North Korean Economy Watch

North Korean Posters is a colorful and engaging book for those interested in North Korean, communist, or socialist-realism art. Portraying over 250 North Korean posters from the past fifty years, along with English and German translations, the book is the most comprehensive collection of North Korean political art of which I am aware.

Each page offers vivid images of the values and goals the regime has tried, and continues to try, to instill in its own people.  In order to help readers, particularly those who did not grow up under socialism, get a sense of the themes highlighted in communist political propaganda, the art work is grouped into categories: Constructing the People’s Paradise, Undeterred Defiance (military), Loyalty and Devotion, Defending the Revolution, and United We Stand.

This colleciton was put together by a gentleman named David Heather, who according to Forbes:

… first encountered such work […] when he met a North Korean painter exhibiting at an art fair in Harare, Zimbabwe in 2000. They kept in touch, and in 2004 Heather accepted his friend’s invitation to visit the North Korean capital, Pyongyang, and to get a tour of his atelier: the state-run Mansudae Art Studio. In truth it’s more factory than studio. The complex, says Heather, covers 30 acres and houses around 1,000 artists making paintings, posters and other artwork, including nonideological pottery. Their output is used to decorate public buildings and subways, or is given as gifts to state officials.

While some posters are reproduced as prints, most are copied up to 100 times each by hand. Rarely are two such copies identical; each qualifies as an original artwork. North Koreans, says Heather, are used to doing many tasks by hand. On public lawns, for example, he has seen people cutting grass with scissors.

“I looked around the studios and had certain ideas,” says Heather, whose previous ventures include a child care business in the U.K. that failed in the 1990s. Before leaving Pyongyang he signed a contract with the studio to find markets for its artwork outside Asia.

Starting in 2004 he began shipping hundreds of works of art to London. He rented a gallery in Pall Mall and hoisted a North Korean flag outside. In 2007 he unveiled a public exhibition of his collection–the biggest ever of North Korean art outside Korea. “I was expecting demonstrations outside, people camping out, protests.” Instead he sold–from this exhibit and from a second, smaller one at London’s Foyles bookshop–some 100 propaganda posters, 30 paintings and 5 or 6 pieces of pottery. Most buyers were American. He says he hauled in a total of $220,000 for pieces he had bought for $50,000.

A few posters in the book will be familiar to DPRK visitors, since they often appear at prominent locations.  I commissioned two paintings in Pyongyang, and they are both in this book.  A few others can be seen in travelers’ photos. If you are interested in ordering the book, click here.  To learn a little more about how North Korean art is produced, order Art Under Control in North Korea here.  If you are interested in buying authentic North Korean paintings, contact the Pyongyang Art Studio.

UPDATE: Here are some exapmles from the BBC.

Institute for Far Eastern Studies (IFES)
(NK Brief No. 08-8-5-1)
8/5/2008

The latest edition (2008, no. 2) of North Korea’s quarterly economic publication “Economic Research” urged for further regulation of public finance in order to ensure that the public finances necessary for the construction of an ‘Economically Powerful State’ are available.

The journal, which was brought into South Korea on July 29, contained an article titled, “Further Strengthening of Public Finance Regulations at the Present Time [will serve as] Important Collateral to Completely Guarantee the Capital Necessary for Socialist Economic Construction.” In the article, it stressed, “Public finance regulation is one form of state regulation through the monetary sector,” and, “Public financial security for the construction of an economically powerful state varies considerably according to how regulation and distribution functions are carried out.

North Korea has set the goal of construction of a ‘Strong and Prosperous State (Ideologically, Militarily, and Economically Powerful State) by 2012, the 100th anniversary of the birth of the country’s founder, Kim Il Sung. In light of that goal, Pyongyang has prioritized economic prosperity for this year, the 60th anniversary of the DPRK government, calling for a ‘full-scale offensive’ by all the people of the North.

“Economic Research” stresses the following three points for strengthening public finance: 1) further strengthening the coordination of the state’s guidance for economic enterprises, 2) ensuring the utility of economic enterprises, and, most importantly, 3) strictly establishing public finance regulations.

In particular, the establishment of public finance regulations was defined as, “guaranteeing efficient use of capital through the protection and endless expansion of the country’s public financial resources, as well as the complete protection of the capital necessary for state and business operations and efficient elimination of all current misappropriation.” This type of statement makes it appear as if diversion and misappropriation of North Korean finances are regular occurrences.

The journal called for strengthening of management and organization for the financial offices of public finance centers, businesses, and organizations in order to effectively enforce public finance regulations, and for the creation of auditing committees at enterprises and organizations to ensure this takes place.

UPDATE 3 (2014-12-16): A documentary has been made about the Hong family reunion. You can see it here.

UPDATE 2: I added video of the family reunion to Youtube. You can see it here. 

UPDATE 1 (2008-8-5): Herald Tribune/Joong Ang have update and photo of reunion.

In February 2007 the Joong Ang Daily reported the sad story of Renate Hong, and East German citizen who married a North Korean student at Jena University named Hong Ok-geun.  Shortly after their marriage, Mr. Hong was called back to the DPRK in 1961, and the couple eventually lost touch.

Early last year, North Korea verified that Mr. Hong was still alive in Hamhung, though remarried and with a new family.   Ms. Hong, still in Germany with two children born of the short relationship, never remarried.

The couple was finally able to exchange letters with the help of German authorities. When the first arrived from Mr. Hong, it was the first time in 44 years that Renate had heard from her husband since her last letter came back with an “address unknown” stamp in 1963.

The DPRK government initially denied requests for a reunion, but this week the couple, as well as their children, were allowed to meet in Pyongyang.  According to the Hong family and diplomatic sources in Germany, Renate Hong, 71, and her two sons arrived in Pyongyang on July 25.  This will be the first time the two sons, now 47 and 48, will see their father.

Read more here:
Joong Ang Daily
Ryu Kwon-ha
2/13/2007

North Korea allows a separated couple to reunite after 47 years
Joong Ang Daily
Ryu Kwon-Ha and Ser Myo-ja
8/5/2008

German travels to NKorea to reunite with husband
Associated Press(Via Huffington Post)
8/5/2008

NKeconWatch blogged earlier about the US-based organizations permitted to enter the DPRK and distribute US humanitarian relief.  A list of those organizations can be found here.

Number three on the list, Samaritan’s Purse, is headed by “US religionist” Franklin Graham, son of Rev. Billy Graham, who just arrived in Pyongyang for a 4-day humanitarian relief tour.  Franklin visited the DPRK once before, in 2000 according to KCNA, and met with Kang Yong Sop, chairman of the central committee of the Korean Christian Federation, Paek Nam Sun, Minister of Foreign Affairs, Kim Kye Gwan, vice-Minister of Foreign Affairs, and Kim Yong Dae, vice-president of the presidium of the Supreme People’s Assembly, and delivered a sermon at Pyongyang’s Pongsu Protestant Church. 

Since Franklin’s mother spent 1934 living in Pyongyang, the family seems to have taken a special interest in the DPRK.  In addition to the relief they are distributing now, Samaritan’s Purse chartered a 747 cargo jet from Charlotte to deliver $8.3 million in medicine and other emergency supplies in August of 2007. It was the first private flight directly from the U.S. to North Korea since the Korean War.

Graham’s organization has been posting information on his trip here and here.  Greta Van Sustern has been posting video here: hospital visit (the most informative), monument 1, monument 2, Grand People’s Study House, Mass Games (most inaccurate), Mr. Graham’s work, taking off from Sunan Airport (interesting), Franklin Graham video 1, Video 2, and interview transcript.

Read more here:
Evangelist Franklin Graham to preach in North Korea
McClatchy Newspapers
Tim Funk
7/31/2008

Daily NK
Lee Sung Jin
7/31/2008

As the circulation of the Chinese Yuan in the North Korean markets increases, it is suggested that the value of the North Korean won will continue to fall.

A source from North Korea said in a phone conversation with the Daily NK on the 29th, “In the jangmadang nowadays, there is nothing one cannot buy with Chinese currency. There is no longer even the need to convert into our own money (the North Korean won).”

The source added, “In Chosun (North Korea) nowadays, one can buy a kilogram of rice anywhere for 5 Yuan. Merchants, in particular, like the Chinese currency.”

According to the source, direct transactions in the PRC’s currency began in the fall of last year. In a significant part of the border regions (in North Hamkyung, Yangkang, Jagang Provinces, and Shinuiju) 50 and 100 Yuan notes began to circulate, usually in residential deals and in the sales of furniture and electronic goods.

However, since the first half of this year, with the rapid rise in general food prices in the country, the source elaborated that 5, 10, and 20 Yuan notes began to appear in the purchase of daily necessities in public markets.

According to the Daily NK’s research, the exchange rate for one Yuan in North Korea at the end of June was 435 won in Pyongyang, 440 won in Wonsan, 435 won in Shinuiju, 430 won in Hamheung, 450 won in Hoiryeong, and 445 won in Chongjin. When compared to the Daily NK’s research last December, it can be seen that the value of the North Korean won has declined 5 to 20 won in each region.

The source added, “In Hoiryeong, and other border cities, the price of a kilogram of rice being equivalent to 5 Yuan is engrained in the people’s minds.”

He explained, “Among ordinary citizens, the fact that a yardstick for the price of food is changing to the Yuan symbolizes “disobedience” towards our (North Korean) currency. With the devaluing of the North Korean currency, people are flocking to the dollar or to the Yuan.”

Additionally, the source noted, “Average citizens do not know the market exchange rate of the Yuan, which is constantly changing, so the merchants believe that they can gain from dealing in the Yuan.”

He explained, “Until now, only money changers in the border region had Chinese money and in major cities of the southern provinces, the merchants usually dealt in the dollar or in the euro. However, nowadays, with those in the southern regions trading frequently with China, the Yuan is often exchanged for the dollar in the border area.”

One source in Yangkang Province said in a phone conversation with the Daily NK on the 28th, “Smugglers have also played a big role in the growth of Yuan exchange. These days, people in their 20s carry several tens of Yuan to gain acceptance.”

The source explained, “It is a trend among the wives of officials to deal in the Yuan in the jangmadang even when they have North Korean currency. Using Chinese money is seen as a symbol of a person’s wealth and power.”

He added, “People in the border region try not to carry around North Korean money if they can. Even until just a few years ago, only the rich had access to the Yuan, but these days everyone is trying to get a hold of the Chinese currency.”

Finally, the source predicted, “As long as the state fails to resume normal food distribution and the state-operated stores do not sell products, the Yuan will soon take over as the standard currency for all transactions.”

I received a Koryo Tours email update this morning about the status of future Mass Games performances:

We have just been told by our partners in the DPRK that there is a chance there will be no mass games next year – possibly not even until 2012 which is the next big anniversary (Juche 100 – the 100^th birthday of Kim Il Sung!!!). For Americans this year’s mass games may be the last opportunity to visit the country.

Nothing has been set in stone but we wanted to give you all pre-warning. This year there are 2 different performances – ARIRANG and PROSPER THE MOTHERLAND! – the latter has never been seen before so it really is a once-in-a-lifetime opportunity.

Historically the Mass Games are performed on special anniversary holidays (those in years divisible by 5 or 10).  Since 2005 (60th anniversary of victory over Japanese imperialism) they have been held annually.  This change could mark a return to the original schedule.

You can subscribe to the Koryo Tours email list here.

According to previous reports, Beijing’s border control policies have stiffened up in preparation for the 2008 Olympics.  The Daily NK reports these policies are adversely affecting North Koreans visiting family and conducting business in Jilin.

The Daily NK claims that North Koreans pay appx. US$400-500 in bribes and processing fees to obtain a passport, exit visa, and Chinese entrance visa. (The article does not explain how these prices break down, although it would be interesting to know how much Beijing charges North Koreans for various visas.)  China typically issues North Koreans family visit visas which are valid for three months, but if a North Korean visitor can secure a residence and employment, this can be easily extended for up to a year.  As a result, many North Koreans stay with family for the full year and try to earn some money to take home.

Because of the Olympics, Beijing is now apparently rejecting all family visit visa extensions and stepping up patrols for illegal “visitors.”  This means the North Koreans who paid hefty sums to be in China have to go underground if they wish to stay in the PRC.  They will also face additional hardship in recovering “travel costs.”  Additionally, many North Koreans who are married to Chinese face greater chances of being deported.

Interestingly, this policy was not ordered by local organizations but by the Jilin Provincial Communist Party.

Read the full article here:
China Rounds Up Defectors in Preparation for the Olympics
Daily NK
Lee Sung Jin
7/26/2008

UPDATE 4: Circus gets coverage in Dutch media.  Story here.  You Tube video of the circus performing in Pyongyang here.

UPDATE 3: Video report of the performance in the Netherlands here. (hat tip to NOS)

UPDATE 2: Werner found out the information for Germany:

In Frankfurt / Germany they will perform from 4th to 28th Sept.

For place, time and tickets please look at:
http://www.ticketcenter.de/Sonstiges/The-Great-Flying-Circus-Nordkorea/Tournee-03248.html

UPDATE 1: Thanks to a reader for finding the information and posting in the comments:

It appears they are going to perform in Amsterdam’s Koninklijk Theater Carré from 08/01/2008 to 08/31/2008. Tickets can be ordered at this URL: http://wereldzomerfestival.theatercarre.nl/actiesite.php. 

ORIGINAL POST: According to Yonhap, the Pyongyang Circus Troupe will be touring Germany and the Netherlands for the next three months, showing off their 10 signature stunts.

From the article:

Formed over 50 years ago, the troupe is one of North Korea’s foremost cultural groups, making a visit to South Korea in 2000 on the eve of the first inter-Korean summit in Pyongyang.

“This is the first time the troupe is giving a solo performance in Europe,” the paper said, adding the tour will help improve relations between North Korea and European nations.

I imagine this is the circus that performs on Kawngbok street in Pyongyang.  There is a second “Korean People’s Army Circus” in Moranbong district.

I do not know where they will be performing, or where to get tickets, so if anyone out there can find out, please let me know.

Read the full article here:
N. Korean circus troupe to tour Europe: report
Yonhap
7/26/2008

Koryo Tours has tremendous access to the DPRK and they are pursuing several interesting projects.  Check out their newsletter here.  Of special note, there will be two different mass games performances this summer/autumn.  From the newsletter:

As before the big news though in terms of tourism in DPRK is the Mass Games event – this year for the first time two different performances have been arranged with the classic Arirang show being performed on Mon, Wed, Fri and Sat, and the brand new, not-yet-seen (even by the critics!) Prosper the Motherland! taking place on Tuesdays and Thursdays. Both of these shows feature the full complement of 100,000 performers in the May Day Stadium and both will run to approx 90 minutes offering anyone who s there the chance to witness what is simply the greatest show on Earth, some information on the events can be found here. The Olympics will pale in comparison… a double dose of Mass Games will undoubtedly be vastly superior to the sight of amateur athletes running around in circles and throwing things!

Also, Nick Bonner is producing a new (non-documentary) film in North Korea. The plot, according to the newsletter:

Comrade Kim goes Flying – we are in development with our new romantic comedy feature film…to be filmed in Pyongyang with Korean cast and crew….more about this later – but a coal miner dreams of flying on the trapeze until she is thwarted by the strong man….

UPDATE: Here is an interview with KT’s Simon Cockerell on Interview Blog.

Institute for Far East Studies (IFES)
NK Brief No. 08-7-22-1
7/22/2008

On July 18, the North Korean Cabinet publication, “Democratic Choson’, revealed that the cabinet had recently adopted the ‘Border Bridge Trade Complex Management Activities Provision’.

According to the newspaper, the provision spells out to whom the rules and regulations must be applied regarding the orders and management activities of the border bridge trade complex. In addition, “by being adopted, the provision firmly creates regulations on foreign economic activities that cross over border bridges and has prepared the legal support for unceasing improvements of the border bridge trade complex’s management activities.”

North Korea relies on border trade with Chinese areas such as the city of Dandong, in Liaoning Province, and the Yanbian Korean Autonomous Prefecture, as cross-border trade shot up to over 200 million USD last year.