North Korean Economy Watch

According to the Daily NK:

The World Food Programme (WFP) has revealed that food distribution by the North Korean authorities in April, the month of Kim Il Sung’s centennial birthday, was on the same scale as in the month before.

According to Radio Free Asia (RFA) yesterday, WFP believes that food distribution to the North Korean people this past April was 400g per day, which is 66% of the 600g per day recommended intake.

Nana Skau, the WFP’s North Korea spokesperson explained, “The food distributed by the North Korean authorities was a mix of rice and corn, and depending on the region the mix was either at 2:8 or 3:7.”

She went on, “In April there were many celebrations including Kim Il Sung’s 100th birthday so a lot of public institutions were either closed or distribution from them went down. The reason why our 83 cases of food distribution in 22 counties was one third of the previous month’s total of 220 cases in 59 counties was also because there were many public holidays.”

Meanwhile, WFP has revealed that aid is still entering the country, announcing that “In April 98.5 tons of food arrived in North Korea and in May 2,700 tons of mostly beans and powdered milk is expected to be sent there.”

Read the full story here:
Food Distribution Unmoved by April
Daily NK
Hwang Chang Hyun
2012-05-08

Pictured Above (Google Earth): The May Day Stadium on Rungra Island in Pyongyang.  Home of the Mass Games.

According to the Daily NK:

North Korea has begun forming troupes to take part in this year’s Arirang mass games performance, leading to a game of wait-and-see between parents determined to ensure that their children are not required to perform.

Training for Arirang, as well as the performance itself, places four or five months of severe physical and emotional stress on participants. Training for the games begins after May 20th, once the annual ‘farm supporting activities’ are completed, meaning that the time for concern is rapidly approaching.

A source from Pyongyang told Daily NK, “Each school began working on its own list of participants for the Arirang games after the Labor Day holiday. There was some hope that the mass games might not be held in the Kim Jong Eun era, but alas that was not to be. All the parents of school-aged children are now working on plans to get their children exempted from the games.”

“Well-off parents are secretly paying bribes to hospital staff for medical certificates which can get their children off. Genuinely infirm children are sent to recuperate in the country, which completely removes any chance of being selected for the games.” The source also said, “People are pretty brazen now when talking about having to pay expensive bribes and the like to get their children off these lists.”

The Arirang mass games are administrated by the Mass Gymnastics Organizing Committee, which is made up of members of the Kim Il Sung Socialist Youth League and the cabinet-directed Chosun Sports Guidance Committee. From the beginning of May the committee screens children at Pyongyang’s elementary and middle schools based on height, health and artistic talent, and whittles the names down to a list of participants. In Pyongyang, roughly half the children from every school year are selected to take part in the games.

“Parents are keeping their eye on the situation and are keen to find out what other parents are doing to get their children out of selection,” the source said. “There is a palpable atmosphere amongst Pyongyang parents at the moment of trying to avoid selection for the games.”

The Arirang mass games have earned a nickname amongst the North Korean people: ‘Arirang of tears’. The games, which began in 2002, conscript over 10,000 elementary, middle school and university students from Pyongyang every year. Equipment including clothes, shoes, cards, artificial flowers, handheld flags, folding fans, and pole vaults become a burden for participants learning each routine.

As the performance approaches, students are made to train outside in stifling heat for 12 hours a day, from 8 o’clock in the morning, and practice is sometimes extended into the night. Parents of children who sit out from a rehearsal or fall behind in their training also become targets of severe criticism.

When the games began, performers were given televisions, which sparked envy amongst parents of non-participants; however, these have now been replaced with nylon blankets, leading to even less willing participation.

Read previous posts on the Mass Games here.

See a great documentary on the Mass Games here.

Read the full story here:
‘Arirang’ Looming over the Horizon
Daily NK
Choi Song Min
2012-5-4

On April 27th, KCNA reported that Kim Jong-un “guided general tactical exercises of KPA Combined Unit 655 held on the occasion of the 80th anniversary of the KPA.” NK Leadership Watch wrote about the demonstration here. Just by chance, I recognized the facility and was able to pinpoint it on Google Earth. This  is rarely so easy.

Pictured above, the KPA observation facility (Google Earth:  38.948016°, 125.916006°) in Sadong-guyok (사동구역).

The building sits on top of a small mountain, and according to the Google Earth ruler, it  is approximately 50m x 32m (at its widest). The oldest satellite image available of the facility (on Google Earth) dates to 2003-12-25. There are several support facilities located nearby, but I do not have any specific information on them.

Here is a layout of the facility in relation to the target area (Google Earth):

According to the Google Earth ruler, the observation facility is approximately 3km from the most distant portion of the test grounds.

Perhaps the strangest aspect of this test is that an elite residential compound lies just on the other side of the mountains from the artillery testing area (about 1km away)! Who would have ever thought they would detonate explosives and projectiles so close to one of these compounds? Perhaps the presence of the elite residential compound explains why this observation facility has not been used for as long as I can remember (which admittedly is not a long time ago).

I have located several KPA demonstration areas on Google Earth and will include them in the next version of North Korea Uncovered, hopefully out in the next couple of months.

According tot he Daily NK:

The North Korean authorities have called on the people to provide supplies for care packages to be given to military units on People’s Army Foundation Day, which falls today. It is not a new burden, but is relatively larger this year, according to a source.

The source from Chongjin in North Hamkyung Province told the Daily NK yesterday, “The people feel seriously burdened by the project going on nationwide to gather support supplies ahead of the military holiday. Each household is required to offer up towels, soap, toothpaste, socks and underwear.”

“Usually they collect around 1,000 won from each family, but this year they told us to give 10,000 won,” the source went on. “Since even providing food for the family is not easy, many people are playing a waiting game on this.”

The source explained that societal organizations (the Union of Democratic Women, General Federation of Korean Trade Unions etc) have also been gathering care packages for delivery to local military units by ‘People’s Delegations’ consisting of municipal and county Party cadres.

“Middle school classes are also suspended while students prepare and perform ‘People’s Army Comfort Concerts’ at art centers and in military camps, and the Union of Democratic Women are preparing art performances,” she added.

Problematically, the various April holidays also mean that markets are closed more often than normal, and this is driving down household incomes.

For the Day of the Sun, the markets were closed from the 14th through the 17th. The markets are also closed today for Army Foundation Day today. Moreover, they were also closed on the day Kim Jong Eun was elevated to 1st Secretary and the day of the mass rally organized to denounce the Lee Myung Bak administration, to name but two.

As such, the source concluded, “April is a hectic month. Aside from the fact that the people are exhausted because of the pressure from the authorities their income has dropped by around half so many will likely end up in debt.”

Read the full story here:
Army Founding Day a Source of Stress
Daily NK
Choi Song Min
2012-04-25

Andrei Lankov writes on the history and evolution of personal income in the DPRK. According to his article in the Asia Times:

When one talks about virtually any country, wages and salaries are one of the most important things to be considered. How much does a clerk or a doctor, a builder or a shopkeeper earn there? What is their survival income, and above what level can a person be considered rich?

Such questions are pertinent to impoverished North Korea, but this is the Hermit Kingdom, so answering such seemingly simple questions creates a whole host of problems.

We could look first at official salaries but this is not easy since statistics on this are never published in North Korea. Nonetheless, it is known from reports of foreign visitors and sojourners that in the 1970s and 1980s, most North Koreans earned between 50 to 100 won per month, with 70 won being the average salary.

Read more below…
(more…)

Andrei Lankov writes in the Asia Times:

When one talks about virtually any country, wages and salaries are one of the most important things to be considered. How much does a clerk or a doctor, a builder or a shopkeeper earn there? What is their survival income, and above what level can a person be considered rich?

Such questions are pertinent to impoverished North Korea, but this is the Hermit Kingdom, so answering such seemingly simple questions creates a whole host of problems.

Read the full story below:

(more…)

According to the Daily NK:

Information from inside North Korea suggests that jurisdiction over border security has been moved from the Ministry of People’s Armed Forces to the National Security Agency(NSA), in a special order given by new leader Kim Jong Eun which has seen border security units undergoing an administrative switch to the NSA on April 16.

Read more below:

(more…)

Below I have posted a summary of stories from the Fifth session of the 12th SPA. The stories cover the lead up to the SPA, the completion of Kim Jong-un’s succession (inheriting the title “First Chairman” of the National Defense Commission), and KCNA reports of the official DPRK state budget.

UPDATE 20 (2012-4-21): 38 North has posted three articles on the Party Conference and SPA meeting in Pyongyang.  Read the articles by James Church, Aidan Foster-Carter, and Bruce Klinger.

UPDATE 19 (2012-4-20): Stephan Haggard, Luke Herman, and Jaesyung Ryu on the SPA meeting

UPDATE 18 (2012-4-19): Kim Jong-un calls for new industrial revolution at the Supreme People’s Assembly (Institute for Far Eastern Studies):

Kim Jong Un, the first secretary of the Workers’ Party of Korea (WPK) made his first public speech in front of thousands of people gathered to commemorate the centenary of his grandfather, Kim Il Sung. In his speech, he emphasized the importance of songun or military-first politics, construction of a powerful economy, and the need for a new industrial revolution in the military.

The fifth session on the 12th Supreme People’s Assembly was held on April 13. Premier Choe Yong Rim told the legislators the nation’s top priority is to build up the light and agricultural industries to become an economically powerful nation.

According to the KCNA, Premier Choe also reported on the results of last year’s accomplishments while presenting this year’s goals. He elaborated, “The total industrial production rose by 102 percent against last year (2011) and production of hydroelectric power, iron ore, zinc, generators, fertilizers, and magnesia clinker has significantly increased.”

Other achievements of 2011 were announced, completion of Huichon Power Station, technological improvements in three major chemical factories (Hungnam Fertilizer Complex, 2.8 Vinalon Complex, and Namhung Youth Chemical Complex), and construction of high-rise apartments in the Mansudae area in Pyongyang.

It also stressed that the development and joint venture of special economic zones (SEZ) will be strengthened to promote economic and technological cooperation with foreign countries.

Finance Minister Choe Kwang Jin reported on the state budget, stating that last year’s revenue was 101.1 percent, while local government budget reached 112.8 percent. The national budget expenditure was 99.8 percent. For this year’s national budget, revenue was set higher at 108.7 percent and expenditure at 110.1 percent.

Out of the targeted state budget revenue of 108.7 percent, the detailed for budget revenue increase is as follows: transaction revenue (107.5 percent), national corporation profit (110.7 percent), cooperative organization profit (105.3 percent), real estate usage revenue (101.9 percent), and social insurance (101.7 percent).

As for the aimed 110.1 percent increase for this year’s national budget expenditure, the breakdown of the increase is as follows: light and agriculture industries (109.4 percent); power, coal, metal, railroad industries (112.1 percent); basic construction (112.2 percent); science and technology development (110.9 percent); education (109.2 percent); health (108.9 percent); social insurance and welfare (107 percent); sports (106.9 percent) and culture (106.8 percent).

From the total budget expenditure, 15.8 percent will be allocated to national defense and special scholarships and aid will continue to be provided to ethnic Korean children in Japan.

More below…

(more…)

Pictured Above: Kim Jong-un’s official party photo.

UPDATE 20 (2012-4-21): 38 North has posted three articles on the Party Conference and SPA meeting in Pyongyang.  Read the articles byJames Church, Aidan Foster-Carter, and Bruce Klinger.

UPDATE 19 (2012-4-19): Stephan Haggard, Luke Herman, and Jaesung Ryu on the Party conference.

UPDATE 18 (2012-4-11): In addition to honoring Kim Jong-il and promoting Kim Jong-un, KCNA also reported other party personnel changes:

Pyongyang, April 11 (KCNA) — Members of the party central guidance body were elected to fill vacancies, elected and appointed at the 4th Conference of the Workers’ Party of Korea.

Choe Ryong Hae was elected member of the Presidium of the Political Bureau of the Party Central Committee, Kim Jong Gak, Jang Song Thaek, Pak To Chun, Hyon Chol Hae, Kim Won Hong and Ri Myong Su members of the Political Bureau of the Party Central Committee, Kwak Pom Gi, O Kuk Ryol, Ro Tu Chol, Ri Pyong Sam and Jo Yon Jun alternate members of the Political Bureau of the Party Central Committee to fill vacancies.

Kim Kyong Hui and Kwak Pom Gi were elected secretaries of the Party Central Committee.

Choe Ryong Hae was elected vice-chairman of the Party Central Military Commission and Hyon Chol Hae, Ri Myong Su and Kim Rak Gyom were elected members of the Party Central Military Commission to fill vacancies.

Members and alternate members of the Party Central Committee were elected to fill vacancies.

Kim Yong Chun, Kwak Pom Gi and Pak Pong Ju were appointed as department directors of the Party Central Committee.

Members of the Party Central Auditing Commission were elected to fill vacancies.

Previous posts on the party conference below…

(more…)

According to the International Business Times (2012-4-3):

Last month, North Korea invited 14 scientists from eight different countries — five alone from the U.S. — to attend a conference with 75 North Korean scientists, and provide their expertise on restoring the country’s environment and securing domestic food supplies. Dr. Margaret Palmer, executive director of Socio-Environmental Synthesis Center at the University of Maryland and one of the scientists who appeared at the conference, recently spoke with the New York Times about her assessment of North Korea’s ecological crisis and its government’s capability to deal with it.

“It’s a depressing landscape, especially this time of year,” Palmer told the Times. “Everything is just mud and everything is being farmed, or attempted to be farmed. But their ability to produce food is being dramatically compromised by a cascade of effects caused by deforestation.”

North Korea’s environmental crisis started in the 1950s during the Korean War, which resulted in massive forest fires and widespread deforestation. The situation was exacerbated during the 1990s when droughts and floods destroyed crops and caused a major famine that killed hundreds of thousands of people. Recovering forests were raided by desperate villagers for food and fuel, many surviving by eating grass and tree bark.

Although the major environmental problems were clear to Palmer, she expressed doubts about the North Korean scientists’ approach to them.

“The presentations were almost exclusively about how to promote agriculture … It felt like [the North Korean scientists] had a sense of the direction of the scientific community in the rest of the world but that they lacked the technology and understanding to implement any of it,” Palmer said.

In contrast, Peter Raven, president emeritus of Missouri Botanical Garden in St. Louis, offered praise for North Korea’s efforts to reforest through planting crops alongside trees.

“They had a fine understanding of agroforestry principles and were applying them in a very understanding way to reforestation,” Raven told Science Magazine.

Norman Neuriter, director at the American Association for the Advancement of Science, who selected the American experts for the conference, said the gathering was heavily monitored and restricted, and expressed disappointment with the limited communication between the advisory team and North Korean scientists.

“One would like to have had more individual interaction, one-on-one or two-on-two, but that wasn’t possible,” Neureiter told the Atlantic Wire.

“We weren’t allowed to talk informally with the scientists,” Palmer told the Times. “We were escorted to separate rooms during coffee breaks and there was no time to casually chat and ask questions.”

Despite the restrictive atmosphere of the conference, the scientists are hoping to move forward with environmental restoration projects, though it is not yet clear how political tensions over North Korea’s nuclear program will impact future collaboration efforts. It is clear that the government must mobilize quickly if it is to avoid another disaster like it experienced during the 1990s.

Further resources below:
1. Q. and A.: North Korea’s Choked Environment

2. Seeking Cures to North Korea’s Environmental Ills

3. The Environment Is So Bad in North Korea, They’ll Even Let Americans Help