Archive for November, 2009

North Korean food shortage to grow, crimes of necessity on the rise

Tuesday, November 3rd, 2009

Institute for Far Eastern Studies (IFES)
NK Brief No. 09-11-02-1
11/2/2009

The North Korean agricultural ministry has announced that the countries food shortages are expected to be even greater next year. Edition 302 of the newsletter “North Korea Today,” distributed by the group Good Friends, reports that the Ministry of Agriculture announced harvest predictions for farms in North and South Hwanghae and Pyongan provinces, North Korea’s ‘ricebowl region’. It stated that if the country was to avoid a food crisis next year, everyone would need to strictly manage this year’s crops. It was also reported that the central party authorities in North Korea, after receiving the report, called for the opening of all customs houses in the border region and for trading companies to seek new avenues for trade. An order was passed down to “relentlessly trade with the outside in order to bring in much food.”

With food shortages this year and last, and now news that there will be food problems next year as well, it is rumored that there is a growing number of angry people in the normally mild-mannered Hwanghae Province. In addition, this is driving a growing number of people to turn to crime in order to put food on the table. On October 26, Free North Korea Radio quoted a source as stating, “As rumors spread across North Korea that large-scale famine, the likes of which were seen in the mid-1990s, will again sweep through country next year, anxiety is shooting up among the people and crimes of necessity are on the rise.”

According to the source, “Crimes of necessity, like pillaging granaries on farms, are spreading like never before as people act quickly to ensure food supplies,” and, “Fighting has grown fierce between people trying to maintain their standard of living.” Furthermore, “The number of people in the Dancheon region of South Hamgyeong Province just ‘sitting down and starving to death’ is exploding,” and, “Not long ago, there was even one incident of and armed soldier guarding a threshing floor of one farm being attacked by a gang of thieves.”

The source explained, “People are well aware that this year yielded poor harvests, but that they cannot rely on aid from the international community because of the Kim Jong Il regime’s indiscriminant pursuit of nuclear development.” The source also added, “These days, people are rationalizing illegal activities in the belief that ‘you can rely on no one but yourself.’”

It was also reported that in Hyesan, Hyeryeong, Onseong and Musan, most food prices are at higher levels than what are usually seen in the spring, despite the fact that it is now fall harvest season. According to Free North Korea Radio, October 23rd prices of rice, flour and corn in Hyesan, Hyeryeong, Onseong, and Musan were as follows: Hyesan, rice = 2,550-2,750 won/1 kg, flour = 2,400-2,600 won/1 kg, corn = 850-900 won/1 kg; Hyeryeong, rice = 2,500-2,800 won/ 1 kg, flour = 2,400-2,700 won/ 1 kg, corn = 800-1,000 won/1 kg; Onseong, rice = 2,450-2,600 won/ 1 kg, flour = 2,500-2,700 won/1 kg, corn = 700-900 won/1 kg; Musan, rice = 2,500-2,700 won/1 kg, flour = 2,400-2,600 won/1 kg, corn = 850-1,000 won/1 kg

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China obscures trade relationship wth DPRK

Monday, November 2nd, 2009

China has ceased publishing its balance of trade with North Korea. Since China is the DPRK’s largest trading partner, this story has significant implications for all those who study the DPRK.

According to Reuters:

China has stopped publicly issuing trade data about North Korea, veiling the potentially sensitive numbers about its wary neighbour under another category while the two countries seek improved ties.

Destination and origin statistics on China’s imports and exports for September issued on Monday gave no separate numbers for second straight month for the Democratic People’s Republic of Korea, the formal name of the North, as they have long appeared in the tables.

The trade tables for coal, crude oil, oil products and cereals issued by China’s General Administration of Customs instead used another category, “other Asia not elsewhere specified”, which for those commodities at least appeared to cover exclusively trade flows between China and the North.

Analysts and officials have used Chinese statistics to gauge otherwise opaque ties between the two communist neighbours. But North Korea has stopped appearing in the Chinese data since last month, when statistics for August also avoided mention of it.

The change may help Beijing to obscure shifts in economic flows with the North, which relies on China for most of its trade and aid.

In the build-up to North Korea’s first nuclear test in Oct. 2006, the trade data showed China cut crude oil shipments to the North in September, although it was unclear whether the stoppage was a calculated gesture or due to more prosaic problems.

An official in charge of data services at the Customs Administration told Reuters that the change would last, but would not say why. Reuters and other companies buy the data.

“We’re no longer issuing trade data about North Korea,” said the official, who declined to give her name. “We’re not allowed to issue the data anymore.”

She declined to answer further questions, referring them to another data services official.

That official, Xu Xianghui, said the data could not be released because of a “technical fault”. But Xu said it was unclear if that fault would ever be fixed.

This is a rather blunt statement by the unnamed Chinese official.  There was not even an attempt to offer a justification. The decision to cease publishing the data obviously originated at the top of the Chinese leadership and the employees at the Chinese Customs Administration were probably told to relay (exactly) the simple message delivered above.

I wonder how long the Chinese officials at the top sat around trying to think of an acceptable public justification before just giving up.  I am trying to think of one now but not having much luck.

Lets hope that his policy is eventually reversed.

UPDATE (quasi-related) from the Choson Ilbo:

When Chinese Premier Wen Jiabao’s visited Pyongyang in October, North Korea and China boasted they had opened a new era of cooperation. The two countries described their talks as “constructive” even though no palpable progress was made in the North’s nuclear issue. But according to a senior source in North Korea, one significant step was a secret agreement to restore intelligence cooperation.

No details have been disclosed, but it is presumed that this refers to cooperation between traditional intelligence agencies including North Korea’s External Liaison Department and Operational Department rather than in ferreting out and repatriating North Korean defectors. The source said the two sides put the agreement into writing to strengthen their defense against South Korea, the U.S. and Japan.

North Korea is said to have asked China to provide intelligence about North Korean defectors and anti-North Korean government activities in China, while China reportedly asked the North to cooperate on cracking down on drug trafficking and counterfeiting of dollars or yuan.

Read the full article here:
China hides North Korea trade in statistics
Reuters
Chris Buckley
10/26/2009

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North Korean workers leave the Czech Repblic…

Monday, November 2nd, 2009

According to the Choson Ilbo:

Nachod is a small village in the Czech Republic around three hours by car from the capital Prague. It is an isolated place sparsely dotted with farm houses. On the outskirts of the village is a two-story factory called Snezka that manufactures sheets for cars and travel bags. Until 2007, the factory was filled with North Korean women who had gone there to work.

The European press described the women as “21st century slaves,” being watched 24 hours a day by North Korean minders and required to wire most of their earnings back to North Korea. The Czech government eventually sent back all North Korean workers by 2007, including the 90 women who had been working for Snezka.

As orders from European automakers skyrocketed, the number of staff at Snezka rose to around 700, but it was difficult to find cheap and dependable workers in such a remote place. That was when the North Korean Embassy in the Czech Republic called to offer the services of “loyal” workers. The first handful of North Koreans who were hired proved to be excellent workers and the factory kept on hiring more. “From an employer’s perspective, they were ideal workers,” one executive recalls. “Unlike Czech or Ukrainian workers, the North Koreans never wasted time drinking coffee and chatting. They were very good with their hands too. They were extremely accurate in their sewing, as if machines had done it.”

The executive objects to the term “21st century slaves.” The North Koreans worked eight hours a day, five days a week in two shifts — 6 a.m. to 2 p.m. and 2 p.m. until 10 p.m. Weekends earned them an extra 75 percent of their daily incomes, a standard uniformly applied to both North Korean and other workers. Factory staff say the North Koreans led a dull existence. Three or four lived in a house supplied by Snezka, and they traveled in groups of five or six even when they were going for a short walk around the factory.

They rarely talked to other workers. One worker from Poland says, “I never heard them say a single word about their family, friends or hometowns.” In time, around half of the 90 North Korean workers were able to communicate in Czech, but they were still said to be “quiet.”

Here is the town of Nachod.  I have not located the factory yet.

Previous posts on this story here (first) and here (second).

Also, North Korea gets trams from the Czech Republic.

Read the full sory below:
Czech Factory Regrets Departure of N.Koreans
Choson Ilbo
10/28/2009

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Black market film prices

Monday, November 2nd, 2009

From a recent article in Time:

In recent years, bootlegged South Korean dramas have been flooding into the northern neighbor — part of a recent explosion across Asia in the popularity of South Korean TV shows and music known as the Korean Wave. On the black market in North Korea, American DVDs go for about 35¢; South Korean ones go for $3.75, because of the higher risk of execution for smuggling them in, according to two recent defectors from Pyongyang. The nation’s films and dramas have become so widespread across North Korea that the regime launched a crackdown this fall on North Korean university students, the movies’ biggest audience, and smugglers at the Chinese border, charging some with promoting the ideology of the enemy state.

It seems plausible that South Korean films are more expensive than American films due to political risk, but this cannot be the only factor.  DPRK politics aside, South Korean and American films are not perfect substitutes.  I am willing to bet that some of the price difference can be explained by the language barrier.  North Koreans can watch South Korean films and dramas without reading subtitles.  Some of the stories, characters, and motivations probably make more sense as well.

We can make apriory assumptions all day, however.  We need some data. There is a paper in here for an enterprising economics student living near Dandong.

Read the full story here:
Soap-Opera Diplomacy: North Koreans Crave Banned Videos
Geoffrey Cain
Time
10/29/2009

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