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New Kim Jong-il statue unveiled

Tuesday, February 14th, 2012

Following the unveiling of the Kim Jong-il memorial carved into Mt. Sokda last week, today KCNA announced the unveiling of a Kim Il-sung and a Kim Jong-il statue at the Mansudae Art Studio in Pyongyang.

Click image for a larger version.

You can watch the unveiling in video format on the KCNA page here. You can watch the video on YouTube here.

According ot KCNA:

The statues of President Kim Il Sung and leader Kim Jong Il riding on horses together were erected at the Mansudae Art Studio with approach of the Day of the Shining Star.

Their construction, the first of its kind in the history of the Workers’ Party of Korea and the Korean revolution, is a great glory and pride of Kim Il Sung’s nation and Kim Jong Il’s Korea.

A ceremony of unveiling the statues took place on Tuesday.

Present there were senior party, state and army officials Kim Yong Nam, Choe Yong Rim, Ri Yong Ho, Kim Yong Chun, Kim Ki Nam, Choe Thae Bok, Yang Hyong Sop and Kang Sok Ju, officials of party, military and power bodies, social organizations, ministries and national institutions, men and

officers of the Korean People’s Army and the Korean People’s Internal Security Forces, officials and employees of the Studio and working people in the city of Pyongyang.

Senior officials of the party, state and army and officials of the studio unveiled the statues.

Laid at the statues is a floral basket from Kim Jong Un, supreme leader of the WPK and the people and KPA supreme commander.

Placed were floral baskets in the name of the WPK Central Committee, the Presidium of the DPRK Supreme People’s Assembly, the DPRK Cabinet, the Ministry of the People’s Armed Forces, the Ministry of People’s Security, working people’s organizations, ministries and national institutions,
units of the KPA and party and power organs in the city.

The participants made bows to the statues.

Kim Yong Nam, member of the Presidium of the Political Bureau of the C.C., the WPK and president of the Presidium of the SPA, made an address at the ceremony.

It was the unanimous desire and ardent wish of all the Party members, servicepersons and people to erect a statue of Kim Jong Il as well as Kim Il Sung’s in order to hand down for all ages the prominent traits and revolutionary feats of the illustrious great man, the speaker said, adding:

This ardent desire has been realized thanks to Kim Jong Un’s boundlessly noble loyalty and meticulous guidance.

He called for glorifying the revolutionary careers and undying feats of Kim Il Sung and Kim Jong Il forever with the immutable faith that they are always with us.

The participants looked round the statues after being briefed on them.

Though the unveiling displayed BOTH Kim Il-sung and Kim Jong-il statues, there was previously a Kim Il-sung statue located at this exact spot. I am not sure if this statue has been decommissioned, moved, or incorporated into the new sculpture:

This is only the third Kim Jong-il statue of which I am aware–and the first located outside.

There is a Kim Jong-il statue at the International Friendship Exhibition in Myohyangsan:

The other Kim Jong-il statue is in the Ministry of the Peoples’ Armed Forces:

Both the Kim Il-sung statue and the Kim Jong-il statues were manufactured on location at the Mansudae Art Studio:

Pictured above (Google Earth): The Mansudae Art Studio in Pyongyang. The blue roofs indicate that most of the buildings have recently been renovated.

At the same time, the Daily NK reports that Kim Jong-un has asked that the costs of memorializing his father not be passed on the people (like this).

UPDATES related to the celebrations of Kim Jong-il’s 70th birthday:

1. Kim Jong-il also named “Generalissimo” — a title previously reserved for his father, Kim Il-sung. This clears the way for Kim Jong-un to be promoted to “Marshal”. Many officers were also promoted and awarded the Kim Jong-il Prize. Daily NK coverage here.

2. Commemorative gold and silver coins were issued to celebrate Kim jong-il’s 70th birthday. See more here and here.

3. New stamps were issued.

4. A military tribute was held in Kumsusan Palace (which was renamed Kumsuan Palace of the Sun). See video here.

5. The KCNA web page added a Kim Jong-il photo album. See it here.

6. A new Kim Jong-il badge is issued.

7. NK Leadership Watch coverage here.

8. Here is my lengthy collection of material published when Kim Jong-il passed away.

Posted in Art, Construction, Mansudae creative Company (art studio), Political economy | 4 Comments »

Choson Exchange with a JVIC update

Monday, February 13th, 2012

According to Choson Exchange:

As we mentioned recently, Ri Chol, the broker of the Orascom deal, has moved on from JVIC. Where he has gone is not yet certain, but the choice for his replacement is interesting.

Ri Gwang Gun is the new head of JVIC and was introduced as such to the CEO of Orascom last week. Ri Gwang Gun has held various positions related to trade, including executive positions at state owned enterprises and as Minister of Foreign Trade. He apparently reports to Kim Yang Gon.

He was (is?) a Daepung Investment Group man. We’ve speculated that the existence of both Daepung and JVIC reflected a kind of “competition at the top” for influence in attracting and managing investments. They were both formed around the same time in 2009/2010 and have similar charges. Therefore, Ri Gwang Gun’s promotion could indicate a potential harmonizing of this competition.

Of course, the contours of this are difficult to see. Daepung, with stronger ties to the NDC, could be construed as taking over the JVIC from the top; perhaps the military has been able to exert itself to make sure that in the new leadership era, it does not get shut out of the investment game. (JVIC has become the more active and influential of the two groups.)

It could also be seen as a victory for JVIC, with Daepung being left to crumble and the top talent from that group being brought across. It remains to be seen if there will be some kind of exodus from either group.

Perhaps, also, it is some kind of compromise and a merger of sorts, with competing groups of elites ‘buying in’ to a unified system of investment management under the JVIC brand. They may see this as a way to increase effectiveness, avoid the negative outcomes of unfettered intra-elite competition and therefore encourage stability overall.

Posted in Choson Exchange, Joint Venture Investment Committee (JVIC), Korea Taepung International Investment Group (Daepung Investment Group), National Defense Commission | Comments Closed

Nampho port frozen (again)

Friday, February 10th, 2012

In February 2011 I posted reports that the DPRK’s west coast was experiencing record-low temperatures and the ports were frozen. Unfortunately for the North Korean people, history is repeating itself.

Pictured above (Yonhap): two satellite images of the DPRK’s west coast

According to the Donga Ilbo:

North Korea`s fisheries and shipping industries, two key earners of foreign currency for Pyongyang, have effectively been shackled due to a prolonged cold wave that has frozen waters in the Yellow Sea.
With the temperature reaching minus 10 degrees Celsius for more than a month, more than 40 kilometers of sea water in the Yellow Sea off the North`s coast have been frozen. This is the first time in decades that about 200 kilometers of the North`s coastline from the mouth of the Yalu River to the North`s Hwanghae provinces have been frozen.

Experts say the frozen water will not only affect the North’s fisheries and shipping industries, both of which are major earners of U.S. dollars, but also the Stalinist country`s economy and newly launched Kim Jong Un administration.

Massive ice blocks cover 200 kilometers of N. Korean coastline

In Seoul, the Korea Center for Atmospheric Environment Research and the Korea Meteorological Administration said Thursday that based on analysis of satellite images, massive ice 40 kilometers wide was detected in North Korean coastlines spanning 40 kilometers from the mouth of the Yalu River to coastal waters off Pyongyang.

According to the analysis, Korea Bay located in between the North’s Cholsan and Changyon peninsulas has remained frozen since Jan. 10 due to the cold wave. Coastal waters of Unryul County in South Hwanghae Province, the Chongchon River flowing into Korea Bay, and the port of Nampo at the mouth of the Daedong River running through Pyongyang are also covered with ice.

Chung Yong-seung, director of the environmental think tank, said, “In the past, waters off the North Korean coast used to be frozen. But the formation of such large-scale ice is unprecedented.”

Experts blame arctic ice moving south due to global warming for the ice formation.

North Korea has been hit by a severe cold snap this winter. According to the South Korean weather agency, the North’s average temperature last month was minus 8.4 degrees, 0.7 degrees lower than in an average year.

The Chosun Shinbo, the official newspaper of the pro-Pyongyang Federation of Korean Residents in Japan, recently said, “Temperatures in Pyongyang remained below zero from Dec. 23 last year through Jan. 31, the most extreme cold since 1945,” adding, “North Koreans can even walk on the Daedong River.”

Temperatures in the North fell further this month to minus 11.1 degrees on average, down 4.6 degrees from an average year.

Big burden on N. Korean gov

The ice formation in North Korean waters is pressuring the Kim Jong Un administration economically, experts said. The combined share of fisheries and agriculture in the North`s GDP is 20.8 percent, eight times higher than for South Korea (2.6 percent). Fisheries also play a key role in sustaining the North`s economy with catch volume reaching 630,000 tons a year.

Pyongyang`s dollar earnings have also been hit hard due to the frozen sea that has prevented fishing boats from leaving ports. Goh Yoo-hwan, head of the (South)Korean Association of North Korean Studies, said, “The North should export primary products such as fisheries goods, but no fishing operations due to the frozen water will take a huge toll on the North`s dollar earrings.”

Waters near China’s Liaodong Bay and Russia’s Vladivostok have also been frozen, causing the North’s maritime transportation to go awry. Due to soured inter-Korean relations, the North`s trade with the South and Japan has declined and raised the Stalinist country’s dependence on China to 56.9 percent.

Kim Yong-hyeong, a professor of North Korean studies at Dongguk University in Seoul, said, “If the ice formation in waters wreaks havoc on the North’s maritime transportation, this will destabilize the North Korean economy.”

The problem is that ice at sea is growing thicker. The National Meteorological Satellite Center in Seoul said the boundaries between ice blocks and waters in the North’s section of the Yellow Sea were vague last month, but grew clear this month with ice getting thicker.

Director Chung of the environmental think tank said, “Given North Korea’s weather conditions, the ice in the sea will grow thicker through early next month,” adding, “North Korean society will be hit hard if its fisheries and shipping industries are grounded for more than two months.”

And just how productive is the DPRK’s fishing sector? According to Yonhap:

Chung Yong-seung, head of the research institute, said it is rare for the port to freeze two winters in a row, a development he said could have a negative impact on the North’s fishing industry.

North Korea’s catch reached 663,000 metric tons in 2009, the latest year for which statistics are available, according to the South Korean government data.

Read the full reports here:
N. Korea’s largest port frozen for 2 straight winters
Yonhap
2012-2-10

Extended cold wave freezes key NK sectors of fisheries, shipping
Donga Ilbo
2012-2-10

Posted in Agriculture, Food, International trade, Ministry of Foodstuff and Daily Necessities Industry, Sea shipping, Transportation | Comments Closed

Kim Jong-il’s name carved on Mt. Sokda

Wednesday, February 8th, 2012

Pictured above: (L) A Google Earth satellite image of the face of Mt. Sokda (석다산) before it was “blessed” with the Kim Jong-il commemorative carving (Coordinates: 39.180907°, 125.361290°) (R) A photo from KCNA of the new carving.

According to KCNA:

Pyongyang, February 8 (KCNA) — Letters “Peerless Patriot General Kim Jong Il. February 16, Juche 101 (2012)” were carved on natural rock in Mt. Sokda, Jungsan County, South Phyongan Province on the 70th anniversary of his birth.

The total length of the letters is 120 meters with his name 10 meters high, 5.5 meters wide and 1.4 meters deep. Other letters are 8.5 meters high, 4.8 meters wide and 0.9 meters deep.

Officials and working people in South Phyongan Province chose the rock that is easily visible, reflecting the ardent desire of the people
around the country to exalt his immortal revolutionary feats forever.

An unveiling ceremony took place on Wednesday.

Present there were Kim Ki Nam, Choe Thae Bok, Yang Hyong Sop officials concerned, party members and other working people in the county and helpers.

There are of course many carvings like this in the DPRK. Here is one of my “favorite” examples.

UPDATE 1: The Daily NK has more. See below:

(more…)

Posted in Construction, Mansudae creative Company (art studio), Political economy | 2 Comments »

Abrahamian with a CNC update

Wednesday, February 8th, 2012

Pictured above: the DPRK’s two CNC plants mentioned in the post below. (L) Ryonha Factory in Pyongyang, (R) Ryonha Factory in Huichon

From the Choson Exchange web page:

The company that is tasked with producing and selling CNC is Ryonha, through its subsidiary, Unsan. The company had a booth at the recent International Trade Fair in Rason, held in North Korea’s Special Economic Zone in the far Northeast, bordering Russia and China. Their booth was staffed by a Vice President and – as one might expect – attracted lots of attention from the locals in attendance.

The president claimed annual exports of 30,000,000 euros to Europe, South America and South East Asia. He didn’t have exact details on profits, but mentioned that Unsan imported 10,000,000 euro worth of parts, mostly from Europe, such as control units and electronic relays Siemens and Arno. Their main CNC factory is 40,000 sq. meters and the “biggest in the world” according to the manager. They have two facilities, one in Pyongyang and one in Jagang with 12,000 employees in total. They want to open a factory in Rason, ideally without investors. Prices were said to be: 150,000 EUR for a European made CNC machine but only 52,000 EUR for an equivalent machine made in the DPRK, with the “same quality”.

Unfortunately for Ryonha, it seems to be a subsidiary of the Korea Ryonbong General Corporation, which is under UN sanctions as a WMD proliferator. This no doubt impacts Ryonha’s ability to market itself to customers abroad. Ryonha also doesn’t seem to have a website, which can’t help, either.

Should Ryonha’s parent corporation be taken off the UN’s list of designated proliferators, it will find easier access to a global CNC market that was $6.1 billion in 2007, before the financial crisis hit. The market has contracted since then, as the crisis left a global glut in inventory in 2009, which has taken well into 2011 to clear. The sharply reduced demand, particularly from automakers, has made the CNC market particularly competitive, though a sustained economic recovery would eventually drag the industry back up to pre-crisis levels.

It’s difficult to know what kind of impact Ryonha might have on the global CNC industry, as customers and vendors alike are probably reluctant to trumpet where their machines are made. One of the effects of sanctions has been that companies try to hide their tracks when conducting business with the DPRK, even when the industry is unrelated to sanctioned items. This is sometimes done through an extra layer (or two) of outsourced contracts, or with textiles, sometimes just label-switching. This is tough to do with bigger machines, of course, leaving North Korean CNC machines facing perhaps understandable prejudices.

Its impact on the domestic market will be more significant, of course, reducing the need to spend hard currency on imported CNC machines from China and elsewhere. Perhaps then, this import substitution will allow the DPRK to use that unspent capital on projects that actually benefit the daily lives of its citizens.

Read the full post here.

Posted in Choson Exchange, CNC, Light Industry, Manufacturing, Ryonbong General Corporation | Comments Closed

DPRK exercising stricter enforcement of official prices

Tuesday, February 7th, 2012

According to the Daily NK:

At the beginning of last month, the North Korean authorities ordered local commercial management offices to strengthen oversight to ensure that products were being sold at official state prices, according to a source from Shinuiju on February 6th.

Meeting with Daily NK on a visit to Dandong, China, the source explained, “Friction has started up again between market managers and traders because of orders at the start of the year to make sure that everything is sold at the state-designated price. They do this every year, but this year they are confiscating products and transferring them for sale in state stores.”

Price-related orders are issued annually in North Korea, where the authorities are still reluctant to countenance market price autonomy despite fifteen years of ad hoc marketization. As such, the Ministry of Procurement and Food Policy sets the prices of key goods and posts them at the entrance to markets. These prices are approximately uniform across the country.

Only ‘regional’ items being treated differently; prices for these items are set by pricing bureaus established under provincial People’s Committees. Most obviously, the state price of seafood is cheaper in coastal areas than in inland parts of the country.

However, real price differentials make selling at these state prices untenable; for example, the market price of a kilo of rice in Shinuiju is currently hovering around 3,200 won, while that for corn is 2,200 won, yet the state prices are 1,600 won and 690 won respectively. Therefore, traders traditionally simply pretend to sell at state prices when inspectors turn up, before resuming trade at market prices once they have left.

But the problem this year is that enforcement is stricter than usual, with illegally priced products being confiscated, transferred directly to state stores and sold at state prices. According to the source, “In the past state prices were only symbolic and inspectors didn’t enforce them. Even if they confiscated something you could pay them a little and get it back. But now they are just selling those products directly at state prices, so a lot of people who have ignored the crackdowns are ending up in a real fix.”

Not only that. “People who are caught like this are banned from trading from a stall for a month,” the source added. “Traders are reacting very carefully now as a result.”

However, history has taught traders that the crackdown is unlikely to last too long, and anticipate a return to less strict oversight in due course.

Read the full story here:
Annual Market Crackdown Ensnaring the Careless
Daily NK
Park Jun Hyeong and Jeong Jae Sung
2012-2-7

Posted in Black markets, Economic reform, Food, General markets (FMR: Farmers Market), Ministry of Procurement and Food Policy, Price liberalization | Comments Closed

Two Japanese indicted over PC exports

Thursday, February 2nd, 2012

Pictured above: Korea Computer Center, Pyongyang (Google Earth)

According to Mainichi Daily News:

Prosecutors indicted two executives of small trading houses in Nagoya and Tokyo on Wednesday on charges of exporting used personal computers to North Korea in violation of Japanese government trade sanctions.

Lee Mun Ryang, 61, in Nagoya, and Kaoru Morino, 44, in Tokyo, allegedly exported used PCs and other items worth a total of 8.2 million yen to North Korea in June and December 2010, according to the Osaka District Public Prosecutors Office.

The exported goods are believed to have been delivered to the Korea Computer Center, North Korea’s governmental information technology research center set up by late North Korean leader Kim Jong Il.

Both Lee and Morino were quoted by prosecutors as saying they knew that the goods would be delivered to the KCC.

Japan has imposed a total ban on exports to North Korea since June 2009 in protest at its nuclear program.

Lee and Morino began exporting daily necessities to North Korea in 2006, according to investigative sources.

Additional Information:

1. Martyn Williams also wrote about this.

2. In 2010 The Japanese also arrested an individual for exporting pianos to the DPRK.

3. The North Koreans just released several Japanese they were holding.

Read the full story here:
2 executives indicted over PC exports to N. Korea
Mainichi Daily News
2012-2-2

Posted in Computing/IT, International trade, Japan, Korea Computer Center (KCC) | 1 Comment »

Kim Jong-un’s January 2012

Tuesday, January 31st, 2012

UPDATE 1: Luke Herman provides some additional infomration here.

ORIGINAL PSOT: January has been quite interesting for DPRK watchers as we are seeing the steps taken to establish the legitimacy of Kim Jong-un. Below I have cataloged some visible components of this process:

Kim Jong-un’s “on the spot guidance” (OSG):

Kim Jong-un began the year with a visit to Kumsusan palace to pay respects to president Kim Il-sung and leader Kim Jong-il. The political and cultural symbolism speaks for itself.

Kim Jong-un’s second guidance trip (reported on the same day) was reportedly to the Seoul Ryu Kyong Su 105 Guards Tank Division. This visit is symbolically important because it was on a guidance trip to this very same division that (according to the North Korean narrative) Kim Jong-il began his “Songun” (Military First) leadership. According to KCNA (2010-8-24):

An oath-taking meeting of servicepersons of the three services of the Korean People’s Army took place at the Ssangun-ri Revolutionary Site in Sukchon County, South Phyongan Province, on Tuesday on the occasion of the 50th anniversary of Supreme Commander Kim Jong Il’s start of the Songun revolutionary leadership.

The reporter and speakers at the meeting recalled that Kim Jong Il started the Songun revolutionary leadership by providing field guidance, together with President Kim Il Sung, to the Seoul Ryu Kyong Su 105 Guards Tank Division of the KPA on August 25, Juche 49 (1960) stationed in Ssangun-ri.

Here is a satellite image (Google Earth) of the Ssangun-ri Revolutionary Site (쌍운리 혁명사적지, 39°25’3.20″N, 125°44’30.74″E):

Joseph Bermudez wrote more about the Seoul Ryu Kyong Su 105 Guards Tank Division here. Kim Jong-il last visited the unit on 2010-12-31.

The remainder of Kim’s guidance trips in January have been overwhelmingly military in nature:

KPA Air Force Unit 1017
Concert Given by Military Band of KPA
Flight Training of KPA Air Force Unit 378
Demonstration by Players of Western Area Aviation Club (KPA)
Mangyongdae Revolutionary School (KPA)
Lunar New Year Reception
Machine Plant managed by Ho Chol Yong (KPA)
Kim Jong Un Inspects Command of KPA Large Combined Unit 671
Kim Jong Un Inspects KPA Air Force Unit 354
Kim Jong Un Inspects KPA Unit 3870
KPA Unit 169 honored with the title of the O Jung Hup-led Seventh Regiment
Music and dance performace
Hero Street Meat Shop
Pyongyang Folk Village (KPA)
2012 New Year’s concert “The Cause of the Sun Will Be Immortal” given by the Unhasu Orchestra
Seoul Ryu Kyong Su 105 Guards Tank Division
Tribute to Kim Il-sung and Kim Jong-il at (Kamsusan)

The media/propaganda campaign:

1. On Kim Jong-un’s birthday, KCTV ran a much–written–about, hour–long documentary titled, Inheriting the Great Achievement of the Military First Revolution of (Mount) Baekdu, which highlights Kim Jong-un’s bona fides as a great military strategist (see full video here). It also allegedly mentions Jong-un’s mother, though not by name, who was born in Japan.

At this point I don’t have much to add on the film except a translation of Kim Jong-un’s quote in the film, which may be his first official one, provided by C. La Shure in the Korean Studies Digest:

“I am accustomed to working through the night and so am not bothered by it. The most joyous and happiest moments for me are when I can bring joy to the comrade supreme commander. Thus, though I have stayed up several nights, I have worked without knowing weariness. Even when I work through several nights, once I have brought joy to the comrade supreme commander, the weariness vanishes and a new strength courses through my whole body. This must be what revolutionaries live for.”

2. Kim Jong-un’s “motherly” or “nurturing” traits have also been emphasized — imitating not only Kim il-sung’s appearance but also his public mannerisms (a la Bryan Myers):

Pictured above: (Top) The cover of B.R. Myers’ book, The Cleanest Race. (Bottom) Kim Jong-un’s visits to KPA Unit 354 (L) and the Mangyongdae Revolutionary School (R)

3. Kim Jong-un has issued several autographs which look remarkably like his father’s (and grandfather’s):

Pictured above: (L) Kim Jong-il’s signature taken from North Korean television. (R) Kim Jong-un’s signature as reported by KCNA on 2012-1-3. The Choson Ilbo also picked up on this.

4. The KCNA web page now has a special content filter built specifically to highlight Kim Jong-un’s activities. They have also started printing his name in a larger type.

5. Kim Jong-un is now part of the DPRK’s infamous criticism sessions. According to the Daily NK:

“The Central Party is propagandizing the greatness of Kim Jong Eun through criticism sessions, and coming down hard on anybody who is reported to have said anything hinting at any doubt of his greatness,” the source said, adding, “all cadres are being careful not to get caught out by this, without exception.”

6. Kim Jong-un is being called “father” in the official media. According to the Daily NK:

Choson Central News Agency (KCNA) on the 25th reported that Kim Jong Eun made a visit to the Mangyondae Revolutionary School. During his visit, Kim Jong Eun was greeted by staff and students as “Dear Father,” a designation stressing loyalty.

Rodong Shinmun, a day before, ran an article entitled ‘The sun shines forever’. It stated “our people broken hearted at the loss of our nation’s Father (Kim Jong Il ) and out of love our father (Kim Jong Eun) warmly welcomed the return of our people from overseas.” This statement showed that Kim Jong Eun has succeeded being called ‘father’ following Kim Jong Il.

The newspaper went on to praise Kim Jong Eun, “our people are all one in our father and persist with single-minded unity and great heart.”

7. The Lunar New Year holiday was co-opted to celebrate the rise of Kim Jong-un. In addition to public ceremonies and performances in honor of one of the three leaders (Kim Il-sung, Kim Jong-il and Kim Jong-un), the practice of distributing holiday rations in the name of the leader was resumed. In a sign of the “back to the future” economic policies which may be on the horizon, the DPRK is rumored to be interested in reviving nation-wide food distribution through the PDS.

8. KCNA announced an amnesty for convicts. Details were scarce.

Posted in 2011 food shortage debate, Food, Kim Jong Un, Military, Political economy, Public Distribiution System (PDS) | 3 Comments »

Food distribution to resume for the first time in seven years

Friday, January 27th, 2012

Institute for Far Eastern Studies (IFES)
2012-1-25

A month into Kim Jong-un’s ascension to power, it is reported that food distribution is likely to resume nationwide in North Korea.

Many experts evaluate this as a symbolic measure to propagate the construction of a powerful economy and improve the lives of the people. For the North Koreans, the most apparent and obvious economic accomplishment is the improvement of the food situation. Thus, North Korea is most likely to take action to normalize food rations as its top priority.

According to a statement made by a South Korean government official on January 20, “Kim Jong-un and his leadership will begin the food distribution as a way to prove to its people about changes forthcoming in the new regime.”He also added, “After years of propagation for the building of a strong and prosperous nation, they must demonstrate it to the people with noticeable results.”

The amount of rations to be provided is still unclear. However, the source emphasized that it was very likely for rice rations to resume, especially with the approaching national holidays, such as the Lunar New Year and Kim Jong-il’s birthday (February 16).

He also commented that “the food distribution will be a nationwide movement and the food ration system will go into effect based on the distribution network of available food supply.”

According to the Food and Agricultural Organization (FAO) and the World Food Programme (WFP), North Korea’s food production in 2011 compared to the previous year rose by 8.5 percent, sitting at about 5.48 million tons (of rough grains or 4.66 million tons of milled grains).

The minimum amount of food consumption in North Korea is 5.4 million tons, but a shortage of about 400,000 tons is expected, including the international food aid and industrial food imports. Among the recent years, this marks the largest deficiency in food supply.

However, such shortages can be overcome with additional food imports and distributing mainly rice reserves.

The last national food distribution in North Korea was in 2005, seven years ago.

North Korea is also likely to exert more effort in food processing production to improve the distribution of daily necessities. With relatively little dependence on raw material imports, North Korea is planning to improve the food situation through expanding the food processing production in agricultural, fishery, and livestock industries, with less competition with Chinese products.

Posted in Food, Institute for Far Eastern Studies, Kim Jong Un, Public Distribiution System (PDS), UN, UN Food and Agriculture Organization, UN World Food Program | 1 Comment »

KCNA: 20-day industrial output value increases over Jan 2011

Friday, January 27th, 2012

According to KCNA (2012-1-25):

The gross industrial output value grew 1.2 times for twenty days of January this year as against the same period last year.

This is the result of the high-pitched drive waged by all the workers of the country since the first day of this year after receiving with excitement the joint calls of the Central Committee and the Central Military Commission of the Workers’ Party of Korea, the joint New Year editorial for this year and the letter of the working people in South Hamgyong Province.

In the period, the Ministry of Light Industry increased the production 1.4 times and the Ministry of Food and Daily Necessities sharply boosted the production.

Thermal and hydropower stations have increased the ratio of operating the generating equipment.

Much effort is being concentrated on supplying coal to the thermal power plants and chemical and metal plants and developing more coal beds.

The Ministry of Coal Industry produced 12,000 more tons of coal than planned for the 20 days.

Iron mills and steelworks also increased the production.

The freight transport volume increased by 12 percent from the same period last year.

Innovations were made in the production of vinalon and fertilizer by the industrial establishments in the field of chemical industry and in the production of custom built equipment and mining machines by the industrial enterprises of the field of machine industry.

The forestry stations and pit wood stations increased the timber production.

Progress has been reported on a daily basis from the important projects including the building of apartments in Mansudae areas and the Paektusan Songun Youth Power Station.

For the uninitiated, this is about as close as the DPRK gets to releasing economic statistics. Note there are no base numbers–only [some] % increases. Also, despite the measure being officially named “output value”, it is really just a claim of increased physical production. There is no value (prices) or mention of “services” included in these measures.

Unfortunately without more solid numbers, and the proclivity to ascribe productivity gains to effective propaganda, these reports cannot be taken seriously.

Although we all talk about the DPRK’s GDP and per capita income as if the numbers are solid, the reality is quite the opposite. In addition to the general lack of information, there are all sorts of methodological problems with assessing the value of the DPRK’s economy. Here are some helpful sources if you want to learn more:

1. DPRK Economic Statistics Report

2. G. Warren Nutter papers:

– (JSTOR) “Soviet Industrial Growth”, Source: Science, New Series, Vol. 130, No. 3370 (Jul. 31, 1959), pp. 252-255

-(JSTOR) “Industrial Growth in the Soviet Union”, The American Economic Review , Vol. 48, No. 2, Papers and Proceedings of the Seventieth Annual Meeting of the American Economic Association (May, 1958), pp. 398-411

-(JSTOR) Some Observations on Soviet Industrial Growth”, The American Economic Review , Vol. 47, No. 2, Papers and Proceedings of the Sixty-eighth Annual Meeting of the American Economic Association (May, 1957), pp. 618-630

3. The North Korean Economy by Nicholas Eberstadt

4. Assessing the economic performance of North Korea, 1954–1989: Estimates and growth accounting analysis

5. Bank of Korea’s assessment fo the DPRK economy in 2010.

6. My North Korean Economic Statistics Page

Posted in Agriculture statistics, Central Bureau of Statistics (CBS), Coal, Construction, Dams/hydro, Electricity, Energy, Forestry, GDP statistics, Lumber, Mining/Minerals, Ministry of Coal Industry, Ministry of Foodstuff and Daily Necessities Industry, Ministry of Light Industry, Statistics, Transportation | 1 Comment »