Joseph Bermudez, now a Senior Analyst with DigitalGlobe’s Analysis Center and author of The Armed Forces of North Korea, has posted the latest issue of KPA Journal. You can download the PDF here.
Topics include: M-1979/1989 170mm SPGs (Part 1) and and article on the 12th Supreme People’s Assembly by Michael Madden.
The Choson Ilbo reports:
North Korea’s Workers Party has started a generational shakeup in the Supreme People’s Assembly by appointing large numbers of young delegates in their 20s and 30s. The rubber-stamp parliament consists of delegates with a five-year term from various organizations including the party and the military.
A North Korean source said the Workers Party recently ordered municipal, provincial, and county party committees to force elderly members to quit for health reasons and fill the vacancies with people under 40.
“The North Korean leadership is seeking to replace a larger number of elderly members with younger people next year,” which it has declared as the year when the country becomes a “powerful and prosperous” nation, the source said. The regime “also ordered officials to lower the educational level of the delegates, but raise the ratio of female delegates to more than 30 percent.”
The average age of the 687 SPA delegates is 57. Those with college or higher degrees account for 92.8 percent, and women for 19.3 percent, according to the source. The moves are believed to be part of the regime’s efforts to consolidate the succession of leader Kim Jong-il’s third son and heir Jong-un, who is in his late 20s.
Liberty Forward Party lawmaker Park Sun-young backed the story. “I was told by a North Korean source based in a Southeast Asian country that the regime has recently issued instructions for a generational change in the SPA,” she said. “The party is trying to strengthen Kim Jong-un’s control” at a time when the lower echelons of the party, which has a membership of 4.5 million nationwide, have become unreliable since a botched currency reform in late 2008.
“Once the SPA has more delegates in their 20s and 30s who are Kim Jong-un’s loyal cadres, the regime will probably get tough, including launching more provocations against the South,” Park added.
The 12th Supreme People’s Assembly just held their 4th session.
Read the full story here:
N.Korea Pushes Generational Change in Parliament
Choson Ilbo
2011-5-20
UPDATE: On a related note…
“North Korea’s Digital Underground“, The Atlantic, April 2011
ORIGINAL POST: The following blurb appeared in a recent article on 38 North:
Feeding this confusion are serious problems with information collection about the domestic situation in North Korea. Policymakers in Seoul and Washington rely heavily (whether they know it or not) on testimony or information provided by North Korean defectors. Defectors and networks of informants who move across the China-North Korea border, are key sources for a new constellation of media organizations like Daily NK, Open North Korea Radio, Free North Korea Radio, Good Neighbors, Radio Free Asia (U.S.), Asia Press (Japan), and other internet media. To be sure, people coming out of the DPRK can be important sources of information—for example, these networks brought out information about the 2009 currency reform. However, the new “media” organizations are not staffed by independent, professional journalists. To the contrary, they are propaganda organs and advocacy organizations designed to undermine regime stability in the North. Their reports frequently lack verification, yet regularly appear in Yonhap News, the leading South Korean government news agency, without any filtering. Major conservative newspapers, such as Chosun Ilbo, Joongang Ilbo, and Donga Ilbo, quote them as is. International news media, including the wire services and leading American newspapers, in turn, reprint them as world news. Unverified reports and politically motivated characterizations of North Korean instability are transmuted into truth. There are even cases of defectors reportedly being pressured to tow the official line. For example, Yonhap News was pressured to remove a senior reporter, herself a defector, from its North Korea desk when she discounted exaggerated reports by defector organizations of instability around the Kim family succession and currency reform failures.
Aidan Foster-Cater responds in this Asia Times article:
How do we know anything about North Korea? Where can you find reliable information? If sources conflict, how does one judge between them? Bottom line: Who ya gonna trust?
These are key questions. And they’re as old as the hills – which North Korea has more of than facts. My own interest in the Democratic People’s Republic of Korea is now, dare I confess, in its fifth decade. Even when I started, back in the 1960s, data of any kind were a problem. There were almost none to speak of.
No point asking Pyongyang. I was a fan in those days, but even so I winced at the regime’s clunky propaganda, and its emptiness: the absence of even the most basic facts and figures.
In the 1950s, North Korea did publish some statistics, but in the 1960s they stopped. Why? As growth slowed, paranoia and secretiveness ballooned. Nicholas Eberstadt has noted it was the same in the USSR and China, when Stalin’s and Mao’s excesses were at their height [1]. In Moscow and Beijing the mad blackouts eventually ended. In Pyongyang, darkness still rules.
Normal countries need numbers. A national budget with no figures: What a crazy idea! Not in North Korea, where this bizarre charade is enacted every year, most recently on April 7.
What passes for a parliament in Pyongyang usually meets for just one day a year, in spring. The main business is to pass the budget, which they duly do. (There’s no debate, obviously.)
And no numbers, either. Take a look at the official Korea Central News Agency [2]. Finance minister Pak Su-gil uttered a few percentages, but not a single actual solid figure. Weird.
Until 1994, they at least gave the budget totals, so we could work out some of the rest. South Korea’s Unification Ministry (MOU) reckons it heard a real number on the radio, once, and on that basis offers its own guesses here and there. Yet this is meagre stuff. A joke, really.
But I’ve banged on about this before in these pages [3], so what’s new pussycat? Two things.
First, I personally have taken this matter up, at the highest level. Only the other day I had words on the subject with the Speaker of the Supreme People’s Assembly (SPA) himself. No really, I did. Choe Thae-bok, an urbane gent of 82 and a very senior figure, spent a week in London just before the SPA session. Tea at the House of Lords, that sort of thing. All a bit surreal, and it’s easy to scoff. But at times like these, it’s important to keep the doors open.
Over a convivial dinner at Asia House, I asked Choe about those budget blanks. He said he’d look into it, but I admit I wasn’t holding my breath. Ah well. He must be a busy chap.
Fortunately in 2011 we can supplement Pyongyang’s crummy crumbs with more solid fare. It’s a new world: the information age! NK may resist, but two things have changed – a lot.
First, and obviously, the Internet has been a boon. We who follow North Korea are no longer sad lonely nutters. Online we can find each other – we are legion! – and pool our knowledge. Kind folks like Curtis Melvin at NKeconwatch and Tad Farrell at NKNews, among others, have put a lot of work into creating crucial online resources on North Korea. (For their pains, they have survived more than one cyber-attack [4]. Who on earth would do a thing like that?) So now we can collate and compare notes.
Read the rest below the fold….
UPADTE 5 (2011-4-13): The Daily NK reports that the NorthKorean people have yet to be informed of any decisions made at the SPA:
Even though six days have passed since the end of the Supreme People’s Assembly (SPA), decisions and instruments taken there have yet to be handed down to the people in local meetings.
Although the North Korean media did release the agenda of the SPA, there has been no comment on the implementation of decisions. Diverse sources also reported on the 13th that people’s unit meetings have not contained anything about the SPA.
SPA decisions are conventionally discussed in people’s unit meetings two or three days after the event and the people’s unit allocates assignments to residents according to its decisions. Of course, propaganda urging residents to carry out their assigned tasks then follows.
Whereas this year, there has been nothing. Not that people have any interest in the SPA, anyway. As one source from Yangkang Province said, “There have been no decrees on the SPA, and anyway we don’t have enough time to pay attention to it since even living is tough. We don’t have any interest in it. Can the SPA keep us alive?”
“If the SPA gave us as little as one kilogram of potatoes or corn, we would pay attention to it, but for us who must prepare meals every day we don’t pay it any attention. If something like changing of the president happened we would pay attention to it,” another source from North Hamkyung Province agreed,
Nevertheless, the SPA agenda items Chosun Central News Agency (KCNA) reported were as follows: the business of the Cabinet in 2010; the settlement of national accounts in 2010 and budget for 2011; and organizational issues.
The North Korean media also reported some personnel changes, notably the movement of Lee Myung Su from Administrative Director of the National Defense Commission to head of the People’s Safety Ministry.
UPDATE 4 (2011-4-12): Institute for Far Eastern Studies:
On April 7, 2011, the fourth session of the 12th Supreme People’s Assembly of the DPRK was held at the Mansudae Assembly Hall. At the session, Deputy Choe Yong Rim, premier of the DPRK, reported on the “Work of the DPRK Cabinet in 2010 and its tasks for 2011.”
The main tasks for this year stated by Premier Choe included increasing the production of consumer goods and realizing the goal of grain production in order to improve the standard of living for the people of North Korea. He also advised that production should be increased in all sectors of the economy while steadily pushing towards modernization of the national economy.
The Cabinet placed emphasis on last year’s achievements in the light industry and agricultural production while stressing the importance of modernizing consumer goods production and the development of science and technology as the goal of this year.
In addition, Choe highlighted, “production in all sectors of the national economy including the four pilot sectors must be increased to support the ongoing march to improve the standard of people’s living.”
Specific improvements in the four pilot sectors were mentioned, with plans to “operate all generating power equipment in full capacity while forming a system of transmission and distribution to make the most effective use of the electricity produced.” Additional focus was placed on calling for national efforts to reach the goal of electricity production through the construction of the Huichon Power Station and building other large-scale hydro and thermal power plants.
The Cabinet also stressed on diversifying trade and promised to “work towards the improvement of the DPRK’s socialist self-supporting economy by actively seeking out projects that effectively incorporate economic and technological cooperation.”
In evaluating the previous year’s accomplishments, Choe declared, “The most significant achievement in economic development was the progress made in placing national economy in line with Juche ideology.”
Other achievements mentioned were: 1) the inter-departmental structure of the metal industry was revamped and the Juche iron production system was successfully established at major metal plants as well as new alloy steel production bases; 2) large chemical industrial centers were updated to the latest technology to bring about the mass production of Juche fiber and fertilizers; 3) the coal production capacity increased and the construction of hydropower stations was completed to add to the power generating capacity. The construction of Huichon Power Station is making rapid progress for completion by 2012; and lastly 4) strong foundation was laid to bring about a huge development in the light industry and agriculture production.
Lastly, Choe praised the development in the science and technology sector for adopting CNC (computer numerical control) system in all sectors of the national economy and scientific research in IT and biotechnology.
Deputy Pak Su Gil, vice-premier and Minster of Finance presented the state budget for 2010 and 2011. He expected the state budgetary revenue to grow 7.5 percent and the expenditure is expected to grow 8.9 percent against the previous year. The state budget allocation is focused on strengthening the light and agriculture industries and improving the national economy by bringing state-of-art technologies in all sectors.
The expected state budgetary revenue is 83.9 percent of the total state budgetary revenue and local budgetary revenue is at 16.1 percent. The revenue from transaction and the profits of state-run enterprises are expected to hold 78.5 percent of the total state budgetary revenue this year and the profits of cooperative organizations, the fixed asset depreciation, the income from real estate rent and social insurance are expected to rise 3.8 percent, 1.4 percent, 0.7 percent and 0.4 percent respectively as compared with those of last year.
The current year’s plan for state budgetary expenditure is expected to show an 8.9 percent increase over last year. The budgetary allocation for the light industry is expected to climb 12.9 percent and a large amount is also expected to be distributed to the local industry.
The budgetary expenditure by category compared to the previous year is as follows: 1) 9 percent more funds will go into agriculture; 2) funds needed for farming will be provided on a priority basis and the expenditure for the basic industries of the national economy is expected to go up 13.5 percent; 3) the financial allocation for the capital construction will go up 15.1 percent; 4) 10.1 percent increase will be made for scientific and technological development.
Especially in the science and technology sector, emphasis is being placed on fulfilling the five-year plan of modernizing and building an economic power and successful implementation of CNC system.
Lastly, 15.8 percent of the total expenditure is expected to be spent on national defense.
UPDATE 3 (2011-4-10): News is trickling out about the 12th SPA’s 4th session. I will keep adding stories below as they roll in:
Yonhap: N. Korea ups budget for construction projects this year
North Korea’s parliament dramatically increased a budget for major construction projects as Pyongyang prepares to throw a massive celebration next year, Seoul said Friday.
North Korea has vowed to achieve its goal of becoming a “great, prosperous and powerful country” by 2012, the centennial of the birth of its late founder Kim Il-sung, father of current leader Kim Jong-il.
The legislature endorsed 567 billion (North Korean) won (US$5.73 billion) for this year’s total budget in a session on Thursday, according to the Unification Ministry, which handles inter-Korean affairs in Seoul.
The budget for construction projects jumped by 15.1 percent from last year as the North plans to build 100,000 houses in Pyongyang and a massive power plant in the country’s northwest region, said the ministry.
The North also earmarked 15.8 percent of the total state budget for national defense this year as it did last year, said the ministry.
North Korean Premier Choe Yong-rim vowed to strengthen military capabilities, improve economy and increase grain production amid the country’s chronic food shortages.
The cabinet “will make sustained great efforts for the provision of materials needed for boosting the combat capability of the People’s Army and the defense capability of the country in every way,” Choe said at the session.
Last year, the North recorded a fiscal surplus of 7.3 billion (North Korean) won, said the ministry.
North Korea’s official Korean Central News Agency also reported on the country’s spending and budget, though it didn’t give any monetary figures.
Daily NK: North Korea’s Rubber Stamp Parliament Explained
The 4th meeting of the 12th session of North Korea’s Supreme People’s Assembly (SPA) will convene at Mansudae Assembly Hall in Pyongyang today.
The official North Korean translation of Article 87 of the Socialist Constitution of the Democratic People’s Republic of Korea proclaims, “The Supreme People’s Assembly is the highest organ of State power in the Democratic People’s Republic of Korea.”
SPA delegates are elected every five years (every four years until 1992), while meetings are normally convened once a year; however, there were two meetings during 2010, which is why today’s gathering will actually be the 4th of the 12th session, which began in 2009.
However, the SPA is by no means as important as the constitution claims; instead, it is a political show. As soon as one takes a look at the delegates, their selection method and the SPA’s practical role, it becomes clear that it is a symbolic organ with no practical function.
Let’s look in more detail at the SPA via a brief Q&A.
– What are the principle tasks of the Supreme People’s Assembly?
The role of the Supreme People’s Assembly prescribed in North Korea’s constitution is no different from that of South Korea’s National Assembly. The Supreme People’s Assembly is the highest sovereign organization and legislative organ which has the authority to adopt and revise the constitution and laws of the land. In addition, it establishes the basic principles of internal and external policy and manages the personnel matters of state apparatus. During annual meetings, the results of the previous year’s budget and the budget for the coming year are at the top of the agenda.
However, general matters of government administration are decided by the Chosun Workers’ Party; the SPA is a propaganda organization aimed at the people. The SPA simply approves the policy of the Chosun Workers’ Party as the representative of the North Korean people.
– Who are the SPA delegates?
A delegate is not a full time politician, unlike a member of the South Korean National Assembly, and they come from every region and sector of society, including a small number of workers, farmers and soldiers. They are selected to justify calling the SPA the representative of the people, but are expected to nod through Party decisions without meaningful debate.
Candidates become delegates after being recommended by their local Party, which is led by the Central Committee in Pyongyang. There is a screening committee for delegates but it does not reject them. Delegates are always elected with implausible majorities.
The period of a delegate is five years, but since the 687 delegates tend to stay in post, the term does not have much meaning. North Korea held a delegates’ election for the 12th session of the SPA on March 8th, 2009, electing a total of 687 members. Kim Jong Il is a delegate, as reflected in his official title, ‘Kim Jong Il, 333rd Election Precinct and General Secretary of the Chosun Workers’ Party, Chairman of the National Defense Commission’, although he doesn’t always attend meetings. Rumor has it that Kim Jong Eun is a delegate under an assumed name, but that has not been proven.
– In that case, what kind of organ is the Standing Committee of the Supreme People’s Assembly?
The Standing Committee and departmental committees are branches of the SPA. When the SPA is not in session (meaning most of the time), the Standing Committee operates as the state’s highest sovereign organization. The chair of the Standing Committee is also the head of state according to the constitution, but the chairman of the National Defense Commission, currently Kim Jong Il, leads all government administration in practice. The chair of the Standing Committee is Kim Young Nam, who frequently receives foreign visitors and operates as one of the regime’s more prominent public faces.
– What privileges accrue to SPA delegates?
The practical role of a delegate is almost non-existent, but there are some perks. Delegates get priority use of transportation and are immune from prosecution unless expressly stripped of that right by the Party Central Committee. National Assembly lawmakers in South Korea have similar privileges, of course. Notably, SPA delegates do not receive priority food distribution.
Even though the SPA is North Korea’s highest sovereign organization, delegates are not envied by ordinary North Koreans. Since the Supreme People’s Assembly does not have the authority to influence people’s lives, those people accord them little interest.
One North Korean defector commented, “Delegates are usually factory managers or similar, so people are only really envious of his job, in which he can make a lot of money, than in his work as a delegate.” Being a delegate does not directly improve a person’s economic status.
And more here from the Pyongyang Times.
UPDATE 2 (2011-4-7): Below is the first round of media stories about the SPA’s 4th session.
KCNA: DPRK Supreme People’s Assembly Meets
The Fourth Session of the 12th Supreme People′s Assembly of the DPRK was held at the Mansudae Assembly Hall Thursday.
Present there were deputies to the SPA.
Also attending it as observers were officials of party, armed forces and power organs, public organizations, ministries and national institutions and those in the fields of science, education, culture and arts, public health and media.
The Session discussed the following agenda items:
On the work of the DPRK Cabinet in Juche 99 (2010) and its tasks for Juche 100 (2011)
On the results of the implementation of the DPRK state budget for Juche 99 (2010) and its state budget for Juche 100 (2011)
Organizational matter
Deputy Choe Yong Rim, premier of the DPRK, made a report on the first agenda item.
He said that last year witnessed the signal advance in making the national economy Juche-oriented and the solid foundation for a drastic turn in developing the light industry and agricultural production. Big successes were made in development of science and technology, cultural construction and other fields, he noted.
He referred to the concrete tasks for this year, stressing the need to remarkably increase the production of consumer goods and attain the goal of grain production without fail to bring about decisive turn in improving the standard of people′s living. Production should be increased in the economic field as a whole while steadily pushing ahead with the drive to put the national economy on a modern basis, he added.
Deputy Pak Su Gil, vice-premier and minister of Finance, made a report on the second agenda item.
He noted that last year′s state budget revenue was overfulfilled 1.3 percent and the state budgetary expenditure was implemented at 99.9 percent. The revenue increased 7.7 percent while the expenditure swelled 8.2 percent over the previous year, he said, adding:
The state budgetary allocations for light industry and agriculture last year showed 10.9 percent and 9.4 percent increase respectively as compared with that in the previous year. The state budgetary expenditure for the pilot domains of the national economy, basic industrial domains and capital construction last year went up 8 percent and 12.9 percent respectively over the previous year.
8.1 percent greater financial disbursement than the previous year was made for the field of science and technology and 6 percent bigger fund than that in the previous year was spent for the implementation of the popular policies.
15.8 percent of the total state budgetary expenditure was spent for national defence last year.
He further said:
This year the state budgetary revenue is expected to grow 7.5 percent over last year′s and the state budgetary expenditure is expected to show an 8.9 percent increase over last year. Huge funds will go to the light industry, agriculture, etc. and 15.8 percent of the total state budgetary expenditure will be spent for national defence.
Speakers at the Session pointed out that the Cabinet′s work last year and the implementation of the state budget were properly reviewed and summed up. This year′s tasks have been clearly laid down and the state budget correctly shaped in such a way as to give full play to the advantages of the socialist system in the DPRK, they said, expressing full support and approval of them.
They also manifested their will to push ahead with the general offensive for bringing about a decisive turn in building a thriving nation by increasing the political and military power of the country in every way and intensifying the drive for great surge for improving the standard of people′s living.
The Session adopted with the unanimous approval of deputies the SPA decision “On approving the report on the work of the DPRK Cabinet and the results of the implementation of the DPRK state budget for Juche 99 (2010)” and the DPRK SPA ordinance “On the DPRK state budget for Juche 100 (2011) “.
Then the Session discussed the organizational matter.
Deputy Jon Pyong Ho was recalled from member of the DPRK National Defence Commission due to the transfer to other post and Deputy Pak To Chun was elected to fill the vacancy.
Deputy Ri Myong Su was appointed as minister of People′s Security of the DPRK NDC.
Deputy Jang Pyong Gyu was elected chairman of the SPA Legislation Committee to fill the vacancy.
Deputy Ri Thae Nam was relieved of vice-premier of the Cabinet for his health reason.
KCNA: Report on the work of the DPRK Cabinet last year and for this year:
Deputy Choe Yong Rim, premier of the DPRK Cabinet, made a report on its work last year and its tasks for this year at the Fourth Session of the 12th Supreme People′s Assembly of the DPRK held Thursday.
He said that the most important achievement gained in the nation′s economic development last year was that signal progress was made in putting the national economy on a Juche-basis.
The inter-departmental structure of the metal industry was refurbished with the new one. The Juche iron production system was successfully established at major metal plants and new alloy steel production bases sprang up.
Large chemical industrial centres were updated on the basis of the latest science and technology to bring about the mass-production of Juche fiber and Juche fertilizers, signal events.
The coal production capacity increased in the field of coal industry. The construction of hydropower stations was completed to create huge additional generating capacity in the field of power industry. The construction of the Huichon Power Station made unprecedentedly rapid progress, opening a bright prospect for completing it by 2012.
It was another signal success made in the development of the national economy last year that a solid foundation was laid to bring about a radical turn in the development of light industry and the agricultural production.
Spectacular successes were made in the development of science and technology last year and the work to put all sectors of the national economy on a CNC basis made dynamic progress.
Scientists and technicians succeeded in the nuclear fusion, stunning the world. Products based on cutting-edge technology were developed and big progress was made in the development of bio-engineering.
The reporter said that this year the DPRK Cabinet would significantly boost the production of consumer goods and attain the target of grain production without fail and thus bring about a decisive turn in improving the standard of people′s living and continue energetically pushing forward the updating of the national economy while forcefully waging the drive for increased production in all economic sectors.
He went on:
The Cabinet will make this year a year in which light industry will advance in full gear and the people will benefit from it and, at the same time, dynamically push ahead with the work to put the production of consumer goods on a modern and scientific basis.
It will focus all efforts on attaining the target of grain production by bringing about signal innovations in farming with the whole party, country and army and all the people involved.
It will thoroughly establish a food production system of agricultural production and stock breeding and that of fruit farming and stock breeding and reenergize the production at the modern stock breeding and fruit production centers in a bid to simultaneously boost the production of livestock products, fruits and grain. It will make sure that a turn is effected in the development of fruit farming, in particular, this year.
The Cabinet will see to it that the material and technical foundation will be consolidated in the fishery domain to conduct deep-sea fishing, small-scale fishing and shallow-sea culture in a big way and put fish farming on a scientific and intensive basis to produce and supply greater quantities of aquatic products and processed fishes and seafood to the people.
It will improve and strengthen the service to the people to fully meet their need and provide better convenience in their lives.
It will decisively increase the production in all sectors of the national economy including the four pilot sectors in an effort to give strong spurs to the ongoing march for a signal improvement in the standard of people′s living.
The Cabinet will make sure that the coal production will be radically boosted in the field of coal industry while the coal production capacity will be increased under a long-term plan.
It will see to it that the field of power industry will operate all generating equipment in full capacity while rationally forming a system of transmission and distribution to make the most effective use of the electricity produced.
It will accelerate the building of large-scale hydro and thermal power plants while focusing sustained state efforts on the construction of the Huichon Power Station in a bid to provide a sure guarantee for hitting the target of electricity production.
The Cabinet will make sure that the field of metal industry will consolidate and develop the Juche-oriented iron production system and method. It will see to it that the introduction of heavy duty rails and the modernization of railways will be accelerated and transport capacity boosted in the field of railway transport to satisfactorily ease the strain on transport.
It will make sure that the field of mining industry will keep production going at a high rate and dynamically push forward updating while laying a foundation for ensuring a more satisfactory production and supply of nonferrous metal products under a long-term plan.
The field of machine-building industry will energetically step up the work to put machine plants on a CNC basis, ensure a satisfactory production and supply of generating equipment and machines and equipment necessary for the modernization of the national economy. The field of electronics industry will boost the production of varieties of electronic elements and products and the IT field would contribute to putting the national economy on an IT basis.
The field of construction will dynamically push forward the construction of important projects including the Hungnam gasification project, Tanchon Port, the sacred site of Thaekwon-Do and the building of 100 000 flats in Pyongyang so as to complete them at the earliest possible date.
The fields of land administration and urban management will radically change the appearance of the country as befitting a thriving nation and provide better living conditions and environment to the people.
The field of scientific research will radically develop such core basic technologies and cutting-edge science and technology including IT and bio-engineering and satisfactorily settle scientific and technological issues arising in building an economic power.
The Cabinet will see to it that foreign trade will be diverse and multi-faceted to decisively increase the volume of export.
The Cabinet will conduct a positive work for making an effective use of levers for economic and technological cooperation in the direction of consolidating the foundation of the DPRK′s socialist self-supporting economy.
It will make sustained great efforts for the provision of materials needed for boosting the combat capability of the People′s Army and the defence capability of the country in every way and the development of the field of socialist cultural construction.
The reporter called on everybody to work hard to emerge honorable victors in the general offensive this year to significantly greet the centenary of birth of President Kim Il Sung, united close around the Central Committee of the Workers′ Party of Korea headed by leader Kim Jong Il.
KCNA: Report on the implementation of state budget for 2010 and state budget for 2011
Deputy Pak Su Gil, vice-premier and minister of Finance, delivered a report on the results of the implementation of the DPRK state budget for last year and its state budget for this year at the Fourth Session of the 12th Supreme People′s Assembly held on Thursday.
According to the report, last year′s state budgetary revenue was overfulfilled 1.3 percent and its plan for state budgetary expenditure was carried out at 99.9 percent.
The state budgetary allocations for light industry and agriculture last year showed a 10.9 percent and 9.4 percent increase respectively as compared with that in the previous year. The state budgetary expenditure for the pilot domains of national economy, basic industrial domains and capital construction last year went up 8 percent and 12.9 percent respectively over the previous year.
8.1 percent greater financial disbursement than the previous year was made for the field of science and technology and 6 percent bigger fund than that in the previous year was spent for the implementation of the popular policies.
15.8 percent of the total state budgetary expenditure was spent for national defence last year.
The state budget for this year has been shaped in such a way as to radically boost the light industry and agricultural production, revitalize the overall economic construction and conduct a dynamic drive to break through the latest science and technology in all fields to lay a solid foundation for an economic power.
This year′s plan for state budgetary revenue is expected to grow 7.5 percent over last year′s.
The national budgetary revenue is expected to hold 83.9 percent of the total state budgetary revenue and local budgetary revenue 16.1 percent.
The revenue from transaction and the profits of state-run enterprises are expected to hold 78.5 percent of the total state budgetary revenue this year and the profits of cooperative organizations, the fixed asset depreciation, the income from real estate rent and social insurance are expected to swell 3.8 percent, 1.4 percent, 0.7 percent and 0.4 percent respectively as compared with those last year.
This year′s plan for state budgetary expenditure is expected to show an 8.9 percent increase over last year. The budgetary allocation for the light industry is expected to go up 12.9 percent and a huge budgetary disbursement will be made for local industry, too.
9 percent more funds than last year will go to agriculture, funds needed for farming will be provided on a priority basis and the expenditure for the pilot domains and basic industries of the national economy is expected to go up 13.5 percent over last year.
The financial allocation for the capital construction will go up 15.1 percent over last year to hasten the construction of important objects and complete them at the earliest possible date. 10.1 percent bigger financial allocation than last year will be made for scientific and technological development in order to fulfill the five-year plan for state scientific and technological development, positively push forward the work for putting industrial domains on a modern and CNC basis and successfully solve scientific and technical issues arising in the building of an economic power.
Huge funds will go to the cultural construction and land improvement and city management.
15.8 percent of the total state budgetary expenditure is expected to be spent for national defence for this year.
A large amount of educational aid fund and stipends will be sent for the children of Koreans in Japan this year, too.
For the successful fulfillment of the state budget for this year it is necessary for all domains and units of the national economy to give full play to the mental power of the producer masses, economize manpower, materials and funds and cut down as much as possible nonproductive expenditure and thus carry out the monthly and quarterly plans for budgetary revenue without fail, the reporter stressed.
The absense of Kim Jong-un is fomenting speculation. See here, here, here, here, and here.
Michael Madden offers information on the individuals mentioned above.
UPDATE 1 (4/1/2011): The Institute for Far Eastern Studies (IFES) issues the following information (NK Brief No 11-03-30):
On March 15, the Standing Committee of the Supreme People’s Assembly (SPA) announced that the 4th Session of North Korea’s 12th SPA will convene on April 7 in Pyongyang, ordering all the SPA members to pre-register from April 5 to 6.
The SPA is the highest organ of state power according to the Constitution of the DPRK. The Assembly is convened once or twice a year in regular sessions and called to meet in two to three weeks in advance. Its functions include adopting, amending or supplementing enactments to the constitution, determining state policy and budgets, and organizing elections of National Defence Commission (NDC) and other state organs.
Although the KCNA did not report on the specific agenda for the session, it is most likely to resemble the other regular sessions of the SPA, consisting of discussions of the final budget from last year as well as the budget for this year; organizational and personnel issues; and the direction of economic policy. In addition, organizational and personnel changes within the Cabinet and the NDC will likely be on the top agenda.
Particular attention is drawn to whether the heir-apparent Kim Jong Un will be appointed as the vice chairman of the NDC at this session to add to his new title of vice chairman of the Party’s Central Military Commission, which he received earned last year. Another point of interest is on who will replace Ju Sang Sung, who was suddenly dismissed from his post as the Minister of People’s Security. The personnel changes made at the session will play an important role in cementing the succession process of Kim Jong Un.
At the first session of the 12th Presidium of the Supreme People’s Assembly held in April 2009, the Constitution was amended to name the NDC chairman as the “highest leader”, further strengthening the power of the Commission and Kim Jong Il.
Additionally, the second session of the 12th SPA was held on April 9, 2010 followed by the third session which was held on June 7, 2010.
ORIGINAL POST (3/22/2011): According to KCNA:
The fourth session of the 12th SPA of the DPRK will be held in Pyongyang on April 7, Juche 100 (2011).
The Presidium of the Supreme People’s Assembly of the DPRK made public a decision on it on Tuesday.
According to the AFP:
Pyongyang usually convenes its rubber-stamp parliament twice a year for a day or two to pass government budgets and approve personnel changes.
Attention is focused on whether Kim Jong-Un, leader Kim Jong-Il’s youngest son and heir apparent, will be promoted to become one of the vice-chairmen of the powerful National Defence Commission (NDC).
Jong-Un, believed aged 27, was made a four-star general in September and appointed as one of vice-chairmen of the party Central Military Commission, which oversees the 1.2 million-strong armed forces headed by his father.
“It is interesting to see whether the son becomes an NDC vice-chairman or even the first NDC vice-chairman,” Professor Yang Moo-Jin, of the University of North Korean Studies, told AFP.
“It will give us an indication as to where the North stands in its efforts to endow him with power and authority needed to become an eventual successor,” Yang said.
If Jong-Un emerges as the NDC first vice-chairman, he is likely to be given the same title in the Central Military Commission sooner or later, Yang added.
“This will pave the way for the son’s eventual ascension to the throne,” he said.
North Korea’s 2009 constitution says the NDC chairman, currently the senior Kim, is “the highest leader” of the communist state.
The need for new appointments has become acute after the death of the first NDC vice-chairman, Vice Marshall Jo Myong-Rok, in November last year, and the sudden dismissal of the North’s police chief, Ju Sang Song.
According to the Choson Ilbo:
The rubberstamp parliament […] approves senior members of the National Defense Commission, the top decision-making body, and the Cabinet.
Kim Jong-un has already been appointed vice chairman of the commission, and the SPA is expected to approve the appointment.
“Kim Jong-un will need the title if he is to visit China as his father’s heir and meet Xi Jinping,” who is widely tipped as the next Chinese president, a Unification Ministry official speculated.
Below is past information on the 12th Supreme People’s Assembly:
Elections were held in March 2009. See here, here, here.
12th SPA’s First Session (April 9th, 2009): KCNA and here.
12th SPA’s Second Session (April 9th, 2010): KCNA 1,KCNA 2, here, and here.
12th SPA’s Third Session (June 7th, 2010): KCNA 1, KCNA 2, KCNA 3, KCNA 4, KCNA 5, KCNA 6, KCNA 7, KCNA 8, here, here, and here.
Institute for Far Eastern Studies (IFES)
NK Brief No. 10-12-22
12/22/2010
On December 1, the North Korean Supreme People’s Assembly Standing Committee announced an order to elevate the position of the National Resource Development Office, which is overseen by the Cabinet’s Ministry of Extractive Industry, to the Ministry of National Resource Development. According to the Korea Central News Agency, this measure is aimed at increasing development and export of underground resources as international sanctions against the North further limit Pyongyang’s access to foreign capital.
The regime’s focus on increasing earnings can be seen in Kim Jong Il’s on-site guidance trips, as well. The KCNA reported on December 3 that Kim had recently visited Danchon, South Hamgyong Province, touring the Danchon Magnesia Factory, the Danchon Mining Equipment Factory, and the Danchon Port facilities. During his visit to the magnesia factory, Kim Jong Il emphasized the need for increasing the production of quality asphalt. In addition, after receiving a report on the status of implementation of CNC in the Danchon Mining Equipment Factory, he stated, “The factory needs to normalize at a high level of mass production to turn out the necessary numbers of mining and processing equipment.” Upon reviewing the Danchon Port facilities, Kim Jong Il urged staff to work towards ensuring a loud chorus of boat whistles in the port for the upcoming 100th anniversary of the birth of Kim Il Sung in 2012.
U.S. financial sanctions levied against the North have made it difficult for Pyongyang to collect export earnings from its mining efforts, one of its key earners of foreign capital. In May of last year, when sanctions were strengthened in response to North Korea’s second nuclear test, European and even Chinese banks froze money transfers to North Korea. The [North] Korea Magnesia Clinker Manufacturing Group could not collect 4.6 million USD in earnings from the export of zinc to Europe. It appears that the North has tried to compensate for these losses by increasing the export of iron ore from Musan. Exports to China passing through the Musan customs office have more than doubled, rising from 1200 to 2500 tons per day.
The mines of Musan, holding more than seven billion tons of iron ore, are the North’s primary vehicle for earning foreign capital. In 2004, China’s Tonghua Steel and Iron Group signed a contract with North Korean authorities granting the group 50-year development rights at some key North Korean mines, and is planning to invest seven billion Yuan in developing the sites. Beijing plans to use the access to North Korean mines to meet some of the expected 80 million ton shortfall of iron ore in 2010. However, there are rumors that North Korea has canceled the contract with no explanation, causing much speculation about the direction of Pyongyang’s export strategy.
Institute for Far Eastern Studies (IFES)
NK Brief No. 10-11-30
11/30/2010
North Korea has recently revised the Pyongyang City Management Law in order to support ongoing modernization efforts by increasing the management and operational authority of the Cabinet and of the State Planning Committee. On October 21, the Cabinet newspaper ‘Minju Chosun’ ran an article emphasizing the need to ensure that necessary capital and supplies were guaranteed for the construction of 100,000 new residences in Pyongyang and now it appears the North is backing up this modernization drive with the law.
The legal code was revised in accordance with Order No. 743, passed down by the standing committee of the Supreme People’s Assembly on March 30 of this year, but was just recently made public in South Korea. What stands out in this newly revised law is that the central government has strengthened its hold on management and operations within the city.
Article 47 of the city management law states, “The Cabinet must naturally take control of and supervise Pyongyang management operations,” and Article 48 stipulates that the State Planning Committee and the Pyongyang People’s Committee establish and strictly follow detailed plans for each sector of management operations within the capital city. Article 47, of the former law (enacted on 26 Nov. 1998), which covered management projects within Pyongyang, was removed while five new articles were added. Article 17 covers housing construction, Article 27 covers management of street lighting, Article 43 covers the delivery of publications, Article 46 stipulates basic working conditions, and Article 51 guarantees that goods will be produced for Pyongyang markets.
Article 17 stipulates that “the construction of housing must completely guaranteed,” and Article 51 states that planning for and production of commercial goods for Pyongyang must be ensured “without fail.” Housing, goods, electricity, capital and other necessities for the modernization of Pyongyang have now been essentially legally guaranteed. New housing in the capital has been a priority for the North, with construction already underway and plans for 30,000 additional units next year and 35,000 more in 2012. In order to show off these new renovations day and night, Article 27 calls for the “logical installation of street lights” to brighten walkways, roads, and national monuments. The new legal revision appears to be yet another step toward shoring up the framework for establishment of a ‘Strong and Prosperous Nation’ and transition of power to yet a third generation of Kims.
The new law reinforces Pyongyang’s centrality in North Korea’s revolutionary ambitions, referring to the capital as “the home of Juche,” “the heart of the Korean people,” and “the face of the nation.”
Institute for Far Eastern Studies (IFES)
NK Brief No. 10-11-26-1
11/26/2010
North Korea has recently revised its law governing the planning of the People’s Economy, significantly strengthening the state’s ability to oversee and control economic activities throughout the country. The South Korean Ministry of Unification recently released the contents of the law, which the North revised on April 6, as well as details of two laws created by the Supreme People’s Committee Standing Committee on July 8; the Law on Labor Protection (Order 945) and the Chamber of Commerce Law (Order 946).
The new law on economic planning contains seven new articles, but since the details of the August 2009 revision were never made public, it is unclear when the new articles were added. What is clear, however, is how different the new law is when compared to the Law on Planning the People’s Economy that was passed in May, 2001 and the Economic Management Reform Measure enacted on July 1, 2002, both of which significantly boosted the autonomy of business managers and eased government restrictions on economic activity.
With the July 1 Measure, the authority of the National Economic Planning Committee was downgraded, central allocations were graduated based on managerial autonomy and profits, the central rationing system was dismantled, and wages were increased. While the economic planning law of 2001 and the July 1 Measure of 2002 eased restrictions on, and oversight of, the people’s economy, the newly-revised law strengthens state control. The new law appears to not only return but also bolster the central control mechanisms that were eliminated by the 2001 law.
Article 16 of the new law states that the planned economy will be based on prepared figures, while Article 18 states that enterprises, organizations and companies will operate on the principle of ensuring regulated numbers, and Article 24 requires the people’s economic plan, drafted by the Cabinet, State Planning Organization, and regional authorities, to be broken down in detail, by timeframe and indexes, and distributed to enterprises, organizations and companies by the end of October. The planning law passed in 2001 called for economic plans to be drawn up based on production statistics provided from ‘below’ and passed up through chains of command (Article 17), but this has been eliminated from the new law.
With the revision of the law on labor protection, North Korea has added more specific language to Article 12 of the ‘Socialist Labor Law’, which was established in April 1978. Article12 of the Law on Labor Protection states that the protection of laborers’ work is the primary demand of the socialist system, which sees the people as the most precious resource. The law strengthens the role of the state in protecting laborers, and identifies ‘difficult and strenuous’ jobs, including mining, fishing, and earthquake investigation. Workers in these fields are to be given favorable treatment, including the issuance of additional clothing, food and other rations.
In addition, the law covers the installation and maintenance of safety equipment, the issuance of protective gear, and additional protections for female workers. It also restricts work to eight hours per day and guarantees holidays and time off, health care, and protection of property. These and other articles in the law increase state management of workers, but defector testimonies paint a different picture. Most workers save their wages with the assumption that they will have to pay bribes, medical costs and other expenses out-of-pocket.
The law on commercial activity further details the ‘Chamber of Commerce Regulation’ handed down by the Cabinet in 2008. The law covers a range of duties and rights regarding commercial operations, including contracts and operations regarding joint ventures with foreign firms; legal letters of confirmation, certificates of country of origin and other paperwork related to trade issues; as well as exhibitions and conventions held in conjunction with foreign businesses.
According to Yonhap:
North Korea’s Cabinet premier is visiting northeastern China to meet with ranking officials there and speed up joint economic projects between the communist allies, sources here said Wednesday.
Choe Yong-rim arrived in the city of Harbin in Heilongjiang Province earlier this week and visited the city of Changchun in a nearby province on Wednesday, the diplomatic sources said.
Choe, promoted by North Korean leader Kim Jong-il at a parliamentary convention in June, is seen as trying to consolidate the ties between Pyongyang and Beijing as the two countries seek to develop a joint economic bloc that draws from resources in China.
His visit comes after Kim visited the area in late August. During a summit between the North Korean leader and Chinese President Hu Jintao, the countries promised to boost their political and economic cooperation.
Choe’s trip, also reported by a local daily here, comes after 12 of the highest-ranking North Korean mayoral and provincial chiefs visited the same region in October, touring food, chemical and agricultural factories along with other major facilities.
Believed to be a key aide to North Korea’s next leader, Kim Jong-un, the premier inspected electronics and medicine companies and a agricultural research center in Harbin on Tuesday, the sources said.
Choe, 79, formerly chief of the Pyongyang department for the ruling Workers’ Party, has been noted for his rise to power in the past several months. He gave a speech at a mass rally on May 30, where as many as 100,000 North Koreans reportedly denounced South Korea and the United States for blaming Pyongyang for the sinking of a South Korean warship in March.
Read the full story here:
DPRK premier in northeastern China for economic cooperation
Yonhap
11/3/2010
According to Naenara:
The Pyongyang International Insurance Seminar on “Marine Insurance & Reinsurance: the Challenges of the Time” ran between June 7 and 8, 2010.
Present at the seminar were Yang Hyong Sop, vice-president of the Presidium of the DPRK Supreme People’s Assembly, Pak Su Gil, vice-premier and minister of Finance, So Tong Myong, president of the Korea National Insurance Corporation (KNIC) and chairman of the organizing committee of the seminar, officials from the KNIC, insurance workers from the provinces and officials concerned.
Among those present were Ezzat Abdel-Bary, secretary general of the Federation of Afro-Asian Insurers and Reinsurers, and his party, Roberto Quinto Martinez, permanent secretariat of the Association of Insurance and Reinsurance in Developing Countries, delegates from companies of China, Morocco, Sudan, Switzerland, the United Arab Emirates, Britain, India and Egypt, officials of foreign embassies and missions of international organizations in the DPRK.
A delegation from the Kumgang Insurance Company of the General Association of Korean Residents in Japan was also present at the seminar.
The seminar heard papers on marine cargo insurance, marine cargo claims and adjustment—an overview, the art of adjusting catastrophe claims, new trend in the reinsurance market and other papers. Then speeches were made.
The seminar provided the participants with an opportunity to find a way out of instability in the field of insurance affected by the global financial crisis and let each country make an effective use of its own financial resources in the field of insurance and strengthen the international cooperation and exchange.
Unfortunately, when I hear the words “DPRK” and “insurance,” I think of this.
Institute for Far Eastern Studies (IFES)
NK Brief No. 10-06-14-2
6/14/2010
During the third session of the 12th Supreme People’s Assembly, convened on June 7, Kim Jong Il promoted his brother-in-law Jang Sung Thaek to vice-chairman of the National Defense Commission (NDC), named a new premier, and replaced several department heads and ministers. This appears to be an attempt to shore up the regime as it seeks to “open the door to a strong and prosperous nation” by 2012, the 100th anniversary of the birth of Kim Il Sung. Kim Jong Il made a personal appearance at this latest assembly meeting, unlike the SPA meeting held in April. The leader’s presence hints at the importance of the latest gathering.
This promotion of Jang Sung Thaek and shake up of Cabinet positions appears to be part of efforts to realize the quickly approaching goal of establishing a ‘strong and prosperous nation’ by 2012, assigning those most able to positions of responsibility, regardless of age or experience. Most notably, Jang, widely thought to be second-in-command in North Korea, was promoted to vice-chairman of the NDC. He was first appointed to the NDC at the first meeting of the 12th SPA in April 2009, making his climb to vice-chairman in a mere 14 months.
Before the latest promotion, Jang held the position of vice-director of the Workers’ Party of Korea, a newly created position that he was the first to hold. In this position, Jang oversaw national security offices, police, and the courts, putting him in a position of power difficult for anyone else to achieve. Having traveled to both South Korea and China, Jang Sung Thaek was likely promoted to present the image of a strong military and, at the same time, establish stable relations with the international community in order to ensure a smooth transition of power as well as to resurrect the economy by 2012. When Kim Jong Il led a delegation to China last May, the Chinese government treated Jang very well, ignoring standard protocol for someone in his position.
In addition, Choe Yong Rim was named the North’s new premier, and eight new vice-ministers were appointed. Regional Party secretaries were allowed to participate directly, allowing those who are most knowledgeable of local conditions to impact the decisions of the administration. Most of the new appointments were very experienced elites, including Choe Yong Rim (80) as premier, and Kang Neung Su (80), Kim Rak Hui (77), Ri Thae Nam (70), and Jun Ha Chul (82). The regime is promoting a number of veterans who are making their “last stand for the motherland” as part of the effort to ensure stable transformation of power after Kim Jong Il.
With Kim Rak Hui’s appointment as vice-premier and new appointments to the Ministry of Foodstuff and Daily Necessities Industry as well as the head of the Light Industry Ministry, North Korea seems to be pursuing the improvement of standards of living promised in the 2010 New Year’s joint editorial. Pyongyang Party officials appear to be attempting to reassert a centrally planned economy in the aftermath of botched currency reform efforts; however those witnessing regional economic conditions appear much more able to come up with appropriate economic policies. North Korea has been unable to make any significant progress in resolving its food shortages or its inability to provide daily necessities to the public, leading the regime to scapegoat some high-ranking officials. Now, many in and outside of North Korea are watching closely to see if the regime can launch economic efforts capable of successfully ‘opening the door to a Strong and Prosperous Nation’ in the next two years.
