North Korean Economy Watch

According to the Daily NK:

According to a former North Korean logger in Russia, instances of forestry workers running away from a “Forestry Mission” program organized by North Korea’s Forestry Ministry in the Russian Far East are increasing due to excessive salary deductions currently being imposed by the North Korean authorities.

Song Ki Bok, a 48-year old former logger who now lives in South Korea told The Daily NK on November 18th, “The Forestry Mission takes 70% of monthly salary in the name of Party funding. Who would want to work there when all the money you earn from working yourself to death is taken from you?”

Prior to 2008, North Korea took 30% of the North Koreans’ wages for “Party loyalty funds”. However, after sanctions put in place by the international community following the first North Korean nuclear test began to bite, the amount was increased to 70%.

The North Korean forestry workers do hard physical labor. Depending on the intensity of their work, they receive just $40 to $100 per month.

Therefore, once 70% is deducted as Party funds, the take-home pay of the worker is between $12 and $30. As a result, workers cannot even dream of wiring sums back to family in the North. They just deliver what cash they can gather via colleagues returning home.

Worse yet, with this kind of swingeing monthly deduction, many workers cannot even recover the bribe they had to offer Party officials in order to be sent to Russia in the first place. For example, the total amount Song ended up paying was nearly $400.

Before escaping from the forestry program, Song saw a monthly salary of $30, meaning that even if he had saved every penny he earned for a year he still would not have recouped the $400 he paid out in bribes.

In the beginning, he was buoyed by the ‘Russia Dream’. The family of a worker in a foreign country traditionally lives in better conditions than most people. Therefore, Song went to Russia in the belief that if he worked hard for three years, he could make 10 years of a North Korean working man’s salary; however, the reality was as harsh as the bitter cold of Siberia.

The Forestry Mission in Russia; Kim Jong Il’s hard currency provider

According to Song, there are 17 forestry sites in Russia which employ North Koreans. Depending on the size of the camp there are differences; however, approximately 1,500~2,000 North Koreans work at each.

The major activities of the Party Committee in each camp are surveillance and the collection of Party funds. A manager, Party secretary and an agent from each of the National Security Agency and People’s Security Ministry are assigned to each site, and 15 administrative officers below them manage operations.

The life of workers is the same as it would be if they lived in North Korea. They must partake of weekly evaluation meetings, and food is provided by distribution. They plant potatoes and wheat in cleared areas near their digs to supplement the insufficient state provisions.

If workers leave without permission, they are punished upon their return. If the crime is grave, the worker might be summoned to North Korea for reeducation.

Song commented, “Sometime people leave the camp to go hunting to earn money. They can only escape punishment by bribing the management.”

In total, the amount gathered in the name of Party funds by the North Korean authorities from each camp can exceed $140,000 per month. Calculations suggest that the annual North Korean government take from the program exceeds $25 million.

However, this harsh Party policy is driving escapes, according to Song, “Since most of their monthly salary began to be taken away as Party funds, the number of workers escaping started to increase. Just from those I know, the average has reached 30 workers per a year.”

Song, describing the harsh working conditions at the site, said, “In 2006, a wood cutter from Dukcheon in South Pyongan Province who had frostbite in both feet at work didn’t receive treatment in time. In the end, they had to cut off both his legs. His co-workers, who could not ignore the situation, raised it with the Party Committee there; however, not only was this opinion ignored, but the wood cutter was sent home with the explanation, ‘It was an accident caused by my own carelessness’.”

“The life of a forestry worker fighting against cold which can reach -40˚C in winter is unspeakably tough,” Song said. “Meanwhile, they don’t even receive a proper month’s salary, which reduces their will to work.”

“If a worker escapes, in the end he has no choice but to head to South Korea. When I think about those of my colleagues who couldn’t come to South Korea with me, it is still hard to sleep at night.”

Read more about logging camps in Russia (including satellite imagery) here and here.

Read the full story here:
Runaway Loggers on the Rise Due to Wage Cuts
Daily NK
Kang Mi Jin
11/22/2010

According to Medical News Today:

In a country where good news is scarce, a pioneering agroforestry project in the Democratic People’s Republic of Korea is restoring heavily degraded landscapes and providing much-needed food for communities living on the sloping lands.

Jianchu Xu, East-Asia Coordinator for the World Agroforestry Centre, which has been providing technical expertise and training for the project since 2008, said agroforestry – in this case the growing of trees on sloping land – is uniquely suited to DPR Korea for addressing food security and protecting the environment.

“What we have managed to achieve so far has had a dramatic impact on people’s lives and the local environment,” Jianchu explains.

“Previously malnourished communities are now producing their own trees and growing chestnut, walnut, peaches, pears and other fruits and berries as well as medicinal bushes,” Jianchu explains. “They have more food and vitamins and are earning income through trading”.

Following the collapse of the socialist bloc in 1989 and a lack of subsidies for agriculture in DPR Korea, famine and malnutrition became widespread in rural areas.

DPR Korea is a harsh mountainous country where only 16% of the land area is suitable for cultivation. In desperation in the 1990s, people turned to the marginal sloping lands but this had a price: deforestation for cropping land and fuelwood left entire landscapes denuded and depleted of nutrients.

In an effort to reverse the situation, an innovative and pioneering project began in 2002 involving the Swiss Agency for Development and Cooperation (SDC) and Korea’s Ministry of Land and Environmental Protection. The World Agroforestry Centre was later brought in to provide technical advice.

Suan County has since expanded to 65 user groups in seven counties, with several hundred hectares of sloping land now under sustainable management. And the project is still growing.

A system of establishing user groups with one representative from each family has enabled demonstration plots to be set up and a large number of households to benefit from knowledge about growing multi-purpose trees. Such trees can improve and stabilize soils as well as provide fertilizer, fodder or fruits.

Most of the people farming the sloping lands are pension workers with little agricultural experience. The agroforestry systems they are now implementing and the techniques they have learnt are significantly increasing tree cover on the slopes as well giving them a diversity of crops.

Several of the user groups have started their own nurseries so that they can be self-sufficient and produce their own planting materials.

Initially a European consultant was engaged to provide advice on sloping land management, but in 2008 SDC brought the World Agroforestry Centre’s China office into the project.

“With similar experiences and history, our Chinese staff were well-placed to work in DPR Korea,” explains Jianchu. “It was important to have people with an understanding of the technical, institutional and socio-political context.”

There are very few international organizations operating in DPR Korea, and most of these are providing emergency relief. “With our strong focus on capacity development, we have established a good reputation,” adds Jianchu. So much so that the Centre is now negotiating a memorandum of understanding with the government and there are plans to establish an office in the country.

According to Jianchu, one of the most important aspects to ensuring the project is sustained is capacity development at all levels.

“As well as the user groups, we are providing training to multi-disciplinary working groups comprising representatives from the national academy, agricultural universities, forestry research and planning institutes, and staff of the Ministry.”

“There is an enormous need to improve knowledge and skills in DPR Korea in the area of natural resource management and to nurture young scientists,” says Jianchu. SDC is now investing in this area. Each year over the past few years, a handful of students from DPR Korea have undertaken studies with the Center for Mountain Ecosystem Studies, jointly run by the World Agroforestry Centre and the Chinese Academy of Sciences and hosted by the Kunming Institute of Botany in China. Some could be considered for a doctoral program in the future.

To further support the up-skilling of DPR Korea scientists and the up-scaling of agroforestry, the Centre will soon publish an agroforestry manual. Work is also underway on an agroforestry policy for sloping lands management and an agroforestry inventory.

Read the full story here:
Agroforestry A Success In North Korea
Medical News Today
Kate Langford
8/31/2010

UPDATE 2 (11/22/2010): Apparently the boy has not given up on his dream and is now protesting in China (well for one minute).  Really.  According to the AP:

A 13-year-old American boy campaigning to turn the demilitarized zone between North and South Korea into a peace park tried to get the Chinese president’s attention Monday, staging a brief protest near Tiananmen Square before being led away by police.

Jonathan Lee unfurled a sign saying “peace treaty” and “nuclear free DMZ children’s peace forest” as he stood outside Tiananmen Gate just north of the square in central Beijing.

The scene of numerous demonstrations over the years, the gate and square remain some of the most tightly controlled public spaces in China and all protests on it are quickly snuffed by security agents, sometimes violently. In 1989, tanks and troops rolled into the square to crush a student-led pro-democracy movement, killing at least hundreds of people.

Less than a minute after Lee began his demonstration, a man presumed to be a plainclothes police officer grabbed the boy’s sign and waved away watching journalists, who had been contacted by Lee’s family ahead of time. Three or four uniformed police officers then hurriedly escorted Lee and his mother away without commotion.

Police held the pair and a few hours later Lee and his mother, Melissa Lee, returned to their hotel where they were joined by the boy’s father and sister. The family arrived unaccompanied at Beijing airport Monday evening to catch a Korean Airlines flight to Seoul, but declined to comment to The Associated Press.

The Lees’ treatment by Chinese authorities was relatively mild compared with the often rough handling and swift, forced deportation given to most foreigners who try to stage protests in China. It was not clear if they were forced to leave the country or had already planned to do so.

The boy, from Ridgeland, Mississippi, is trying to persuade the leaders of North and South Korea, China and the United States to work for reunification of the two Koreas.

“Hopefully my picketing will touch them in a way, so they’ll really consider peace, you know, between North and South Korea,” Lee said in an interview Friday with Joel Clark, a documentary filmmaker who traveled to China with the Lees, that was provided to the AP. “I guess I’m just trying to do, you know, what God would want, making peace.”

His Korean-born father, Kyoung Lee, said in a written statement Monday that his son has sent letters to President Barack Obama and South Korean President Lee Myung-Bak but had not been able to give a letter to Chinese President Hu Jintao. That, the father said, made the Tiananmen protest necessary.

Passionate and strong-willed, Lee is the latest, and perhaps youngest, activist to try to bring peace to the heavily militarized Korean peninsula, divided since the 1950-53 Korean War in which both the U.S. and China fought. The U.S. is Seoul’s ally, stationing troops in the well-off nation, while China is the main economic and diplomatic backer of the isolated, impoverished North.

Lee made a rare visit to North Korea in August to propose his idea of a “children’s peace forest” in the demilitarized zone and was taken on a tour of the 2.5-mile (four-kilometer)-wide buffer zone, which is sealed off with electric fences and studded with land mines. A hoped-for meeting with North Korean leader Kim Jong Il did not materialize, although Lee said the officials forwarded to Kim a letter from him.

A U.S. Embassy spokesman declined to comment on the case, saying Lee family members had not signed privacy waivers.

UPDATE 1 (8/19/2010): According ot the AFP:

A US teenager who spent a week in North Korea to promote an idea for a peace forest on the tense Korean border said Thursday his trip had given him “hope” for the future of the peninsula.

Jonathan Lee, a 13-year-old ethnic Korean, said he felt safe and had been treated well during his visit to one of the most secretive states in the world.

Lee said that he headed to Pyongyang with a letter for North Korean leader Kim Jong-Il, proposing the creation of a “children’s peace forest” in the demilitarised zone (DMZ) dividing North and South.

The trip comes amid high cross-border tensions, which grew after South Korea and the United States accused the North in May of torpedoing one of Seoul’s warships with the loss of 46 lives.

“My letter suggesting this (idea) was passed on to Chairman Kim Jong-Il along with my book as a gift to him,” Lee told reporters at Beijing airport, where he stopped for a layover with his parents before flying to Seoul.

“I went to several places but the place that made the biggest impression on me was the DMZ,” said Lee, who hails from the southern US state of Mississippi.

“While at the DMZ, I spoke of my hope of having a children’s peace forest. My suggestion for the motto is ‘Above politics, above conflicts, above borders, above ideology’.”

Lee has sent letters to South Korean President Lee Myung-Bak, US President Barack Obama and China’s President Hu Jintao, explaining his idea for the peace forest of fruit and chestnut trees on the world’s last Cold War frontier.

The surrounding area is heavily fortified with concrete, barbed wire, land mines and soldiers from both North and South Korea.

His visit recalled the efforts of 11-year-old US schoolgirl Samantha Smith, who in 1983 travelled to the Soviet Union at the height of the Cold War, after writing to then leader Yuri Andropov to ask if he planned a nuclear war against the US.

“It’s all about giving hope to the people and children around the world,” said Lee, the founder of a global youth environmental group called I.C.E.Y. H.O.P.E.

“On this trip, I discovered that both sides want reunification, and that Korea is one, so I see hope on the Korean peninsula.”

He told South Korea’s Yonhap news agency that North Korean officials had given a “good” response to his proposal, and that the country’s people were “quite lively”.

The teen also said officials had told his family that progress could be made on his idea only if the United States were to help transform the armistice that ended the 1950-53 Korean War into a full-fledged peace treaty.

North Korea, which has no diplomatic relations with the United States, approved Lee’s trip despite a tense stand-off between the countries over the detention of four American citizens for illegal entry.

Three have been released but but Aijalon Gomes, a 30-year-old former English teacher in Seoul, is still being held in prison there.

Gomes was arrested in January and sentenced to eight years’ hard labour for an illegal border crossing. The North said in July that Gomes had tried to commit suicide and was being treated in hospital.

Lee has previously said his idea was inspired by former South Korean leader Kim Dae-Jung, who died in August last year.

As president from 1998-2003, Kim Dae-Jung held a landmark summit with North Korea’s Kim in 2000 that paved the way for inter-Korean reconciliation and earned him a Nobel peace prize.

ORIGINAL POST (8/11/2010): According to Yonhap:

A teenage American boy says he is traveling to North Korea this week with a letter urging leader Kim Jong-il to allow the creation of a peace forest that would grow over the heavily armed border between the Koreas.

“You may be wondering why a 13-year-old boy wants to go into North Korea, especially right now when there are a lot of problems,” Jonathan Lee, a Korean-American from Mississippi, wrote in his letter.

“Well, I’ve been talking about planting chestnut trees in North Korea for the past three years. The reason I have is because I want to help the environment and help the people at the same time. Now is the right time because many wish for peace right now on the Korean peninsula.”

…

A youth environmental activist who founded in Mississippi the International Cooperation of Environmental Youth – Helping Our Polluted Earth, Jonathan was first moved to pursue the idea of planting chestnut trees on the Korean Peninsula when he met with former South Korean President Kim Dae-jung three years ago.

“His wish for peace between the two Koreas made an impression on me,” he wrote in his letter, recounting the meeting at a celebration of the anniversary of the two Koreas’ 2000 summit.

“Korea has been divided for 60 years and has been officially at war during this time. The children of these countries have never met or interacted with each other. Personally, I think this is sad,” he said.

Jonathan was scheduled to leave Seoul for China on Tuesday, where he will deliver the same letter to Chinese President Hu Jintao. He has already sent the proposal to South Korean President Lee Myung-bak and U.S. President Barack Obama.

Jonathan’s eight-day trip to the communist nation will start Thursday and will include a meeting with a North Korean government official, his father, Kyoung Lee, says. He declined to elaborate.

…

Kyoung Lee believes that safety for his son and his family was guaranteed because their visit was made possible through the North’s U.N. representative in New York.

The family says that they also requested a meeting between Jonathan and the 68-year-old North Korean leader, Kim Jong-il. But the North has only mentioned the possibility of a meeting with a “senior” official.

If Jonathan’s wish to plant a forest of chestnut trees in Panmunjom, along the border between the two Koreas, did come true, it would be a stark contrast to the surrounding area heavily fortified with barbed wire and military personnel, he believes.

Panmunjom, the village where the truce that ended the 1950-53 Korean War was signed, lies within the Demilitarized Zone, a four-kilometer-wide swath of land bisecting the peninsula.

Jonathan says his chestnut trees would “not only help the environment, but would also provide food for the North Koreans.” The North has been suffering from decades of food shortages and deforestation — a consequence of people cutting down trees to plant crops for their survival.

“Above politics; Above conflicts; Above borders; Above ideology; It’s all about giving hope to people and children around the world,” Jonanthan says, referring to his motto for the forest.

“This is the most important part of the letter that Jonathan would like to emphasize,” his father said.

Jonathan’s group, also known as I.C.E.Y.-H.O.P.E., raised funds in South Korea last year and delivered them to the North for use in planting chestnut trees.

Read the full story here:
Teenage U.S. environmentalist to visit N. Korea on bold peace mission
Yonhap
Lee Haye-ah
8/10/2010

Biological Conservation, May 2010
Lina Tang, Guofan Shao,Zhengji Piao, Limin Dai, Michael A. Jenkins, Shaoxian Wang, Gang Wue, Jianguo Wuf, Jingzhu Zhao

Download the PDF here.

Abstract:
Forest degradation in protected areas has been monitored around the world with remote sensing data, but degradation processes undetectable by widely used satellite sensors have been largely overlooked. Increased human pressures and socioeconomic development make forest protection more challenging, particularly for forest ecosystems that lie across national borders because of the differences in national socioeconomic policies and conditions within them. Here with Landsat data, Google Earth images, and field observations, we show that, in two adjacent biosphere reserves across the border of China and North Korea, over one half of primary forest landscapes have been deteriorated by exploitive uses, including seed harvesting and systematic logging. The combined effects of detectable and hidden degradation processes have further damaged forest ecosystems in the core areas in the two biosphere reserves, threatening sustainable biodiversity conservation in the region. It is urgent to develop cross-border collaborative conservation strategies that can help combat both detectable and hidden degradation processes at a regional scale.

According to the Associated Press (via Los Angeles Times):

The North Korean’s note, scrawled in pen, was simple: “I want to go to South Korea. Why? To find freedom. Freedom of religion, freedom of life.”

The ex-logger, on the run from North Korean authorities, handed the note over to a South Korean missionary in the Russian city of Vladivostok last week in hopes it would lead to political asylum.

Just before he was to meet Thursday with the International Organization for Migrants, a team of men grabbed him, slapped handcuffs on him and drove off, rights activists in Moscow said Friday. He was spirited away to the eastern port city of Nakhokda, where he is sure to be handed back over to North Korean officials and repatriated to his communist homeland, activists said in Seoul.

Police in Vladivostok refused to comment. A senior South Korean diplomat in Vladivostok said he had no information. Officials from the U.S. consulate in Vladivostok could not be reached for comment.

The 51-year-old would be the third North Korean logger in Russia in a week to make a bid for asylum. On March 9, two other North Koreans who had fled their jobs as loggers managed to get into the South Korean consulate in Vladivostok.

Russia’s RIA Novosti news agency reported last week that two North Koreans climbed a fence, ran past the guards and entered the consulate, saying they wanted political asylum. ITAR-Tass carried a similar report.

The incidents focused attention on the precarious existence of tens of thousands of North Koreans sent by the impoverished regime to work in neighboring Russia.

Russian government figures from 2007 put the number of North Korean laborers at 32,600, most of them working in logging in the remote east.

The Rev. Peter Chung, a Seoul-based activist, said there are about 40,000 North Korean loggers in Russia, but that some 10,000 of them have fled their work sites. Some are finding work as day laborers while others are in hiding as they try to map out how to win asylum in foreign diplomatic missions.

The North Korean described the conditions as unbearable. His government took half his meager wages, while the North Korean company operating the logging camp took 35 percent. He kept just 15 percent — about $60 a month — an arrangement that rendered him “virtually a slave,” he told activists.

He eventually fled the logging camp, taking odd jobs to survive. He also became a Christian, Chung and Kim Hi-tae said, which could draw severe punishment, even execution, back home.

The successful asylum bid of two other former North Korean loggers inspired Kim to make a similar attempt, Chung said.

Previous posts on the North Korean loggers in Russia can be found here. More here. And here. And here.

Read the full story below:
3rd North Korean logger attempts to defect in Russia, propelled by dream of ‘freedom of life’
Associated Press (via Los Angeles Times)
Kim Kwang Tae
3/19/2010

Institute for Far Eastern Studies
NK Brief No. 10-2-24-1
2/24/00

Suffering from severe food shortages, North Korean authorities ordered that markets be opened unconditionally, and that there be absolutely no crack-down on the sale of foodstuffs within the markets. This is according to a report issued on February 18 by the North Korean human rights organization ‘Good Friends’.

Good Friends’ newsletter revealed, “After examining a report on food shortages and the conditions of residents in each region throughout the country by the Office of Economic Policy Review, the Central Committee of the Korean Workers’ Party issued an ‘Order for Absolutely No Regulation Regarding Foodstuffs’ to each law enforcement office.” The order stated that until central distribution is running smoothly, all markets are to be reopened as they were prior to recent government crack-downs, and that under no circumstances were authorities to try to regulate food sales.

Furthermore, it reported that “the People’s Security Bureau also received the Central Committee’s order, and passed on a special instruction to each regional security office ordering agents not to crack down on markets for anything other than illegal goods, and not to regulate food sales, in particular.” Local authorities were also ordered not to engage in altercations with market traders and not to intervene or interfere in fights between traders working within the markets.

According to Good Friends, “Central Party authorities set the price of one kilogram of rice at 24~25 Won, corn at 9 Won/Kg, and corn noodles at 10 Won in an attempt to stabilize the daily lives of people, but the lack of central distribution made the attempt meaningless.”

A North Korean public health official relayed to Good Friends that a report released by central authorities on January 22 stated that there were more than 47 thousand cases of tuberculosis in the North, but that more than half were unable to receive treatment in a hospital, and that “the rise in the number of deaths due to starvation among the most indigent was due to TB patients being unable to eat and subsequently dying after catching a cold or the flu.”

In mid-January, Kim Jong Il called a meeting of Party administrative director (and brother-in-law) Jang Sung-taek and other high-level authorities in order to ease the side-effects of last year’s currency reform. A North Korean source relayed to Daily NK on February 17 that at the meeting, it had been decided that authorities would issue emergency rations to residents facing the threat of starvation.

According to this order, the Office of Food Procurement has been tasked with distribution of the emergency food; neighborhood units receive 5 kg of food daily, while offices receive between 5~15 kg, depending on the number of employees. Neighborhood unit directors or factory supervisors are responsible for assessing the food needs of their neighbors or employees, and prioritize food distribution to those households at risk of starvation.

Until the end of January, currency reform measures that banned the sale of food and drove prices up drove a significant number of households to starvation. However, since the emergency rations measure began to be enforced on February 1, there have been no reports of large-scale famine.

According to NASA:

Multiple fires burned in North Korea in mid-October 2009, sending a plume of smoke over the Sea of Japan. The Moderate Resolution Imaging Spectroradiometer (MODIS) on NASA’s Aqua satellite captured this true-color image on October 15. Red outlines indicate hotspots associated with active fires, although not all the fires have visible hotspots. The smoke plumes blow uniformly eastward, some of the individual plumes coalescing into a single large plume over the sea.

Click image for full size version.

I also made a Google Earth overlay of this image which you can download here.  Comparing this with the map I made of the North Korean electricity grid it is fairly obvious these fires were not started by falling power cables.  The power lines do not run through the areas on fire.

The BBC ran an interesting video story on North Korean loggers felling trees in Russia.  Of course this has been going on for a long time. However, this is the first video footage of the logging facilities that has appeared in the Western media.

According to the video, North Korea’s logging concessions are managed by a company called “Association No. 2,” which is housed in a compound in northern Tynda, Russia.  According to the story, Association No. 2 receives 35% of proceeds of logging (appx $7m) some fraction of which is repatriated to the DPRK’s Ministry of Forestry.  Using the video, I located the Association No. 2 compound on Google Earth. Here is an image:

(Click on image for larger version.  You can see it in Google Maps here.)

Additional Notes:

1. I have not been able to locate the other North Korean logging camps in Russia.  If any readers can find them, please let me know.

2.  The DPRK appointed a new Minister of Forests last October.

3. Bertil Lintner on North Koreans working in Russia.

4. Andrei Lankov on the loggers.

5. Claudia Rosette on the loggers.

6. YouTube video on NKs in Russia.

North Korea doesn’t release official economic data.  Since 1991, the South Korean central bank has released its own estimates of the North Korean economy to fill the void.  Its figures are derived from information provided by the ROK’s National Intelligence Service and other sources.  The 2008 statistics can be downloaded here.

According to coverage by the Associated Press:

The North’s gross domestic product for last year was estimated at $24.7 billion, a 3.7% increase from 2007, Seoul’s Bank of Korea said in a news release. The impoverished North’s economy shrank 2.3% in 2007 and 1.1% in 2006.

The central bank said the North’s economic growth was mainly because of “temporary factors” such as favorable weather conditions that resulted in an increase in agricultural production, and the arrival of oil shipments under an international disarmament deal on its nuclear program.

The size of North Korea’s economy, however, was still about 2.6% of South Korea’s, the bank said, adding it was “difficult” to determine whether last year’s growth means the country’s internal economic conditions have improved.

The bank said the North’s agricultural production increased 10.9% last year compared with 2007. The production of coal, iron ore and other minerals expanded 2.3% and the manufacturing industry 2.5%.

…and BBC coverage:

Agricultural production rose nearly 11% in 2008 compared with 2007. And coal, iron ore and other mineral production grew 2.3% for the year.

UPDATE from Business Week:

The surprise underscores the tiny size of the North Korean economy, which could be easily swayed by such factors as weather and outside assistance. Just over two-thirds of the 3.7% growth came from the agricultural sector, and that is heavily dictated by weather. North Korea’s agricultural output increased by 10.9% in 2008 after falling by 12.1% in the previous year as it managed to escape from major floods and drought. Its 2008 manufacturing production also grew by 2.5%, compared with a gain of a mere 0.8% in 2007, thanks to heavy oil supplies by the U.S. and its allies as a result of Pyongyang’s agreement last year to begin dismantling its nuclear facilities.

Even as hope builds in South Korea about a recovery, with the U.S. and China showing signs of revival, prospects for North Korea’s economy are looking grimmer. North Korea’s nuclear test in May and the regime’s missile tests this year have led to an end to outside help and economic sanctions by the U.N. This heralds a poor performance in the manufacturing sector, which will almost certainly face an acute shortage of oil and electricity this year.

Pyongyang can’t count on the agricultural industry for any major contribution to economic growth in 2009, either. Even if North Korea manages to maintain the 2008 grain output of 4.3 million tons, which will be difficult to achieve unless last year’s exceptionally good weather is repeated, it won’t help the economy grow as it starts from a high base.

Those factors make North Korea’s economic growth last year an anomaly. “There’s no indication that North Korea’s growth engine has improved in any fundamental way,” says Bank of Korea economist Shin Seung Cheol. Even with last year’s extraordinary growth, North Korea’s gross domestic product was 1/38 of South Korea’s $935 billion and its trade volume was 1/224 of the South’s $857.3 billion in 2008. As long as North Korea’s reclusive leader Kim Jong Il refuses to open up his country, the gap is bound to keep expanding.

I have collected the most commonly referenced North Korean economic statistics here.

Read more here:
South Korea’s Central Bank Says North’s Economy Grew in 2008
Associated Press
6/28/2009

North Korea’s GDP Growth Better Than South Korea’s
Business Week
Moon Ihlwan
6/30/2009

North Korea Uncovered version 18 is available.  This Google Earth overlay maps North Korea’s agriculture, aviation, cultural locations, markets, manufacturing facilities, railroad, energy infrastructure, politics, sports venues, military establishments, religious facilities, leisure destinations, and national parks.

This project has now been downloaded over 140,000 times since launching in April 2007 and received much media attention last month following a Wall Street Journal article highlighting the work.

Note: Kimchaek City is now in high resolution for the first time.  Information on this city is pretty scarce.  Contributions welcome.

Additions to this version include: New image overlays in Nampo (infrastructure update), Haeju (infrastructure update, apricot trees), Kanggye (infrastructure update, wood processing factory), Kimchaek (infrastructure update). Also, river dredges (h/t Christopher Del Riesgo), the Handure Plain, Musudan update, Nuclear Test Site revamp (h/t Ogle Earth), The International School of Berne (Kim Jong un school), Ongjin Shallow Sea Farms, Monument to  “Horizon of the Handure Plain”, Unhung Youth Power Station, Hwangnyong Fortress Wall, Kim Ung so House, Tomb of Kim Ung so, Chungnyol Shrine, Onchon Public Library, Onchon Public bathhouse, Anbyon Youth Power Stations.