Some good recent articles on the DPRK economy

May 9th, 2012

“North Korea’s Resource Headache”
The Diplomat
Andray Abrahamian & Geoffrey See

This article brings up the notion of the “natural resource curse”–a topic I briefly mentioned in the context fo the DPRK back in 2010-6-3. Marcus Noland responds to the piece here.

“Will North Korea’s Plans for Foreign Investment Make It a More Prosperous Nation?”
38 North
Bradley Babson

“North Korea redefines ‘minimum’ wage”
Asia Times
Andrei Lankov

And finally, congratulations to Geoffrey See at Choson Exchange. See why here.

Share

Kim Jong-un: urban planner [Book on land management]

May 8th, 2012

UPDATE 2 (2013-9-10): According to Yonhap:

A speech made by North Korea’s young leader Kim Jong-un last year that detailed his plan on land management has been published in Chinese, a state media report said Tuesday, in what is believed to be his first Chinese-language publication.

The Chinese-version of Kim’s speech, titled “On Brining About a Revolutionary Turnabout in National Land Management Work to Meet the Demand of Building a Powerful Socialist State,” was published on Sept. 3 in Dandong, China’s border city with North Korea, China News Service reported.

According to the report, the speech by Kim was published by a Chinese printing firm named “Longshan,” but it did not give other information, including the name of its publisher or whether the publication is being sold.

Kim, who took power in late 2011 following the death of his father, Kim Jong-il, made the speech on April 27 of last year, while convening a meeting of key members of the North’s Workers’ Party of Korea and economic organizations.

During the April 27 meeting, Kim said, “Land management is a patriotic work for the eternal prosperity of the country, and a noble work for providing the people with better living conditions,” according to a report by the North’s state media at the time.

Kim also ordered officials to improve water management, including the improvement of rivers and streams as well as dams, lock gates and “gravity-fed waterways and irrigation channels.”

Read the full story here:
N. Korean leader’s plan on land management published in Chinese
Yonhap
2013-9-10

UPDATE 1 (2012-11-19): Aidan Foster-Carter has sent me a Naenara link to Kim Jong-un’s full remarks (published in English).

I have put the entire speech into a PDF which you can view here.

ORIGINAL POST (2012-5-8): On 2012-5-8 KCNA posted two articles citing a publication by Kim Jong-un on “land management”. The paper, titled “On Effecting a Drastic Turn in Land Management to Meet the Requirements for Building a Thriving Socialist Nation”, was not posted but will no doubt be offered for sale to Pyongyang tourists before too long. However until I receive a copy, the two KCNA articles below will have to do:

Read the rest of this entry »

Share

DPRK could close Pyongyang Thermal Power Plant

May 8th, 2012

Pictured above (Google Earth): The Pyongyang Thermal Power Plant

According to the Daily NK:

Daily NK has learned that the authorities are considering closing down the iconic Pyongyang CHP Plant, which has supplied much of Pyongyang’s electricity for more than 50 years.

A Pyongyang source told the Daily NK on the 30th, “There is news that Pyongyang CHP is being demolished due to the environmental pollution.”

The plant, which is located in the Pyongcheon region of the North Korean capital, first went online in 1961 with a capacity of 200MW. It was expanded to 400MW in 1967, and currently covers a 400,000m2 area of city real estate. The plant was once the only power generating facility in the city.

However, it is now highly inefficient by modern standards and suffers regular equipment failures. The amount of coal consumed by its combined heat and power system is also both enormous, to the extent that it could easily be more effective to export the coal and buy power with the money, and enormously polluting to both the local air and watercourses.

Therefore, the authorities are reportedly hoping to replace the power generated by Pyongyang CHP with that produced by the recently completed Heechon Power Station. However, the clear flaw is that while the capacity of Heechon is sufficient to replace Pyongyang CHP production on paper, there are serious questions over its potential to replace thermal power production given the problems North Korea has gathering enough water for hydroelectricity at certain times of year.

The source said, “Pyongyang residents are worried that ‘If the water dries up in Jagang Province, then Pyongyang’s electricity will also be cut off.”

However, Pyongyang CHP is not the only thermal power supplier to the city. To power the large apartments near Unification Street, the 200MW East Pyongyang CHP was built by a Russian company, Tekhnopromexport, in the early 1990s, going online in 1993. In 2008 when the same plant underwent modernization, the official propaganda declared, “Now, just like Germany, the U.S. and Japan we are equipped with a world class power plant.”

On the 28th of last month, the North Korean media released news of work to further improve the second Pyongyang plant, although it is unclear what this means in reality.

Read the full story here:
Iconic Pyongyang Power Plant Could Go
Daily NK
Choi Song Min
2012-05-08

Share

Food distribution unchanged in April

May 8th, 2012

According to the Daily NK:

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

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

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

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

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

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

Share

Number of DPRK defectors to the South drops

May 8th, 2012

According to Yonhap:

A total of 366 North Korean defectors arrived in South Korea in the first three months of this year, down sharply from 566 in the same period last year, the Unification Ministry said Tuesday.

The North Koreans are composed of 119 men and 247 women, according to the ministry, which handles inter-Korean affairs.

Rights activists said the number of new arrivals decreased as the defection of North Koreans has become more difficult due to crackdowns on defectors and increased costs in illegally crossing the border into China.

Many North Korean defectors in the South claim that they bribed North Korean guards to flee across the border into China.

South Korea is home to more than 23,500 North Korean defectors as a constant stream of North Koreans has fled their communist homeland to try to avoid chronic food shortages and harsh political oppression.

Read about 2011 emigration numbers here.

Read the full story here:
Arrivals of N. Korean defectors drop
Yonhap
2012-5-8

Share

Dandong companies can pay North Koreans in RMB

May 7th, 2012

By Michael Rank

Companies in the Dandong area are no longer at the mercy of fluctuating foreign exchange rates and can now settle their accounts with North Korean companies in renminbi, according to a Chinese website (http://www.#removed-for-malware-warning-external-site#idprkorea.com/news/news/view.asp?id=2288).

Until recently companies conducting border trade with North Korea had to settle their accounts in US dollars, euros or yen, but in August 2010, 600 Dandong companies were permitted to do so in renminbi, and this has now been extended to all companies involved in  border trade, investment and service industries, the report said.

It didn’t mention North Korea by name, but said the new rules apply to companies conducting border trade with any country, so they presumably apply Russia as well as the DPRK.

Share

Report: preparations for Arirang 2012 under way

May 4th, 2012

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

According to the Daily NK:

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

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

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

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

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

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

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

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

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

Read previous posts on the Mass Games here.

See a great documentary on the Mass Games here.

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

Share

1 in 10 North Korean babies premature

May 4th, 2012

According to the Daily NK:

One out of every ten new babies born in North Korea is born premature, according to new World Health Organization (WHO) data.

According to the WHO-produced ‘Born too Soon: The Global Action Report on Preterm Birth’, which was released by the UN body on the 2nd, among 347,600 babies born in North Korea in 2010, fully 37,300 were preterm, or roughly 10.7%. North Korea ranked 80th out of 184 countries surveyed on this measure.

Complications linked to preterm birth caused the death of 2,700 babies, 7% (2,700) of the total, placing North Korea 55th in the world.

You can download the full UN report here.

Read the full story here:
1 in 10 North Korean Babies Born Premature
Daily NK
Hwang Chang Hyun
2012-05-04

Share

New stores and factories open in North Korea

May 3rd, 2012

Pictured above (Google Earth): The location of the Mansugyo Meat and Fish Shop (a.k.a. “Hero Street Meat Shop”) in Pyongyang

Institute for Far Eastern Studies (IFES)
2012-5-2

Recently, new stores are opening in Pyongyang.

On April 26, Kim Jong Un, the first secretary of the Workers’ Party of Korea, congratulated the opening of a meat store in Mansugyo.

The Korean Central News Agency (KCNA) reported on April 26 that the “dear respected Kim Jong Un appeared at the shop to congratulate its opening,” and “looking round the interior of the shop, Kim Jong Un expressed great satisfaction with the soldier builders having built the shop to be loved by the people. He ardently said leader Kim Jong Il would have seen the shop with the highest service level.”

The three-story store covers over 5,000 square meters. The first floor has fresh and frozen fish; the second floor sells beef, pork, goose, turkey, quail and processed foods; and the third floor is equipped with a restaurant serving bulgogi or barbecued beef.

Kim Jong Un is reported to have visited the construction site for the store in January and March and provided guidance over the direction of the project.

On April 27, the KCNA reported that another store, the Mirae Shop for scientists and technicians, opened in Pyongyang. It eulogized Kim Jong Un for naming the shop and commended “his noble intention” for promoting the development of science and technology.

The shop is reported to have a variety of popular goods for sale, including daily necessities, electrical appliances and foodstuffs. In addition, it also boasted its convenient facilities for customers such as alteration and watch repair services as well as elevators and beverage vendors.

On the same day, the KCNA also reported on opening of two other establishments; modern soymilk powder production process of Pyongyang Children’s Foodstuffs Factory and a process for producing sanitary articles at the Pyongyang Cigarette Paper Factory.

The soymilk powder production factory was described as follows: “Employees of the factory, soldier-builders and researchers of Kim Chaek University of Technology manufactured dozens of equipment needed for automatic packing process and the process of carrying and melting sugar powder and installed latest equipment.”

The development of the sanitary products factory was celebrated as an achievement that will meet the needs of women’s daily necessities.

Share

Potent portraits in North Korea

May 3rd, 2012

Pictured above (Google Earth) : Ichon, alleged home of the patriotic North Korean mentioned in the story.

Andrei Lankov wites in the Asia Times:

In August 2007, North Korea suffered severe flooding. Kang Hyong-kwon, a factory worker from the city of Ich’on, was trying to make his way to safety through a dangerous stream. While leaving his flooded house, he took the two most precious things in his life – his five-year-old daughter and portraits of Leaders Generalissimo Kim Il-sung and Marshal Kim Jong-il (or so was reported in the North Korean media a few days later).

Read the rest below:

Read the rest of this entry »

Share