Archive for the ‘China’ Category

Sen. Lugar releases CRS report on DPRK sanctions

Monday, October 25th, 2010

According to Senator Lugar’s web page:

On October 22, 2010, Senator Lugar, U.S. Senate Foreign Relations Committee Ranking Member, released a Congressional Research Service (CRS) report on implementation of sanctions for North Korea.

Following renewed interest in sanctions against North Korea in the wake of the sinking of South Korea’s Cheonan ship, which killed 46 individuals, Lugar asked the CRS to evaluate the implementation of the U.N. sanctions already in place.

You can read Sen. Lugar’s original request for the report here. (PDF)

The CRS report he received can be found here. (PDF)

I have added this report to my growing collection of DPRK-focused CRS reports found here.

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Food security and aid

Sunday, October 24th, 2010

According to the APF:

North Korea is heading for a “chronic” new food crisis with drought and floods in different parts of the country exacerbated by cuts in international aid, the United Nations said.

UN Secretary General Ban Ki-moon expressed concern “that the acute humanitarian needs” of at least 3.5 million women and children in North Korea would worsen because of food shortages.

Even though North Korea is considered by many to be the world’s most isolated state, Ban said in a report to be discussed Friday that “the global economic crisis is further increasing the levels of hardship” adding to the “chronic food insecurity”.

South Korea on Friday said it had no immediate plan to resume large-scale food aid to North Korea despite the UN warning on the food crisis.

“The government stance is that in order for the massive government food aid to be resumed, overall inter-Korean relations must be taken into account,” Unification Ministry spokeswoman Lee Jong-Joo told AFP.

She stressed, however, that Seoul allows smaller-scale “humanitarian aid” to the North, including 5,000 tonnes of rice and other aid supplies currently being shipped victims of floods that devastated northwestern North Korea in August.

There has been a shortage of rainfall in some parts of the country but in August torrential downpours caused floods in the north, near the Chinese border.

The UN predicted that the cereal yield would be nearly a fifth lower than in 2009.

It said the country needs 3.5 million tons of cereals a year to feed its population and would have to import 1.1 million tons. In addition, UN agencies had raised only 20 percent of the 492 million dollars they estimated in 2009 would be needed for the North.

Ban quoted the UN Children’s Fund (UNICEF) as saying that each year, some 40,000 children under five become “acutely malnourished” in North Korea, with 25,000 needing hospital treatment.

“The lack of maintenance of water and sanitation systems increases rates of diarrhoea and acute respiratory infections, which are leading causes of child death.

“In addition, one third of women of childbearing age suffer from anaemia, a nutrition deficiency that is also a major cause of maternal mortality.”

The poor diet across the country leads to widespread “infectious diseases, physical and mental development disorders, poor labour productivity and an increased risk of premature death,” said the grim report.

A survey carried out by the government with UN support showed that about one third of the population suffer from stunting — below normal body growth. In some regions the figure was 45 percent.

The report was intended to be on human rights in North Korea and the UN chief said there was an “urgent need” for Kim Jong-Il’s regime to take steps to provide the basic right to food, water, sanitation and health.

The UN reported little change in the “comprehensive restrictions” on freedom of speech, religion and opinion in the tightly policed state. “The government’s control over the flow of information is strict and pervasive.”

Ban highlighted the difficulty in getting reliable information on events in the North.

But he said: “There are a number of reports concerning public executions, the use of torture, forced labour and the ill-treatment of refugees or asylum-seekers repatriated from abroad.”

His report said North Korea’s UN delegation had acknowledged that public executions were carried out for “very brutal violent crimes.”

It added that the UN envoy on rights in North Korea had raised concerns with the North’s mission about conditions in six prisons and detention centers reportedly used for political prisoners.

With the North embroiled in a dispute with South Korea over the sinking of a warship and in a nuclear arms standoff with the international community, Ban said humanitarian aid should not be restricted “on the basis of political and security concerns.”

Though unrelated to the UN findings, South Korea is shipping 5,000 tons of rice to the DPRK today. According to Yonhap:

The Red Cross aid, which is aimed at helping the North cope with the aftermath of floods, marks South Korea’s first government-funded provision of rice to the North since President Lee Myung-bak took office in early 2008 on a pledge to link aid to progress in efforts to end Pyongyang’s nuclear programs.

Seoul also plans to send a shipment of 10,000 tons of cement to the North later this week.

A total of 13.9 billion won (US$12.3 million) came from the government coffers to finance the flood aid.

Also Monday, three Red Cross officials prepared to fly to the Chinese city to receive the rice and instant noodles there and transport the relief supplies by truck to the flood-hit North Korean border city of Sinuiju, according to officials from the Red Cross and the Unification Ministry.

The cargo ships are expected to arrive in Dandong around Wednesday.

Rice will be delivered in five-kilogram packages, and each package is marked with “Donation from the Republic of Korea,” South Korea’s official name.

In August, South Korea first offered to provide relief aid to the North after devastating floods hit the communist nation. North Korea later asked for rice, heavy construction equipment and materials.

Stories about South Korean aid in 2010 can be found here.

China has also pledged food assistance. According to KBS:

A Japanese daily says China pledged 500-thousand tons of rice aid to North Korea during Kim Jong-il’s visit to China in August.

The New York Times raises the concern that food aid may be diverted.  According to the article:

Rice, a staple of the diets in both Koreas, is also a highly symbolic item in terms of food aid throughout Asia. The 5,000 tons of rice in the shipment on Monday can feed about 325,000 people for a month, according to Red Cross estimates.

Some analysts and aid workers expressed concern that the rice would likely be diverted to political elites, loyal party members and the military rather than delivered to the neediest in the North. That has been the pattern, they said, of previous government aid deliveries.

“I’m not unhappy about food going up, but I fear that this kind of government-to-government distribution to Pyongyang will be carried out along loyalty lines,” said Tim Peters, founder of the civic group Helping Hands Korea. “Distribution through small NGOs that are more strategically placed and can get the food into the interior and places like remote mining towns, that is the more intelligent strategy.”

Mr. Peters said his group, which primarily assists North Korean refugees, has received numerous reports from defectors from what he called “the Siberia of North Korea” that residents in the hinterlands “never see any of this kind of food aid.”

Five weeks ago, a truck convoy delivered 203 tons of rice to North Korea, the first rice donations of any kind from the South in nearly three years. That nongovernmental assistance, which was donated by charity groups and opposition political parties, came one day after a shipment of 530 tons of flour was sent by a South Korean provincial government and civic groups.

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KWP reps visit Chinese counterparts

Thursday, October 21st, 2010

According to the Choson Ilbo:

The senior secretaries of all North Korea’s 11 metropolitan and provincial party committees paid a rare collective visit to a senior member of the Communist Party of China in Beijing on Tuesday.

The North Korean delegation led by Mun Kyong-dok, the senior secretary of the Pyongyang municipal party committee, met with Zhou Yongkang, a member of the Politburo Standing Committee who ranks ninth in the hierarchy, to discuss economic cooperation.

Zhou was quoted by the official Xinhua news agency as saying it was “the first time” in the history of bilateral relations that senior secretaries of the Workers Party’s metropolitan and provincial committees have visited China as a group. “I wish that you will expand exchange with various Chinese regions you’re visiting and achieve success from your tours.”

The North Koreans also met with their Chinese counterparts to discuss investment in development projects in the North. The Chinese officials were in Beijing to attend the fifth plenary session of the 17th Communist Party Central Committee.

A South Korean government official said, “The North Korean officials’ visit to Beijing is equivalent to all 16 South Korean metropolitan mayors and provincial governors flying to Washington as a group to discuss exchange and cooperation with ruling-party lawmakers and state governors in the U.S.” He said since Kim Jong-il’s son Jong-un was established as the official successor to the leadership, the North and China have increased the frequency of personnel exchanges “to discuss more substantive matters than before.”

The profiles of the Chinese delegation that attended the 65th anniversary celebrations of the North Korean Workers Party were also exceptional. It included senior officials of the three Chinese northeastern provinces — Sun Zhengcai, the secretary of the Jilin provincial party committee, Chen Xi, the deputy secretary of the Liaoning provincial party committee, and Du Yuxin, the deputy secretary of the Heilongjiang provincial party committee.

They were welcomed at Sunan Airport by Ju Yong-sik, the senior secretary of the party committee in Jagang Province, a border region. The senior secretaries of the party committees in all four North Korean provinces bordering China — Ju from Jagang Province, Ri Man-gon from North Pyongan Province, O Su-yong from North Hamgyong Province and Kim Hi-taek from Yanggang Province — attended a dinner that evening in honor of the Chinese delegation.

“There have recently been more signs of the North and China deepening and developing economic cooperation, including various development projects focusing on the border areas,” a Unification Ministry official said. “It seems that after the North’s Workers Party and the Chinese Communist Party finished talks at headquarters level, their provincial party committees have now begun concrete cooperation.”

Military exchanges are also increasing ahead of the 60th anniversary of the day the Chinese joined the Korean War on Oct. 25.

The official North Korean Central Broadcasting Station on Tuesday reported a delegation of Chinese People’s Volunteer Veterans led by Wang Hai, a former Air Force commander, and the People’s Liberation Army’s art troupe arrived in Pyongyang for the anniversary.

O Kuk-ryol, vice chairman of the National Defense Commission, and Pak Jae-kyong, vice minister of People’s Armed Forces, hosted a reception for them.

On Oct. 14, a North Korean Army delegation led by Pyon In-son, another vice minister of People’s Armed Forces, visited China, to tour PLA units. Quoting the North’s official Rodong Sinmun daily, Xinhua said, “Friendship bonded by blood in the previous generations is being handed down to the next generation.”

A South Korean security official said, “The North is apparently trying to counter the South Korea-U.S. military alliance, which has been strengthened since the sinking of the Navy corvette Cheonan in March, by intensifying military ties with China, as well as attempting to escape international economic isolation by leaning on China.”

Mike has more at NK Leadership Watch.

Read the full story here:
N.Korea, China Grow Ever Closer
Choson Ilbo
10/21/2010

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Report: DPRK-PRC tax-free market opens in Tumen

Wednesday, October 20th, 2010

Low-resolution satellite image of the Tumen-Namyang border.

UPDATE: Here is the original story in Asahi:

Goods from North Korea are being traded freely in a thriving market that opened last week in a Chinese city near the border with the reclusive state, according to sources from the region.

Marine products–frozen squid is a specialty–are prominently displayed, the sources said.

The market in Tumen, Jilin province, opened on Oct. 13. It appears to be the latest development in growing economic exchanges between Beijing and Pyongyang following a visit to China by North Korean leader Kim Jong Il in August and moves to secure a smooth transition of power to his third son, Kim Jong Un, the sources said.

Earlier this month, it was learned that Tumen is preparing to accept an influx of cheap labor from North Korea.

The market, which has a total space of about 10,000 square meters, is located on the banks of the Tumenjiang (Tumengang in Korean) river, which serves as the common border between the two countries.

Currently, the market is open twice a week, but there are plans for it to become a daily feature in the near future, the sources said.

According to the sources, Chinese residents in Tumen, which is located inside the Yanbian Korean Autonomous Prefecture within Jilin province, can obtain travel permits to North Korea by presenting identification.

With entry permits in hand, the Chinese are able to cross the river to Namyang, where they are allowed to buy products at designated areas, provided they return to China the same day.

Purchases worth up to 8,000 yuan (about 96,000 yen, or $1180) are treated as duty-free and can be sold at the Tumen market.

The sources said about 150 people showed up at the market on Oct. 13, including merchants as well as ordinary citizens.

North Korean marine products, whose prices are considerably cheaper than Chinese products, dominated the goods on display.

A Tumen city official declined to provide details on the market, saying “it is still in the experimental stage.”

But sources suggest that the market is part of efforts to enhance commerce in northeastern China, which has trailed in economic development compared with coastal regions in the rest of the country.

The market also provides a crucial means for North Korea to earn hard currency by freely selling goods in China.

The idea of setting up such a market is not entirely new. In 2005, the Jilin provincial government authorized the opening of a market as a means to revitalize the border region. However, the project had to be shelved after an international uproar over an underground nuclear test conducted by North Korea.

The plan resurfaced after the region encompassing the Tumenjiang river district and the cities of Jilin and Changchun was designated in 2009 as a development and deregulation promotion zone, the first such national-level development project for a border region.

Jilin province has since taken strident measures to encourage exchanges with North Korea with which it shares a sprawling border.

Sun Zhengcai, a top Chinese Communist Party official from Jilin province, joined a delegation of party officials to North Korea this month on the occasion of the 65th anniversary of the founding of the Workers’ Party of Korea, and is believed to have engaged in talks with the North Korean side on boosting commerce.

The opening of the market follows reports that North Korean laborers may soon be able to work in Chinese factories in Tumen legally, and that Chinese businesses have acquired rights to use and develop wharf facilities at the ports of Rajin and Chongjin in northern North Korea.

Chinese businesses are also reportedly moving toward participating in the construction of infrastructure such as railways and roads to access the ports.

ORIGINAL POST: According to KBS:

A Japanese daily says a “free market” operated by North Korean and Chinese citizens has opened near the Tumen River, which flows between China and North Korea.

The Asahi Shimbun said Wednesday that the market was established in the city of Tumen in China’s Jilin Province a week ago.

The paper said the ten-thousand-square-meter market allows Chinese people to buy up to eight-thousand yuan worth of North Korean goods tax-free each day for resell in China.

The paper said that on the day the market opened last Wednesday, some 150 Chinese purchased tax-exempt frozen squid from North Koreans at the market for resell.

The Asahi said North Korea and China are apparently expanding bilateral economic exchanges following North Korean leader Kim Jong-il’s visit to China in August, citing Chinese firms’ recent move to employ North Korean workers.

Unfortunately high-resolution satellite imagery of the area is not yet available on Google Earth, but we do know that Namyang contains 1 of 4 railway links the DPRK maintains to China and 1 of 8 ground transportation crossings.  Besides Sinuiju, it is the only other DPRK border crossing with both rail and automobile bridges.

Read the full story here:
Market for North Korean goods opens in Chinese border city
Asahi
Daisuke Nishimura
10/21/2010

Asahi: NK-China Tax-Free Market Opens in Tumen City
KBS
10/20/2010

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Future Sinuiju development affecting Dandong today

Tuesday, October 19th, 2010

According to the Daily NK:

In Dandong, the number of people studying the Chosun language (Korean) is increasing, while real estate prices are rising on the back of rumors that Shinuiju, just across the North Korean border, will soon be opened up to trade and investment.

One anonymous Korean-Chinese trader who already engages in business with North Korea in the area told The Daily NK on the 15th, “The rumor among Chinese traders who have recently been in North Korea has it that ‘The North Korea authorities will open Shinuiju sooner or later.’”

As a result, he said, “There is currently an upsurge in the price of apartments and shops in Dandong, while the number of people wanting to learn the Chosun language is increasing.”

The trader explained that for the last three or four years the real estate market in Dandong has been flat. However, with reports of Kim Jong Eun’s internal appointment as the successor spreading earlier this year, the price of Hanquosheng, Dongfang Minzhu, Taiyang Dasha and other luxury apartments has increased by more than ten percent over the course of the summer.

The source pointed in particular to the fact that the price of apartments under construction in the Langtou Port area has gone from 2,000 Yuan/m² (approximately $300) in May to 3,200 Yuan/m² (approximately $480) in October. The neighborhood has particularly bright prospects as it is the location for the planned Second Yalu River Bridge under an agreement made during the visit to Pyongyang of Chinese Premier Wen Jiabao in 2009.

The Daily NK’s Korean-Chinese source explained that those primarily responsible for fuelling the real estate gains are Korean-Chinese from the Northeastern provinces of China.

He reported, “Since Dandong has geographical advantages, being cool in summer and warm in winter, as well as being able to provide for North Korea’s development of Shinuiju, the city has emerged as the best investment location for Korean-Chinese people.”

“The expectation that Kim Jong Eun is still young and has experience of life in Switzerland; therefore he knows well the need to develop the country and will have no choice but to make that decision, is driving the investment by Korean-Chinese,” the source added.

Naturally, the presumption that Shinuiju will soon offer some new opportunities for business is producing a new trend for learning the North Korean language.

Wang, a 21 year-old student from a university in Dandong said, “Chinese students know that South Korean is different from Chosun,” and went on, “Until now, South Korean has been all the rage thanks to Hallyu (as the South Korean cultural influence in wider Asia is known), but recently the number of students wanting to learn Chosun has been drastically increasing.”

There are presumed to be roughly 3,000-4,000 North Koreans residing in Dandong, including students. Some of them exchange languages with Chinese students, while some others give private classes for between five and ten Yuan an hour.

Alongside which, private Korean language institutes in Dandong are enjoying increased demand.

One South Korean who manages a Korean language institute in Dandong told The Daily NK, “In the case of Korean language institutes in downtown Dandong, each class has seen an increase of four or five students for this fall semester. Alongside Hallyu, the expectation that Shinuiju will open up has meant that the number of Chinese young people wanting to learn Korean is steadily increasing.”

Read the full story here:
Shinuiju Development Making Waves in Dandong
Daily NK
Park In Ho
10/18/2010

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More North Korean workers in Jilin, Liaoning

Monday, October 18th, 2010

According to KBS:

The Yomiuri Shimbun says China’s Jilin Province will hire 100 North Koreans this month to work at a plastic manufacturing plant in Tumen City. The report says their wages will be less than half of what Chinese workers are paid.

Japan’s Asahi Shimbun says China’s introduction of North Korean labor is picking up speed. It says that nearby Dandong City in Liaoning Province has also begun the process of bringing in one-thousand North Korean workers.

Read the full story here:
China Border Cities Hiring NK Workers
KBS
10/18/2010

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Lankov on the DPRK’s nuclear history

Sunday, October 10th, 2010

According to the Korea Times:

In Oct. 2006, a nuclear test was conducted in the remote mountainous area of North Hamgyeong Province, North Korea. This test did not come completely out of the blue. The North Korean government issued an official warning, thus becoming the first nation in history that gave prior notification about a coming nuclear weapons test. This openness might sound strange since we are talking about the world’s most secretive country, but it agrees well with the general character of the North Korean nuclear program. From its inception, the program was largely (but not exclusively) for show, it was aimed at impressing the outside world in order to manipulate it and get what the North Korean leaders wanted to get.

Even though North Korea joined the nuclear club only recently, its nuclear program has long history. It has remained the center of international attention since around 1990, but it began much earlier.

It was the mid-1950s when the first North Korean scientists arrived to work and study in the Joint Institute of Nuclear Research in the Soviet city of Dubna, not far from Moscow. This institution was created by the USSR or former Soviet Union for joint international research in nuclear physics, and until the early 1990s some 250 North Korean scientists underwent training there. Soon afterwards, in 1959 the former Soviet Union and North Korea signed their first agreement on cooperation in nuclear research. A similar agreement was concluded with China as well (Pyongyang never puts all its eggs in one basket!).

In the 1960s, the North Korean version of Los Alamos began to take shape. This role was assigned to the city of Yongbyon, a rather small town, located some 90 kilometers to the north of Pyongyang. It is interesting that, for reasons of greater secrecy, the nuclear research facility was called the “Yongbyon furniture factory.” The major article of infrastructure of this “furniture factory” was not a saw-mill but rather a small Soviet-designed research reactor, completed in 1965. In the 1970s, the North Korean scientists independently modernized the reactor, increasing its output.

There are few doubts that from the very early stages Pyongyang leaders seriously considered the possible military applications of their nuclear research program. But it seems that the North Korean nuclear program made a decisive turn towards military applications in the 1970s. At that time, South Korea was working hard to develop nuclear weapons of its own. For the North, which has always had good intelligence about its arch-enemy, these intentions was hardly a secret, so it seems that around 1975 the North Korean political leaders decided not to lag behind and sped up their own nuclear program.

However, the major obstacle on the path to the acquisition of nuclear weapons was the position of the former Soviet Union. Moscow took non-proliferation seriously, and did everything to control Pyongyang’s nuclear ambitions (incidentally, Washington treated Seoul’s nuclear plans in much the same manner). China also did not want a nuclear power across its border, so the usual North Korean strategy of playing Beijing against Moscow would not work in this case.

The Soviets made their continuing cooperation conditional on full-scale participation in the non-proliferation regime. In exchange for compliance, North Korea was promised technical assistance in building a nuclear power station of its own. Such a station was indeed a good option for a country which heavily depended on imported oil for power generation. Thus, Pyongyang bowed to the Soviet pressure complied and in 1985 signed the Non-Proliferation Treaty while secretly continuing with its nuclear weapons development efforts.

But soon the world changed. The communist bloc that both controlled Pyongyang’s nuclear ambitions and provided it with aid, collapsed around 1990. The foreign aid almost disappeared, and Pyongyang had to survive somehow in an increasingly hostile world.

The North Korean leaders came to a conclusion that in their peculiar situation the Chinese style policy of reforms would be too risky. Indeed, in a divided country, with South doing so much better than the North, attempted reforms were likely to produce German-style collapse, not Chinese-style economic boom. So, in order to keep their power and privileges the North Korean leaders had to avoid any changes in the system. It was a rational choice for them, even though this policy choice condemned hundreds of thousands to death by starvation and completely ruined the already weak economy.

Since the country was stuck with a remarkably inefficient economic system, it could not feed itself, so it badly needed foreign aid ― a lot of it. But the ruling elite, the few hundred families around the Kim’s hereditary dictatorship, also knew that the aid should come without too many conditions attached and, above all, with as little monitoring as possible. They needed food, above all, to feed the privileged and politically significant regions and social groups, leaving others to their sorry fate. Since a riot in the capital would be deadly dangerous for the regime, Pyongyang should be given some food. The police and elite military units should eat well, too, since their loyalty was vital for the stability of the regime. At the same time, the survival of, say, miners at some distant mining town was never a high priority for Pyongyang decision makers.

However, getting large-scale aid without many conditions would be a difficult, almost impossible task had not Pyongyang had in its disposal the already well advanced military nuclear program. From around 1990, the program became the major diplomatic tool which was used with the greatest skill in order to insure the continuous influx of foreign aid.

This is not to say that the nuclear program had no military significance whatsoever ― Pyongyang had some reasons to be afraid of a foreign attack. Pyongyang leaders were correct when they say privately that Hussein would probably still be living in his palace, if Iraq indeed had nuclear weapons. Nonetheless, from the early 1990s the major rationale behind the program has been not military deterrence, but rather diplomatic blackmail.

From around 1990, Pyongyang began to arrange leaks about its nuclear weapons program, while officially denying its existence. It threatened to withdrew from the non-proliferation treaty, and its officials promised to transform Seoul into a “sea of fire” if their demands would not be met.

The strategy worked. In 1994 the strangely named “Agreed Framework” treaty was signed in Geneva. An international consortium where the U.S. and South Korea were major donors, agreed to provide North Korea with light water reactors for power generation (those reactors cannot be used for production of weapon-grade plutonium) and also promised regular shipments of fuel oil. In exchange, North Korea promised to freeze its military nuclear program and accept international inspections of its nuclear facilities. It is widely believed that the U.S. negotiators were ready to give generous concessions because at that time they assumed that the North Korean regime would collapse soon. They were wrong: to the surprise of foreign observers, Kim Jong-il managed to stay in control of his starving country.

The indirect impact of the nuclear program was great as well. In the late 1990s and early 2000s, North Korea got what it needed: a lot of foreign aid without too many monitors. One can doubt whether the amount of aid would have been so large, had North Korean not been seen as a potentially nuclear country.

The so-called “second nuclear crisis” erupted in 2002 when it was discovered that North Koreans were cheating: they were secretly pursuing a uranium enrichment program. This was used as a pretext to the discontinuation of aid. After few years of unsuccessful negotiations, the North Korean diplomats decided to raise the stakes, and in October 2006 the first nuclear test was conducted. It worked: in merely few months, the U.S. agreed to make important concessions and aid was resumed. A new hike in tensions produced a new nuclear test in 2009.

So, by now the nuclear crisis has continued for two decades, and it seems that it might easily continue 25 years. The North Korean government understands that a nuclear weapon is their major diplomatic card, and they are unlikely to surrender it under any circumstances. The outside world is disunited and, frankly, lacks any means to influence Pyongyang. So, we are quite likely to see more nuclear tests (largely successful) and more nuclear negotiations (largely unsuccessful) in the years or even decades to come.

Satellite imagery recently revealed new construction at the Yongbyon facility.

Read the full story here:
North Korea conducted first nuclear test in 2006
Korea Times
Andrei Lankov
10/10/10

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Inter-Korean trade up 51.3% in first half of 2010

Wednesday, October 6th, 2010

Institute for Far East Studies (IFES)
NK Brief No. 10-10-4-1
10/4/2010

Trade between the two Koreas in the first half of 2010 totaled 980 million USD, 51.3 percent more than the 650 million dollars-worth of trade last year. North Korea’s trade with China was also up, by 16.4 percent, to 1.28 billion USD. Kim Jong Il has made two trips to China and the North has taken other steps to boost cross-border trade with the Chinese.

According to a recent report comparing inter-Korean trade to that between North Korea and China, North-South trade in 2007 equaled 91 percent of Pyongyang’s trade with Beijing, but as inter-Korean relations chilled, that number fell to 65 percent in 2008. This year, that number climbed back up to 77 percent, largely because the Kaesong Industrial Complex, which has avoided political entanglement, has grown 96 percent since last year. Textiles and home electronics top the list of goods in inter-Korean trade, while minerals are the top item traded across the DPRK-PRC border.

North Korea’s import of South Korean goods increased by 63 percent to 430 million USD, while the North’s Chinese imports rose a mere 25 percent, but still totaled 930 million USD. 36 percent of South Korean exports to the North are raw materials for North Korean textile production, while 120 million USD-worth of electronics make up the second-largest export industry. Making up the largest sector, 27 percent (250 million USD) of North Korea’s imports from China are made up of minerals and crude oil, while textiles make up 12 percent and base metal resources make up 8 percent. South Korean imports have also grown 43 percent, to 550 million USD, since last year. In comparison, Chinese imports from North Korea shrunk one percent to 340 million USD. Clothing and other ready-for-market textiles made up 44 percent of North Korean exports to the South, while electrical and electronic goods made up 17 percent. Coal, iron, and other key resources made up 51 percent of DPRK exports to China, while zinc and other base metals make up approximately 20 percent.

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Power Restructuring in North Korea

Tuesday, October 5th, 2010

Ruediger Frank writes in 38 North:

“Finally,” one is tempted to say. The years of speculation and half-baked news from dubious sources are over. The leadership issue in North Korea has been officially resolved. Or has it?

The third delegate’s meeting[1] of the Worker’s Party of Korea (WPK) on September 28, 2010 answered a few questions. Still, it left some unanswered and posed quite a few new ones as well. In the end, Kim Jong Il emerged the undisputed leader. But has his legitimacy become more independent of his father than it used to be? Kim Jong Un has been introduced to the people. Does this mean he is going to succeed Kim Jong Il? Or will he succeed Kim Il Sung? Kim Jong Il’s sister Kim Kyong Hui has been promoted to the rank of general and is part of the party leadership. Is she supposed to support her nephew, or is this part of a strategy to more broadly enhance the family’s power? Her husband Jang Song Thaek is also on board. Will he share the caretaking job with his wife? Are there any other members of the extended Kim family on the team?

The Hard Facts

(1) On Monday, September 27, 2010, Kim Jong Un was mentioned for the first time in official North Korean media when he was promoted to the rank of general. Now, at last, we know for sure how to write his name (we use the official North Korean version for English; it would be Kim Jong-ùn according to McCune/Reischauer).

(2) On the same day, Kim Jong Il’s sister was promoted to the same military rank as her nephew.

(3) On September 28, 2010, one day later, the first delegate’s meeting of the WPK in 44 years and the biggest gathering since the last (Sixth) Party congress in 1980 opened after a mysterious delay. It had originally been announced for “early September.”

(4) Contrary to western media speculation, Kim Jong Il did not step down nor did he hand over any of his powers to his son. Rather, he was confirmed as the current leader of the party, the military, and the country.

(5) From 1945 until 1980, the WPK held six Party Congresses and two conferences or delegate’s meetings. This means that on average, the WPK had one major Party event every 4.4 years. However, over the next 30 years, it had none. The 21st and so far last plenum of the WPK was held in December 1993. Now, the defunct leadership structure of the WPK has been restored and the delegates elected 124 members of the Central Committee (CC) and 105 alternates. From among the members, 17 were named to the Politburo (PB) of the CC, and 15 as alternates.

(6) The Politburo is headed by a Presidium or Standing Committee of five people, with Kim Jong Il at the top as the general secretary of the WPK.[2] It also consists of Kim Yong Nam (82 years old),[3] Choe Yong Rim (80 years old),[4] Jo Myong Rok (82 years old)[5] and Ri Yong Ho (68 years old).[6] The latter was promoted the day before the delegate’s meeting to the post of vice marshal. He ranks above Kim Jong Un and his aunt and is rumored to be a member of the Kim family, which if true, implies a particularly strong base for loyalty. Given the advanced age of most of its members, if the Presidium is not newly elected in a few years, who will remain? This makes Mr. Ri particularly interesting.

(7) All three known close relatives of Kim Jong Il received posts in the WPK. Kim Jong Un became vice chairman of the Central Military Commission (see below). His aunt Kim Kyong Hui became a member of the Politburo and her husband Jang Song Thaek was made an alternate. The names of regular and alternate members were not provided in alphabetical order, indicating a certain hierarchy. Kim Kyong Hui’s name was listed last out of 17 and Jang was 5th out of 15. A day later, he was 14th (out of 15) on a list of short bios of regular and alternate Politburo members. Kim Kyong Hui was the only member in addition to Kim Jong Il for whom no details were provided.

(8) Except for the Central Committee, there is not a single leadership organ where all three close relatives of Kim Jong Il hold a post. Kim Jong Un is excluded from the Politburo altogether; Kim Kyong Hui is not on the Central Military Commission; and Jang Song Thaek is only an alternate Politburo member. We could speculate that Kim Jong Il wants to prevent having too high a concentration of power in the hands of one of his relatives. He has made sure that the most crucial instruments of power are staffed with the most loyal of his followers who will be ready to walk the extra mile and fulfill his strategic decisions with all the energy of a family member and co-owner.

(9) As was expected, Kim Jong Un has not (yet) become a member or an alternate member of the Politburo, the second-highest leading organ of the party, but did receive a high-ranking post in the WPK’s Central Military Commission. As far as we know, this is essentially the organization through which the Party controls the military, and hence the most powerful of the WPK’s organs. It is no coincidence that this commission is chaired by Kim Jong Il himself. His son comes next in the hierarchy—he is the first of the commission’s two vice-chairmen. Jang Song Thaek is a member, too, but the one with the lowest rank, so it seems. His name was listed last out of 19. Kim Kyong Hui is not a member of the Central Military Commission.

(10) On September 29, 2010, an unusually long and detailed KCNA article was published with profiles of all Politburo members. In addition, a large group picture was published that showed the delegates and the complete Central Committee, including Kim Jong Un. The photo rather openly revealed the true hierarchy within the Party leadership; only 19 people were sitting in the front row, the others were standing. Kim Jong Un sat just one space away from his father, while Kim Kyong Hui sat five spaces away from the center. In a KCNA report on the taking of this picture, Kim Jong Un’s name came fourth after the Politburo Presidium members Kim Yong Nam, Choe Yong Rim and Ri Yong Ho. Kim Kyong Hui was number 18, and Jang Song Thaek was number 23 on that exclusive list of 33 leaders.

(11) A total of 14 department directors of the Central Committee were appointed, among them Jang Song Thaek and Kim Kyong Hui. However, contrary to predictions by many analysts, Kim Jong Un does not seem to have been appointed director of the Organization and Guidance Department (OGD), a post his father held before he was announced as Kim Il Sung’s successor.[7] This could be due to a number of reasons. Either, Kim Jong Un already effectively held that post—we may not know since the last time such positions were given officially was 1980—or the division of labor (and power) within the party has changed, for example in the context of the Military First Policy. In that case, the OGD post may simply not be as important as it used to be. This would imply that the Central Military Commission now makes all the important appointments, and the OGD is merely an administrative unit like any human resources department.

(12) The North Korean media published a message from China’s leader Hu Jintao only a day after the delegate’s meeting. He stressed the deep and traditional friendship, close geographical relationship, and wide-ranging common interests of the two countries. Hu pledged to defend and promote the bilateral relationship, always holding fast to it in a strategic view under the long-term discernment no matter how the international situation may change (KCNA, 29.09.2010). This was a message to the North Korean people and the international community: China is going to support the new North Korean leadership (model).

What Have We Learned?

The Party meeting provided final proof of what has often been doubted since Kim Jong Il took over as leader of North Korea after 1994. All the other things one might say about him notwithstanding, Kim Il Sung undisputedly was an able politician. He did not choose his eldest son Kim Jong Il as his successor by chance. Despite his health problems, Kim Jong Il is (still) able to play the power game. He paved the way for a new leadership without turning himself into a lame duck. He did so by not leaving any important posts to somebody else—although, at the same time, he did not monopolize those positions. He distributed power among a core group of family members and his father’s loyalists, while also ensuring that none of them can be certain to be significantly higher-ranking than any of their colleagues. As in juche, where in the end everything depends on the judgment of the leader, power in North Korea remains Kim’s sole domain. At the same time, he has done what any good CEO does: delegate authority to avoid energy-consuming micro-management of each and every aspect of his job.

The most important decision regarding human resources has been the introduction of Kim Jong Un as a member of the top leadership of the Party and of the military. He will now have to quickly develop a record (at least on paper) of spectacular achievements, so that he can be quickly presented to the people as the most logical and capable candidate for the next leadership post. Since Kim Jong Un was appointed with a clear reference to the military, Kim Jong Il appears to be following the same strategy his father did after 1980. At that time, North Korea analysts noticed that the late O Jin U, the top military official, was always standing close to Kim Jong Il. It would now be logical to expect that like his father before him, Kim Jong Un will be responsible for the promotion of top military officers, thereby ensuring their loyalty.

In terms of strategic decisions, its seems that the succession from Kim Jong Il to Kim Jong Un will be different from the last changing of the guard in 1994. As early as 2008, it seemed likely that the role of the Party would be strengthened substantially. The restoration of the WPK’s formal power organs and the many biographical details that were provided on the top leadership circle, including the group photo, indicate that the new leader will not be as autocratic as his predecessors. The new leadership will have more faces; we could observe something similar a few months ago in the case of the National Defense Commission. This is the reflection of a trend, not a spontaneous event.

What seems most notable is the renewed emphasis on Kim Il Sung as the sole source of legitimacy in North Korea. Kim Jong Il is not going to replace him, which would have been a precondition for the perpetuation of the current system of leadership. Therefore, in a sense, Kim Jong Un and all those who come after him will be, like Kim Jong Il, successors of Kim Il Sung.

Concerning the process of power transfer, as expected, a multi-stage approach is unfolding. At least one more stage will be needed. Chances are good that this will take place at the Seventh Party Congress, whose date is as of yet unannounced. 2012 would be a good time considering the health of Kim Jong Il and that year’s auspicious meaning—the 100th anniversary of Kim Il Sung’s birthday. As stated above, Kim Il Sung was a capable politician. He was clearly aware of the fact that sooner or later, his son would face the succession issue. It would be a great surprise if he hadn’t talked about this with him and jointly developed a rough plan as to how create a sustainable model of power succession. The two problems Kim Il Sung could not consider, simply for technical reasons, were who exactly would show the necessary capabilities to become the next successor, and how much time Kim Jong Il would have to oversee and guide that process.

The year 2008 indeed marked a watershed when, because of his illness, Kim Jong Il realized the need for a quick solution. The last thing an autocrat wants is to create the impression of being forced to act, and of time running out. So he used the already fixed year 2012 not only as the year of the celebration of his father’s 100th birthday, but also as the year when great changes will happen and the gate to becoming a Strong and Prosperous Great Country will be opened. From this perspective, I would argue that Kim Jong Il is indeed fighting a “speed battle,” but in the form of compressing a process that was planned long ago and supposed to last longer, rather than creating such a process from scratch and hastily.

The China Factor

The message of support from Hu Jintao along with the two visits of Kim Jong Il to China before the delegate’s meeting immediately lead to the question: What type of North Korea will China support? Clearly, the last thing China wants is for North Korea to collapse. Such a situation would create a serious dilemma for Beijing. It could either do nothing and watch the U.S. sphere of influence expand right to its border, or it could actively interfere. This would instantly shatter all Chinese efforts to display itself to the carefully watching countries in the region as a peaceful giant that is a real alternative to protection by the United States. In the end, this is what North Korea is all about—competition between Beijing and Washington. Pyongyang knows this.

A third path may be open to China. The North has realized that the economic reforms of 2002, which focused on agriculture and hence closely resembled the Chinese example of 1979, were in principle a good idea, but that conditions were so unlike those in China that the results inevitably differed. In principle, the understanding that economic reform is necessary remains but reservations against the political side effects of such reforms have grown substantially due to the chaos that emerged in the aftermath of the 2002 measures. Given North Korea’s structure as an industrialized economy, reforms need to take place in industry.

There is a well-established blueprint for this; we call it the East Asian model. In short, it consists of a strong state that controls a few big players in the economy—zaibatsu or keiretsu in Japan, chaebol in Korea, and the state owned companies in China. A core requirement for this model to succeed is a huge source of finance, coupled with a strong political partner that, for a while, is willing to turn a blind eye on protectionism. The United States played that role partly for Japan, and very strongly for South Korea. China is now willing to do this service for North Korea under certain political conditions.

Many signs point in the direction of North Korea “returning” to the path of orthodox socialism, or at least to its East Asian version. “Rule by the Party”—a collective with a first among equals at the top—is not only a key component of any socialist textbook case, it is also characteristic of the Chinese model since 1978. After two leaders of the Mao Zedong type, North Korea may now be getting ready for one similar to the position that the current Chinese President, Hu Jintao, occupies in China—that is, a strong leader who rules as the head of a collective. With some luck, Kim Jong Un might even turn out to be a Deng Xiaoping—a man who has the power and vision to use this post to initiate and execute crucial reforms.

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Collective farm diplomacy

Monday, October 4th, 2010

For the same reasons that President Obama has a tendency to take visiting dignitaries to my favorite hamburger restaurant in Arlington, VA, the North Koreans have designated “friendship farms” for countries the North Koreans enjoy or expect to enjoy cozy relations.  Below I have identified a few for you to check out on Google Earth.

DPRK-Iran Friendship Ripsok Cooperative Farm

 

iran-friendship-farm.JPG

Coordinates: 39°28’34.69″N, 125°29’48.92″E
This farm has been mentioned in this capacity in KCNA four times: here, here, here, and here.
Date first mentioned: May 17, 2007

DPRK-Russia Friendship Kochang Cooperative Farm

 

russia-friendship-farm.JPG

Coordinates: 38°58’3.82″N, 125°36’4.67″E
It has been mentioned in KCNA at least 26 times.  See here.
Date first mentioned:  June 23, 1999

DPRK-China Friendship Thaekam Cooperative Farm

 

china-friendship-farm.JPG

Coordinates: 39°15’4.41″N, 125°41’53.06″E
This farm has been mentioned at least 29 times in KCNA.  See here.
Date first mentioned: June 1, 1997

I have also located friendship farms for: Laos, Poland, Cuba, Bulgaria, Vietnam, Malaysia,  Indonesia, Germany, Palestine, Cambodia, Mongolia, India, Syria, Nigeria, Libya, Egypt, New Zealand, Yugoslavia, and Pakistan.

The United States does not yet have a friendship farm in the DPRK, but maybe someday it will be Osan-ri in Sunan-kuyok, Pyongyang. This is where the Fuller Center plans to launch a housing project. Their planned location and site plans are posted below.

Jimmy Carter, who founded Habitat for Humanity, has recently endorsed this project. (UPDATE: more here and here)

Thanks again to Google Earth and GeoEye.

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