Archive for the ‘International Governments’ Category

Kim Jong il site visits indicate DPRK’s focus on economy

Saturday, February 2nd, 2008

Instutute for Far Eastern Studies (IFES)
NK Brief No. 08-1-24-1

1/24/2008

North Korean leader Kim Jong Il has started the new year by visiting a series of facilities and locations important to the economy in order to stimulate ‘Economic Revival’. DPRK media outlets reported on January 21 that Kim had examined the 18th national program performance and exhibition which opened last year, and that on the 6th, he visited the Ryesung Power Plant in North Hwanghae Province and dispensed on-location directives.

In North Korea, Kim’s new year’s traveling is indicative of the country’s national goals for the year, and Kim’s trip to economic facilities appears to indicate that DPRK authorities are focusing on rebuilding the economy this year.

On January 9, the Chosun Sinbo, a publication of the General Association of Korean Residents of Japan, reported, “In the changing face of the Northeast Asian political atmosphere emerging as the 6-Party agreement is implemented, [we] are preparing an advantageous atmosphere for the revival of the North Korean economy,” and called for “more active promotion of economic cooperation and exchange with each country in the world.” The article stressed promoting ‘21st century rehabilitation by one’s own effort’ by acquiring modern science and technology appropriate for the country.

Last year saw the beginning of improvement in U.S.-DPRK relations and resolution of nuclear issues, and the national strategy for this year seems to be economic expansion based on these developments. In particular, the symbolic significance of Kim Jong Il’s personal visits to two places of economic interest goes to show that North Korea is on a path intended for economic growth. In North Korea, on-location guidance by Kim Jong Il indicates national objectives and serves to focus national capabilities on that location.

According to North Korea’s New Year’s Joint Editorial, “The role of science and technology in the construction of an economically powerful nation must be decidedly elevated,” and went on to stress that, in line with the demands of the information industrial age, a revolution in education is necessary and a competent labor force that can participate in the creation of a strong and prosperous nation must be greatly promoted.

If Kim Jong Il’s inspection of the power plant is an indication of support for the construction of infrastructure and other electrical facilities necessary for economic development, the inspection program indicates what industrial sector the North will focus its energies on in the future. Through increased production in the light industrial and agricultural sectors, North Korea is expected to focus on improving the lives of the people first, and in the future, focus on development of the IT sector.

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DPRK economic statistics from KEI (BoK data)

Saturday, February 2nd, 2008

In October, the Korea Economic Institute published a presentation of North Korean economic data assembled by the Bank of Korea.  Basic stats below:

  • GDP: -1.1% in 2006 (+3.8% in 2005)-Due to decrease in agriculture output. 
  • Services are the largest component of the economy (34%)
  • Trade volume (exports + imports) approximately US$3 billion
  • 2005 trading partners in order: China, South Korea, Thailand, Russia, Japan, Singapore

See the full report here: northkorea.ppt

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One eye on the fish, the other on North Korea

Friday, February 1st, 2008

island.JPGThe New York Times (free registration required) ran an article today on Baengnyeong Island, South Korea’s northern most island which is below the NLL (the de jure, though disputed, sea border between the DPRK and the ROK), but only 10 miles from the coast of North Korea.

Fishermen have gone missing from this island for years, and occasionally, naval clashes erupt between the DPRK and ROK.  The latter problem, though not the former, was an agenda item on the most recent Inter-Korea talks between Kim Jong Il and the former South Korean President Roh Moo-hyun.

The island is now a sad reminder of the costs of division and isolation:

[F]or Chang Hyung-soo, a 64-year-old retired diver here, this narrow strip of water is what separates him from his hometown [in the PDRK]. It also separates him from three of his friends who were lost in fog while fishing and taken to North Korea three decades ago.

and… 

“A few weeks ago, a 93-year-old man came here to take a last look at his hometown across the channel before he died,” Mr. Chang, the retired diver, said from the hilltop. “But he could see nothing because of the fog. I still remember the old man’s tears of disappointment.”

Complicating the matter, however, is the competition from Chinese fishersmen granted territorial access by the DPRK:

To make matters worse, hundreds of Chinese fishing boats, after paying fees to the North Korean Navy, have sailed into waters between their islands and North Korea in recent years while the South Korean fishermen have been restricted to waters close to their own shores.

“The Chinese trawlers catch anything, everything, and deplete our seas,” said Kim Myong-san, 78, who first came to the island as a marine and settled here with his wife.

Notes:
One Eye on the Fish, the Other on North Korea
New York Times

Choe Sang-Hun
1/31/2008

Top image from Google Earth. Download “North Korea Uncovered” to see this location on your own Google Earth.

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Price of Flour Goes Up, So Difficult to Sell Dumplings

Thursday, January 31st, 2008

Daily NK
Yang Jung A
1/31/2008

Due to the food export restraint imposed by China, the price of food items have been rising significantly recently, revealed Good Friends, a nongovernmental organization for North Korea, through a newsletter released on the 30th.

The newsletter relayed, “The price of rice, flour, corn, and grains has been continuously rising due to a systematic adjustment in trade exchange with China. With the Beijing Olympics ahead, the duties on food items have gone up 5% for rice, 20% for corn, and 20~25% for flour.

The newsletter also divulged that “China demands an export permit for grains. Rice and corn are flowing into North Korea because the export permits issued last year still remain in effect. However, China has not yet demanded any export permits for flour, and therefore flour cannot be exported to North Korea.”

“As a result, the price of flour has been increasing rapidly within just a month. In December of last year, the price of flour remained at 1,000 won per unit for the most part, but since the new year, it rose to 1,700 won per unit. People who have been selling bread, dumplings, and snacks have not been able to do business due to the shortage of flour.”

The source relayed, “The North Korean custom house has been requesting a quality verification report on par with international standards at the time of the importing of Chinese food products, but a majority of merchants with whom food is traded has not been able to follow the new standard yet, saying such documents are hard to provide.”

“So, the food items have not been imported into the market, which has caused the price to continuously rise due to the lack of provisions. Nowadays, even if people tried to buy a 1 kg of rice for over 1,400 won, they are unable. Chinese companies who have been dealing with North Korea have predicted that the cease in trading with Chosun (North Korea) will give rise to a food shortage.

The Ministry of Commerce of the People’s Republic of China announced the process of registration and 2008 conditions for registration for milled farming export quarter on the 19th and has implemented a method for the provisional food export of rice, corn, and flour starting January of this year. Related parties of North Korea-Chinese trade forecasted that food exports to North Korea will be reduced significantly as a result of the stringent food export conditions imposed by the Chinese government.

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Orascom Telecom Receives First Mobile License in DPRK

Thursday, January 31st, 2008

Orascom Telecom
(Hat tip to Werner)
1/30/2008

Orascom Telecom Holding S.A.E. (“OTH” or “Orascom Telecom”) announced today that it has been granted the first commercial license to provide mobile telephony services in the Democratic People’s Republic of Korea (“DPRK”) using WCDMA (3G) technology.

The license was granted to OTH’s subsidiary CHEO Technology JV Company (“CHEO”) which is controlled by Orascom Telecom with an ownership of 75% while the remaining 25% is owned by the state owned Korea Post and Telecommunications Corporation. The terms of the license allows CHEO to offer services to its customer throughout the country, the duration of the license is 25 years with an exclusivity period of four years. Orascom Telecom intends to invest up to US$400 million in network infrastructure and license fee over the first three years in order to rapidly deploy a high quality network and offer voice, data and value added services at accessible prices to the Korean people. OTH intends to cover Pyongyang and most of the major cities during the first 12 months of operations.

The DPRK has a population of approximately 23 million of which 67% is between the age of 15 and 64 years, moreover, there is currently no mobile services in the country. The operation in the DPRK will complement OTH’s existing operations in Asia and will further enhance OTH’s position as the leading GSM operator in the emerging markets.

Naguib Sawiris, Chairman & CEO, Orascom Telecom, stated “We are continuing to head in the right strategic direction; our Greenfield license in the DPRK is in line with our strategy to penetrate countries with high population and low penetration by providing the first mobile telephony services. OTH has consistently proved its ability to successfully roll out mobile services into countries where no other operator has. OTH will continue to increase shareholder value and maintain its leadership in the markets it operates in.”

About Orascom Telecom
Orascom Telecom is a leading international telecommunications company operating GSM networks in six high growth markets in the Middle East, Africa and South Asia, having a total population under license of approximately 430 million with an average mobile telephony penetration of approximately 37% as at September 30th 2007. Orascom Telecom operates GSM networks in Algeria (“OTA”), Pakistan (“Mobilink”), Egypt (“Mobinil”), Tunisia (“Tunisiana”), Bangladesh (“Banglalink”), and Zimbabwe (“Telecel Zimbabwe”). Orascom Telecom had reached approximately 65 million subscribers as at September 2007.

Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange under the symbol (ORTE.CA, ORAT EY), and on the London Stock Exchange its GDR is traded under the symbol (ORTEq.L, OTLD LI).

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North to close embassy in Australia next month

Thursday, January 31st, 2008

Unlike most other nations’ embassies, North Korean offices must not only self-finance their operations but they must also send money back home.  It looks like they were finding it hard to make a living in Canberra.  Though an enjoyable town, Canberra is so far from most of the economic action in Australia that they were probably unable to close any deals.  In the future, they should consider opening a consulate in Sydney–if they can afford the rent.

Joong Ang Daily
1/23/2008

North Korea can’t afford the bills anymore, so it will close its embassy here, Australia’s foreign ministry said yesterday.

North Korean diplomats informed Australian officials in November that the four-person embassy, located in a diplomatic quarter of Australia’s capital Canberra, would shut in February.

“The embassy advised that they plan to continue with non-resident diplomatic accreditation from Jakarta,” a foreign ministry spokesman told Reuters. The mission said in a letter it was closing due to “financial reasons.”

“The DPRK said it would consider reopening if its financial situation improves,” the spokesman said, referring to the North’s official name, the Democratic People’s Republic of Korea.

Australia is one of few Western countries to have diplomatic ties with the reclusive state. Pyongyang opened its embassy in May 2002.

In September 2006, Australia announced sanctions against 12 companies and one person connected with financing Pyongyang’s nuclear weapons program, including a visa ban on North Korean nationals and on North Korean shipping.

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A Black Hole

Wednesday, January 30th, 2008

Today The Economist published a report on the political momentum of the North Korean human rights movement.  Although this web site does not keep up with the politics of the movement, the article points out how globalization is seemingly improving human rights in the DPRK…

A Black Hole
The Economist
1/30/2008

When you learn that Chinese firms are teaching notions of corporate social responsibility to factories in North Korea, there are two possible reactions besides incredulity. One is despair. Scandals from China involving tainted products, abused workers or environmental degradation are legion: what could its companies possibly have to teach their backward, isolated and viciously repressive neighbour?The other is to celebrate the glorious rising tide of globalisation, which washes up little bits of good news on even its most remote and neglected shores.

Human rights, then, no longer seem so central to the West [politically]. So it is moderately encouraging to hear that Chinese garment-makers, subcontracting to North Korea to escape mounting costs at home, insist that their partners stop imposing seven-day working weeks. Just as China’s Western partners 15 years ago trapped them in misdemeanours by finding that sewing needles had broken on supposed rest days, so the Chinese are catching the North Koreans with the same tactics.

This might seem like a radical thought, but imagine how much better companies from OECD countries would be doing this. According to US Census data, the US has only imported $1.7 m from the DPRK since 1992 (including the famine).  Since isolation from western markets has been the DPRK’s policy essentially since its founding,  why try to maintain it?  Lets start investing and trading.  Agree or disagree in the comments.  I’d like to know your thoughts.

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N.K. orchestra to perform in Britain: report

Tuesday, January 29th, 2008

Back story: It looks like Suzanne Clark’s efforts are finally paying off…

Yonhap
1/29/2008

North Korea’s national symphony orchestra will perform in Britain as part of its planned concert tour to Europe in early September, a U.S. radio station reported Friday.

The North’s 120-member State Symphony Orchestra will hold three concerts in London and Middlesbrough Sept. 2 to 14, Radio Free Asia said, quoting a British businessman who arranged the tour.

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Pyongyang launches a cultural wave

Tuesday, January 29th, 2008

Joong Ang Daily
1/29/2008

While dragging its feet again on its pledge to denuclearize, North Korea is expanding its cultural outreach to the West.

The move is drawing a mixed response from North Korea watchers. Some hail it as a prelude to a long-awaited opening of the isolated nation, recalling China’s “ping-pong diplomacy” that served as a catalyst for a thaw in its relations with the United States in the 1970s.

Others, however, caution against expecting too much, citing the communist nation’s track record of using arts for propaganda.

Regardless, Pyongyang looks set to provide a rare chance for Europeans to see its elite orchestra perform.

The North’s State Symphony Orchestra is scheduled to hold performances in London and Middlesbrough in September in what would be its largest-ever shows abroad, according to Radio Free Asia. The concerts will be telecast live, added the U.S.-government funded station.

The orchestra is said to have been nurtured by the North’s all-powerful leader Kim Jong-il, reportedly a big fan of film, music and other arts.

In the North’s latest cultural diplomatic activity, five North Korean movies were screened over the weekend in San Diego, California during the first inter-Korean film festival organized by a university in the United States. North Korean authorities selected the films. Pyongyang’s No. 2 two diplomat in the North’s United Nations mission, Kim Myong-gil, attended the event after receiving U.S. government approval. Members of North Korea’s UN mission are required to stay within a small radius of New York and need Washington’s approval for trips outside the city.

The film festival came two weeks after a North Korean movie, titled “Schoolgirl’s Diary,” was screened in Paris. It marked the first-ever commercial distribution of a North Korean movie in the West.

One of the most awaited shows in coming weeks is a concert by the New York Philharmonic in Pyongyang. During the performance, the orchestra will perform the U.S. and North Korean national anthems as well as classical music. The historic concert, backed by the U.S. State Department, will be broadcast live via satellite on Feb. 26.

“This journey is a manifestation of the power of music to unite people,” said Zarin Mehta, the orchestra’s executive director, reiterating remarks he made last month.

Assistant Secretary of State Christopher Hill, Washington’s point man on Pyongyang, said earlier the performance bodes well for their bilateral relationship.

“We haven’t even had ping-pong diplomacy with these people,” he said. “It would signal that North Korea is beginning to come out of its shell, which everyone understands is a long-term process. It does represent a shift in how they view us.”

Hill expressed hope that the cultural exchange will help resolve the North Korean nuclear crisis.

Many experts here agree cultural diplomacy can be an effective way of dealing with the North. They view the North’s move as reflecting its cultural pride and determination to break its isolation. “It also appears to be aimed at diluting the North’s negative image as a repressive nation and silencing criticism from hard-line U.S. officials,” said Yang Moo-jin, a professor at the University of North Korean Studies in Seoul.

But skepticism lingers with the nuclear crisis still unresolved.

“Even if the orchestra plays music from heaven, it will have nothing to do with most North Koreans outside of the venue,” said Joo Sung-ha, who defected from North Korea in 2001 and now works as a journalist in Seoul. “We need to think about for whom such one-time shows should continue.”

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Zimbabwe’s 5 Brigade

Tuesday, January 29th, 2008

Last night I attended a presentation by The Honorable David Coltart of Zimbabwe, Shadow Justice Minister and Member of Parliament for Bulawayo South.   Aside from the sad story he told of the disastrous toll the policies of Zanu-PF and Robert Mugabe are taking on the lives of Zimbabwe’s people, he mentioned the role that President Kim il Sung of North Korea played in facilitating Comrade Mugabe’s rise to power…

The full story can be found in the report  “Breaking the Silence.”

Starting on Page 45 of the report:

…in October of 1980, an agreement was signed between Prime Minister Mugabe and President Kim Il Sung, in which North Korea offered to train and arm a brigade for the newly independent Zimbabwe.

The First News of this agreement in the Zimbabwe media was almost a year later, in August 1981, when 106 Korean instructors arrived to begin training the brigade. Prime Minister Mugabe then announced that the Korean-trained brigade was to be known as the 5 Brigade.”

This squad was colloquially named ‘Gukurahundi’ which is Shona for “the rain that washes away the chaff before the spring rains,” and it was separate from the normal Zimbabwe National Army. 

The 5 Brigade soldiers made it clear themselves that they should be regarded as above the law.[…] answerable to nobody but Mugabe.

In addition to Korean-made equipment,

5 Brigade had completely different communication procedures: their codes and radios were incompatible with other units. Their uniform was also different, its most distinctive feature by the time they became operational in 1983 being their red berets. […]The use of AK-47s, recognized by their distinctive bayonets and curved magazines,is another distinguishing feature. In addition, the 5 Brigade traveled in a large fleet of vehicles which were Korean in origin, although this fleet did not last long, falling to pieces on the rough Zimbabwean terrain.

The 5 Brigade’s brutal activities are outlined in the report, but essentially they were used to eliminate rival political parties that could threaten Mugabe’s (and ZANU-PFs) control of the state.

UPDATE: from the Marmot’s Hole:

“What is historically known is that six months after independence in October 1980, Mugabe signed an agreement with the brutal communist dictatorship of North Korea, for assistance in training a new army brigade to deal with internal dissidents. 5 Brigade (here and video of the North Koreans and Zimbabwean soldiers), as it came to be known, wore different uniforms, with distinctive red berets; it used different equipment, transport and weaponry. Codes and radios were incompatible with other units. It is likely that the same North Korean instructors that became known to the press some time later, had also been entrusted with the training of the Maltese government’s own Special Mobile Unit.”

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