Archive for the ‘Political economy’ Category

Ranking NK Military Official in Critical Condition

Tuesday, April 17th, 2007

Korea Times
4/17/2007

A close aide to North Korean leader Kim Jong-il was in critical condition due to kidney failure, a civic aid group here said Wednesday.

Jo Myong-rok, first vice chairman of North Korea’s National Defense Commission (NDC), was in critical condition after his kidney was damaged, said Good Friends, a Seoul-based civic relief organization, in a monthly newsletter. Kim Jong-il is the NDC chairman.

Jo is widely known as a close confidant of Kim Jong-il, as he paid a visit to then U.S. President Bill Clinton in 2000 as Kim’s special envoy.

Doctors expect the 79-year-old vice marshal to live another month or two, as he already had one of his kidneys removed 10 years ago, and has gone through treatment for cancer in his intestines, the organization said.

“There were rumors of Jo’s illness,” a South Korean government official, asking not to be named, commented, adding that specifics of the illness were not known.

Share

Cash Bribes for North Korean Authorities By Chinese Merchants

Monday, April 16th, 2007

Daily NK
Kang Jae Hyok
4/16/2007

In commemoration of the anniversary of Kim Il Song’s 95th birthday (Apr. 15), North Korea has been preparing various spring festivities including the “Arirang” performance.

The number of foreigners visiting North Korea during this time is also expected to escalate.

Recently, the DailyNK confirmed through Chinese merchants that bribery and gifts had been exchanged between North Korean authorities. It is these during these seasons of Kim Il Song and Kim Jong Il’s birthday and the founding of the Workers Party and the Republic that bribes are most favorable.

For the past 4 years, Ma Il Su (pseudonym, 43) a Chinese merchant living in Jilian has been importing North Korean agricultural produce and herbal medicines to sell in China. In a telephone conversation with the DailyNK, he informed on the 12th, “I have prepared a special gift to give to North Korean authorities for when I enter the country on the 14th.”

He said, “On the whole, anyone trading with Chosun (North Korea) also offers gifts to them… The best offering is in the form of money.”

“Offering cash to the nation is the best but there are times when electronic goods are also given” he said.

Ma continued, “In order to trade in Chosun, you need the cooperation of authorities on your side” and said, “To charm the hearts of authorities, gifts must be given frequently. The best way to do this is by offering gifts at times of Kim Il Song and Kim Jong Il’s birthday.”

“You should go to the People’s Committee and offer the gifts to the chairman directly saying, ‘I sincerely pray for the Great Leader’s health and Chosun’s growth.’ Then they (the North Koreans) become ecstatically excited they do not know what to do” he said.

When asked whether or not gifts had to be offered to individual authorities Ma said, “You cannot trade if you do not offer bribes to authorities… Officials prefer cash as well as watches or electronic goods such as widescreen TV’s. In particular, they like watches made from South Korea.”

“I have already arranged for sheets of Chinese currency to give to individual authorities in timing with Kim Il Song’s birthday” he said and added, “Nowadays, offering bribes has become a norm in North Korea. There would be chaos if a gift was not offered.”

Ma said, “I am aware that my fellow tradesmen are offering gifts of similar nature” and estimated, “If we collect the amount of gifts offered by the Chinese, there should be quite a lot.”

Money given by Chinese merchants to the People’s Committee first reaches the respective local authorities of the Party → higher party authorities → central authorities in Pyongyang, and finally is offered as a bribe to Kim Jong Il. In the end, the money is donated into Kim Jong Il’s private fund and used for his personal pleasures.

Following the July 1st measures in 2002, North Korea-China trade has expanded significantly with hundreds of Chinese merchants filtering into North Korea everyday. In accordance with Ma, the number of people offering bribes to North Korean authorities seems to be considerably large.

Share

Nuclear North Korea: A Debate on Engagement Strategies

Friday, April 13th, 2007

Columbia University Press, 2007
Victor D. Cha, government, Georgetown University
David C. Kang, government/business, Dartmouth College

The regime of Kim Jong-Il has been called “mad,” “rogue,” even, by the Wall Street Journal, the equivalent of an “unreformed serial killer.” Yet, despite the avalanche of television and print coverage of the Pyongyang government’s violation of nuclear nonproliferation agreements and existing scholarly literature on North Korean policy and security, this critical issue remains mired in political punditry and often misleading sound bites. Victor Cha and David Kang step back from the daily newspaper coverage and cable news commentary and offer a reasoned, rational, and logical debate on the nature of the North Korean regime.

Coming to the issues from different perspectives—Kang believes the threat posed by Pyongyang has been inflated and endorses a more open approach, while Cha is more skeptical and advocates harsher measures—the authors together have written an essential work of clear-eyed reflection and authoritative analysis. They refute a number of misconceptions and challenge much faulty thinking that surrounds the discussion of North Korea, particularly the idea that North Korea is an irrational nation. Cha and Kang contend that however provocative, even deplorable, the Pyongyang government’s behavior may at times be, it is not incomprehensible or incoherent. Neither is it “suicidal,” they argue, although crisis conditions could escalate to a degree that provokes the North Korean regime to “lash out” as the best and only policy, the unintended consequence of which are suicide and/or collapse. Further, the authors seek to fill the current scholarly and policy gap with a vision for a U.S.-South Korea alliance that is not simply premised on a North Korean threat, not simply derivative of Japan, and not eternally based on an older, “Korean War generation” of supporters.

This book uncovers the inherent logic of the politics of the Korean peninsula, presenting an indispensable context for a new policy of engagement. In an intelligent and trenchant debate, the authors look at the implications of a nuclear North Korea for East Asia and U.S. homeland security, rigorously assessing historical and current U.S. policy, and provide a workable framework for constructive policy that should be followed by the United States, Japan, and South Korea if engagement fails to stop North Korean nuclear proliferation.

Press in Yohap:

N.K. likely to jump in growth if under open-minded regime: U.S. scholar
Yonhap
4/13/2007
Lee Dong-min

North Korea, once it adopts a normal political system, has the potential for 10 percent annual economic growth, an American scholar said Thursday.

The North’s economic openness, however, in the long run can create a contention between Seoul and Washington on how to deal with such growth, Prof. David Kang said.

Given the “inherent dynamism” in the region, North Korea would be able to achieve high growth, he said in a forum hosted by the South Korean embassy in Washington.

Kang is adjunct professor at Dartmouth University’s Center for International Business. He is a co-author of “Nuclear North Korea: A Debate on Engagement Strategies,” which he wrote with Victor Cha, currently director for Asia at the National Security Council.

“If North Korea can get rid of this horrible political regime, you have to guess the natural rate of growth for North Korea over the next generation… you have to put at 10 percent a year,” the professor said.

The task is to how best to take advantage of this national strength existing in the region in terms of education and development, Kang said, and an ideal situation is for a slow integration to weaken the psychological shock from embracing capitalism, he argued.

But once North Korea’s opening gets fully under way, coordination problems may arise between South Korea and the United States, according to Kang.

One example is Kaesong industrial complex, an inter-Korean pilot economic project, he said.

Located just north of the South-North border established at the end of the 1950-1953 Korean War, the complex houses manufacturing plants with capital from the South and cheap labor from the North.

Seoul tried to get Kaesong products covered under a free trade agreement (FTA) concluded with Washington earlier this month, which would have allowed them to be exported to the U.S. The two countries compromised by agreeing to consider establishing “outward processing zones” on the Korean Peninsula in the future.

Kaesong was able to be “papered over” because it is not yet a lucrative effort, Kang said.

“But it shows potential for conflicts on what to do if North Korea slowly begins to open up,” he said.

“What’s going to happen to those goods under the FTA? What would the U.S. think about it? We really have some coordination problems to get over.”

The professor also questioned the general assumption that North Koreans, should their regime collapse, would welcome South Koreans as their “liberators” and accede sovereignty.

Nationalism and outside pressure often strengthen the internal bond, he said.

“Often, it becomes us against them,” not unlike what is occurring in Iraq, said Kang, and without North Korea’s receptiveness, the situation “could become ugly very quickly.”

“As we start to think (through) these assumptions, it becomes far more complex,” he said.

Share

Supreme People’s Assembly’s 2007 Budget… Financial Estimate $3.1bn

Friday, April 13th, 2007

Daily NK
4/14/2007
Park Hyun Min

Changes to the North Korean Cabinet Ministry, Kim Young Il elected as the new Prime Minister, Kim Young Choon as Vice-Chairman of the National Defense Commission

At the 5th round of the 11th Supreme People’s Assembly announced on the 5th, the change in economic policies that would in future concentrate on the people’s livelihood and suspend the advancement of technological skills.

In the report, the deputy Prime Minister revealed that the major economic task for the upcoming year included light industries and agriculture, which had already been completed, and the improvement of the people’s livelihood. He said that the issue of social economic management had been discussed and that it would be resolved “our way.”

The 2007 report by the Supreme People’s Assembly proposed to, i) improve the basic standards of living in relation to agriculture and light industries, ii) enhance the manufacture of potential energy starting with the prioritizing the department into 4 divisions, iii) modernization of public economy and iv) manage sosicalistic economy through the our own.

Furthermore, foreign collaboration was proposed to further investments into advanced technology. In relation, the third phase proposal was made over a 5 year period (`08~`12) to improve technological skills such as the advancement of basic skills, high technology and software.

In contrast to last year, North Korea estimated an increase in revenue at 433.2bn won ($30.9bn, $1=141won). Last year, 5.9% were considered the public revenue, whereas this year, this figure was raised to 7.1%.

As for tax resources, national business gains tax was increased to 6.4%, cooperative organizations fund set at 4.5%, depreciation amount 9.6%, real estate fees 15.4%, and social welfare tax at 15.1%

Regarding expenses, science-technological skills among people’s economic expense increased to 60.3%, net business income is estimated to be 2% which will aid new measures to develop enterprise skills. In addition, proposals were made to increase agricultural expenses to 8.5%, light industries to 16.8%, energy, coal, metalwork and railroad to 11.9%

In relation to this, a South Korean governmental official revealed, “At this Supreme People’s Assembly, economic improvement proposal was mainly revealed without any announcement on foreign policies or sort of legislation of reform or openness.

Since last year, there have been rumors that a change in government would occur amidst the North Korean Supreme People’s Assembly. While Park Bong Joo stepped down from his position, Kim Young Il, formally in charge of transportation was elected as the new prime minister. It has been three and half years since Park Bong Joo first took his prime ministerial post at the first round of the 11th Supreme People’s Assembly in September 2003.

Former Prime Minister Park is known to have ceased his duties since last year June. He has been suspected of transferring money from the agriculture’s oil funds. At the 20th High Level Cabinet Talks in Pyongyang in February, a South Korean representative did mention that Prime Minister Park had made a welcoming speech. However, it seems that he has been ousted from his position.

Additionally, with the death of Yeon Hyung Mook in October 2005, Kim Young Choon is known to have succeeded the position of Vice Chairman as well as taking on the role of military counselor.

Regarding, the new appointments, a governmental official said that the Cabinet’s Prime Minster, Kim Young Il would aim to solve the economic issue while Kim Young Choon as the new Vice Chairman would aim to organize the structure of the ministry and strengthen the military.

While Kim Jong Il did not attend the last round of meetings, the fact that he participated in the recent meeting has also gathered much interest.

Share

Kim Yong-il Elected North Korean Premier

Thursday, April 12th, 2007

Korea Times
Lee Jin-woo
4/12/2007
 
North Korea’s legislature on Wednesday elected Transport Minister Kim Yong-il as the country’s new premier, the North’s state-controlled news agency reported.

He replaces Pak Pong-ju who has been accused of embezzling some of the national budget, the report said.

According to the Korean Central News Agency (KCNA), Kim was elected as the new premier in a plenary session of the North’s Supreme People’s Assembly (SPA), a rubber-stamp legislature of the Stalinist state.

Kim, 62, rose to his position after starting his bureaucratic career as a rank-and-filer in the Ministry of Land and Marine Transport. He is known to have expert knowledge in economic affairs.

He accompanied North Korean leader Kim Jong-il twice in 2005 on trips to government facilities, and led a delegation of ministry officials to China, Cuba and Syria over the last seven years. He visited Syria in 2005 to conclude a maritime transport agreement.

After graduating from Rajin University of Marine Transport, he served in the military for nine years beginning in 1961. He has served in the minister post for more than 10 years since the early 1990s.

The SPA also tapped Kim Yong-chun, chief of general staff of the Korean People’s Army, as the vice chairman of the National Defense Commission (NDC), a position that has been vacant since the death of Yon Hyong-muk in October 2005.

The SPA, which convenes once or twice a year at irregular intervals, is headed by Kim Yong-nam, the official president of the Presidium of the SPA. He also serves as the titular head of the communist state.

Share

N. Korea to focus on improving livelihoods this year

Thursday, April 12th, 2007

Yonhap
4/12/2007

Saddled with a severe food shortage problem, North Korea is poised to raise people’s standard of living this year by concentrating on agriculture and light industry.

In a session of its parliament held on Wednesday, North Korea said its major economic goal is “to improve the living standards of people on the basis of the existing foundations of agriculture and light industry.”

In a related move, the North replaced Prime Minister Pak Pong-ju, the control tower of its economy. It named Transport Minister Kim Yong-il as its new premier. Pak is believed to have been in conflict with senior North Korean officials over electricity supplies.

“Kim is in his early 60s, relatively young for North Korean cabinet members, and he has no prestigious political or educational background. He seems to be credited by his track record of economic expertise and achievement,” a senior Unification Ministry said, asking to remain anonymous.

The impoverished country has depended on international handouts to feed a large number of its 23 million people.

In a recent meeting with U.N. World Food Program officials, a North Korean vice agriculture minister acknowledged that the communist country has a shortfall of about 1 million tons of food and called for aid from the outside world.

“The cabinet will concentrate state efforts on agriculture this year, too, considering it as a mainstay, to thoroughly implement the WPK’s policy of agricultural revolution and make a signal advance in the efforts to settle the people’s problem of food,” Vice Premier Kwak Pom-gi said in a report to the delegates at the session. WPK is the acronym for the North’s ruling Workers’ Party of Korea.

To that end, North Korea plans to raise spending on agriculture by 8.5 percent and on light industry by 16.8 percent compared with last year.

North Korean leader Kim Jong-il also attended the meeting of the parliament, the Korean Central News Agency (KCNA) reported.

The North is officially headed by its titular leader Kim Yong-nam, the president of the Presidium of the Supreme People’s Assembly, the country’s parliament.

But Kim Jong-il rules the country with an iron grip. He is officially the chairman of the National Defense Commission and general secretary of the ruling Workers’ Party. He reserves the office of president for his late father as a way of showing filial piety.

The North also said it will kick off a drive to modernize major light industrial factories and reinforce the production of daily necessities, while state efforts will be channeled into the construction of houses in major cities, the KCNA said.

The North earmarked 40.8 percent of the total budget expenditure for the national economy this year, and in particular, spending on the development of science and technology will rise as much as 60.3 percent compared with last year.

Based on the report from the North’s parliament, South Korea’s Unification Ministry estimated the North’s 2007 budget at US$3.09 billion, up 5.9 percent from a year earlier.

Share

North Korea elected new premier

Thursday, April 12th, 2007

Korea Herald
4/12/2007

The Supreme People’s Assembly, North Korea’s legislature, elected Transport Minister Kim Yong-il as the country’s new premier, replacing Pak Pong-ju, at its fifth plenary session held on Wednesday, Yonhap News Agency quoted a state-run North Korean news agency as reporting.

The SPA also elected Kim Yong-chun, chief of general staff of the Korean People’s Army, as the vice chairman of the National Defense Commission, a position which has been vacant since death of Yon Hyong-muk in October 2005, the Korean Central News Agency said. Kim Jong-il is the NSC chairman, and the NDC has two vice chairmen.

The 62-year-old new premier has served as the land and maritime transport minister since 1994. He visited Syria in 2005 to conclude a maritime transport agreement.

The SPA convenes once or twice a year at irregular intervals. The SPA is headed by Kim Yong-nam, the official president of the Presidium of the SPA. He also serves as the titular head of the communist state.

Share

North Korea sacks prime minister

Thursday, April 12th, 2007

BBC
4/12/2007

North Korea’s parliament has sacked the country’s prime minister, reports say.

Pak Pong Ju, who had been prime minister since 2003, was replaced during a session of the Supreme People’s Assembly.

No reason was given for the decision to hand the position to former army and navy minister Kim Yong-Il.

North Korean leader Kim Jong-Il was present during the session of the Supreme People’s Assembly but did not comment on the decision.

Limited powers

Kim Yong-Chun was elected vice-chairman of the country’s National Defence Commission during the session, the state-run Korean Central News Agency reported.

The parliament meets once or twice a year to approve budgets or discuss policy but its power is limited. All power in the secretive state rests with the country’s reclusive leader, Kim Jong Il.

While the prime minister is the leader of North Korea’s government and cabinet, it is not the number two position.

That belongs to Kim Yong Nam, chairman of the Presidium of the Supreme People’s Assembly.

Share

I wonder what it was?

Tuesday, April 10th, 2007

It will probably be on display in the International Friendship Exhibition soon…

Gift to Kim Jong Il from American
KCNA
4/10/2007

General Secretary Kim Jong Il was presented with a gift by the visiting governor of New Mexico State, U.S. 

Governor Bill Richardson handed the gift over to Kim Yong Dae, vice-president of the Presidium of the Supreme People’s Assembly of the DPRK, Tuesday

Share

N.K. defectors launch new political body

Tuesday, April 10th, 2007

Korea Herald
Annie Bang
4/10/2007

Twenty organizations of North Korean defectors established a politically unified group in Seoul yesterday and pledged to lead activities to democratize the North.

The group also revealed satellite photos of 17 private houses in the North owned by the North Korean leader Kim Jong-il.

“The defectors, who experienced living under the dictatorship of North Korean leader Kim Jong-il, must seek more systematic ways to democratize North Korea,” said Sohn Jung-hoon, secretary of the newly founded Committee of Democratizing North Korea.

The committee was formed by almost all the organizations of North Korean defectors in the South, including Democracy Network against North Korean Gulag, and Association of the North Korean Defectors.

“It is impossible for North Korea to recover its economy and resolve the shortage of food without freedom,” the committee said in a statement. “Democratizing North Korea is a must to bring peace on the Korean Peninsula, to improve inter-Korean relations and to recover the North Korean economy.”

Hwang Jang-yop, chairman of NKD, who was secretary of the Central Committee of the North Korean Workers’ Party, will lead the unified group.

There are over 100,000 North Koreans who defected from the North as of February, and the Seoul government believes the number will exceed 200,000 in five years.

Share

An affiliate of 38 North