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North Korea’s 7th Party Congress and the economy

Saturday, May 14th, 2016

By Benjamin Katzeff Silberstein

The 7th Party Congress is over, and it turned out to be an affair focused on personal appointments and formalities rather than concrete policy. This post is an attempt to gather some of the news about the congress, some international but mostly domestic coverage and Kim Jong-un’s speeches, particularly that pertaining to economic matters.

Day 1  (5/6/2016) and before 

The congress opened on Friday May 6th. This is how Rodong Sinmun covered the opening:

The Seventh Congress of the Workers’ Party of Korea (WPK) opened here with splendor Friday.

Kim Jong Un, first secretary of the WPK, was present there.

The congress was attended by delegates with the right to vote and speak elected at the provincial party conferences and officials of party, armed forces and power organs, economic organs, working people’s organizations and those in the fields of science, education, public health, literature and arts and media nominated at the provincial party conferences as observers.

Also present there were congratulatory groups of Koreans in Japan and the General Association of Koreans in China for celebrating the Seventh Congress of the WPK.

Kim Jong Un made an opening address.

He in his address, reflecting the infinite loyalty and ardent reverence of the delegates, Party members, service personnel of the Korean People’s Army (KPA) and all other people across the country, extended the noblest tribute and greatest glory to the great Comrades Kim Il Sung and Kim Jong Il.

[…]

The congress sent congratulatory messages to the service personnel of the Korean People’s Army and the Korean People’s Internal Security Forces who performed distinguished feats in defending the party congress and to the working people and officials of the institutions, industrial establishments and cooperative farms who performed brilliant labor feats in the 70-day campaign of loyalty.

The congress approved the following agenda items:

1.Review of the work of the C.C., the WPK.

2.Review of the work of the Central Audit Commission of the WPK.

3.On revising the Rules of the WPK.

4.On electing Kim Jong Un to the top post of the WPK.

5.Election to the central leadership organ of the WPK.

The congress started the discussion on the first agenda item.

Kim Jong Un began the report on the work of the C.C., the WPK.

The presentation of the report will go on at the second day-sitting.

In his opening address to the congress, carried by KCNA, Kim Jong-un highlighted both national prosperity and hardship:

Today we are holding the historic Seventh Congress of the Workers’ Party of Korea amid the grand struggle in which the whole Party, the entire army and all the people, filled with iron nerves and confidence to achieve the final victory of the Juche revolution as soon as possible, are making an all-out, general onward march courageously, thwarting all manner of threats and desperate challenges by the imperialists.

[…]

The Seventh Congress of the WPK has been convened at a historic time when the phase of leap forward in implementing the cause of the Juche revolution is being opened up.

The last decades since the Sixth Congress of the WPK were characterized by grim struggle and glorious victory on the part of our Party and people.

During the period under review the situation of our revolution was very grave and complex.

In the unprecedentedly hard times when the world socialist system collapsed and the allied imperialist forces concentrated their anti-socialist offensive on our Republic, our Party and people were compelled to fight against them single-handed.

The imperialists strained the situation constantly for decades to keep our people from living at peace even for a moment and blocked all the pathways to economic development and existence through all manner of blockade, pressure and sanctions.

In the face of harsh and manifold difficulties and ordeals and the hardships and sufferings worse than those during a war, our Party and people were united more firmly around the Central Committee of the WPK, holding the President and the General in high esteem as the centre of unity and leadership, and made strenuous efforts to defend and advance the socialist cause, following only the revolutionary line of Juche put forward by the great leaders as they braved the storm of history without the slightest hesitation or vacillation.

[…]

This year when the Seventh Congress of the WPK is held, our service personnel and people achieved great successes in the first hydrogen bomb test and the launch of earth observation satellite Kwangmyongsong 4 which served as landmarks in the nation’s history spanning 5 000 years, thus raising the dignity and might of Juche Korea to the highest level possible; in high spirits, they conducted a dynamic 70-day campaign of loyalty to perform great feats and make unprecedented labour successes in all fields of socialist construction.

All the service personnel and people throughout the country displayed the spirit of carrying out the policies of the WPK to the death in response to its militant call for launching the 70-day campaign, thereby making the greatest successes and leap forward in all sectors of the national economy and achieving the brilliant result of exceeding the targets of the campaign set by the WPK.

[…]

Kim also spoke about economic achievements, and said that North Korea’s economic plans had been fulfilled ahead of schedule (my emphasis):

During the campaign, the electric-power, coal-mining and metallurgical industries and rail transport sector strove hard for increased output and transport to bring about a surge in production, and many units in different sectors of the national economy including the machine-building, chemical, building-materials and light industries and agriculture raised a strong wind to ensure modernization and domestic production of our style and bring about an upswing in production, thus making the distinguished achievement of carrying out the first half-year and yearly national economic plans ahead of schedule.

Our heroic working class of Kim Il Sung and Kim Jong Il, scientists and technicians waged an unyielding struggle on the principle of giving priority to self-development to develop and manufacture new machines and equipment based on local efforts and technology, thereby presenting them as gifts to the Congress of the motherly Party. Others across the country wonderfully completed lots of major construction projects, which will be highly conducive to developing the economy and improving the people’s living standards, in a short span of time before the Congress to send reports of loyalty to the Central Committee of the WPK.

But reporters from abroad were in Pyongyang a few days before the congress opened and delivered some interesting dispatches. The Washington Post’s Anna Fifield, for example, visited Jangchon Cooperative Farm near Pyongyang on May 4th. Note that no one at the farm seems to have spoken to reporters about Kim Jong-un’s experimental agriculture reforms — if they have been implemented on a large scale, this would seem a good opportunity to express gratitude and pride in them.

The farm, which Kim visited in June, was deemed to be a shining example of progress, given that it is apparently used as a model for other agricultural cooperatives across the country. So reporters were taken down roads bustling with people to the conspicuously deserted complex.

[…]

Apparently, a total of 3,000 people live in this cooperative. But apart from a few people working in greenhouses and a handful more repairing roofs or painting lampposts, almost no one was around. Inside a science building, lab equipment sat like museum pieces.

[…]

What about these garden plots in front of the houses? They were household gardens, the minders said. Never mind that one house had a garden of only cabbages, another of only cucumbers, the next entirely squash.

Agriculture has been one of the areas where there has been significant change in recent years. Kim Jong Un’s regime has changed the quota system to allow farmers to keep between 30 and 60 percent of their crops, either to eat or to sell for profit in the markets. Economic analysts have been watching these changes­ keenly, part of a broader, if tentative, move toward marketization.

Full article:
A model farm – with few farmers – in North Korea 
Washington Post
Anna Fifield
2016-05-04

On the first day, the congress also sent a congratulatory message to “working people and officials” who participated in the 70-day campaign, carried by KCNA:

The 70-day campaign was a great one for consolidating the single-minded unity of the party, army and people of the DPRK as firm as a rock, bringing about a great innovation and leap forward in building a thriving nation, foiling the vicious moves of the hostile forces to put pressure on the DPRK and stifle it and fully demonstrating the dignity and might of the great Paektusan nation, the message said, and went on:

The Central Committee of the WPK together with its Central Military Commission made public joint slogans in order to glorify this year in which its Seventh Congress is to be held as a year of great heyday in building a thriving nation, ardently appealed to all party members to stage the 70-day campaign in the letter to them and clearly indicated the orientation and ways for winning victory in the on-going general advance.

Unprecedented achievements have been made in the above-said campaign thanks to the heroic struggle of the working people and officials who turned out to greet the Seventh Congress of the WPK out of their boundless loyalty and warm patriotism toward the party.

The Seventh Congress of the WPK extended warm congratulations to the working people and officials of the institutions, industrial establishments and co-op farms who creditably fulfilled the tasks before them during the campaign by sharing the thought, will and pace with the party and fully displaying matchless heroism and self-sacrificing spirit.

Day 2 (5/7/2016) 

On the second day of the congress, Kim gave a report on the work of the KWP Central Committee:

The demise of Kim Il Sung was the biggest grief and loss to our party and people and the biggest trial for our revolution.

After the greatest loss to the nation, the imperialists and their followers have reached the height in their political and military pressure, moves for provoking a war and economic blockade. To cap it all, the country was hit by severe natural disasters, bringing untold hardships and trial to the economic construction and people’s living.

When the world was concerned about the fate of the DPRK and when the imperialist reactionaries were foolishly trumpeting about “change in line” and “collapse of social system”, leader Kim Jong Il solemnly declared his iron will to invariably defend and carry to completion the revolutionary cause of Juche started by the President no matter how arduous the road of the revolution might be, and wisely led the revolution and construction only as intended by the President and the way he did.

By carrying forward the cause of the President under the wise guidance of Kim Jong Il, the WPK has firmly maintained the Songun revolutionary line, the path of winning the steady victory of the Korean revolution, and enforced the Songun politics in an all-round way.

[…]

As required by the prevailing situation and the developing revolution, the WPK advanced the strategic line of simultaneously pushing forward the economic construction and the building of nuclear force and worked hard for its implementation.

The WPK organized and waged an all-people general onward movement for building a thriving people’s paradise as planned and desired by the great leaders and thus ushered in the new era of the prosperity of the country.

The entire party and all the people have achieved the single-minded unity of the whole society in which they are united closely around the leader in thinking and purpose and sense of moral obligation. This is the great success and feat achieved by our party during the period under review.

Our party and people dynamically waged the drive to implement the strategic line of socialist economic construction to lay firm material and technical foundations of self-supporting national economy and provide a springboard from which to build an economic giant.

In delivering this report, Kim mentioned (for the first time during the congress) the new 5-year plan (2016-2020) (emphasis added):

In order to successfully build a socialist power under the banner of modeling the whole society on Kimilsungism-Kimjongilism, it is necessary to strengthen the people’s government and enhance its function and role and, at the same time, thoroughly carry out the general line of our party to dynamically conduct the three revolutions–ideological, technical and cultural.

It is imperative to carry through the five-year strategy for the state economic development from 2016 to 2020.

Kim had a busy second day, and also delivered a review of the KWP’s work (also carried by KCNA):

As required by the prevailing situation and the developing revolution, the WPK advanced the strategic line of simultaneously pushing forward the economic construction and the building of nuclear force and worked hard for its implementation.

[…]

A big stride has been made in the economic and cultural construction.

Raw materials, fuel and power bases of the self-supporting economy have been reinforced and Juche-based production processes introduced into core fields and the structure of industrial sectors further improved.

Is Kim perhaps alluding to changes in agricultural management in the following section? (my emphasis):

 A successful innovation was witnessed in the development of communications service and production processes, technical equipment and operation means have been further modernized in various fields including transport and building-materials industry.

A high-pitched campaign for bringing about a radical turn in seed selection, potato farming, double cropping and scientific farming was waged in the field of agriculture to provide a guarantee for increasing grain production.

Modern stock-breeding bases, fish farms, vegetable greenhouses, mushroom farms and vast thriving orchards were built across the country.

In fisheries a campaign for carrying out the Party’s idea of creating a new history of sea of gold has been waged to make a breakthrough in the development of the fishing industry.

Technical updating and the work for ensuring the local supply of raw and other materials has been positively conducted in factories and enterprises in the field of light industry to ensure increased production and supply of quality consumer goods for people.

Many monumental edifices representing the era of the Workers’ Party to which the Juche-oriented architectural idea was applied were built to lay a solid foundation for socialist economic construction and improvement of the people’s living standards.

Able scientists and technicians grew in number while the material and technical foundation for the scientific researches was consolidated despite economic hardship, bringing about radical development of the science and technology.

Fresh progress was made in the education as required by the IT era with the enforcement of the universal 12-year compulsory education and the establishment of the remote education system.

In another speech, Kim “set forth tasks for completing [the] socialist cause.” KCNA published the speech the same day it was given, and Kim does mention some goals connected to economic matters. This is, to my knowledge, the first statement where Kim actually elaborates somewhat on the five-year plan (my emphasis added):

We should attach importance to talents and attain the goal of turning all people into scientific and technological talents.

It is necessary to lay a firm material and technological foundation of the state and bring about a turn in improving the people’s living standard.

It is necessary to work out a phased strategy for the development of the national economy in a scientific and realistic way and carry out it without fail.

As an immediate task we should thoroughly carry out the five-year strategy for the state economic development from 2016 to 2020.

Note that Kim mentions “external economic relations” before any other matters when discussing the priorities of the five-year plan:

It is necessary to expand and develop external economic relations.

One could speculate whether the following pronouncement alludes to the enterprise management changes under Kim Jong-un — the true meaning of the statement seems to hinge on how one interprets “responsible”:

We should conduct the state unified guidance and strategic management of the economic work in a responsible manner.

The two statements above are the only ones that directly concern economic policy. They are fairly vague, but Kim’s expansions of special economic zones and management reforms come to mind.

Other parts of the speech are not necessarily interesting because of their connection to the economy. This is presumably a reference to the problem of people illegally watching foreign movies and tv-series (my emphasis):

We should usher in an overall efflorescence in the socialist literature and arts.

It is necessary to shatter the imperialist ideological and cultural poisoning and strictly preserve our socialist culture and lifestyle.

We should establish strong moral discipline throughout the society.

It is necessary to further increase the might of the politico-ideological power and military power.

We should more firmly cement the harmonious whole of the party and the popular masses.

We should detect and shatter all moves of the enemies to destabilize our socialism in good time and firmly defend our ideology and social system, class position and single-minded unity.

During the second day, Kim continued his review of the KWP’s work in another speech, and was no stranger to recognizing North Korea’s problems. In affirming North Korea’s “independence,” Kim struck a familiar chord and repeated a suspicion against foreign “aid” that both his grandfather and father often spoke of (my emphasis):

He noted that in the period under review, a radical change was made in the world political structure and correlation of forces and the international circumstances of the Korean revolution remained very complicated.

[…]

For global independence, it is important for each country and nation to maintain their sovereignty, holding aloft the banner of independence against imperialism.

The core of the struggle against imperialism is to frustrate the moves of the U.S. and its followers for aggression and war and defend the global peace and security.

Underscoring the need to conduct a vigorous struggle to get the aggressive military blocs, the root of military confrontation and war, dissolved and the military bases for aggression removed from other countries and thus build a new peaceful world, he continued:

All countries and nations aspiring after independence should never harbor any expectation and illusion about the imperialists’ cunning double-dealing tactics and hypocritical “aid”, but preserve the Juche character and national identity.

The progressive mankind of the world should vigorously struggle for international justice, irrespective of differences in political view, religious belief and economic and cultural development.

It is sometimes difficult to understand how the North Korean regime conceives of the logic behind Byungjin (parallel development of nuclear weapons and the economy), but the following passage gives a hint — with nuclear weapons, the country will be in a stronger position to negotiate its standing in all other areas as well:

Since it retained the status of a full-fledged independent power, a nuclear power, the DPRK will develop its external relations in conformity with the status.

Day 3 (5/8/2016)

On the third day, one of the main statements concerned the work of the auditing commission of the KWP. If one were to speculate, it may not be completely far-fetched to connect this emphasis on internal financial control with the anti-corruption drive launched earlier this year. This is what the designated rapporteur had to say about the work of the commission:

The reporter said the Party Central Auditing Commission confirmed that the party finance has properly performed its mission and duty and all financial activities have been conducted correctly on the principle of the party in the period under review on the basis of the audit data and reports of the review of the work of the auditing commissions submitted to the provincial party conferences.

He underlined the need to steadily improve the party’s financial management as required by the new era of the Juche revolution.

Kim Jong-un made a concluding review on the last day of the congress, also carried by KCNA (emphasis added):

It is necessary to continue to carry out the party’s strategic line of simultaneously pushing forward the economic construction and the building of nuclear force [byungjin].

This strategic line is the most revolutionary and scientific one reflecting the lawful requirements of building a thriving socialist nation and the specific conditions of our country.

Byungjin was also front and center in the decision adopted on the review of the Party by the congress (also carried by KCNA) (emphasis added):

We will consolidate the position of the political and military power and fly the flag of victory on the eminence of the scientific and technological power, an economic giant and a highly civilized nation.

We will take the general line of socialist construction and the principle of self-development as the constant strategic line, win a great victory in building a thriving socialist nation and successfully realize the historic cause of modeling the whole society on Kimilsungism and Kimjongilism.

We will make a new leap forward in the development of the country’s science and technology, open up an era prospering with science and bring about a revolutionary turn in socialist construction in a short span of time.

We will work out the phased strategy for the national economic development in a scientific and realistic manner and carry it out without fail and carry through the five-year strategy for the state economic development from 2016 to 2020 for the present.

We will accelerate the building of a highly civilized socialist country and thus bring up all the people to be able men for the socialist construction with profound knowledge and cultural attainments, and provide them with conditions and environment for leading a wealthy and a highly civilized life to their heart’s content.

International media was not allowed in to witness the congress proceedings for most of the event, but that probably made for more interesting dispatches anyway. Reuters noted the increasing prevalence of electric bikes in Pyongyang:

While pedal-powered bikes still predominate on Pyongyang’s wide avenues, the electric bike trend began in the last year, locals and foreign residents of the North Korean capital said.

On Saturday, a Reuters journalist covering the congress saw six of the bikes in the space of 10 minutes.

“You can carry luggage,” said Kim Chol Jin, a computer science student at Kim Chaek University of Technology, who was riding his electric bike along Mirae Scientists Street.

“My wife bought me this to help shorten my commute,” he told Reuters journalists, who were accompanied by a government guide.

The proliferation of electric bicycles follows another recent local consumer trend: a surge in residential usage of LED light bulbs and solar panels, to get around the country’s chronic electricity shortage.

A bike made by a Chinese company called Anqi was for sale this week in Pyongyang’s Kwangbok Department Store for 2.62 million won – around $330 at the unofficial exchange rate of 8,000 won to the dollar. While that is well beyond the reach of the average North Korean, an expanding gray market economy has given rise to a growing consumer class known as “donju”, or “masters of money”.

Full article:
Power to the people: electric bikes take off in North Korea
Reuters
James Pearson
2016-05-08

Day four (5/9/2016) 

The 7th Party Congress concluded with a statement calling for a “general offensive toward complete victory of socialism,” also carried by KCNA (emphasis added):

It stressed that the main idea of the decision made at the 7th Congress of the WPK is to arouse the entire party, the whole country, the entire army and all the people again to the struggle for winning the final victory in the building of a thriving socialist nation as soon as possible [a rather ambiguous timeline, to say the least…] and thus make them wage a general offensive in the period up to the 8th Congress.

The 7th WPK Congress called upon all the servicepersons, youths and other people to launch a Mallima speed campaign of rapid progress and innovation for the implementation of its decision in every sector and unit, the appeal said, adding:

The entire party, the whole country and all the servicepersons and civilians should dash toward the high eminence of a thriving nation at the speed of Mallima.

And if anyone ever thought that the core characteristics of North Korea’s political system were ambiguous:

Never tolerate but mercilessly squash any element contrary to the idea and intention of the respected Comrade Kim Jong Un and any slightest act of breaking our single-minded unity and backbiting at our Party’s policies.

Science and technology were prevalent themes in much of the rhetoric from the congress:

Let us build an economic and highly-civilized power by dint of science and technology and thus make the Democratic People’s Republic of Korea, our beloved motherland, the envy of the whole world.

This whole paragraph is one sentence:

Let us put the nation’s industry and agriculture on a modern, scientific and IT basis our own way and at the earliest date with our technology, efforts and resources and thus raise the level of the national economy to that of the most developed countries under the banner of self-development-first principle for turning everything of the country into wealth of socialism hard to find in other parts of the world, making the latest science and technology our possessions and creating everything with our materials.

Byungjin again:

Let all the people implement more thoroughly and steadily the Party’s line of simultaneously developing the two fronts, each holding arms in one hand and a hammer or a sickle in the other.

The cooperative farm that Washington Post visited got a special shot-out:

Let us raise the level of every factory and farm to that of the January 18 General Machinery Plant and the Jangchon Vegetable Co-op Farm and build every structure into such spectacular edifice as the Sci-Tech Complex and Mirae Scientists Street.

Beyond the congress

How much did this all cost the North Korean state? A Korea University scholar has attempted a calculation, as reported by Yonhap, and lands at a figure of more than $200 million, placing policy choices such as not increasing imports to close the gap between food need and availability, for example:

North Korea probably spent more than US$200 million on the just-ended ruling party congress, which will further burden the already impoverished country, a local scholar who keeps track of developments in the reclusive country said Friday.

Korea University’s Nam Sung-wook made the claim in an analysis of the four daylong Seventh Congress of the Workers’ Party of Korea (WPK) that ended Monday. He described the rare convention as a “political show.”

[…]

n the assessment, the academic argued the communist country spent at least the amount he estimated in the past six months for the “self coronation” of leader Kim Jong-un.

He said the move’s sole aim seems to be the consolidation of the hereditary power succession. The current leader inherited the country after the sudden death of his father in late 2011, while the late Kim Jong-il took over after his own father, the North’s founder Kim Il-sung, died in July 1994.

“Ultimately, the huge amount of money spent will result in a greater burden for North Koreans,” he said.

[…]

In another paper, professor Yang Moon-soo of the University of North Korean Studies in Seoul said the Pyongyang regime will likely pursue a market-friendly economic policy for the time being.

Cho Bong-hyun, a researcher at the state-run Industrial Bank of Korea (IBK), on the other hand, said the five-year economic development plan issued by Kim Jong-un at the party congress will turn out to be a failure and will eventually come to haunt the regime down the road.

Full article:
N. Korea spends over $200 mln on Workers’ Party congress: scholar
Yonhap News
2016-05-13

This blog looks forward to closely following the implementation of the five-year plan!

UPDATE 1: The National Committee on North Korea has posted all of Kim Jong-un’s speeches.

UPDATE 2: Bob Carlin writes about his thoughts on the congress in 38 North.

UPDATE 3: Ruediger Frank writes about the economic aspects of the congress here. Here is the speech (PDF) to which Dr. Frank refers.

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New power plants operational before KWP congress

Wednesday, May 11th, 2016

The Paektusan Hero Youth Power Station No. 3

Paektusan-youth-power-staiton-3-2016-5-11

Pictured above (Yonhap): The Paektusan Hero Youth Power Station No. 3

Paektusan-power-stations-1-3

Pictured Above (Google Earth): The dam is too recent to appear on Google Earth imagery as of publication, but here are the locations of Paektusan Hero Youth Power Stations Nos 1-3

According to KCNA (2016-5-21):

Paektusan Hero Youth Power Stations in Full Operation

The Paektusan Hero Youth Power stations, built in the Democratic People’s Republic of Korea as a symbol of youth power, are now running at full capacity to supply electricity to the area of Mt. Paektu.

Kim Hyong Dok, chairman of the Samjiyon County, Ryanggang Province, People’s Committee, told KCNA:

Now is the dry season, but the stations have generated much electricity for industrial establishments, public cultural establishments and residential quarters in the county.

They are greatly helpful to the county’s economic development and the improvement of its population’s livelihood.

Academician, Prof. and Dr. So Pyong Hwa of Hamhung University of Hydraulic Engineering, said:

Electricity from the stations is also supplied to its neighboring Pochon and Paekam counties and Hyesan City.

It is very gratifying to see the safe conditions of hydraulic structures and generators at the stations. And it is better to read the mentality of their employees resolved to contribute to the province’s economic development and the improvement of its inhabitants’ livelihood with increased electricity production.

According to KCNA (2016-3-31):

Dam Project of Paektusan Hero Youth Power Station No. 3 Completed

Members of the youth shock brigade of the DPRK finished the dam project of the Paektusan Hero Youth Power Station No. 3 on March 31.

Members of the shock brigade and other builders vied with each other to mount the dam to greet the historic moment of the completion of the dam project.
At 10 a.m. they made a report on the completion of the dam project to supreme leader Kim Jong Un, looking up to the sky above Pyongyang.

The project started on January 13.

The completion of the dam project in a matter of less than three months represents a heroic epic which could be created only by the heroes of the youth power who grew up under the care of the peerlessly great men of Mt Paektu and a miracle they worked as young people of heroic Korea by bringing about a great leap forward by doing 10 years’ work just in one year.

Kim Jong-un visited on April 23.

Yonhap reports that its hasty construction meant the dam was not properly constructed, and it is already leaking.

The Paektusan Hero Youth Power Stations 1 & 2 were formally known as the Paektusan Songun Youth Power Stations. The Paektusan Songun Power Station No. 2 was submitted to the UNFCCC program.

It is still too early to tell, but it appears that power from these three plants will be going to Samjiyon and maybe Hyesan.

Wonsan Army-People Power Station

Wonsan-army-people-google-earth-2016-05-01

Above (Google Earth): The wonsan Army-People Power Station Dam, canal, and two hydro power stations.

Wonsan-army-people-Rosong-Sinmun-2016-05-01

Above (Rodong Sinmun)

According to Rodong Sinmun (2016-5-2):

Large-scale Wonsan Army-People Power Station has been built in Kangwon Province.

The power station has provided a foundation for generating the electricity necessary for developing the economy and improving the living standard of the people and solving the issues of household water, industrial water and irrigation water in the province.

An inaugural ceremony of the power station took place on April 29.

Present at the ceremony were Pak Pong Ju, O Su Yong, officials concerned, builders and working people.

A message of thanks from the Central Committee of the Workers’ Party of Korea (WPK) was delivered.

The message appreciated the builders of the power station and supporters for building another monumental edifice representing the era of the Workers’ Party by dint of self-development and self-reliance as a laudable present to the Seventh Congress of the WPK.

Pak Jong Nam, chief secretary of the Kangwon Provincial Committee of the WPK, in a speech called upon the officials, working people and builders of the province to create a fresh Mallima speed in their worksites in the same spirit as was displayed in the construction of the power station.

At the end of the ceremony the participants went round the power station.

This project was submitted to the UNFCCC for consideration.

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Food prices in North Korea: vegetable prices up, rice prices stable

Thursday, April 28th, 2016

By Benjamin Katzeff Silberstein

Daily NK reports that vegetable prices have gone up in North Korea’s border regions, due to cold weather and forced mobilization efforts (the 70-day battle). But rice prices remain stable (my emphasis):

The price of vegetables including cabbage and radish has surged around the border regions in North Korea and to a lesser degree, further inland. The sudden spike is believed to be driven by sanctions jitters, unseasonably cold temperatures, and excessive mobilization for the upcoming Party Congress, but is being viewed by some as a temporary upswing, given the continual stability in rice prices and foreign exchange rates. 

“Back in February, cabbage was selling for around 2,500 KPW (per kilogram), but prices have suddenly jumped to 7,000 KPW. That’s more expensive than rice,” a Daily NK source in Ryanggang Province reported on April 25. “Now is usually the time when food supplies are short (because of the barley hump), but it looks like the hike was triggered by more people mixing in dried greens with their rice to conserve their rice supplies, in the belief that the food situation may worsen due to [implications stemming from] the sanctions.”

[…]

“In some areas of Taehongdan County, people are eating so-called ‘radish noodles,’ which are made by coating radish leaves with potato starch,” the source explained.

On a nerdy note, I wonder if the connection between potato starch and Taehongdan is merely accidental. Remember, Taehongdan is the birthplace of Kim Jong-il’s 1998 “Potato Revolution.”

Food prices also seem to be impacted by the blitz-mobilization campaign leading up to the 7th Party Congress (my emphasis):

Conditions in the central inland areas are not much different. Individuals who would normally grow their own vegetables have seen their schedules disrupted by ongoing “70-Day Battle” mobilizations. “Thanks to the continual mobilizations, said by many to be ‘turning their hearts into black lumps of coal’, ahead of the Party Congress, business at the markets has lost its vibrancy and the residents are miserable,” a source in Pyongyang told Daily NK.

Rice prices, meanwhile, remain notably stabile:

Despite these high prices, movements on the rice and foreign currency front have remained relatively stable, leading people to believe the spike in vegetables will be short lived.

“Vegetables are not export items and therefore their prices are determined by domestic supply and demand,” the Pyongyang-based source noted. “However strong the sanctions may be, rice prices have nonetheless remained the same and, under these conditions, not many will choose to eat expensive cabbages over rice,” the source added, suggesting that prices are likely to return to normal as the markets readjust for supply and demand.

Full article here:
Vegetable prices spikes, rice remains stabile 
Daily NK
Kang Mi Jin
2016-04-28

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FAO: North Korean food production falls for the first time since 2010

Wednesday, April 27th, 2016

By Benjamin Katzeff Silberstein

27 April 2016, Rome – North Korea’s total  food production – including cereals, soybeans and potatoes in cereal equivalent – is estimated to have fallen in 2015, the first drop since 2010, and is expected to worsen food security in the country, according to a FAO update issued today.

Last year, total food production in North Korea (officially known as the Democratic People’s Republic of Korea) is estimated to have been about 5.4 million tonnes compared to 5.9 million tonnes in 2014, marking a 9 percent decrease, the update said.

In particular, production of paddy rice, the country’s main staple, dropped by 26 percent to 1.9 million tonnes, mainly due to poor rains and low availability of water for irrigation.

FAO’s estimate for the country’s cereal import requirements for the 2015/16 marketing year (November-October) amounts to 694,000 tonnes. With 300,000 tonnes expected to be covered by government imports, the uncovered deficit of 394,000 tonnes represents the highest gap since 2011/12, the report said.

The estimates are based on official production figures and analysis by FAO’s Global Information and Early Warning System (GIEWS) in collaboration with the European Commission’s Joint Research Centre.

Food security set to deteriorate

Given the tight food supplies in 2015/16, the country’s food security situation is expected to deteriorate from the previous year when most households were already estimated to have poor or borderline food consumption levels.

Crop overview

Besides severely affecting the rice crop, the dry conditions during the 2015 main season, coupled with low irrigation water availability following recurrent dry spells since July 2014, also impacted negatively on the production of maize, the country’s second most important cereal crop. Despite an expansion in plantings, maize output is estimated to have decreased by 3 percent to 2.29 million tonnes in 2015.

The report noted that the output of more drought-resistant soybeans – the most important source of protein in North Korea -increased by 37 percent to 220,000  in 2015.

Similarly, the output of other cereals (sorghum, millet, buckwheat) is put at 156,000 tonnes, almost triple the level of 2014.

Production of 2016 early season potatoes and minor wheat and barley, to be harvested from June, is forecast at 363 000 tonnes, 21 percent higher than the sharply reduced 2015 level.

Fuel and fertilizer shortages

Today’s update noted that reduced supplies of fertilizer and fuel in 2015 also limited crop production in 2015.

Source:
North Korea’s food production falls for first time since 2010 as water scarcity hits agricultural sector
Food and Agriculture Organization of the United Nations
04/27/2016

The full FAO report that the press statement refers to can be found here.

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Kim Jong-un’s Party Congress prep: construction projects

Tuesday, April 19th, 2016

By Benjamin Katzeff Silberstein

Kim Jong-un has made at least two announcements recently, as the Korean Worker’s Party heads for its 7th Party Congress in May, about construction projects to be done. One of them is an orphanage in Ryanggang province, Daily NK reports:

Projects underway to promote Kim Jong Un’s legacy as a leader ahead of the 7th Party Congress in May are said to be in full swing across the nation. One such project taking place in Ryanggang Province calls for the full mobilization of residents to build an orphanage as an expression of the leader’s “love for the next generation,” Daily NK has learned.

“Authorities have recently been harassing residents saying that the orphanage under construction next to Kim Jong Suk Teachers’ College in Yonbong-dong needs to be ready for the Marshal’s (Kim Jong Un) inspection by the time of the Party Congress,” a source in Ryanggang Province told Daily NK on Thursday. “The provincial party office has been hurrying people along, claiming the construction must be completed before the event.”

Progress was said to be slow during the winter, which was unseasonably cold, but construction efforts are now appearing to ramp up.

The project is being driven by the provincial head secretary and other cadres from the provincial Party and People’s Committee and is being promoted as a means to express loyalty to the leader, who has emphasized his “love for children,” said the source.

She added that cadres associated with the efforts, who have confidently stated that the facility will see completion before the Party Congress, have also been intensifying crackdowns on those seeking to avoid mobilization, out of concern that failure to complete the project on time may lead to issues of accountability.

“Vendors who are busy trying to make a living in the market were often able to get out (of mobilization) with bribes, but even that isn’t easy now,” a separate source in Ryanggang Province explained.

“The price for skipping a day of mobilization is now up to 10 RMB (13,000 KPW) a day per head, so some find it more affordable to just go to the construction site.”

The 13,000 KPW demanded is enough to purchase approximately 2kg of rice based on current prices, which is far from negligible for most members of the public. The higher price tag in effect acts as a tool to turn up the heat on people for mobilization.

The pressure to complete the project before the major political gathering has led to mobilization of students in the afternoons and workers at state-run factory as well.

The near full mobilization also involves specialized colleges, meaning that among the younger generation, stormtroopers (who are working on a railway project in Samjiyon) are seemingly the only group among ordinary residents that are exempt from the orphanage project.

Full article:
Kim Jong Un calls for construction of new orphanage in time for Party Congress
Kang Mi Jin
Daily NK
2016-04-19

IFES at Kyungnam University has also published an analysis of the news about the Ryomyong street project, which Curtis has already written about in this blog. They note that the recent sanctions do not seem to have altered plans for the project. Kim Jong-un’s rhetoric instead highlights the project as a blow against the international community and the US — North Korea will go full steam ahead on its own policies and no outside pressure can hold them back (my emphasis below):

On March 18, the state media Korean Central News Agency (KCNA) reported that Kim Jong Un declared the construction of ‘Ryomyong Street’, which is to be built between Kumsusan Palace of the Sun and the Ryonghung Crossroads in Pyongyang. The street’s name signifies a place where ‘the dawn breaks in the Korean revolution’. Kim also mentioned that the area is to be surrounded by magnificent skyscrapers and multi-level buildings that fit the geographical characteristics surrounding the palace, displaying the Party’s idea of giving importance to science and talents in socialist Korea.
[…]
Along these lines, Kim put emphasis on the policy of securing building materials in constructing the new street and to diversify the size, design and color of decorative objects on the exterior of buildings. He also instructed for the mobilization of ‘soldier-builders’ who previously worked on the construction of Mirae Scientists Street. The construction of the new street shall be carried out with “Mallima speed” during the country’s ‘70-day campaign’ in run-up to the Party Congress scheduled for this upcoming May. The news report also stated that “the party, state, and society should render positive assistance to the construction and the Cabinet, commissions, ministries and national institutions take the lead in this work.”

According to the report, Kim Jong Un also said that “The construction of the street is not merely for formation of a street but serves as a political occasion of clearly showing the spirit of the DPRK standing up and keeping up with the world, despite all sorts of sanctions and pressure by U.S. imperialists and their followers, the appearance of the country advancing to realize the great ideal of the people and truth that the DPRK is able to be well-off in its own way and nothing is impossible for it to do.” The construction of the street appears in part as a means to show off the strength of ‘Songun’ Korea, following in the footsteps of Kim Jong Il’s policy.

Despite the strong sanctions imposed upon the country by the international community, North Korea is striving to achieve some form of economic success. The 70-day campaign has been initiated in the run-up to the Seventh Congress of the Workers’ Party. North Korean media are boasting about the country’s successes on the production front since the campaign’s initiation, saying “under the Juche ideology, people are working hard especially in the fields of electricity, coal, metal, and railroad transportation that they have achieved great success in the [campaign’s] first week.”

Full article here:
North Korea to Construct ‘Ryomyong Street’ Despite Sanctions
Institute for Far Eastern Studies
03-29-2016

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More Friday Fun: Only in North Korea…

Friday, March 25th, 2016

ITEM 1: The PATENTED “Ostar Blood Purifying Health Watch”

Ostar-Blood-watch-2016-3

I don’t buy any watch that does not purify my blood. It is the second most important attribute after accurately telling the time. Who knew that wearing more gaudy jewelry would actually improve your health?!

ITEM 2:  North Korean magicians make handicapped children disappear!

The North Korean Disabled Arts Association put on an impressive performance of music, dancing, and magic. This video marks the first time I had heard of the group or seen its impressive performances. However, I did have to groan, when at the 15:51 mark the North Korean magician put a handicapped girl (in a wheelchair) into a large box only to make her disappear. This is creepy because for much of its history, North Korea has not treated the disabled well (to put it mildly). It’s as if North Korean magicians are carrying out the national policy right there on stage. By the time the “Snow White and the Seven Dwarfs” performance begins at the 37:40 mark, I thought, “Are there any little people left in Pyongyang?” We know from declassified documents and other sources that they were deported from Pyongyang, and probably sterilized, from very early in the nation’s history.

Still, perhaps the creation of this group, and the public airing of its performances, indicate that a new and more inclusive era has arrived in DPRK society. This may be one of the ways that foreign NGOs have changed North Korean social norms for the better.

ITEM 3: The more things change, the more they stay the same. Kim Jong-un’s 3-D cinema glasses immortalized for posterity.  Another great use of state resources…

KJU-3-D-Glasses

Here is the source.

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Deforestation in North Korea continues, new data shows

Thursday, March 24th, 2016

By Benjamin Katzeff Silberstein

Yesterday I stumbled upon a nice interactive World Bank data map that shows where forests have been lost and gained since the 1990s. Forestry is one of those rare areas where fairly extensive data exists for North Korea. Of course, all data has its faults and flaws, and figures on North Korea should always be taken with a grain of salt. But even if the figures aren’t fully correct to the last decimal, they show an interesting trend.

The World Bank World Development Indicators figures seem to be coming from the Forest and Agriculture Organization (FAO)’s Global Forest Resource Assessment, and their latest study of global forestry assets was done just last year (2015). Using these figures, I created a graph showing North Korea’s forestry area (in blue), using South Korea as a baseline comparison.

forestry DPRK ROK smaller

Data source: World Bank World Development Indicators. Graph created by Benjamin Katzeff Silberstein.

Deforestation is far from a new problem in North Korea. What’s interesting is that it appears to continue without signs of abating.

This data stretches all the way to 2015. According to one estimate, North Korean forests shrank by about 17 percent between 1970 and 1990. By the end of 2008, the United Nations estimated that around one third of all forests had been lost in North Korea. If the World Bank data is accurate, it suggests that this trend has continued exponentially, and that the situation has continued to worsen. According to the World Bank data, North Korea lost almost 40 percent of its forests between 1990 and 2015.

As this blog has laid out before, the cycle of problems is well known: people essentially cut down trees as a form of coping behavior in the face of resource scarcity, in order to clear areas for farmland, and to use wood as an energy source. When the annual torrential rains sweep over the Korean peninsula, the lack of trees contributes to soil erosion, spoiling harvests and causing devastation. Kim Jong-un highlighted forestry as an important policy area in 2015. The priority makes a lot of sense, but so far, the solutions don’t seem all that promising.

North Korea celebrated a “Tree Planting Day” about three weeks ago, and the Russian embassy in Pyongyang participated in the celebrations. Their pictures (see this link for their Facebook album) give an interesting snapshot of how it might look across the country as the regime’s tree planting drive unfolds:

A North Korean forestry official (?) giving instructions about tree planting. Photo credits: Russian embassy in Pyongyang.

A North Korean forestry official (?) giving instructions about tree planting. Photo credits: Russian embassy in Pyongyang.

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The Russian ambassador and a young North Korean planting a tree together. Photo credits: Russian embassy in Pyongyang.

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Young North Korean men in Red Cross (적십자) vests lining up for tree planting. Photo credits: Russian embassy in Pyongyang.

 

 

 

 

 

 

 

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Young North Koreans listening to tree planting instructions. Photo credits: Russian embassy in Pyongyang.

 

 

 

 

 

 

 

 

Instructions for how to plant and tend to trees. Photo credits: Russian embassy in Pyongyang.

Instructions for how to plant and tend to trees. Photo credits: Russian embassy in Pyongyang.

 

 

 

 

 

 

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Anniversary of State Planning and statistic organs observed

Saturday, March 5th, 2016

State-plannin-commission-2015-8-6

Pictured Above (Google Earth): State Planning Commission

KCNA reports on the anniversary of the State planning Commission:

A national meeting was held at the Central Youth Hall Saturday to mark the 70th anniversary of the founding of state planning and statistic organs.

President Kim Il Sung was very busy building new democratic Korea after its liberation but founded the first central planning and statistic organ on March 6, Juche 35 (1946) on the basis of feats and experience gained in the flames of the anti-Japanese revolutionary struggle.

The establishment of the central planning and statistic organ helped start a new history of planned economy, a new history of popular statistics which could put overall economic development of the country under control in a uniform way and develop it at a rapid tempo.

Under the wise leadership of the President, the socialist system of planning and statistic work was established, ranks of officials were built and the material and technical foundation was consolidated. As a result, the socialist planning and statistics have performed their mission and role as a powerful weapon for the revolution and construction.

It would be nice to know how busy these guys still are.

The DPRK ceased publishing economic performance statistics (Net Material Product-NMP tables) in 1965, and the last state budget  was announced for FY 2001 (21,570,800,000 won), but no budget numbers have been reported since, only percentage increases in relevant areas. Today, the DPRK releases economic data only on rare occasions, but aside from the lack of availability, there are numerous other problems with using the DPRK’s economic data to obtain credible insight into the North Korean economy.

I post DPRK economic statistics sources here.

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Some recent North Korean stamps

Monday, February 15th, 2016

A North Korea watcher just sent me some recent North Korean stamps that I thought I would share.

World Wildlife Foundation (Birds): The WWF is probably not receiving any donations from the use of their logo on these stamps…

WWF_BM

Pyongyang Standard Time: In August 2015, North Korea created it’s own time zone.

DPRK-Standard-Time

Let’s plant more trees: North Korea has devoted considerable public resources towards reforestation. Tree farms under the government and  military are popping up all over the country.

trees-stamp

Recent accomplishments: I am sure there is more to this one, but I have not had it translated yet

Accomplishmentsstamp

North Korean currency: In 2009 the DPRK renominated the currency. Between then and 2012, the value of the currency relative to the US$ fell from 100KPW to nearly 9,000 in January 2013. They currency has remained stable at about 8,000KPW/1US$ since then.

5wonstamp 10wonstamp

50wonstamp 100wonstamp

200wonstamp 500wonstamp

1000wonstamp 2000wonstamp

5000wonstamp

 

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Science and technology to strengthen the ‘self-development first’ principle

Monday, February 15th, 2016

Institute for Far Eastern Studies (IFES)

Recently, Rodong Sinmun, the mouthpiece for the Workers’ Party of Korea (WPK) released a commentary entitled, “Strengthening Self-Reliance through Science and Technology” to elaborate on the term, ‘self-development-first’ principle mentioned in this year’s New Year’s speech.

The ‘self-development first’ policy was discussed in an editorial titled, “Self-Development Is a Powerful Weapon of Building a Powerful Socialist Nation,” which appeared in the January 27, 2016 edition of the newspaper.

Previously, Kim Jong Un stated, “The principle of giving priority to self-development should be maintained in building a thriving socialist country,” and referred to ‘self-development-first principle’ to signify the power to strengthen oneself where “self-development alone is the road to sustaining the dignity of our country and our nation and to paving a broad avenue for the revolution and construction.”

In addition, ‘self-development’ was emphasized as a principle that protected and highlighted ‘socialism of our-way.’ The newspaper further elaborated that in order to promote economic development and improve the livelihoods of the people ‘self-development-first principle’ must be upheld. Moreover, it stressed that powerful nations should not be worshipped and becoming import-dependent must be avoided. In other words, the antonym for ‘self-development’ was ‘worship of big nations’ and ‘import-dependent.’

In last year’s new year’s speech, Kim Jong Un used the term ‘import disease’ to refer to ‘import-dependence’ as he stressed, “All the factories and enterprises should wage a dynamic struggle to get rid of the proclivity to import and ensure the domestic production of raw and other materials and equipment, while sprucing themselves up by taking their cue from the model units put forward by the Party.”

In this regard, North Korea boasted on specific technological achievements such as subway trains as well as “Juche-based metallurgical industry and model and standard factories of the era of the knowledge-driven economy in various parts of the country . . . opening a new road of advance for developing the overall economy and improving the people’s standard of living.”

North Korea’s emphasis on ‘self-dependence’ is seen as a way to make a breakthrough in a difficult situation with international economic sanctions enforced to make up for ‘lacking’ and ‘inadequate’ resources from the outside world.

The newspaper particularly stressed, “self-development principle is based on science and technology and is an impetus to achieve economic revival.” It added, “Self-development principle inevitably calls for emphasis on science and technology. Self-development can be developed more powerfully and in rapid speed only with the backing of modern science and technology which can serve as the basis to achieve the prosperity of the nation to make a new leap in the construction of a strong nation.”

Ultimately, the editorial explained ‘self-development-first principle’ in the current stage is implemented through promotion of science and technology, which is seen as the key to solve the immediate tasks of achieving economic development and improvement of people’s standard of living.

Kim Jong Un’s announcement of ‘self-development-first principle’ and Rodong Sinmun’s elaboration of the principle in this recent editorial, in conjunction with the calls for science and technology development, reflects and exemplifies what North Korea’s current stance and methodology is in constructing its economy and nation.

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