Archive for the ‘Foreign aid statistics’ Category

The drought that didn’t matter, North Korea says – thanks to agricultural reform?

Monday, August 10th, 2015

By Benjamin Katzeff Silberstein

During the past few months, the World Food Program (WFP) has made reoccurring pleas for increased food assistance to North Korea to alleviate the food shortages expected from a severe summer drought. The North Korean government made similar statements and claimed that the drought was the worst one to occur in 100 years. Aid to the country was subsequently increased from the originally planned level, due to the drought. But now, one North Korean official is saying that food production ended up increasing, after all, thanks to agricultural reforms.

A recent brief by the Institute for Far Eastern Studies at Kyungnam University (IFES) cites a July issue of Tongil Sinbo, a North Korean state-run weekly newspaper. There, Chi Myong Su, director of the Agricultural Research Institute of the Academy of Agricultural Sciences in the country, says that

“the effectiveness of field management system (pojon) from cooperative farm production unit system (bunjo) is noticeable and succeeded in increasing grain production despite the adverse weather conditions.”

The article cited by IFES highlights the smaller work-team structure as key to the success of the reforms. Also, it almost outright states that greater economic incentives were the main factor (although they call it “enthusiasm” and “patriotism”):

“Despite the adverse weather conditions last year, the high grain yield was possible due to implementation of scientific farming methods and field management system to increase enthusiasm of farmers,” and “based on this experience, many cooperative farms across the country will expand subworkteam management system to field management system.”

This is interesting for several reasons.

First, the agricultural reforms seem increasingly pronounced. Though other reforms were reportedly backtracked earlier this year, the government seems eager to claim success for the road travelled in agriculture.

I have written elsewhere that the data doesn’t necessarily support a claim that reforms are working. There is still reason to be skeptical – after all, a North Korean government official claiming that his government’s policies are working is not surprising – but even the claim itself is interesting.

Second, the statement raises questions about monitoring and data gathering capacities, both of the regime and relief organizations in Pyongyang. Again, just a few months ago, alarm bells were ringing about a potential food shortage, and now, a regime official claims that food production has increased. What was the basis of the WFP and regime claims that a food shortage was imminent a few months ago, and what has changed since those claims were made?

Another recent IFES brief also deals with North Korean press reports about the agricultural reforms. It quotes a Rodong Sinmun article from earlier in the summer that brings up some adjustment problems that farmers have had, such as learning how to properly use fertilizers. The most interesting part in my opinion is the following:

The newspaper stressed that “when all farmers claim ownership of their field and subworkteam, one can create innovation in the farming operations.”

Thus, it seems like Pyongyang wants to encourage experimentation and diversity in production methods. This would be a potentially important step towards more efficient agriculture. Perhaps it is part of a pattern. Provinces have reportedly gotten significant leeway in setting up their respective special economic development zones, which could also be a way to encourage experimentation in policies and management methods.

According to the Tongil Sinbo article, reforms are set to expand further in the country given the alleged success. Perhaps it won’t be too long before we can learn more about them through assessments by multilateral organizations like WFP.

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Humanitarian aid to DPRK almost flat on-year in H1 2015

Wednesday, July 1st, 2015

According to Yonhap:

The growth of humanitarian aid sent to North Korea stayed almost flat in the first half from a year earlier, a U.N. agency said Wednesday, raising concerns about food shortages in the North.

The global community’s humanitarian assistance to the North amounted to a combined US$21.3 million in the January-June period, compared to $20.6 million in the same period last year, according to data compiled by the United Nations Office for the Coordination of Humanitarian Affairs.

But the figure in the first half marked a 40 percent decline when compared to $35.6 million in the first half of 2013, it showed.

The U.N. and six countries — South Korea, Switzerland, Sweden, Canada, France and Germany — supplied humanitarian aid to Pyongyang this year.

Switzerland was the top donor with $9.17 million, or 43 percent of the total aid, followed by South Korea with $4 million and Sweden with $3.23 million, the data showed.

By type, food and nutrition aid topped the list with $9.64 million worth contributed, followed by healthcare work at $6.2 million, and the supply of drinking water at $2.4 million, it said.

A separate U.N. report showed that about 70 percent of North Korea’s 24.6 million people are suffering due to food shortages and 1.8 million, including children and pregnant women, are in need of nutritional food supplies aimed at fighting malnutrition.

Aid from China and Russia would not appear in this study.

Read the full story here:
Humanitarian aid to N. Korea almost flat on-year in H1
Yonhap
2015-7-1

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DPRK-China trade in 2014

Monday, January 26th, 2015

According to Yonhap, DPRK-China trade drops slightly in 2014:

North Korea’s annual trade with its economic lifeline, China, fell 2.4 percent from a year ago in 2014, marking the first decline since 2009, data compiled by South Korea’s government trade agency showed Monday.

North Korea’s trade with China totaled US$6.39 billion last year, compared with $6.54 billion in 2013, according to the data provided by the Beijing unit of South’s Korea Trade and Investment Promotion Agency (KOTRA).

The annual trade figures between North Korea and China provided a fresh sign that strained political ties between the two nations have affected their economic relations.

At least on paper, there were also no shipments of crude oil from China to North Korea for all of last year.

A South Korean diplomatic source with knowledge of the matter, however, cautioned against reading too much into the official trade figures because China has provided crude oil to North Korea in the form of grant aid and such shipments were not recorded on paper.

Here is coverage in the Daily NK.

I have been unable to locate the KOTRA report, but the Choson Ilbo adds this:

China’s exports to the North were down 3.1 percent on-year and its imports from the North 1.5 percent, the diplomatic source in Beijing said quoting Chinese trade statistics.

Yonhap followed up with this from a Chinese foreign ministry press briefing:

Asked about the official absence of crude oil delivery to North Korea, China’s foreign ministry spokeswoman, Hua Chunying, referred the question to “competent authorities.”

“You mentioned a specific issue concerning trade between China and North Korea. I would like to refer you to competent authorities,” Hua told reporters during a regular press briefing.

“But, I want to highlight that the economic cooperation and trade between China and North Korea are normal,” Hua said.

Yonhap also provided the following information on oil shipments from China to the DPRK:

In previous years, China’s official shipments of crude oil to North Korea had been absent for several months, particularly after the North’s nuclear tests. However, it was extremely unusual that, at least on paper, China sold no crude oil to North Korea for all of last year.

In 2014, China’s exports of petroleum products to North Korea jumped 48.22 percent from a year earlier to US$1.54 million, according to the data based on Chinese trade statistics and compiled by the Beijing unit of South’s Korea Trade and Investment Promotion Agency.

“Although final statistics show that China’s exports of crude oil to North Korea were counted as ‘zero’ in 2014, experts suggest that the possibility of China’s suspension of crude oil exports to North Korea remains low,” the agency said in a statement.

South Korean diplomatic sources in Beijing have also cautioned against reading too much into the official Chinese trade figures because China has provided crude oil to North Korea in the form of grant aid and such shipments were not recorded on paper.

There has been no clear indication that the 2014 trade figures reflect China’s willingness to use crude oil as leverage to press North Korea to change course in its nuclear ambition.

Yonhap (via Korea Times) also reports that anthracite exports to China are down in 2014:

North Korea’s exports of anthracite to China tumbled nearly 18 percent in 2014 from the previous year, the first annual drop in eight years, data showed Friday.

North Korea exported US$1.13 billion worth of anthracite to China last year, down 17.6 percent from a year earlier, according to data from the Korea International Trade Association.

It was the first on-year decline in North Korea’s anthracite exports to China since 2006.

The volume of anthracite exports also decreased 6.4 percent on-year to 15.43 million tons last year, according to the KITA.

Despite the drop, anthracite accounted for 39.8 percent of North Korea’s total exports to China in 2014.

According to the data, North Korea’s exports of iron ore to China plunged 25.7 percent on-year to $218.6 million last year, the smallest amount since 2010.

For lots more data on the DPRK’s international trade, see also these eight great posts:
1. North Korea-China Trade Update: Coal Retreats, Textiles Surge
2. How Has the Commodity Bust Affected North Korea’s Trade Balance? (Part 1)
3. How Has the Commodity Bust Affected North Korea’s Trade Balance? (Part 2)
4. Nicholas Eberstadt’s “Dependencia, North Korea Style” (I would have gone with “Our Style Dependencia”)
5. NK News on coal shipments in 2014.
6. Radio Free Asia on coal shipments.
7. N. Korea’s smartphone imports from China hit record
8. China’s exports of jet fuel to N. Korea rebounds in 2014

Read the full story here:
N. Korea’s 2014 trade with China marks 1st drop in 5 years
Yonhap
2015-1-26

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UN to provide $2 million in aid in 2015

Saturday, January 24th, 2015

According to Yonhap:

The United Nations will provide US$2 million in aid to North Korea as part of its humanitarian efforts, a news report said Saturday.

The Office for the Coordination of Humanitarian Affairs, part of the U.N. Secretariat responsible for humanitarian actions, plans to deliver the financial support to its peer organizations working in the reclusive regime, according to a new report by Radio Free Asia (RFA).

The aid will be provided through the Central Emergency Response Fund (CERF), which has offered a total of $6.5 million to Pyongyang since 2011. The annual sum given to the communist state has varied each year: $5 million in 2011, $7 million in 2012 and $2.1 million in 2013.

U.N. offices based in the North decide on the spending through negotiations with the head of United Nations Development Programme stationed there. Other U.N. affiliated organizations that provide financial aid to the North include the World Food Plan, the Food and Agriculture Organization, the World Health Organization and the United Nations Children’s Fund.

The CERF plans to send $100 million to 12 countries around the world in this batch.

Syria will receive the highest amount of $30 million, followed by Lebanon with $18 million. North Korea will receive the least.

The Daily NK reports the following:

On January 27th, Radio Free Asia reported that over the past nine years, the UN has contributed 98.9 million USD in humanitarian assistance to North Korea.

The UN’s Office for the Coordination of Human Affairs (OCHA) reported the UN’s Central Emergency Response Fund (CERF) distributed 6.5 million USD overall through four different UN agencies last year, and 96.9 million USD in total between 2007 and 2014.

An additional 2 million USD for support to North Korea was contributed by the UN just in the past three months.

The UN’s Central Emergency Response Fund (CERF) began offering assistance in 2006 to those nations that were in drastic need of humanitarian support, but were not getting those needs filled by the international community.

Since that time, the 98.9 million USD sent to North Korea represents 7.4% of the UN’s overall international donations budget, which stands at approximately 1.34 billion USD.

The UN organizations currently providing assistance to North Korea include the World Food Program (WFP), the Food and Agriculture Program (FAO), the World Health Organization (WHO), the United Nations International Children’s Emergency Fund (UNICEF), and the United Nations Population Fund (UNFPA).

Read the full story here:
U.N. to provide N. Korea with US$2 mln aid
Yonhap
2015-1-24

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Eugene Bell expands TB work in DPRK

Tuesday, November 11th, 2014

According to Yonhap:

A U.S. charity group said Tuesday it has agreed with North Korea to expand its medical aid program in the impoverished nation.

Under the deal, the Washington-based Eugene Bell Foundation will construct three new wards at tuberculosis (TB) treatment centers in Pyongyang.

It is the fruit of a three-week trip to the communist nation by a group of 13 officials from the foundation.

“The number of patients at those treatment centers has grown as the activity of our foundation is increasingly known,” a foundation official said. “Every treatment center suffers a severe lack of wards.”

The foundation has long provided medical humanitarian assistance to North Korea, especially for multidrug-resistant tuberculosis.

In a new program, it is sending 770 million won (US$750,000) worth of TB medication to the North.

Read the full story here:
U.S. charity group to expand medical aid program in N. Korea
Yonhap
2014-11-11

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ROK agricultural assistance heads to DPRK

Wednesday, October 1st, 2014

The Hankyoreh reports on some agricultural aid heading to the DPRK:

ace-Gyeongnam-Hanky-2014-10-1

Picture above via the Hanhyoreh

The article reports:

Trucks carrying materials for greenhouses, fertilized soil and plant seeds for North Korea crosses Unification Bridge in Paju, Gyeonggi Province, Sept. 30. The 200 million won worth of goods were donated by Ace Gyeongnam.

Greenhouses have been constructed all across the DPRK in the last few years.

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Private aid driven to DPRK from ROK

Wednesday, October 1st, 2014

According to the JoongAng Ilbo:

Twenty container trucks from Ace Gyeongam, a charity foundation fund by bed manufacturer Ace, cross the inter-Korean border yesterday to provide agricultural aid to North Korea. About 200 million won ($190,000) of farming goods will be sent to North Hwanghae Province, marking the first time aid was delivered on a round trip using inland highways between the two Koreas.

Read the full story here:
Aid on the way
JoongAng Ilbo
2014-10-1

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North Korea’s donor fatigue

Thursday, September 25th, 2014

The Wall Street Journal reports on the difficulties the UN World Food Program faces trying to find supporters for its operations in North Korea:

The United Nations aid program for malnourished North Koreans may close after raising only a fraction of the money it needs to operate in the country, a senior U.N. official said in a call for donations.

“We may need to scale down or think about closing altogether,” Dierk Stegen, the Pyongyang-based North Korea head for the U.N. World Food Program, said in an interview.

The agency, which has operated in North Korea since 1995, could shut early next year if there is no indication it will be able to raise needed funds by the end of October, he said. One complication is that North Korea’s humanitarian crisis has been overshadowed by the conflict in Syria and Ebola outbreak, he said.

While North Korea is getting better at feeding its people, hundreds of thousands of young infants and their mothers remain chronically malnourished, he said.

Contributions from private organizations and the South Korean government in recent weeks have helped, but the program is far from its goal of $50 million, already a significant reduction from the original target of $200 million it set last year.

The North Korea food-assistance program has drawn flak from critics who say the regime takes advantage of the agency’s largess, devoting its resources to developing its nuclear weapons program and constructing amusement parks while its people suffer. Critics also say the agency can’t be sure its assistance is reaching the intended recipients.

Nicholas Eberstadt, a political economist at the American Enterprise Institute in Washington who has studied North Korea’s food situation, said that the WFP’s work in the country was “a disappointment—perhaps a terrible disappointment,” arguing that the agency has put up little resistance even as Pyongyang restricts oversight from foreign aid groups.

“Outside humanitarian assistance will not work in North Korea unless it is ‘intrusive’—and the WFP has no stomach for such work,” Mr. Eberstadt said.

Mr. Stegen acknowledged past shortcomings in its ability to monitor the distribution of its aid, but blamed a lack of funding and cited recent improvements in its access inside the country. He said that the WFP can now get permission within 24 hours to visit any school or household that is receiving its aid. In the past, two weeks’ notice was required.

Mr. Stegen said that criticism of a government’s priorities isn’t unique to North Korea, and urged donors to prioritize vulnerable infants over politics.

“Intervention and assistance on a humanitarian basis should be separated from political things,” he said.

Earlier this month, South Korea’s government approved $7 million in new funding to the WFP, its first such contribution since 2007. While South Korea’s conservative government has talked tough on North Korea, it has also pursued a policy of “humanity” toward the North, particularly infants and young mothers.

The U.S., by far the largest donor to the WFP’s North Korea work, hasn’t contributed since 2009, when Pyongyang tightened its rules on monitoring food aid by restricting the number of Korean-speaking monitors allowed into the country, according to a U.S. Congressional Research Service report published in April.

The WFP’s fundraising efforts have also been hampered by rising awareness of North Korea’s human-rights violations. Earlier this year, a special U.N. commission published a landmark 400-page report which said the regime selectively starves its population based on factors like political loyalty, and recommended the U.N. Security Council refer Kim Jong Un and other senior officials to the International Criminal Court.

Ahead of the U.N. General Assembly, U.S. Secretary of State John Kerry on Wednesday called North Korea’s system of prison camps “unfathomable” and a sign of what he described as “barbarity, inhumanity—I think you can call it evil.”

Mr. Stegen said North Korea had markedly improved its capacity to produce food for its people since a devastating famine in the 1990s. He said that fewer people in the country remain hungry today, even as the population has increased.

But he cautioned that the country’s agricultural efforts have focused too much on producing rice and other grains, at the expense of protein. That has led to malnourishment of infants and children under the age of four, he said, putting them in danger of stunting, even as Kim Jong Un has made a public show of encouraging fisheries as a potential source of protein.

“For many of the children of North Korea, it’s already too late,” said John Aylieff, the WFP’s deputy regional director for Asia. “They’ve been dealt a life sentence of impaired mental functioning and impaired physical development.”

A drought earlier this year has also meant a throttling back of government rations to ordinary citizens, which fell to about 250 grams a day, Mr. Aylieff said. That is less than half the targeted rations, and the lowest in several years.

As a result, the aid agency is expecting a surge in acute malnutrition this year. “We hope potential donors will see the humanitarian imperative,” Mr. Aylieff said.

Marcus Noland, an economist and North Korea expert at the Peterson Institute for International Economics in Washington, said that given the WFP’s funding problems, its ability to monitor its work would be limited.

“Trying to maintain an underfunded program in that environment is practically inviting an aid diversion scandal,” he said. But the WFP’s absence from North Korea would also likely exacerbate any food crisis.

“The advantage of having the WFP in-country in even a limited capacity is that they are pre-positioned to monitor conditions and respond if there is an emergency,” Mr. Noland said.

Read the full story here:
U.N. North Korea Food Program in Danger
Wall Street Journal
Jonathan Cheng
2014-9-25

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ROK aid to the DPRK in 2014

Monday, August 11th, 2014

According to Yonhap:

South Korea said Monday it will provide North Korea with US$13.3 million in humanitarian aid, in another show of its resolve to separate inter-Korean military tensions from efforts to help the needy in the North.

The South has decided to offer $7 million worth of nutritional assistance to mother and child health services in the communist nation via the World Food Program (WFP), according to the unification ministry.

Seoul will also deliver $6.3 million to the World Health Organization (WHO) for its projects to ship essential medicine to the North, improve clinics and train related manpower there, it added.

“The government plans to tap the Inter-Korean Cooperation Fund for the aid,” ministry spokesman Kim Eui-do told reporters.

It is the first time that South Korea has offered assistance to North Korea through the WFP since 2007, he said. Last year, the South used $6 million to support the WHO’s project in North Korea.

Seoul’s new aid program is apparently to follow up on President Park’s ambitious “Dresden Declaration” in March.

Read the full story here:
S. Korea to offer US$13 mln in aid to N. Korea
Yonhap
2014-8-11

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Eugene Bell offers TB assistance to the DPRK

Monday, July 28th, 2014

According to Yonhap:

The Eugene Bell Foundation, which provides medical assistance to the impoverished North, will send 770 million won (US$750,000) worth of TB medication to the communist country, ministry officials said.

In February, the foundation shipped 720 million won worth of TB drugs to the North in an attempt to tackle the growing issue of multidrug-resistant TB in the country.

So far this year, the South has approved 11 shipments of civilian aid worth a combined 2.82 billion won to North Korea.

The latest approval comes after Seoul announced on July 15 that it will provide Pyongyang with humanitarian aid worth 3 billion won through civilian organizations.

It marks Seoul’s first state-funded aid to North Korea since the North torpedoed the South Korean warship Cheonan in the Yellow Sea in 2010, killing 46 sailors. Following the incident, Seoul imposed a blanket ban on cross-border economic and other exchanges.

Read the full story here:
Gov’t OKs civilian medical aid to N. Korea
Yonhap
2014-7-28

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