DPRK Energy Experts Working Group Meeting

May 10th, 2008

From the Nautilus Institute (presentations at bottom):

Background
Energy insecurity is a critical dimension of the North Korean (DPRK) nuclear challenge, both in its making, and in its reversal. One of the Six-Party Talks working groups, the Economy and Energy Working Group, is largely devoted to this topic, and energy assistance will play an important role in the process of denuclearization of the DPRK. Nautilus Institute maintains a unique database and set of quantitative and qualitative analytic tools to evaluate and track the DPRK’s energy economy, and has maintained working relations with North Korean scientists and technical personnel from the energy sector for more than a decade. With this capacity, Nautilus has provided a stream of policy analyses and briefings at their request to US, ROK and other officials on the DPRK’s energy needs, its likely negotiating postures and demands, and possible negotiable options. The need for such expertise in support of the Six-Party Talks is increasing.

This project ensures that the underlying data and technical analysis available at Nautilus is as up-to-date as possible, and that analysis and policy advice are available when needed by US and other officials.
The Second DPRK Energy Experts’ Working Group (2008) served to provide information and views from key experts in the field to inform the Nautilus DPRK energy sector analysis update. Experts in attendance at the meeting provided both pertinent, recent data and special insights that are being used to help to make the database as reflective as possible of actual conditions in the DPRK. This in turn provides crucial input to the analysis needed to help to inform the parties to the 6-Party talks regarding possible approaches to DPRK energy sector redevelopment.

In addition, the DPRK Energy Experts Study Group Meeting served, as did the first Meeting, as an opportunity for experts on the DPRK to exchange views on the appropriate “next steps” in DPRK energy sector redevelopment. Key outcomes of this discussion are being reflected in the updated DPRK Energy Sector Analysis. In the process of discussions, the experts in attendance helped to further develop and elaborate-as well as providing input on the prospects for-the activities and means by which the various parties concerned with Korean peninsula affairs might engage and work with the DPRK to help resolve both the DPRK’s energy problems, and, in so doing, begin to address and ameliorate the regional and global insecurities of which the DPRK’s energy problems are a key part. In particular, through the focus of the second day of the meeting on Building Energy Efficiency, progress was made on consideration of possible benefits from and approaches to improving the effectiveness of energy use in the crucial DPRK buildings sector.

The Second DPRK Energy Experts Study Group Meeting convened by Nautilus and its partners will was attended by experts in a variety of areas related to energy supply and demand in the DPRK-including electricity, coal and other minerals, the DPRK economy as a whole, trade into and from the DPRK, and the DPRK’s rural household and agricultural sectors, and energy use in buildings in general in the DPRK and elsewhere (the primary topic of the second day of the Meeting)-to review and discuss the results of existing and newly-commissioned research, and to provide insights from their own experience and their own research. A total of approximately 15 experts on the DPRK and on matters related to DPRK issues attended the Meeting, not including an additional 15 experts, representatives from the organizations partnering to fund and organize the meeting (Nautilus, Tsinghua University, USDOE), including observers from bilateral aid agencies associated with a number of countries, from international organizations, from the business sector, and others, who also lent their expertise to the workshop. On the second day of the workshop, supported by funding from a private foundation, a five-member delegation from the DPRK also attended the meeting, providing presentations and insights of their own on energy use in DPRK buildings, and on related energy sector problems and plans in the DPRK.

Presentations:
Presentation: North Korea’s Mineral Resources and Inter-Korean Cooperation
By Woo-jin Chung

Presentation: Nautilus Institute’s Analysis of the DPRK Energy Sector and DPRK Energy Paths: Update
By David von Hippel

Presentation: Analysis on DPRK Power Sector Data & Interconnection Option
By Yoon Jae-young

Presentation: DPRK Energy and Energy-Related Trade with China: Trends Since 2005
By Nate Aden

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North Korea propaganda museum opens in South

May 10th, 2008

From the New York Times (h/t MR):

In early April, when North Korea called President Lee Myung-bak of South Korea an “impostor,” a “traitor” and an “American running dog,” the verbal barbs sounded all too familiar to Jin Yong-seon. He has a museum filled with them.

Sounds like a great place to visit if in South Korea.

Read the full article here (requires free on-line registration):
Koreans Recall an Era of Propaganda Battles
New York Times
Choe Sang Hun
5/2/2008

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Food shortage coping strategies

May 10th, 2008

With the likelihood that food is coming into short supply in North Korea, the authorities and individuals alike have implemented strategies to minimize the adverse effects.

I am keeping a running list of official and civil responses here as they appear in the media.

1. The DPRK supposedly ended rations for mid-level cadres (party and state employees), though food can still be purchased in markets. Unless the government is hoarding its grain supplies, this probably has the effect of improving food distribution (transferring food stocks outside Pyongyang), though not to the satisfaction of those who were used to receiving it for “free.”

2. The DPRK asked China for food aid. (Requested 150,000: tons of corn. Received: 50,000 tons on their first ask)

3. Propaganda extolling people not to waste food has been distributed to workers.

4. The DPRK has started cracking down on liquor production/sale.

5. Lets grow potatoes!

6. Distributing food stocks to military families from military warehouses.  This will hopefully take some of the pressure off the price of grains in the markets.

7. Solicit food aid from the US.

8. Officials begin to demand more bribes!

9.  The KPA halts military exercises to assist in farming.

10.  Propaganda campaign to educate the population about alternative foods (Good Friends via OneFreeKorea)

11. China increases food export quota

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They don’t believe…

May 9th, 2008

UPDATE: Follow up by Dr. Petrov in the comments

One of the big question marks for policy makers (both inside the DPRK and internationally) is the state of knowledge and public opinion inside North Korea.  How much do North Koreans know about the outside world?  How much of the propaganda do they believe?

Being able to answer these questions scientifically is not possible.  Political expression has never been encouraged in the DPRK except through state-sponsored solidarity events.  Additionally, the role of the media in North Korea is to broadcast information from the top down, not to let it percolate from the bottom up.

Numerous scientific efforts at extrapolating North Korean public opinion have been made by journalists and scholars conducting surveys in northern China along the North Korean border (most recent examples here and here).  However, these surveys are subject to various sample biases: the interviewees have already decided to leave the DPRK, most of them come from the provinces along the Chinese border, and most of them are not mid- upper- level cadres.  So extrapolating the opinion of the median ri-level party secretary in a small village near the DMZ is not possible. 

In the absence of a scientific survey, we are forced to resort to anecdotes and ethnographic data (usually with a very small “n”).  A single anecdote is not so valuable, but multiple anecdotes taken together help us paint a more comprehensive picture. The opinions of most “North Korea watchers” on this topic are formed by this kind of ethnographic analysis. 

I rely on personal anecdotes collected from North Koreans, visitors to North Korea, and former residents of North Korea, supplemented by stories in the media such as the popularity of South Korean films in the DPRK.  These lead me to conclude that though North Koreans are generally not internationally savvy, they do not believe the official propaganda and do not pay attention to political speeches (if they can help it) for many of the same reasons that Americans do not pay attention to political speeches: namely that they have little to do with one’s day-to-day needs, and they get very old very fast.

This story in the Daily NK is one more anecdote:

A source from Yangkang Province told DailyNK in a phone interview on May 1st, “At the Union of Democratic Women (UDW) conference, commemorating the founding of the Chosun People’s Army on April 25th, a speaker humiliated herself when she blamed South Korean President Lee Myung Bak [for the crisis].”

The source told our reports that “during the conference, a speaker explained the international and domestic state of affairs, saying that ‘the U.S. and the puppet regime (the Lee administration) have overridden the peaceful agreements between the North and South (referring to the June 15th Joint Declaration and the October 4th Agreement) in order to create a serious food crisis in our Republic (North Korea)’.”

The source described an awkward atmosphere at the conference: When a chairperson of the People’s Unit of Hyehwa-dong in Hyesan asked outright, “We can understand that fact that Americans and Lee’s puppet factions are not aiding us with rice, but, why won’t China help us, as our closest ally?” The speaker’s face turned pale at the question and a sudden silence and tension filled the hall.

“At that moment, the lady next to the chairperson started chuckling, putting her head down, people began to chuckle here and there, and eventually, the entire hall was engulfed in laughter,” the source told DailyNK.

The speaker reportedly responded through his own laughter, “’You know the lecture material always reads like this. You can well understand the situation and know what I am saying, right?’” The source said that “his comment sent people rolling in the aisles,” and pointed out, “The situation showed how absurd the propaganda released by the authorities is.”

Read the full story here:
Government Lectures are Losing Effect
Daily NK
Lee Sung Jin
5/8/2008

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New N. Korean envoy starts work at U.N.

May 8th, 2008

Via Yonhap:

North Korea’s new envoy to the United Nations presented his credentials to U.N. Secretary-General Ban Ki-moon here Wednesday, along with envoys from several other nations, to officially begin his service, Ban’s office said.

Ambassador Sin Son-ho replaced Pak Gil-yon, who had been at his country’s U.N. mission since 2001. He served as deputy chief of the mission from 2000 to 2003.

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Uranium enrichment verification in the DPRK

May 6th, 2008

According to an article in the Associated Press today (reprinted in the Washington Post):

The U.S. has recently stepped back from its demand for a detailed declaration addressing North Korea’s alleged secret uranium enrichment program and nuclear cooperation with Syria; North Korea has denied those allegations. Washington now says it wants North Korea to simply acknowledge the concerns and set up a system to verify that the country does not conduct such activities in the future.

How can any uranium enrichment verification plan be implemented in the DPRK?  One solution was proposed to me by Glyn Ford, a member of the European Parliament, when I met him in Beijing last March.  His idea was this: Any uranium enrichment program would require a colossal amount of electricity delivered at a consistent voltage.  So one way the west could monitor if such a program was taking place would be to keep tabs on the North Korean power grid for suspicious spikes in activity or to build voltage fluctuations into the power supply.

Read the full article here:
US official to travel to NKorea
Associated Press (Printed in the Washington Post)
Foster Klug
5/6/2008

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North Korea on the Precipice of Famine

May 6th, 2008

Peterson Institute for International Economics Working Paper
May 2008
Stephan Haggard, University of California, San Diego
Marcus Noland, Peterson Institute for International Economics
Erik Weeks, Peterson Institute for International Economics

Download the paper here: haggard_noland_weeks_pb.pdf

Abstract:

North Korea is on the brink of famine. As detailed [in this policy brief], the margin of error between required grain and available supply has virtually disappeared. Local food prices are skyrocketing even faster than world prices. Aid relationships have been soured and the regime’s control-oriented policy responses are exacerbating distress.  Hunger-related deaths are nearly inevitable and a dynamic is being put in place that will carry the crisis into 2009, even if as expected, the US announces that it is sending 500,000MT in return for a signed nuclear declaration.
 
The US can provide aid in ways that maximize its humanitarian impact while limiting the degree to which aid simply serves to bolster the regime.  We know that aid is diverted.  Yet given the fragmented nature of markets in North Korea, diverted aid often finds its way into markets in the catchment area where it is delivered.  Geographically targeting aid to the most adversely affected regions and providing it in forms such as barley and millet that are not preferred by the elite can increase the ameliorative impact of assistance.  The Bush Administration has taken up the first part of this equation–requiring that most of its contribution to the World Food Program be targeted at the worst affected regions–but it could do more on the second part: providing aid in forms less preferred for elite consumption. It can also encourage others such as South Korea to follow suit.
 
The US should also exercise quiet leadership with respect to the refugee question as well. The Chinese government’s practice of returning North Korean refugees may reflect a natural self-protective response against the threat of a flood of migrants and even the breakdown of the North Korean regime; it was, after all, the notorious “hole in the fence” that helped precipitate the collapse of the Eastern European regimes. But the policy of returning refugees does not conform with China’s obligations under the refugee treaty and does not in the end serve the country’s underlying political objectives either; it simply serves to cutoff another escape valve, however small, that has contributed to taking pressure off of a rapidly deteriorating situation.

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Cricket comes to Pyongyang

May 5th, 2008

UPDATE: photos from North Korea’s first cricket game:

cricket1.JPG cricket2.JPG cricket3.JPG

ORIGINAL POST:

cricket.JPG

The venue: Mt. Taesong Park.
Click on image for larger view.

This week Pyongyang hosted its first ever cricket match.  I hope to get an update on the game when the team returns to China.  Until now, here is what we know from the Telegraph:

The three visiting teams for the Twenty20 tournament will be largely expatriates from England, Australia, South Africa and Holland who are based in Shanghai.

The North Korean side will be boosted by staff from the Indian and Pakistani embassies.

The tournament was planned by Bryan Clark, a British employee of the logistics firm DHL, which has an office in Pyongyang, and the Shanghai Cricket Club, which has been leading attempts to develop the game in China.

Read the full story here:
North Koreans take on the English at cricket
Telegraph
Richard Spencer
4/24/2008

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Kumgang/Kaesong tourism strong in first quarter of 2008

May 4th, 2008

Although business seems to have stalled in the Kaesong Industrial Zone, Hyundai Asan’s tourism projects have picked up this year.

From Yonhap: 

As many as 100,300 South Koreans toured Mount Geumgang so far this year, up from 58,000 a year earlier, according to a spokesman for Hyundai Asan, Hyundai Group’s arm dealing with business with North Korea.

Hyundai Asan officials expect more than 500,000 South Korean to visit the North’s mountain resort this year alone, up from last year’s 350,000.

A total of 40,090 South Koreans also visited the North’s medieval capital city of Kaesong during the first four months this year, Hyundai officials said, adding they recently increased the daily quota for South Korean visitors to Kaesong to 500 from 300.

Read the full article here:
More South Koreans toured North Korea despite chill in ties
Yonhap
5/4/2008

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North Korea launches anti avian flu procedures

May 4th, 2008

UPDATE: From the Associated Press (Printed in the Herald Tribune):

The North’s Korean Central News Agency quoted quarantine official Ri Kyong Gun as saying all poultry in provinces near the border with the South have received emergency vaccinations, citing a bird flu outbreak in southern South Korea.

Ri was quoted as saying the North has also set up 1,600 observation posts along the east and west coasts to monitor the movement of migratory birds — which he said are a key way the virus spreads.

Bird flu hit North Korea in 2005, leading to the killing of about 210,000 birds, but no new cases have been reported since then.

Original Post:
North Korea sets up emergency body to fight  bird flu

From the article:

North Korea said on Wednesday that it has set up an emergency unit to tackle possible bird flu outbreaks after the disease spread widely in South Korea.

“The emergency state quarantine committee was formed to work out national plans to prevent a possible outbreak of bird flu,” said a television channel.

The committee will coordinate quarantine measures by local governments, the TV said, adding that it was set up on the instructions of leader Kim Jong-Il.

The North has reported no new case since it destroyed 210,000 chickens during an outbreak in 2005.

It has since actively taken part in anti-epidemic programmes offered by the World Health Organisation.

Several days ago, the DPRK banned South Korean poultry from the Kaesong Industrial Zone.

Read the full articles here:
North Korea sets up emergency body against bird flu
Huliq.com

North Korea inoculates poultry against bird flu following outbreak in South Korea
Associated Press
5/5/2008

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