Archive for the ‘IMF/World Bank’ Category

DPRK more stable in Kim Jong-un era

Wednesday, September 25th, 2013

According to Yonhap:

North Korea’s political stability has improved over the past couple of years following its power transition, a World Bank report showed Wednesday.

According to the World Governance Indicators (WGI) data compiled by the World Bank, the North’s aggregate indicator of “political stability and absence of violence” came to 0.01 in 2012, up from minus 0.32 a year earlier.

The data reflect perceptions of the likelihood that a government will be destabilized or overthrown by unconstitutional or violent means, including politically motivated violence and terrorism, the organization said.

They are measured based on 31 underlying sources reporting the perceptions of governance of a large number of survey respondents and expert assessments worldwide, with scores ranging from minus 2.5 to plus 2.5, according to the bank.

The level of the communist country’s stability reached minus 0.51 in 1996 when expectations ran high even among serious North Korea observers about the collapse of the regime following the death of its founder Kim Il-sung.

After his son Kim Jong-il took the helm, the figure had been on the rise to reach 0.54 in 2008. But it plunged to minus 0.38 in 2010, which is likely attributable to his faltering health.

Following Kim Jong-il’s death in December 2011, his youngest son Kim Jong-un inherited the power and has since led the country, which would make the country more stable than before when the future was less certain.

North Korea stood in the middle among 215 countries surveyed in terms of political stability in 2012, according to the report.

The WGI paper shows governance indicators for around 200 countries over the period from 1996 to 2012, covering six categories: voice and accountability; political stability and absence of violence; government effectiveness; regulatory quality; rule of law; and control of corruption.

In terms of the remaining five indicators, North Korea ranked low, with its level of voice and accountability, which reflects freedom of expression and citizen participation in selecting their government, coming to minus 2.17, government effectiveness to minus 1.93 and rule of law to minus 1.25, the report showed.

Read the full story here:
N. Korea more politically stable after power shift: World Bank


DPRK should open dialogue for funds

Wednesday, March 17th, 2010

According to the AFP:

North Korea should first open dialogue with the world if it wants foreign investment to revive its troubled economy, a senior World Bank official said Monday.

Jim Adams, World Bank vice president for East Asia and Pacific, said it had yet to be approached by Pyongyang in connection with its reported plan to raise foreign funds by setting up its own development bank.

Adams, in Tokyo to meet Japanese officials and lawmakers, said it was a “key challenge” for the communist state to first map out its own plan to approach the outside world.

“Once those decisions are made, I think there can be an appropriate response,” Adams told a news conference. “But so far I don’t see those decisions having been made.”

There is no doubt that the DPRK needs foreign investment.  The problem is credible commitment to contract terms and the kinds of concessions investors will require.


NK Wants to Join IMF, World Bank

Sunday, May 6th, 2007

Korea Times

South Korea has expressed its willingness to back North Korea’s move to join the International Monetary Fund (IMF) and the World Bank.

At a news briefing in Seoul Sunday, five lawmakers from the Uri Party, who visited Pyongyang for four days from May 2, said the North is considering applying for membership of the Washington-based World Bank and the IMF.

“We’ve promised to help North Korea become a member of international organizations,” said Rep. Kim Jong-yull who met North Korean leaders, including Kim Yong-nam, chairman of the Presidium of the Supreme People’s Assembly.

The United States and several developed countries have shown a lukewarm attitude over North Korea’s entry into international organizations, including the Asian Development Bank (ADB).

According to South Korean government officials, the U.S. _ a major shareholder in the IMF, World Bank and ADB _ has played a major role in rejecting Pyongyang’s repeated applications for admission, demanding the disposal of nuclear facilities.

The five lawmakers of the Uri Party and the North’s leaders also discussed ways to create a joint peace zone at the mouth of the Han, Imjin and Yeseong rivers.

According to the lawmakers, North Korea reiterated its willingness to normalize diplomatic ties with the United States. The North Korean authorities want their willingness to be conveyed to President Roh Moo-hyun and Washington, said Rep. Kim Hyuk-kyu, chief of the delegation.

He also said the two Koreas have shared a consensus on the need to launch an inter-Korean agency to build a waterway between Seoul and Gaesong, and an ecology park, and to open border rivers along the Demilitarized Zone for joint development and utilization.

They also discussed the development of a joint special economic zone, named the New Yellow Sea Joint Special Economic Zone. Seoul also promised to help the North develop a heavy industrial complex near Haeju. The two sides also agreed to jointly develop coalmining in Dancheon, South Hamgyeong Province, North Korea.

The two sides also discussed sports exchanges for national reconciliation and a joint team for the 2008 Beijing Olympics. The North will consider allowing its soccer players to join in K-League matches in the South, he added.

The lawmaker said, “North Korea predicted the issue over its funds at Banco Delta Asia (BDA) will be resolved soon.”

The North’s funds at BDA have become a stumbling block to implementing the Feb. 13 accord reached in the six-party talks.

North Korea had promised to shut down and seal its primary nuclear facilities by April 14, but it refused to meet the deadline, and insisted it will comply with the February promise only after the money is released.

The money, which was suspected of being related to Pyongyang’s irregular activities such as money laundering and counterfeiting, has been available for withdrawal since earlier this month, but Pyongyang has yet to move the funds.