North Korean Economy Watch

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 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

According to Xinhua:

South Korea has approved humanitarian aid to the Democratic People’s Republic of Korea ( DPRK) by civic groups here, the latest in the flow of private aid to the estranged neighbor, local media reported Thursday.

With the approval, two South Korean aid groups, Nanum International and the Eugene Bell Foundation, plan to send medical equipment including X-ray machines and diagnostic reagents for tuberculosis, according to Yonhap News Agency.

South Korea suspended almost all exchanges with the DPRK following their border incidents in 2010, but has occasionally allowed humanitarian assistance to the impoverished neighbor.

Civic groups need government permission for DPRK-bound aid.

The original Yonhap story is here.

Read the full story here:
S. Korea approves medical aid to DPRK by civic groups
Xinhua
2012-2-23

UPDATE 32 (2012-1-27): According to an article in the New York Times, inter-Korean trade and aid declined in 2011:

On Friday, the South’s Unification Ministry said that South Korean aid to the North fell to 19.6 billion won, or $17.5 million, last year [2011], down more than 51 percent from a year earlier [2010].

Inter-Korean trade fell by more than 10 percent [from 2010 to 2011] to about $1.5 million in 2011, the ministry said.

UPDATE 31 (2011-12-10): According to the Korea Times, the potential food aid is not being auctioned off.  It is being sent to South America. According to the article:

Seoul will send baby food originally offered as aid to North Korea to El Salvador following Pyongyang’s refusal to accept delivery, to help the South American country deal with damaging floods, officials said Friday.

The delivery consists of 190,000 packs of baby food that were part of a $4.4 million flood aid package to the North, which the Stalinist regime rejected two months ago amid high tension.

It was slated to depart from the port city of Busan via cargo ship for El Salvador, which has appealed for help to deal with floods that displaced tens of thousands earlier this year.

Seoul offered the aid, which also included biscuits and instant noodles, to help the North deal with torrential summer rains. But Pyongyang demanded cement and equipment instead and eventually shunned the offer altogether.

The rerouting of the items underscores lingering tension despite efforts to warm ties and eventually resume regional dialogue on dismantling the North’s nuclear program. Regional players want the situation on the peninsula to improve before the talks begin.

Pyongyang’s silence over the aid put a damper on the early signs of improvement. President Lee Myung-bak has been exercising a softer line since September, when he tapped close aide Yu Woo-ik as unification minister, including expanding humanitarian activities and cultural exchanges.

But the North, apparently seeking rice and other forms of massive aid, has recently slammed the flexible policy as political pandering to the South Korean public, which is gearing up for elections next year.

Such remarks come even as the unification ministry continues to approve northbound aid, including $5.65 million worth for infants, children and pregnant women through the United Nations Children’s Fund (UNICEF). Consultations are ongoing over how to provide more of the baby food. Seoul has also attempted to auction some of it off through a government website.

The North Korean regime is thought to be doing all it can to secure food and other handouts ahead of next April, when it will celebrate the 100th anniversary of the birth of its founder Kim Il-sung. Watchers say that the North is liable to alternate pressure and peace offensives to secure as much aid as it can through inter-Korean and multilateral channels.

UPDATE 30 (2011-12-6): According to the Korean Herald the first auction of potential food aid (See Update 27 below) did not go so well, so Seoul is trying again:

South Korea plans a second attempt to auction off baby food originally intended for North Korean children, officials said Tuesday.

The move comes after nobody bid for 540,000 packs of baby food on Onbid, an auction Web site run by the state-run Korea Asset Management Corp.

South Korea plans to issue a second public notice and adjust the prices, said an official handling the issue at the Unification Ministry. He did not elaborate on further details.

The baby food is part of 5 billion won ($4.4 million) worth of emergency relief aid South Korea had planned to ship to North Korean flood victims earlier this year.

South Korea dropped that plan in October after differences between the two Koreas on the items to be sent. South Korea had insisted it would deliver baby food, biscuits and instant noodles to the North, instead of the cement and equipment its communist neighbor had requested.

Separately, South Korea has been in talks with local private relief agencies over how to donate another 290,000 packs of baby food to other countries, according to another ministry official.

She declined to give further details, saying consultations are taking place.

UPDATE 29 (2011-12-5): The South Koreans will donate US$5.65 million to the DPRK via UNICEF.  Accoring to Yonhap:

South Korea said Monday it will donate US$5.65 million (about 6.5 billion won) for humanitarian projects in North Korea through the U.N. body responsible for the rights of children.

The donation to the United Nations Children’s Fund, or UNICEF, will benefit about 1.46 million infants, children and pregnant women in North Korea, according to the Unification Ministry, which is in charge of relations with the North.

Seoul’s contribution will be used to provide vaccines and other medical supplies as well as to treat malnourished children next year, said the ministry.

There have been concerns that a third of all North Korean children under five are chronically malnourished and that many more children are at risk of slipping into acute stages of malnutrition unless targeted assistance is sustained.

“The decision is in line with the government’s basic stance of maintaining its pure humanitarian aid projects for vulnerable people regardless of political situation,” Unification Ministry spokesman Choi Boh-seon told reporters.

South Korea has been seeking flexibility in its policies toward the North to try to improve their strained relations over the North’s two deadly attacks on the South last year.

…

South Korea donated $20 million for humanitarian projects in North Korea through the UNICEF between 1996 and 2009.

Last month, the South also resumed some $6.94 million worth of medical aid to the impoverished communist country through the World Health Organization.

..

Separately, South Korea also decided to give 2.7 billion won ($2.3 million) to a foundation to help build emergency medical facilities in an industrial complex in the North Korean border city of Kaesong.

More than 47,000 North Koreans work at about 120 South Korean firms operating in the industrial zone to produce clothes, utensils, watches and other goods. The project serves as a key legitimate cash cow for the impoverished communist country.

UPDATE 28 (2011-12-1): Distribution of private aid monitored in N.Korea. According to the Hankyoreh:

“North Koreans know that the wheat flour aid they received came from South Korea.”

These were the words of Cho Joong-hoon, director of the Unification Ministry’s humanitarian assistance division, during a meeting with reporters Wednesday at the Central Governmental Complex in Seoul upon his return from a recent visit to North Korea to monitor the distribution of aid.

“The name of the South Korean private aid group, the manufacturing company, the date, and the address were all printed on the packages of flour,” Cho said.

Arriving in North Korea on Sunday with Kim Min-ha, co-chairman of the private group Ambassadors for Peace, and three others, Cho visited three sites to observe the distribution of the 300 tons of flour provided in aid. The site were the Namchol Kindergarten, February 16 Refinery Kindergarten, and Tongmun Nursery in Chongju, North Pyongan.

It was the first visit to any part of North Korea besides Kaseong and Mt. Kumkang by a government official in the one year since the Yeonpyeong Island artillery attack on Nov. 23, 2010.

Cho said that the distribution, storage, preparation, and supply of the flour were monitored and that everything was confirmed to be proceeding as planned.

On the situation on the ground, Cho said, “Judging simply from the nursery and two kindergartens, the children’s nutritional condition does not appear to be good.” Cho noted that no heating was being supplied to the facilities despite the cold weather.

Cho said that while North Korean authorities did not official request food aid, a request was made under unofficial circumstances.

Cho also noted that construction efforts were under way on a highway connecting Pyongyang with Sinuiju.

“It is not very far from Pyongyang to Chongju, but I think the trip took about four hours because of the detour around the highway construction,” he said.

Analysts said this appears to be linked to hurried infrastructure building efforts, including highway servicing and construction, amid recent moves by North Korea to rebuild its economy through a stronger economic partnership with China.

UPDATE  27 (2011-11-29): Seoul auctions off “unwanted” DPRK food assistance. According ot the Korea Times:

South Korea has taken steps to auction off some baby food originally intended for North Korean children, an official said Tuesday.

The move comes nearly two months after South Korea dropped a plan to send 5 billion won ($4.3 million) worth of aid to North Korean flood victims, citing no response from the North as the reason for the change of plan.

South Korea had insisted it would deliver baby food, biscuits and instant noodles to the North instead of cement and equipment requested by the North.

South Korea’s Red Cross, which handles relief aid to the North, gave public notice of a bid for 540,000 packs of baby food on Onbid, an auction website run by the state-run Korea Asset Management Corp.

Separately, South Korea has been in talks with local private relief agencies over how to donate the other 290,000 packs of baby food to foreign countries.

Unification Minister Yu Woo-ik has ruled out rice aid to the communist country unless Pyongyang admits to last year’s deadly provocations.

South Korea suspended unconditional aid in 2008 and imposed sanctions on the North last year in retaliation for the sinking of a South Korean warship that was blamed on the North.

The North has denied involvement in the sinking that killed 46 sailors. It also shelled a South Korean border island in November 2010, killing four South Koreans.

Still, South Korea has selectively allowed religious and private aid groups to deliver humanitarian and medical assistance to North Korea.

Also on Tuesday, a Unification Ministry official and four civilians were to return home after a rare trip to the North aimed at ensuring that South Korea’s recent private aid had reached its intended beneficiaries.

UPDATE 26 (2011-11-25): According to Yonhap, ROK officials are traveling to the DPRK to monitor food aid:

A South Korean official and four civilians left for North Korea on Friday on a rare mission to ensure that recent aid from Seoul had reached its intended beneficiaries, an official said.

The trip comes a day after North Korea threatened to turn South Korea’s presidential office into “a sea of fire” in anger over Seoul’s massive military maneuvers near the tense sea border.

…

The Unification Ministry official and four civilians were to arrive in the North’s capital later Friday via Beijing, according to the Unification Ministry, which handles inter-Korean affairs.

It is first time that North Korea has allowed a South Korean official to travel to the isolated country to monitor aid since a conservative government took power in Seoul in 2008.

They are scheduled to visit a day care center and two other child care facilities in the northwestern city of Jongju to monitor how 300 tons of flour were distributed to children and other recipients, according to a civic group.

Ambassadors for Peace Association, a civic group that is partly funded by the Unification Group, donated the flour to Jongju, the birthplace of Unification Church founder Moon Sun-myung.

The civic group said the monitors also plan to discuss details on another 300 tons of flour aid before returning home Tuesday. Some members of the civic group are associated with the controversial Unification Church.

Read previous posts on the ROK’s aid to the DPRK in 2011 below:

(more…)

According to Yonhap:

Multidrug-resistant tuberculosis has emerged as a major public health problem for North Korea, a private foundation said Thursday, calling for public donation to help combat the highly contagious disease.

Stephen W. Linton, chairman of the Eugene Bell Foundation, said his foundation currently treats some 600 multidrug-resistant patients in six medical centers in the North, but hundreds of people are still on the waiting list.

You can read more about the Eugene Bell Foundation’s work in the DPRK here.

Previous posts on the Eugene Bell Foundation here. Their web page is here.

Read the Yonhap story here:
Multidrug-resistant tuberculosis poses public health risk in N. Korea
Yonhap
2011/10/27

According to the Korea Times:

Dr. Stephen Linton, founder of the Eugene Bell Foundation, says his group’s program to combat multidrug resistant TB (MDRTB) has cured its first patients after four years of working to establish adequate care in the North.

“We’re making progress,” Linton, 60, said in a phone interview. “It has been a tremendous learning curve for the North Koreans on a very short time frame. It takes most nations decades to put together a good MDRTB program because the treatment is so intensive.”

A growing health concern worldwide, MDRTB emerges when regular TB is inadequately treated, creating bacteria resistant to first- and sometimes second-line drugs. Half of those who do not get treatment, which can take up to two years to complete, die.

The problem is compounded in poor countries not properly equipped to diagnose the disease and where malnutrition makes the body more susceptible to TB.

The organization’s hopeful outlook follows its most recent trip to the North in November last year, when it found a steadily-increasing rate of patients testing negative for the strain ― meaning they are no longer infective.

It also comes as the international community wrestles with how to help the impoverished country ― which has called in recent weeks for humanitarian assistance ― without supporting its provocative behavior.

In the case of treating MDRTB, the doctor says the breakthrough would be impossible without meaningful contributions on both sides of the tense border that divides the Koreas.

Powerful medicine

By 2007, Linton had been travelling to the North to treat TB for more than a decade, so he was braced for the news when caregivers complained that first-line drugs were not helping some patients.

“I knew it was going to be a real headache,” he said of the undertaking. “But the commitment of our donors and the desire to treat the people in most need ― that was a powerful incentive.”

Later that year, Linton and his team took sputum from 19 patients, brought the samples to a South Korean hospital for analysis, and returned six months later with medicine. On subsequent trips, the number of patients wanting the test grew.

By 2009, as an indication of the worsening health situation but also the growing trust in the program, Eugene Bell was overwhelmed by crowds of people at its testing centers.

The program now accommodates upwards of six hundred patients at six specialized centers across the country’s northwest.

Linton, who spent his childhood in South Korea, says the process requires significant “buy-in” from North Koreans, beginning with the health authorities.

In their biggest show of cooperation, the government agreed to Eugene Bell’s recommendation that treatment take place in centrally-located MDRTB centers, despite reluctance over the logistics.

It also needs the dedication of health care providers, who must vigilantly keep patients on their programs. If not, they can become resistant to MDRTB medications, opening the door for the emergence of XDRTB, which Linton calls “virtually incurable.”

But the biggest commitment comes from patients, who are prescribed with a harsh cocktail of drugs. Some need to learn to trust outside help, not always an easy task in the isolated country.

“This is a very rigorous and rough treatment program. It takes a lot of very strong, toxic medicines to treat MDRTB. Patients suffer a good bit,” said Linton, who counted nausea, vomiting, temporary deafness and psychosis as side effects.

If after eighteen months, a patient’s sputum tests negative for MDRTB, they are effectively cured. But if after a year they still test positive, the treatment is considered a failure.

“Most of those people know, because they are still coughing up phlegm,” the doctor said. “But failing people is terrible. This work can be very dramatic at times.”

You can read previous posts about the Eugene Bell Foundation here.

UPDATE: On February 24th the Korea Economic Institute held a conference with Dr. Sharon Perry, DPRK Tuberculosis Project, Stanford School of Medicine.  You can see the video of the conference here: Part 1, Part 2, Part 3, Part 4. The paper is here (PDF).

Read the full sotry here:
Aid group engages N. Korea in fight against TB
Korea Times
Kim Joung-jin
2/21/2011

According to China Economic Review:

Could North Korea be saved by Chinese-style reforms? In return for its continued support, China is pushing the rogue state to liberalise its economy, and Chinese firms are making inroads into various sectors, especially infrastructure and mining. Earlier this week, I interviewed Felix Abt, a Swiss business consultant who was appointed managing director of a pharmaceutical joint venture in Pyongyang with a brief to turn around the loss-making company, about his experiences over the last eight years.

How open is North Korea to foreign investment, and how many foreign companies are operating on the ground?

In 1992 the Supreme People’s Assembly adopted three laws allowing and regulating foreign investment — the Foreign Investment Law, the Foreign Enterprise Law, and the Joint Venture Law.

Since then, foreign investors have become active in a variety of industrial and service industries. There are a few hundred foreign-invested companies operating at present, mainly smaller sized ventures ($100,000 to $3 million) and of Asian origin (with China ranking No.1).

There are a few very large foreign investments, mainly in the telecom and cement industries. Western multinationals have been shying away from North Korea for fear of ending up on a sanctions list in the world’s largest economy. BAT sold its highly profitable tobacco factory due to political pressure in Great Britain to a Singaporean company a few years ago.

What sort of person sets up business in North Korea? What sort of industries have arrived and what sectors are not represented?

The domestic market is still very small and limited and and not much growth can be expected in the foreseeable future. So to talk about a promising emerging market at present would be a silly exaggeration.

However, North Korea is a very interesting location for the processing of products from garments to shoes to bags where you send the cloth or the leather and the accessories and they send you the finished products back.

The same goes for the extraction of minerals and metals, abundantly available in North Korea, in which case you would send equipment and get the mining products.

In addition, the manufacturing of low to medium technology items is very competitive and such products are already being made with foreign investment in North Korea from artificial flowers to furniture to artificial teeth. I was involved in making the business plan for the artificial teeth joint venture and know therefore that such products can be manufactured with a much better profit margin than for example in the Philippines where the artificial teeth had been produced before.

A particularly promising industry is IT due to the extraordinary quantity and quality of mathematicians unmatched by other countries. The first and only software JV, Nosotek, has seen remarkable successes within a very short time from its foundation and could become a subject of interest to investors who would never have thought of putting any money in North Korea until now.

How easy is it to do business there? Are most foreigners concentrated in Pyongyang or are they spread around?

It depends on the expectations, on the choice of the local partner and on the expatriate staff a company sends there. You need to thorougly select the most suitable local partner and an expatriate manager that is not only professionally competent but also can adapt to and cope with a demanding business environment.

The success of the pharmaceutical joint venture I was running in the past depended on a fast capacity building of the Korean members of the board of directors, managers and staff. I brought them to China where they visited the first foreign and Chinese invested pharmaceutical JV and I convinced its Chinese octogenarian architect to become a member of our company’s board of directors.

Since he faced very similar problems decades earlier he could convince the North Koreans quite easily why certain things had to be done in a certain way to make the business successful. We visited a great number of pharmaceutical companies, wholesalers, pharmacy chains in China and some of our staff even worked in a Chinese factory for some time.

When I wanted to set up the marketing and sales function I was first told that “companies in the DPRK usually don’t have a sales dept.”. I was asked to send a letter to the cabinet to explain my reasons to get the permit for doing so. The visits in China were surely important eye openers and helped getting things organised like in any other country.

The Korean managers and staff quickly acquired all the necessary skills and were able to run the day to day business (factory, import and wholesale of pharmaceuticals, pharmacies) alone when my term ended as managing director.

Many foreign business people are based in Pyongyang, but there are also many working in different places throughout the country, e.g. near mines in the mountains.

Hu Jintao has urged North Korea to speed up its economic reform, using China as a model. Could North Korea open up in the same way over the next few years?

The Chinese are better informed than the scholar and North Korea expert who recently wrote in the Wall Street Journal that the country’s elite would never agree to reform its economy as they fear the system would then collapse.

Together with the Chinese, I believe the risk of a collapse is much bigger if no reforms are carried out than if there are slow and controlled changes.

Once the economy starts taking off and people’s living standards rise the people will hardly challenge the system and the leadership even though the North Korean people know that South Korea’s economy is much more advanced.

Read the full story here:
Can North Korea embrace Chinese-style reforms?
China Economic Review
Malcolm Moore
9/23/2010

This week the Cato Institute hosted a panel on North Korea.  Participants include:

Stephen Linton, Chairman and Founder, Eugene Bell Foundation
Karin J. Lee, Executive Director, The National Committee on North Korea
Doug Bandow, Senior Fellow, Cato Institute
Ted Galen Carpenter (Moderator), Vice President for Defense and Foreign Policy Studies, Cato Institute

You can see a video of the panel discussion here.  It includes an interesting fundraising video by the Eugene Bell Foundation.

UPDATE: Tad at NKnews.org has a write up of the panel here.

Below are excerpts from the Financial Times:

Pyongyang has told Washington that United Nations World Food Programme [WFP] staff will be barred from distributing food aid after March. The Stalinist regime has also told US non-governmental organisations to leave this month, and rescinded permission for other humanitarian groups to visit, the Financial Times has learned.

In an agreement last year, the US agreed to provide North Korea with 500,000 tonnes of food. The WFP was responsible for distributing 400,000 tonnes, with a consortium of NGOs led by MercyCorps in charge of the remainder.

…

In recent months, however, after North Korea refused to allow sufficient numbers of Korean speakers to join the WFP team, Washington halted food supplies.

Pyongyang has responded by barring food aid workers from operating in the country. So far, the US has supplied 100,000 tonnes to the WFP, and another 70,000 tonnes to the NGOs, which has not been completely distributed.

A US State Department official said that while the US was satisfied with the number of Korean speakers who were allowed to join the NGOs, it was unhappy that the same situation was not true for the WFP, which is responsible for distributing 80 per cent of the food. In addition to MercyCorps, the other NGOs are World Vision, Global Resource Services, Christian Friends of Korea and Samaritan’s Purse.

The official said the US was also responding to North Korea blocking aid workers from conducting a nutritional survey, which was included in the agreement.

“US aid workers have enjoyed tremendous co-operation in the countryside from North Koreans and we hope the DPRK government in Pyongyang will allow them to continue to feed the hungry,” said a Senate aide involved in North Korean issues. “Food aid should be separated from politics.”

Even before the North Korean threat, WFP had been forced to scale back operations because of the break in US funding. The WFP has only received 4.5 per cent of its $504m budget for North Korean operations. A WFP spokesperson said 4.5m of the 6.2m North Koreans targeted under the programme were not receiving assistance as of December.

“WFP hopes that the US will review the humanitarian situation and that food shipments will resume soon,” the spokesperson added.

North Korea recently informed the US that Eugene Bell, World Care and Kirk Humanitarian – three other US NGOs operating in North Korea – would not be allowed to make visits that were already approved. Pyongyang told the US that the planned visits were being cancelled because of “recent developments”.

Nancy Lindborg, president of MercyCorps, said North Korea sometimes temporarily blocked NGOs from visiting. However, she added that she was “hopeful and confident” that the visits would resume. She said her consortium had a “good working relationship” with its North Korean partners.

Read the full article here:
N Korea-US distrust halts food aid
Financial Times
Demetri Sevastopulo
3/17/2009

Below: State Department Briefing, Mercy Corps Press Release
US State Dept press briefing
Robert Wood, Acting Department Spokesman
March 17, 2009

QUESTION: Do you have anything to say or to confirm about North Korea cutting off or saying it does not want U.S. food aid –
MR. WOOD: Yeah.
QUESTION: — and kicking out U.S. NGOs over an accelerated timeline?
MR. WOOD: Yeah, yeah. North Korea has informed the United States that it does not wish to receive additional U.S. food assistance at this time. And we will work with U.S. NGOs and their North Korean counterparts to ensure that food that’s already been delivered – excuse me, food that’s already in North Korea is distributed to the intended recipients. And one of the things I also want to mention is that we have aimed to implement the U.S.-DPRK food aid program according to the terms agreed to by the United States and the North Korean Government in May 2008.
And I will give you just a breakdown in terms of the amount of food aid that we have provided. The U.S. has delivered 169,000 metric tons of U.S. food to North Korea in 2008 and 2009. The last shipment of U.S. food aid, which was nearly 5,000 metric tons of vegetable oil and soy blend, arrived in North Korea in late January and is being distributed by U.S. NGOs.
QUESTION: (Inaudible) of that?
MR. WOOD: Of which one, the 5,000 metric tons? Yeah, I am sorry. I don’t have any – any value here. We can try and get that to you in the Press Office.
QUESTION: Could you say when you were notified of this and how you were notified?
MR. WOOD: I don’t know, but it was obviously communicated to us by the North Koreans. I don’t know how that was done, whether it was done through the New York channel or some –
QUESTION: (Inaudible)?
MR. WOOD: Yeah, I just – I don’t know.
QUESTION: Last week maybe?
QUESTION: Just a clarification?
MR. WOOD: Yeah.
QUESTION: You said it’s being distributed by U.S. NGOs or UN NGOs?
MR. WOOD: U.S.
QUESTION: U.S.
QUESTION: Of the (inaudible) metric tons, what is it of? Is it grain? Is it – what is it?
MR. WOOD: Well, I’ll have to get the specifics on it, but I refer to our last shipment of U.S. food, which was, you know –
QUESTION: Oil and soy blend.
MR. WOOD: That’s right. I don’t have that breakdown. We can certainly try and get that for you, Sue.
QUESTION: Okay. .
QUESTION: (Inaudible), are you disappointed in this?
MR. WOOD: Of course. Absolutely. I mean, this was a program intended to try to help get food to needy North Koreans, and we’re obviously disappointed in that. This, you know, does not help us implement this agreement that we reached with the North back in 2008, so –
QUESTION: Well, not only does it not help you implement it, it kind of – I mean, are they abrogating the agreement?
MR. WOOD: Well, I don’t have the actual text of the agreement, so I can’t say with absolute specificity that they’re in violation of it. But we have an agreement to try to deliver, you know, this food assistance, and now the North is saying they do not want to receive any more assistance. So you know, we’re concerned about it.
But the food that is there right now in North Korea, we’re going to work with U.S. NGOs, with their North Korean counterparts, to make sure that this assistance gets to the people who –
QUESTION: Can you be a little bit more explicit about why you’re concerned about it, why you’re disappointed?
MR. WOOD: Well, I mean, clearly this is food assistance that the North Korean people need. That’s why we’re concerned. You know, this humanitarian assistance that we provide to the North has nothing to do with the Six-Party Talks. This is about our true humanitarian concern for these people. And as you know, the food situation in North Korea is not a good one, and so we’re very concerned about it.
QUESTION: Did they give you any explanation why they won’t – they didn’t want any more?
MR. WOOD: They have just said that they do not want to receive any additional food assistance at this time. That’s about as far as they went.
QUESTION: But no reason was provided at all? Just a one-sentence note you got?
MR. WOOD: I mean, it’s – I don’t know if it was one sentence that was given to us, but you know, that was the bottom line. And that’s the most important part of this.
QUESTION: And when did they inform you?
MR. WOOD: It was, I think, over the last couple of days, I believe.
QUESTION: Robert, do you know what the accelerated timeline for the withdrawal of the NGOs will be?
MR. WOOD: I don’t know.
QUESTION: It was supposed to be the end of May.
MR. WOOD: Yeah, I don’t know. Again, probably the best folks to address that are the North Koreans.

Press Release by relief organizations:
FOR IMMEDIATE RELEASE

March 19, 2008                                                                     

STATEMENT OF NGO PARTNERS ON CESSATION OF FOOD AID PROGRAM IN THE DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA (DPRK)

Contacts:  Joy Portella, +1.206.437.7885, jportella@sea.mercycorps.org

March 19, 2009—The following is a statement issued by the NGO Partners that have been distributing food aid in the DPRK through a program supported by the U.S. Agency fro International Development (USAID). The NGO Partnership is led by Mercy Corps, co-led by World Vision, and includes Christian Friends of Korea, Global Resource Services and Samaritan’s Purse:

This week, North Korean authorities have asked us to close the USAID-supported food assistance program that we have been operating since June 2008. Our joint team, dedicated to this program, will leave the DPRK by the end of March.
 
We are saddened by this decision, but are very proud of what the program has accomplished.  Working closely with our North Korean partner, we have ensured that food reached almost one million vulnerable children, pregnant and nursing mothers and the elderly.
 
Each of our organizations has worked in the DPRK for more than a decade. We remain committed to assistance in that country, and our individual, on-going programs focused on health, water, sanitation and agriculture will continue as before.
 
The NGO Food Assistance program is part of a larger 500,000 metric ton initiative supported by USAID in which the World Food Program was to distribute 400,000 metric tons of food and the NGO Partners were to distribute 100,000 metric tons.  In the ten months of this program, 169,000 metric tons of food has been delivered to the DPRK, of which the U.S. NGOs have brought in 71,000 metric tons of food.  This food from NGOs has benefitted more than 900,000 people in the two north west provinces of Chagang and North Pyongan.
 
This has been a model program with unparalleled monitoring cooperation to ensure that food gets to those most in need. Our in-country staff of 16 people has worked closely with our North Korean partners.
 
The NGO food assistance program was scheduled to run until the end of May 2009. Until the end of the month, we will work with our North Korean partners to ensure a proper close-out.
 
We remain committed to helping the people of the DPRK to overcome hunger and improve their lives. The food program resulted from the tremendous humanitarian need in the DPRK. We will continue to work—as individual agencies and in cooperative partnerships—to address these needs. We hope the success of this program will serve as a model for the future.

…does not sound like very easy job based on the most in-depth media coverage of their operations published in the Washington Post.

The story portrays the sad state of the DPRK’s medical facilities and shows just how much local doctors struggle to serve their patients.  According to Eugene Bell Foundation Chairman Stephen Linton:

“I’ve seen doctors who tried to capture sunlight by reflecting it from a mirror,” [during surgery] he says.

By North Korean standards, [this] patient is fortunate. She’s been given a local anesthetic, which is rare in a country where surgeons routinely etherize patients, strap them down and try to finish the operation before they come to.

and  

Like most hospitals and care centers in North Korea, the facility employs a direct-fluoroscopy machine, an X-ray device that irradiates the patient from behind while the doctor examines an image projected on a fluoroscopic plate of glass between them. “The negative is the doctor’s retina,” says Linton, who frequently admonishes physicians for submitting themselves to the machines’ potentially fatal doses of radiation. Most physicians in North Korea use them regularly, and suffer the consequences. The radiologist at Kosong, for example, has receding gums and low hemoglobin, common signs of radiation sickness. Three of his colleagues have died over the years — one from radiation overdose, another from cancer and a third from tuberculosis.

But the toll poor infrastructure takes on the provision of good health care is only exacerbated by the difficulties the DPRK bureaucracy puts in his way:

Of the 36 NGOs that began operations in North Korea as famine gutted the rural population in the mid-1990s, all but a handful have left in frustration. And Linton is particularly demanding: He insists on delivering his supplies personally, lest they be diverted to another facility or end up on the black market. When government officials balk, Linton refuses to resupply the site. So each of his two resupply visits annually is preceded by lengthy and sometimes rancorous negotiations.

“They say they want to save wear and tear on the vehicles, so they need to cut our sites by a third. Fine. I’ll cut theirs as well. Mary, I’ll need a red marker.”

Most of the cancellations involve small sanatoriums in rural areas — the very sites his donors are so keen to support. Linton suspects his hosts want to avoid those facilities because, relative to the urban care centers, their poor sanitation makes them legitimately hazardous. And the wear-and-tear issue isn’t just a red herring. Spending days crisscrossing the countryside on unpaved roads takes a huge toll on the delegation’s fleet of SUVs — vehicles that, between Linton’s visits, the ministry is allowed to use for its own purposes. In resource-starved North Korea, even government officials must barter to replace broken fan belts and transmissions. The last thing the bureaucrats want is to risk losing a precious automobile.

Linton is also apparently given a curfew when he is required to be back at this guest house in Pyongyang.

It seems Tuberculosis is running rampant at the moment:

South Korean sources suggest that tuberculosis has affected as much as 5 percent of North Korea’s population of 23 million. Linton estimates the Eugene Bell Foundation has treated up to 250,000 patients, 70 percent of whom might have otherwise died.

The whole article is well worth reading.

Donations can be made here.

The full article can be found here:
Giving Until It Hurts
Washington Post
Stephen Glain
3/9/2008, Page W16