Archive for the ‘Political economy’ Category

Imperialists’ Moves for “Globalization” under Fire

Sunday, February 25th, 2007

Well, this is too bad…

KCNA
2/25/2007

The “globalization” much touted by the imperialists is nothing but a yoke of exploitation and plunder, domination and subjugation as it is intended to put other countries under their tight control and bleed the world people white to the maximum under the spurious signboard of “co-prosperity” and a neo- colonial system whereby to completely obliterate the Juche character and national identity of other countries and nations and turn the relations between the Western multi-national monopolies and the developing countries into those between the slave owner and slaves.

Rodong Sinmun Sunday says this in a signed article.

It goes on:

The imperialists’ moves for “globalization” involve various aspects of social life but it is mainly targeted on finance and trade.

It is one of the main goals of “globalization” to make breaches in different systems of national economies in many countries of the world through “liberalization” in the fields of finance and trade and make them spill over into other fields in a bid to convert the world economy into a uniform market economy.

The reactionary nature of the “globalization” pushed forward by the imperialists is to completely stonewall the appearance of a new fair international economic order, bind the developing countries to a neo- colonial domination order and turn their politics into Western-style one through the “integration” of the world economy.

The imperialists’ moves for “globalization” aimed at neo-colonizing the whole world are entailing evermore dangerous consequences.

The above-said “globalization” is driving society into chaos and triggering off evermore acute conflict and contradictions among different ethnic groups, religious sects and political forces. To make matters worse, this is leading to armed conflicts, causing bloodshed and making a great many people displaced.

The “globalization” in the financial field is turning the world into a world in the grip of utter disorder where financial speculators ride roughshod.

The “globalization” pushed forward by the imperialists is only widening the gap between the rich and the poor worldwide.

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N. Korean leader Kim considers ‘group leadership’ system: sources

Sunday, February 25th, 2007

Yonhap
2/25/2007

North Korean leader Kim Jong-il might consider a “collective” leadership system after he leaves office, a move away from the long-anticipated father-to-son power transfer, diplomatic sources said Sunday.

According to the sources, Kim did designate his eldest son Jong-nam as heir apparent in the past, but changed his mind a few years ago to introduce the group-based leadership.

The sources said there is no cause for Kim to pursue a father-to-son transition particularly since he is afraid that the whole Kim family would be blamed if efforts to rebuild the economy fail.

Kim Jong-il himself was appointed successor to his late father Kim Il-sung when he was 32 years old. Outside media attention has been focused on who will be the next leader of the world’s most reclusive country.

“Kim did not make an official announcement on the plan, but it is known that the North Korean leader already embarked on the testing of a military-centered leadership system,” a source was quoted as saying.

The 36-year-old son Jong-nam had long been regarded as the favorite to succeed Kim, but he reportedly fell out of his father’s favor. The Swiss-educated Jong-nam exhibited a wayward lifestyle in order to show that he is not the successor to his father, according to the sources.

As for the succession prospects, Jong-nam recently told his acquaintances in Beijing that “he is not interested” in the issue, expressing concerns that upper-level officials could be held accountable for an economic failure, the sources said.

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N. Korean nuclear envoy says North is ready to implement 6-way pact

Thursday, February 15th, 2007

Yonhap
2/15/2007

North Korea’s top nuclear envoy on Thursday said his country is ready to carry out an agreement from the recent six-party talks over its nuclear ambition, which calls on the communist nation to shut down its nuclear-related facilities in two months.

“We are ready to implement the results of the meeting,” Kyodo News agency quoted Kim Kye-gwan as telling Russia’s top diplomat in the North and an official from the Chinese embassy there at Pyongyang’s airport.

The Russian and the Chinese diplomats were apparently at the airport to welcome the North’s vice foreign minister who returned from Beijing where he and nuclear negotiators from South Korea, the United States, Japan, Russia and China held talks since last Thursday.

Pyongyang puts some spin on 6-way talks agreement
State media say it will close nuclear facilities ‘temporarily’

Joong Ang Daily
Brian Lee

Pyongyang’s state-controlled media have given what may be a signal that Pyongyang is prepared to reinterpret Tuesday’s agreement at the six-party nuclear talks in Beijing even before the ink on it is dry.

The Korean Central News Agency, hours after the nuclear deal was reached, reported that participants had agreed to supply North Korea with 1 million tons of heavy fuel oil in return for a “temporary” suspension of operations at the North’s nuclear facilities.

It also reported that Washington and Pyongyang would begin discussions possibly leading to diplomatic relations, but did not describe the rest of the agreement, in which the closing of the North’s facilities was intended as a prelude to their “disablement.” The shipment of all but 50,000 tons of crude oil supplies was contingent on that complete shutdown, a declaration of all the North’s nuclear programs and international inspections of those facilities.

It was not clear, however, whether the reports were intended as a definitive statement of North Korea’s interpretation of the agreement or, as one South Korean official suggested yesterday, a bit of domestic propaganda to demonstrate to its populace that its nuclear programs had boosted the nation’s prestige.

Some private analysts in Korea concurred. Koh Yoo-hwan, a North Korean specialist at Dongguk University, contended that because of the North’s tight control of information, even the most senior military leaders in the North would not be able to see easily the entire text of the agreement. “So the announcement focused on what the North would get,” he concluded

But a diplomatic source in Seoul was not fully convinced, noting that sometimes agreements were struck only by deliberately vague diplomatic language. “Different interpretations lead to agreements,” he said. “Shaky ones.”

Even the Chosun Shinbo, a pro-Pyongyang news outlet in Japan, carried a report of the agreement along the lines of the Pyongyang news agency, even though the full text of the agreement is widely available in Japan. (The full text of the agreement can be found on the JoongAng Daily’s Web site, joongangdaily.joins.com.)

Many independent analysts were cautious in reacting to the agreement, although the political leadership in all six nations praised it. Michael Green, a Georgetown University professor and former State Department official who participated in earlier nuclear negotiations with Pyongyang, said the hard part of implementing the agreement would come in its second phase, the “dismantlement” of the North’s nuclear reactor and nuclear fuel reprocessing facility, which has no deadline attached.

The six-party talks are scheduled to resume in Beijing next month; if the commitments by both Pyongyang and its negotiating partners are met within the 60-day deadline, the foreign ministers of the six countries are also expected to meet to discuss next steps.

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Outside Pressures Broke Korean Deadlock

Wednesday, February 14th, 2007

NY Times
David E. Sanger

It is hard to imagine that either George W. Bush or Kim Jong-il would have agreed even a year ago to the kind of deal they have now approved. The pact, announced Tuesday, would stop, seal and ultimately disable North Korea’s nuclear facilities, as part of a grand bargain that the administration has previously shunned as overly generous to a repressive country — especially one that has not yet said when or if it will give up its nuclear arsenal.

But in the past few months, the world has changed for both Mr. Bush and Mr. Kim, two men who have made clear how deeply they detest each other. Both are beset by huge problems, and both needed some kind of breakthrough.

For Mr. Bush, bogged down in Iraq, his authority undercut by the November elections, any chance to show progress in peacefully disarming a country that detonated a nuclear test just four months ago could no longer be passed up. As one senior administration official said over the weekend, the prospect that Mr. Bush might leave Iraq, Iran, Afghanistan and North Korea more dangerous places than he found them “can’t be very appealing.”

Still, the accord came under fast criticism from right and left that it was both too little and too late.

For years, Mr. Bush’s administration has been paralyzed by an ideological war, between those who wanted to bring down North Korea and those who thought it was worth one more try to lure the country out of isolation. In embracing this deal, Mr. Bush sided with those who have counseled engagement, notably his secretary of state, Condoleezza Rice, and her chief negotiator, Christopher R. Hill. Mr. Bush took the leap in the hope that in a few months, he will be able to declare that North Korea can no longer produce fuel for new nuclear weapons, even if it has not yet turned over its old ones.

For Mr. Kim, the nuclear explosion — more of a fizzle — that he set off in the mountains not far from the Chinese border in October turned out to be a strategic mistake. The Chinese, who spent six decades protecting the Kim family dynasty, responded by cutting off his military aid, and helping Washington crack down on the banks that financed the Cognac-and-Mercedes lifestyle of the North Korean leadership.

“As a political statement, their test was a red flare for everyone,” said Robert Gallucci, who under President Clinton was the chief negotiator of the 1994 agreement with North Korea, which collapsed four years ago. “It gave President Bush and the Chinese some leverage.”

Mr. Gallucci and other nuclear experts agree that the hardest bargaining with world’s most reclusive, often paranoid, government remains ahead.

Over the next year, under the pact, the North must not only disable its nuclear reactors and reprocessing facilities, it must lead inspectors to its weapons and a suspected second nuclear weapons program. And to get to the next phase of the agreement, the one that gives “disarmament” meaning, North Korea will have to be persuaded to give away the country’s crown jewels: the weapons that make the world pay attention to it.

But before the administration faces off against Mr. Kim in Pyongyang, it will have to confront the many critics of the deal here at home. As the White House took credit on Tuesday for what it called a “first step,” it found itself pilloried by conservatives who attacked the administration for folding in negotiations with a charter member of what Mr. Bush called the “axis of evil,” and for replicating key elements of Mr. Clinton’s agreement with North Korea.

At the same time, Mr. Bush’s advisers were being confronted by barbs from veterans of the Clinton administration, who argued that the same deal struck Tuesday had been within reach several years and a half-dozen weapons ago, had only Mr. Bush chosen to negotiate with the North rather than fixate on upending its government.

In fact, elements of the new decision closely resemble the Clinton deal, called the Agreed Framework. As it did in that accord, the North agrees to “freeze” its operations at Yongbyon, its main nuclear facility, and to allow inspections there. And like that agreement, the new one envisions the North’s ultimately giving up all of its nuclear material.

In two respects, however, the new accord is different: North Korea does not receive the incentives the West has offered — in this case, about a year’s supply of heavy fuel oil and other aid — until it “disables” its equipment at Yongbyon and declares where it has hidden its bombs, nuclear fuel and other nuclear facilities. And the deal is not only with Washington, but with Beijing, Moscow, Seoul and Tokyo.

“We’re building a set of relationships,” Ms. Rice argued Tuesday, saying that the deal would not have been possible if she and President Bush had not been able to swing the Chinese over to their side. Mr. Bush has told colleagues that he believes the turning point came in his own blunt conversations with President Hu Jintao of China, in which, the American president has said, he explained in stark terms that a nuclear North Korea was more China’s problem than America’s.

But the administration was clearly taken aback on Tuesday by the harshness of the critique from the right, led by its recently departed United Nations ambassador, John R. Bolton, who charged that the deal “undercuts the sanctions resolution” against the North that he pushed through the Security Council four months ago.

Democrats, in contrast, were caught between enjoying watching Mr. Bush change course and declaring that the agreement amounted to disarmament-lite. “It gives the illusion of moving more rapidly to disarmament, but it doesn’t really require anything to happen in the second phase,” said Joel Wit, who was the coordinator of the 1994 agreement.

The Bush administration is counting on the lure of future benefits to the North — fuel oil, the peace treaty ending the Korean War it has long craved, an end to other sanctions — to force Mr. Kim to disclose where his nuclear weapons and fuel are stored.

Mr. Bush’s big worry now is that Mr. Kim is playing the administration for time. Many experts think he is betting that by the time the first big deliveries of oil and aid are depleted, America will be distracted by a presidential election.

But Mr. Bush could also end up with a diplomatic triumph, one he needs desperately. To get there, he appears to have changed course. Asked in 2004 about North Korea, he said, “I don’t think you give timelines to dictators and tyrants.”

Now he appears to have concluded that sometimes the United States has to negotiate with dictators and odious rulers, because the other options — military force, sanctions or watching an unpredictable nation gain a nuclear arsenal — seem even worse.

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Kim Jong-il’s Son Sells Weapons Abroad: Report

Tuesday, February 13th, 2007

Korea Times
1/13/2007

Kim Jong-nam, believed to be the eldest son of North Korean leader Kim Jong-il, has taken charge of the overseas sales of North Korean military weapons.

The junior Kim, 35, went back to Pyongyang via a Koryo Air flight from Beijing on Tuesday after getting a lot of media attention during his three-day stay in the Chinese capital.

According to the Segye Times, a vernacular daily, Jong-nam has made profits for his country by selling military weapons such as Scud medium-range missiles and SA-16 surface-to-air missiles overseas.

He invested money in real estate and overseas banks offering high interest rates in several countries including Britain, Switzerland, Hong Kong, Macau and Singapore, said the report based on comments from an expert on North Korean affairs in Japan.

On Sunday Kim was spotted by Japanese television crews at Beijing International Airport. His appearance in Beijing sparked interest among North Korea watchers, as the six-party talks over the North’s nuclear weapons programs were being held there.

Reports said Kim was on a three-day layover on his way back home to attend his father’s 65th birthday party, which falls on Friday.

Wearing a Reebok baseball cap and blue jeans as well as a gold necklace, Kim showed off his foreign language skills in brief interviews with the news media including Japan’s Fuji television.

Asked whether he speaks Japanese, he answered in Japanese that he didn’t understand the language. He also said he speaks a little bit of English and French as he studied in Europe for several years.

Kim said he meets with his father “sometimes” but did not elaborate on their relationship.

According to reports Kim stayed at his favorite hotel, the Kempinski Hotel located adjacent to the South Korean embassy in Beijing during his short visit.

The Toronto Globe and Mail reported earlier this month that the North Korean leader’s son has been spending most of his time for the past three years at casinos, saunas and luxury hotels in Macau, the former Portuguese enclave near Hong Kong.

Kim was photographed in the city by a newspaper as he left his favorite hotel, the Mandarin Oriental.

According to the South China Morning Post, he has frequently visited Macau’s casinos and often goes out drinking late at night.

There have been rumors that fell out of favor with his father in 2001 when he embarrassed the regime in a bizarre incident in Japan.

Kim was briefly detained at Tokyo’s airport where he tried to enter Japan on a fake Dominican Republic passport. He was on his way to visit Tokyo Disneyland, reports said.

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Kim Jong-il Wins Kim il Sung Peace Prize (update)

Monday, February 12th, 2007

 The wise decision has been re-celebrated in the DPRK:

 Int’l Kim Il Sung Prize Council’s Decision Hailed
   Pyongyang, February 12 (KCNA) — Meetings were held in South Africa and Mongolia on Feb. 5 and 6 in support of the decision of the International Kim Il Sung Prize Council on awarding the “International Kim Il Sung Prize” to Kim Jong Il. 

  A branch chairman of the Pretoria City Committee of the African National Congress of South Africa said in a speech at the meeting that the decision reflected the unanimous desire of the world progressives highly praising the exploits of Kim Jong Il who is leading socialism and the human cause of independence to victory with his distinguished political ability and outstanding leadership ability. 

    The secretary general of the Centre for the Study of the Juche Idea of Mongolian Chinggis Khan College said at the meeting that Kim Jong Il is wisely leading the building of a great prosperous powerful nation and the cause of Korea’s reunification with his Songun politics. 

The decision was also hailed by Bonakele Majuba, secretary of the Mfumalanga Provincial Committee of the South African Communist Party and chairman of the South African Association for Friendship and Solidarity with the Korean People, and Youssef Amin Wali, vice-chairman of the National Democratic Party of Egypt, in their statements on Feb. 5. The Egypt-Korea Friendship Association expressed its support in a statement on Feb. 6 celebrating the February holiday.

Original Post: (Hat Tip Letters From China)

New Delhi, February 2, 2007 (KCNA) –The International Kim Il Sung Prize Council announced in New Delhi on February 1 its decision on awarding the “International Kim Il Sung Prize” to Kim Jong Il on the occasion of his birthday. According to it, the council decided to confer the prize on General Secretary Kim Jong Il on the occasion of his birthday in high recognition of his immortal contribution to the noble cause for global peace and security and the independent development of humankind.

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Corrupt Transactions

Sunday, February 4th, 2007

Korea Times
Andrei Lankov
2/4/2007

Corruption is elusive. A vast majority of corrupt transactions are done in secret and remain secret forever. No scholar has ever been able to measure the corruption level even though everybody agrees that it varies markedly, depending on place and time.

Nonetheless, there is no way to make an informed judgment on whether or not, say, the Britain of the 1670s was more corrupt than China of the 1820s. Even the oft-cited Global Corruption Reports of Transparency International is based, essentially, on the personal impressions of the people in the know (largely, businesspeople), not on direct measurements.

North Korea is not considered in the Global Corruption Report. However, everyone with first-hand experience of North Korea agree that corruption and bribery are very common there.

It has not always been the case. Indeed, back in the 1950s one of the features that attracted many Koreans to the North was the relative austerity of its ruling elite. The North Korean administration might have been wasteful, indifferent to human suffering, and irrational, but it was clean _ in marked contrast to Syngman Rhee’s regime in the South.

This did not mean that everybody had his or her fair chance.

On the contrary, people with a “bad social origin” were nonstarters by definition, and they formed a significant minority of the population. One’s connections were important, too. In 1957, Yu Sung-hun, the then president of Kim Il-sung University, complained to a Soviet diplomat that every year “queues of cars” waited near his office on the eve of the entrance exams (a car was a sign of extremely privileged social position).

The president, an honest educator and intellectual, felt guilty and upset because he had to accept the scions of top bureaucrats at the expense of gifted people without the right connections. But, one assumes, this was achieved by the application of political pressure alone, with no money involved.

The situation began to deteriorate in the late 1970s. Perhaps, this reflected the slow decline in idealism: Earlier generations sincerely believed that they were constructing a paradise on earth, but people who became adults in the 1970s and 1980s had fewer illusions. They lived in a society that was run by a hereditary elite, where one’s family background comprehensively determined one’s lifestyle, and where the official slogans were increasingly seen as irrelevant or hypocritical. Thus, bribes began to spread.

What did the North Koreans pay bribes for? Generally, for chances of social advancement, or to access to goods and services one would not normally be eligible for. Thus, sale clerks in the shops, despite their meager official salary, became one of the most affluent groups in society.

They used their access to goods to sell better quality stuff outside the official rationing system and at huge premiums.

In the 1980s corruption became ubiquitous at the colleges where one’s chances of being admitted were greatly improved by an envelope given to an influential professor or bureaucrat. There are stories that the right to join the ruling Korean Workers’ Party was sometimes also purchased through a bribe (this right is important since it makes a person eligible for white-collar positions). Finally, it was becoming quite common to pay a superior to ensure a good position.

The bribes were not necessarily paid in money. Quality liquor or imported cigarettes were even better, and good old greenbacks the best of all.

But it was only in the 1990s that bribery truly became ubiquitous.

The breakdown of old systems of control meant that there was less to be afraid of.

There were also fewer rewards available for the “good citizens of the socialist motherland.”

Finally, the collapse of the economy produced a multitude of opportunities for corruption.

Apart from the sales clerks who have always been engaged in small bribery, the drivers, train conductors and the like began to accept money for letting traders travel with their merchandise, as well as looking the other way when people could not produce valid travel permits (in the latter case policemen have also pocketed their share).

But what about the top crust of society? We do not know much about this, but it appears that they have not been touched by these trends yet.

After all, they already have enormous privileges, and in North Korea there is no private business to tempt them with good pay-offs. Probably, this is going to change soon.

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Dear Leader’s Exiled Son Surfaces in Macau

Thursday, February 1st, 2007

Chosun ilbo
2/1/2007

A man presumed to be North Korean leader Kim Jong-il’s eldest son Kim Jong-nam appeared in Macau on Tuesday, the Yomiuri Shimbun reported. A South Korean government official confirmed the report on Wednesday. It seems Kim Jong-nam has not been allowed to return to North Korea and been wandering the globe for six years.

Once heir apparent of the North Korean leader, Kim Jong-nam first grabbed international headlines when he was caught trying to enter Japan on a fake passport with his wife and son in May 2001. The reasons for his departure from North Korea are unclear. According to former high-ranking North Korean officials who defected, Kim junior was branded a traitor to the revolution by his father after he talked about a Chinese-style reform and opening policy at a private gathering in 2000. They say he was forced to leave the country over a power struggle with his stepmother Ko Young-hee, the mother of his younger half-brothers Jong-chul and Jung-woon.

Since then, he has reportedly been staying in China. He was spotted at expensive restaurants in Beijing several times in January last year. Kim contacted an ethnic Chinese trader who was arrested on charges of espionage in South Korea in April 2006, a government official said. He gets along with members of the so-called Taizidang or princes’ club comprising children of prominent Chinese leaders like former president Jiang Zemin.

Kim is said to have made money from a trade business, which he set up with the Taizidang group. He has shown interest in the IT sector since his Pyongyang days and now is in touch with IT experts he met when he visited Hong Kong and Macau to gather information. Despite being a stateless refugee, Kim does not appear restrained either socially or financially.

Analysts say China does not treat him as an unwelcome guest. Kim Jong-nam tried to return to Pyongyang after his stepmother died in June 2004, but to no avail. Security strategy specialist Lee Ki-dong says anti-Kim Jong-nam forces remain strong in North Korea, adding the fact that Kim junior has not returned proves that the North’s succession structure remains unstable.

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Kim Jong-il’s eldest son lives in Macau: Hong Kong paper

Thursday, February 1st, 2007

Yonhap
2/1/2007

The eldest son of North Korean leader Kim Jong-il, has been living with his family in Macau for the past three years, a Hong Kong-based newspaper reported Thursday.

The South China Morning Post quoted one diplomat as saying that Kim Jong-nam, 35, has been using the city as his base, putting Macau’s government in a difficult position. He flew back into the city this week after one of many overseas trips, the paper reported.

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Can Economic Theory Demystify North Korea?

Wednesday, January 31st, 2007

Japan Focus (Hat Tip Gregor)
Ruediger Frank
1/31/2007

Abstract
The starting point of this paper is the assumption that North Korea is de facto a well-defined nation-state, home to a national economy and inhabited by individuals that bear the same basic economic and social characteristics as individuals elsewhere. Despite the obvious specifics of the economic system and institutional structure of the country, standard economic theory should be applicable to the question of North Korean economic development. The article seeks to prove this as broadly as possible, showing that economic theory as diverse as classical and neoclassical, Marxist, Keynesian, institutional, developmentalist, neo-liberal or structuralist, dependency analysis-based and many others, including regionally centered approaches, can be utilized to explain the North Korean case with useful results, although the latter will inevitably vary depending on the chosen framework. Without arguing against or in favor of any of the available theoretical methods, this article advocates further research on North Korea as another case of development in East Asia, rather than as a mystical exception to the rule. This is particularly important in light of the tendency to describe North Korea as unpredictable, bizarre, and incomprehensible. This is clearly not the case.

Full paper below the fold

(more…)

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