas, the spokesman said, without elaborating on specifics.

But key issues remained unresolved.

The top item on North Korea’s agenda is South Korea’s heavy investment in the renovation of its antiquated railways and roads, said the Chosun Sinbo, published by ethnic Koreans in Japan.

The North Korean premier said in the talks that such South Korean support will help implement the summit accords “in a relatively short amount of time,” the paper said.

Pyongyang also expects Seoul’s money to develop shipbuilding facilities in the country, Seoul officials said.

South Korea is expected to seek North Korea’s support in improving the business environment in the Kaesong industrial complex, where communication facilities are poor and border customs inspections are highly restrictive.

The Kaesong complex, where scores of South Korean factories produce garments, shoes and other labor-intensive goods with North Korea’s cheap but skilled labor, emerged from agreements at the first-ever inter-Korean summit in Pyongyang in 2000. But business restrictions and political strains have limited its development.

Other issues include reunions of families separated since the 1950-53 Korean War, with South Korea pushing to regularize the sporadic events.

The two Koreas are expected to issue a joint statement wrapping up their three-day talks on Friday. To settle outstanding details, Seoul has proposed to hold follow-up economic talks between vice prime ministers in the second week of December, a Unification Ministry official said on condition of anonymity.

The Koreas held eight rounds of prime ministerial talks until 1992, when they signed an accord calling for an end to Cold War hostilities on the Korean Peninsula. But the talks were suspended afterward as relations soured over a dispute on North Korea’s nuclear weapons program.

This week’s talks, covering economic projects, will put aside thorny issues on military tension, which will be dealt with in defense ministers’ talks set for Nov. 27-29 in Pyongyang, Seoul officials said.

Unification Minister Lee Jae-joung said on the first day that this week’s talks were “a bit more flexible, a bit more amicable” than previous inter-Korean meetings.

South Korea expects that improved inter-Korean ties will facilitate progress in ongoing multilateral talks to persuade North Korea to abandon its nuclear ambitions.

The communist nation has shut down five key nuclear facilities under an aid-for-denuclearization accord signed in early October in talks involving the two Koreas, the U.S., Japan, China and Russia.

Pyongyang is also supposed to disable its key nuclear facilities at Yongbyon and submit a full list of its nuclear programs by the end of the year in return for the normalization of ties with the U.S. and Japan, as well as economic and energy assistance from the other parties involved.

N.K. asks for help in repairs to facilitate implementation of summit agreement: report
Yonhap

Byun Duk-kun
11/15/2007

North Korea has asked South Korea to help repair its dilapidated railways and roads so the agreements at the recent inter-Korean summit can be quickly implemented, a pro-Pyongyang newspaper published in Japan reported Thursday.

In a rare report from Seoul, the Chosun Shinbo said North Korean Prime Minister Kim Yong-il proposed the modernization of North Korea’s railway between the border town of Kaesong and the northwestern city of Shinuiju at his talks with South Korea’s Han Duck-soo.

Kim, 63, was also quoted as saying that projects to modernize railways and roads will enable the joint declaration from the inter-Korean summit to be implemented “in a relatively short amount of time.”

The North Korean arrived here Wednesday for three days of talks to follow up on the summit held in Pyongyang on Oct. 2-4.

At the summit, President Roh Moo-hyun and North Korean leader Kim Jong-il called for a quick expansion of economic cooperation and an end to military hostilities between the divided Koreas.

This week’s talks had been expected to focus on economic issues as separate talks between the defense ministers of the two countries are to be held in Pyongyang later this month.

Seoul is also calling for an early opening of cargo rail service between the North’s border town of Kaesong, where dozens of South Korean businesses are producing over US$1 million worth of goods each month, and its border town of Munsan.

Still, the Seoul government is placing more weight on the opening of other areas in the reclusive North to South Korean businesses as well as establishing a joint fishing area in the West Sea, where a maritime border dispute led to deadly clashes between the navies of the divided Koreas in 1999 and 2002. The Koreas technically remain at war as the 1950-53 Korean War ended with an armistice, not a peace treaty.

Seoul officials are also calling for easier access for South Korean businesses to the South Korea-funded industrial complex in Kaesong as well as the relaxing of customs and quarantine inspections at the border.

The North Korean premier said his country is ready to resolve the difficulties facing the South Korean businesses operating in Kaesong, according to the report.

“The North side believes what the leaders (of the two Koreas) agreed are not mere economic cooperation projects, but projects that will lead to the reconciliation, unification and prosperity of the nation,” the report said.

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Working through Korean unification blues

Thursday, November 15th, 2007

Asia Times
Andrei Lankov
11/15/2007

For six decades, the myth of unification as Korea’s supreme goal has been enshrined in the official mythology of both nations. The lip service to this myth is still paid by virtually all political forces in both Koreas, but the actual policy of both Pyongyang and Seoul nowadays is clearly based on a very different set of assumptions and hopes: both sides try to avoid situations which might lead to unification.

There are good reasons for this quiet change of policy. The gap between the Koreas is too great; depending on which calculations you believe the per capita gross domestic product in the South is between 15 and 40 times higher than that of the North. Perhaps, nowhere in the world one can find two neighboring countries whose income levels would be so vastly different – and in this case the two countries happen to speak the same language.

The North Korean rulers know perfectly well that in a unified country they would be unable to keep their privileges, and also are likely to be held responsible for decades of gross human-rights abuses and economic mismanagement. South Koreans are no more willing to unify with their impoverished brethren – unification of Germany where the initial situation was much better, became an ordeal, so the unification of Korea would clearly become a disaster.

Therefore, South Korean politicians are doing everything possible to support the dictatorship in Pyongyang, assuming that “stability” in the North is necessary for South Korean economic prosperity. Sufficient to say that some 40% of all grain consumed in North Korea is either received from the South or produced with the help of the mineral fertilizer shipped by Seoul free of charge.

This policy is usually explained as a way to “create the environment for Chinese-style reforms”. This indeed might be its long-term goal, but for all practical reasons the major immediate outcome of massive South Korean aid is a continuous survival of the Pyongyang dictatorship. The statement that a “German scenario is unacceptable” has become a mantra of Seoul politicians.

However, over the past decades, Kim Jong-il’s regime has not shown the slightest inclination to reform itself. Obviously, the Pyongyang elite believes that the Chinese model, so enthusiastically extolled by the good-wishers from Seoul, is not acceptable for them. Perhaps they are correct in their fears. The existence of a rich and free South, always presented as another part of the same nation, makes the situation in Korea quite different from that of China or Vietnam.

Chinese-style reforms, if undertaken by Pyongyang, are bound to produce a certain openness of the country and certain relaxation of political control. As a result, the North Korean populace will soon learn about South Korean prosperity and will be less afraid of the regime’s repressive machine. It’s questionable to what extent the North Koreans would be willing to obey a government whose track record has been so bad after they see an attractive alternative of the South.

Hence, North Korean leaders have made a rational decision: to keep stability and their own privileges, in recent years they have used foreign aid to roll back the changes which happened in the mid-1990s. Instead of reforms, they now do everything possible to limit or ban private economic activity and reassert their control over society.

Despite the government’s resistance to reform, the North Korean system is gradually crumbling from below, and this slow-motion disintegration might turn into an uncontrollable collapse in any moment. A sudden death of even a serious illness of Kim Jong-il is almost certain to trigger a serious crisis. If this happens, all bets are off, but it seems that a collapse of the system, Romanian or East German style, is one of the most likely outcomes.

This is what people in the South fear most. Indeed, unification might indeed spell economic and social disaster for the rich South. There are different estimates of the “unification costs”, the amount of money that would be necessary to close the yawning gap between the two Korean economies. The most recent estimate was made public last October. A report prepared by a committee at the South Korean National Assembly states that if unification happened in 2015, it would cost US$858 million to raise North Korean per capita income to half of the South Korean level. This is guesswork, of course, but everybody agrees that the amount of money necessary for reconstruction of the impoverished North could ultimately be counted in trillions of US dollars.

The “unification cost” is a hot topic, but many problems are of a social nature and have nothing to do with money issues. For decades, North Korea has remained one of the world’s most isolated regimes whose rulers once perfected Stalinism to the level undreamt of by Joseph Stalin himself. The population, with the exception of a tiny elite, has very vague and distorted ideas about the outside world.

North Korea is a well-educated society, but the technology and science they teach at the colleges is of 1950s vintage. The average North Korean engineer has never used a computer. Society has been conditioned to perceive the total distribution of goods and services as the norm, and experts seem to agree that the average North Korean defector in the South has serious problems when it comes to making consumer or career decisions for oneself (no such decisions are necessary or even possible under the North Korean system).

So, it is easy to see why South Koreans are so afraid of unification. However, history does not flow in accordance with human desires. If the North Korean state collapses, South Koreans will have few choices but to prepare themselves for unification at time and under circumstances which they would not be too happy about.

As the East European revolutions of 1989-1990 (or, for that matter, of nearly all popular revolutions) have demonstrated, once changes begin, nobody can control the pace and direction of events. Now it is time to think what should be done if an emergency happens and the North Korean regime follows the fate of nearly all regimes which once were its models and aspirations – Albania, Romania and the Soviet Union itself. When a crisis starts unrolling, it doesn’t leave much time for rational thinking.

Alas, any open media discussion of this subject remains taboo in the South. There are fears that such discussions might annoy the North, undermining inter-Korean detente. The Korean nationalist left, now (barely) in power, still believes that the Chinese solution is possible and “progressive”, and also perceives any talks about regime collapse in the North as a reminder of the official anti-communism of the past. The right is slightly more realistic, but it seems that its supporters are not too eager to discuss the difficulties such a turn of events could bring about.

It will be a simplification to think that South Koreans are completely unprepared for such an eventuality. Seoul government agencies do not like to talk about it, but it is clear that somewhere in government there are secret files with short-term contingency plans, to be put in motion in case of a power collapse in the North. However, these plans deal with immediate consequences of the crisis, especially with handling of refugees, and not with the long-term strategy of reconstruction, and this strategy is actually the hardest part of the task.

The major task is to smooth the transition, to make the shock of unification less painful and more manageable. It seems that one of the possible solutions is a confederation. The idea of confederation has been suggested many times before, but in most cases it was assumed that the two existing Korean regimes would somehow agree to join a confederative state. Needless to say, one has to be very naive to believe that the North Korean rulers could somehow co-exist with South Korea, which even in its worst times was a relatively mild dictatorship committed to a market economy (and become a liberal democracy two decades ago).

Such confederation is plainly impossible. However, in this case we mean a different type of state union, a provisional confederation, whose sole and clearly stated task would be to lay the foundations for a truly unified state and to cushion the more disastrous effects of North Korea’s transformation.

Such a confederation will become possible only when and if the North Korean regime changes dramatically, and a new leadership in Pyongyang will have no reasons to fear the influence of the democratic and capitalist South. In other words, only a post-Kim government can be realistically expected to agree to such a provisional confederation. It does not really matter how this government will come to power, whether through a popular revolution, a coup or something else. As long as this government (most unlikely, bowing to pressure from below) would be genuinely willing to unite with the South, it might become a partner at these negotiations and a participant of the confederation regime.

The confederation regime should make North Korea a democracy, one that introduces political freedoms and basic political rights. There should be an explicit statement about the length of the provisional confederation regime, and 10 to 15 years seems to be ideal. A longer period might alienate common North Koreans who will probably see it as an attempt to keep them from fully enjoying the South Korean lifestyle while using them as “cheap labor”. On the other hand, a shorter period might not be sufficient for any serious transformations.

One of the tasks of such a provisional system will be to control cross-border movement. South Koreans are now haunted by nightmarish pictures of millions of North Koreans flooding Seoul and other major cities, where they will push the South Korean poor from unskilled jobs or resort to robbery and theft. Such threats are real, and the confederation will make it relatively easy to maintain a visa system of some kind, with a clearly stated (and reasonable) schedule of gradual relaxation. For example, it might be stated that for the first five years all trips between the two parts of the new Korea will require a visa, and North Koreans will not be allowed to take jobs or long-time residency in the South. In the following five years these restrictions could be relaxed and then finally lifted.

South Korean fears of a North Korean crime wave might be well-founded – notoriously tough North Korean commandos indeed make ideal mafia enforcers. However, the North Koreans also should be protected from the less scrupulous of their new-found brethren – for example, from South Korean real estate speculators. In the case of uncontrolled unification, South Korean dealers will rush to buy valuable property in the North, a task which will not be too difficult in a country where $10 a month is seen as a good income.

South Korean dealers vividly remember what happened in Kangnam, former paddy fields which were turned into a posh neighborhood in southern Seoul. In some parts of Kangnam land prices increased more than a thousandsfold within a decade or so, making a lucky investor super-rich, and there are good reasons to believe that the price of land in Pyongyang or Kaesong could sky-rocket as well.

However, it is easy to predict the resentment of those North Koreans who will lose their dwellings for what would initially appear to be a fortune, but soon will come to be seen as small change. If real estate speculations are left uncontrolled, in a few years entire North Korean cities could become the property of South Korean dealers – with predictable consequences for relations between northerners and southerners. Hence, the provisional confederation regime, while encouraging other kinds of investment, should strictly control or even ban the purchase of arable land and housing in the North by South Koreans.

Another painful issue is that of land reform, distributing the land of state-run agricultural cooperatives among individual farmers. One of the major challenges would be claims of land owners who lost their property during the North Korean radical land reform of 1946. A majority of the dispossessed landlords fled to the South in 1945-1953 when some 1.5 million inhabitants of the North crossed the border between the two Koreas. Their descendants now live in the South and, as both anecdotal evidence and some research testify, carefully kept the old land titles. It is just a minor exaggeration to say that an arable plot in the North usually has an aspiring landlord residing in Seoul. These claims remain technically valid since the Republic of Korea has never recognized the North Korean land reform of 1946.

For generations, the North Koreans have been told by their government that the collapse of the communist regime will bring back the nasty landowners who have been laying in wait in the South. If in this particular case the propaganda statements are correct, this would produce a very serious negative impression on North Koreans, further increasing their alienation and disappointment.

Under protection of the confederation regime, a land property system could be redesigned, or rather created from scratch. The recognition of the 1946 land reform and its results is a necessary first step. To placate former owners, some partial compensation might be paid, even though the present author is not certain whether grandchildren of former landlords, usually rich and successful men and women, are really in dire need of such compensation.

As the next step, the cooperative property should be distributed among its members, preferably among the people who are really present in their villages (perhaps, a free rent system might be the first step). At any rate, by the end of the confederation period, land and real estate in North Korean should be safely privatized, with North Korean residents (and, perhaps, recent defectors) being major or even sole participants in this process.

One of the more controversial parts of the package might be a general amnesty for all crimes committed under the Kim family regime. This is especially necessary because the fear of persecution seems to be one of the reasons which keeps the North Korean elite, including its lower ranks, united around the inefficient and brutal regime. They believe that collapse of the Kims’ rule will mean not only the bend of their privileges (which actually are quite small – only a handful of top officials enjoy a really opulent lifestyle in North Korea), but they are more afraid of judicial persecution and even mob violence.

It is not incidental that North Korean officials and guides in Pyongyang ask one foreign visitor after another about the fate of former East German bureaucrats. Indeed, despite considerable liberalization in recent years, the regime remains exceptionally brutal, and its officials have no illusions about this. Unfortunately, this fear of persecution has kept the murderous regime going for the past decade or so and led to many more deaths.

One might argue that such unconditional amnesties to all Koreans is probably “unethical”. Perhaps, but let’s face it: the sheer scale of the crimes committed makes any serious and fair investigation impossible. About half million people have been in prison during those decades, and many more exiled, and nobody will be capable of investigating all these cases carefully and impartially. A great number of people have been directly or indirectly involved with the human-rights abuses, and again, it is impossible to investigate a few hundred thousand former officials who by the nature of their job might have been responsible for some criminal actions. Hence, only partial, selective symbolical (and therefore largely politically motivated) justice can be served at best.

A general amnesty would solve two problems: first, it will make former North Korean bureaucrats less willing to resist changes; second, it would diminish the scale of intrigue and manipulations, since people would not be fighting to avoid the fate of arbitrarily chosen scapegoats. It should become part of the law, and to be taken seriously the amnesty should be made as straightforward and unequivocal as possible.

Of course, amnesty does not mean complete forgiveness. There might be restrictions for former party and secret police officials to occupy certain positions in a post-Kim Korea (a policy pioneered by Eastern Europe). It might be a good idea to create non-judiciary commissions to investigate former abuses, like it was done in post-apartheid South Africa. This commission might lead to truly awful discoveries, but the promise of amnesty should be kept even if it will become clear that North Korean prison camps were not much different from Adolf Hitler’s Auschwitz or Pol Pot’s Tuol Sleng in Cambodia.

The confederation treaty also should include some legal measures which will make certain that North Koreans will not remain the source of “cheap labor”, to be used (and abused) by South Korean businesses.

For example, the military of the two Koreas should be integrated first, and there should be large quotas reserved for former North Korean servicemen in the united army. Politically, the North Korean military might become a hotspot of social discontent: the 1.2 million-strong North Korean armed forces probably lack the skills necessary for modern warfare, but this force consists of professionals who have not known anything except the barracks life and intense nationalist indoctrination. If former military officers are given commissions in the post-unification forces, their skills and zeal will find a good and useful outlet. Otherwise, the very same people are likely to join the ranks of organized crime.

It is also important to provide large admission quotas for North Korean youngsters at major South Korean universities. Korean society is both hierarchical and meritocratic, and being a graduate of a major Seoul school is a necessary condition of entry for nearly all important jobs. It is not incidental that the entire life of a middle-class South Korean family is often designed to facilitate exam preparations for the children.

Unfortunately, for decades to come even the most gifted North Koreans will be unable to compete on equal terms with much better prepared South Korean students, and this means that they can realistically hope to get only to lower-level universities, usually in the North. Both actual and perceived quality of education in those schools will remain relatively low for decades, and this will ensure that North Koreans, even with “new” college-level education, will be permanently relegated to subaltern positions. Hence, affirmative actions are necessary, even if such measures are certain to provoke an hysterical outcry from Seoul and Busan parents.

The confederation regime will help to solve another important problem – that of the North Korean middle class. As East Europe demonstrated, a majority of active supporters of democracy and reform has come from local-educated urban groups, a close analogue of the Western “middle class”. The same is likely to happen in Korea.

However, the same people will become very vulnerable after unification. Who will hire an engineer who has not seen a computer? What can be taught by a social science teacher who spent his or her college years memorizing Kim Il-sung’s genealogical tree and the “Dear Leader’s” asinine pronouncement on everything, from rice planting to nuclear physics? Who will visit a former North Korean doctor whose medicine is essentially on the 1950s level?

During the confederation regime, special efforts could be made to re-educate those people, at least partially, preparing them for a new environment while still allowing them to continue their professional work in the North. Most of them will be unable to adjust, unfortunately, but at least the 10 or 15 years leniency will give a chance to the lucky and determined few, and will also provide others with time to find other ways to make a living.

The confederation model does have serious shortcomings. For example, there are good reasons to believe that the new North Korean political elite will consist largely of Kim-era officials (or their children) who will retain their old habits, including that of corruption and inefficiency. A Northern democratic government would be prone to populist decisions, based on pressure from below, and North Koreans are likely to have particularly naive views on how their society and economy can and should operate, so some mistakes introduced via popular vote might become ruinous and costly.

But no ideal solution is possible. One should not harbor too many illusions. The recovery of North Korea will be prolonged and painful. Even if unification happens tomorrow, the difference between the two Koreas will remain palpable until 2050, if not longer. Tensions, misunderstanding and even outright hostility between northerners and southerners are bound to continue for a long time.

There are no easy and simple solutions. But the current state of affairs cannot continue indefinitely, and it is time to think how unavoidable problems can be mollified. The current policy of Seoul administrations merely helps to postpone the problems created by Korea’s division, and the disastrous choices made by the North half of the country. But sooner or later, Korea and the entire world will have to face these problems – and solve them.

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N. Korea upbeat about economic future as relations with U.S. thaw

Tuesday, November 13th, 2007

Yonhap
11/13/2007

North Korea Tuesday expressed confidence in the recovery of its ailing economy devastated by years of mismanagement, economic embargoes and floods as multilateral talks on the North’s nuclear disarmament make progress.

“The circumstances for our revolution are changing in a very favorable way,” Rodong Sinmun, the organ of North Korea’s ruling Workers’ Party, said in an editorial. “The international prestige of the country is rising extraordinarily, and our economy is vigorously bouncing back with enormous energy.”

Pyongyang’s upbeat mood comes as Washington is moving to take the communist country off its list of terrorism-sponsoring countries and to lift its trading ban on condition that the North completes the disablement of its nuclear facilities and declares its nuclear programs by the end of the year under an agreement signed in early October.

North Korea started disabling its nuclear facilities in Yongbyon, north of Pyongyang, in early November.

In return for its actions, North Korea will receive 1 million tons of energy assistance from the other parties of the deal, including South Korea, the U.S., China, Japan and Russia.

The North has already received 100,000 tons of heavy fuel oil from South Korea and China. The end of the application of the U.S. Trading with the Enemy Act to the North will allow the communist state to participate in international economic activities.

“Only when we thoroughly achieve the combatant work in front of us this year, can we make a breakthrough for a new march toward the construction of economic power and decisively engage in next year’s combat,” the newspaper said.

Recent reports have painted a bleak picture of the North Korean economy. According to figures released by South Korea’s Bank of Korea, the North’s economy probably shrank 1.1 percent in 2006 compared to a year earlier because of the weakness of its agricultural and construction sectors. The decease in North Korea’s gross domestic product was a reversal of the 3.8 percent expansion in 2005 and the 6.2 percent rise in 1999.

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North Korean Economy Does Not Have a Basis for Development

Wednesday, November 7th, 2007

Daily NK
Yang Jung A
11/7/2007

Although the North Korean economy has been growing since late 1990s, it is hard to say that the economy has growth on its own.

A senior researcher at the Korea Institute for National Unification, Choi Su Young, released a paper titled “the Latest Tendency of the North Korean Economy” in the October “Finance,” which is issued by Korea Federation of Banks. He pointed out in the paper that “North Korea’s economic reliance on China is getting serious and cited the state’s 1.7 billion dollars in trade with China.”

He explained “On one hand, North Korea exports to China in 2006 increased to 72.7% compared with exports in 2002; on the other hand, imports from China increased to 163.8%. This resulted in a recorded deficit of 760 million dollars. The rate of North Korean trade reliance on China was 48.5% in 2004, and it reached 60% last year.”

He relayed that “In the production industry, North Korea has to rely systematically on China’s raw materials, energy, facilities and parts. North Korea is importing its entire amount of petroleum for transportation and production. Chinese influence on the North Korean economy is so absolute that 70-80% of consumer products are made in China.

Mr. Choi insists that “Although foreign aid and South-North economic cooperation were expanding and its reliance on the influx of foreign currency was great, North Korea was staying in low-growth status, which means North Korea does not have the economic foundation for development.

According to the report, the scale of exchange between the South and the North was rapidly increasing through the annual provision of South Korean rice and free fertilizer supporting and South Korean enterprises’ activities at the Kaesung Industrial Complex.

With the exception of South Korea and China, there are no countries willing to invest in North Korea. Most developed countries turn away from North Korea because the standard and environment related to North Korean investment are significantly inferior to the norm.

He explained that “The North Korean investment environment is inconvenient for foreign investors due to obsolete infra-structures, high distribution costs and limited markets. It is unnecessary to mention the international policies related to North Korea.”

Mr. Choi added that “The scale of North Korean foreign trade was 2 billion dollars in 2000 and reached 3 billion dollars in 2006. Exports amounted to 950 million dollars and imports came to a total of 2.05 billion dollars.”

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‘Bad apples’ sour relief in North Korea

Thursday, November 1st, 2007

Asia Times
Sunny Lee
11/1/2007

The people in Dandong in China’s northeast Liaoning province know more about North Korea than any other people on the planet. They see it every day – literally. Dandong neighbors North Korea just across the Amnok River (Yalu River in Chinese). Even on a foggy day, one is able to see North Korean fishermen at work.

This city of 2.4 million people is, once in a while, highlighted in the international media because it is the major land route where China’s aid to North Korea – both food and fuel – is shipped. It also becomes a major destination for foreign journalists when a rumor of an imminent visit by the secretive North Korean leader Kim Jong-il to China smokes up. Dandong is a place where Kim’s train has to pass through when he visits China.

Given its special geographical proximity to North Korea, naturally this is also a key outpost to which many non-governmental organizations (NGOs) involved in North Korean refugees are paying keen attention.

In Dandong, the name “NGO” is almost a synonym for “groups working on North Korean refugees”. Unfortunately, it often carries a negative overtone. This may sound odd, but that’s how things are here. “If you really know what NGOs actually do, you will feel quite turned off,” said a local resident.

He said many of these NGOs are commercial brokers in disguise. That is, they help North Korean refugees to flee from China. But they do it, really, for money. They charge money and even take advantage of the refugees’ vulnerability. He indignantly said he knows an NGO representative who slept with North Korean female refugees in his care.

That’s just one of the examples that he shared. In fact, he said he had seen so many depraved NGOs that it now gives him goose-bumps when he hears the word “NGO”.

Stories about bad NGOs are also coming out from those who are in the know – journalists. But they seldom write about it because doing so makes them unpopular among some interest groups or even backfire. For example, a writer could be accused of maligning the good work that most NGOs do, and worse, being a “pro-North Korea” figure who closes his eyes to the human-rights tragedy of North Korean refugees. That is a very powerful argument.

With increasing international attention on North Korean human-rights conditions and widely circulated harrowing stories of North Korean refugees in the news media, NGOs working on this field usually receive strong moral support from the mainstream media that provide them with legitimacy, which in turn helps NGOs receive financial support from sympathetic supporters.

Critics, however say that as NGOs rely on donations, when they are cash-strapped they sometimes resort to publicity stunts to raise their profile, and more importantly, to raise money.

Some NGOs even go as far as to deliberately put the refugees in danger to draw international attention, critics argue. One of the most controversial cases was a January 2003 incident in which a group of as many as 78 North Korean defectors was caught by Chinese police while they were attempting to escape on boats from China’s east coast shores to South Korea and Japan respectively.

A South Korean reporter later trailed the same route and deplored: “It’s a place you don’t want to choose. The Chinese North Sea Navy Fleet of the People’s Liberation Army base is just around the corner. How would anyone in his sane mind choose this place as an escape route unless you wanted to get caught?” he fumed.

The Durihana Mission, probably the most well-known group in Seoul that helps North Korean refugees to come to South Korea, is also alluded to in that criticism. The group’s founder, Cheon Gi-won, is dubbed as the “Godfather of Refugees”. He has reportedly brought more than 500 North Korean refugees to the South.

Cheon himself was once arrested by Chinese police and served a 220-day prison term. His incarceration, however, also helped him to become known internationally. After this year’s recipient for Nobel Peace Prize was announced, for example, the Asian Wall Street Journal ran an article mentioning Cheon as someone who deserved the prize for his work on North Korean refugees.

Cheon pioneered the so-called “Mongolian route”. That is, his team takes North Korean refugees in China to the Sino-Mongolian border and helps them to escape to Mongolia, from where they go to another country, usually South Korea.

“There was a case where his team took a group of North Korean refugees to near the Mongolian border from China. But instead of taking them safely to the border and making sure they crossed it, they simply dropped the North Korean refugees in the middle of nowhere near the border on a dark night and just drove away,” said a person who has knowledge of the incident. They reportedly didn’t even give them a flashlight or anything that could help them orient their direction in the dark.

Confused and fearful, the North Koreans tried to find their own way to freedom. But their panic drew attention from Chinese border patrols. Some got shot, the rest were arrested.

“They then made an all-out media stunt, letting the world know the atrocity and how China mistreats North Korean refugees. We also used to run articles on it. But after we got an idea of how the thing had played out, we stopped writing about it,” a South Korean journalist said.

With the dropping of media coverage in South Korea, he said Cheon has recently turned to the Western media and is now actively working in the US, where he set up a branch office last year.

Cheon was not available for comment. But Lee Chung-hee of Durihana, who answers inquires during Cheon’s absence, said: “That doesn’t even make the slightest sense.”

“It’s very difficult to engage in a constructive dialogue with such critics. Think about it from a common sense point of view The consequence of a failed escape would mean death for North Koreans. If there was any deliberate intention, it would be beneath human dignity to do so,” Lee said. Those who follow this logic believe that NGOs simply didn’t plan the escape well enough.

In Dandong, Cheon is a well-established name. People who know Cheon said that even though the allegations might be true, Cheon himself is not likely to be involved. One pointed out that as Cheon has become internationally known, there are people who become jealous and want to undermine him.

A former official with a major South Korean NGO said that he strongly doubts whether Cheon himself was part of any alleged incidents. But he pointed out that some NGOs act without considering how their irresponsible acts harm others who are sincerely helping North Korean refugees.

Critics point out that NGOs’ media stunts and big-scale, organized escapes also draw the Chinese authorities’ attention to the many North Korean refugees who are hiding in China.

Some view that it’s unfair to blur the big picture of the good work that most NGOs do. They also point out that most NGOs are victims of some “bad apples” or commercial brokers who pose as NGOs or even as missionaries.

A good number of commercial brokers are former North Korean refugees. As many NGOs were arrested or deported from China in recent years, North Korean refugees who have settled in South Korea began to take the job. The reason they take up this risky business for themselves, and even are willing to walk again the same route that they themselves had escaped from, is because of the economic difficulties and job discrimination they face in South Korea.

Some of these commercial “pay-for-escape” brokers demand as much as one third of the “settlement money” that North Korean refugees expect to receive once they arrive in South Korea. Unfortunately, things have started to have a chain effect. Looking at some “NGOs” making money, now even those NGOs which otherwise do the same work non-profit, have started to charge a minimum of US$2,000 to $3,000 as a “logistical fee”.

Sunny Lee is a writer/journalist based in Beijing, where he has lived for five years. A native of South Korea, Lee is a graduate of Harvard University and Beijing Foreign Studies University.

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Korea allows aid group to reach flood victims directly: RFA

Wednesday, October 31st, 2007

Yonahp
Sam Kim
10/31/2007

North Korea has allowed an international relief group to bring supplies directly to the North’s southeastern region hit hard by recent floods, Radio Free Asia (RFA) has reported.

The U.S.-funded broadcasting station cited Tom Henderson of England-based civic group, Shelter Box, Tuesday as saying that North Korean authorities made the rare decision, allowing aid officials to deliver food and other supplies to flood victims in the region southeast of capital Pyongyang.

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GS Caltex to supply heavy oil to N. Korea

Sunday, October 28th, 2007

Yonhap
10/28/2007

GS Caltex Co., South Korea’s second-biggest oil refiner, said Sunday it is set to supply 21,000 tons of heavy oil to North Korea as part of a nuclear disarmament agreement.

The oil shipment will be sent later Sunday via the port of Yeosu, a port city about 455 kilometers south of Seoul, to arrive at the North Korean ports of Songlim and Sunbong.

GS Caltex and European oil trading company Vitol have recently won a tender issued by the U.S. Agency for International Development to supply a combined 50,000 tons of heavy oil to the North as part of the disarmament-for-aid deal.

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An affiliate of 38 North