North Korea April 2004

1
North KoreaApril 2004

• Tim Beal Don Borrie
• Presentation to CID 14 May 2004

2
Overview

• Background
• Potted history of modern Korea
• NZ-DPRK society
• Bridge-building
• This trip
• PCANZ initiatives
• Current situation
• Description, photos, videodiscussion
• 11 hours of video, 900 photos

3
Background

• Korea Japanese colony 1910-45
• 1945 divided by US/USSR into north and south
• Turmoil, repression
• North landlords, collaborators, Christians flee
  south
• South Cheju uprising crushed 20 population
  killed
• 1948 two contesting states established

4
Contesting states

• Republic of Korea (ROK)
• Democratic Peoples Republic of Korea (DPRK)
• Soviet and US troops withdraw
• Skirmishes
• 1950 June -war erupts North occupies most of
  South

5
Korea war

• US (UN) intervention
• Chinese intervention
• Stalemate
• July 1953 Armistice
• Still no peace treaty
• 1958 Chinese withdraw US introduces nuclear
  weapons
• Still 37,000 US troops in ROK

6
Economic growth

• North initially had faster economic growth
• Above world average until 1980s
• ROK had access to US aid, market, export-led
  growth
• DPRK has access to Soviet/Chinese aid, but market
  smaller
• Barred from US/international markets

7
Per capita GNP, North and South Korea, 1953-1990
Source Eui-Gak Hwang, The Korean economies ,
Table 3.11, pp. 120-1
8
Soviet collapse

• 1980s DPRK economy in difficulties
• 1990 Soviet collapse leads to crisis

9
North Koreas GDP growth rates, 1990-2002
Source Bank of Korea, Gross Domestic Product of
North Korea in 2002, KOTRA,.(11 June 2003).
10
Cascading crisis

• TradegtgtIndustry gtgtAgriculture
• Agricultural growth founded on industrial inputs
  eg fertiliser, electricity, irrigation,
  Mechanisation
• Natural disasters in mid ninetiesgtgt contained
  faminegt international aid

11
Human cost

• Some Western estimates up to 3 million
• Latest SK estimate of deaths 1996-2000
• From 25/60,000 up 1.2 million
• WFP tends to agree
• Substantial malnutrition amongst vulnerable
  groups
• UNICEF/FAO/WFP surveys

12
Policy implications

• Domestic
• Electricity shortage ..nuclear power
• Produced conflict with UU
• Economic reforms esp. since July 2002
• 7 Major Tasks
• Eg organic and microbial fertilizer to replace
  chemical
• Internationally
• Normalisation of relations with US, lifting of
  sanctions
• Normalisation with Japan trade, reparations
  (8-10b)

13
DPRK-ROK

• Political esp. 2000 summit Kim Jong Il, Kim
  Dae-jung
• Economic interaction trade, investment, tourism

14
Soviet Union/Russia, China, Japan and ROK in
DPRK foreign trade, 1989 and 2002
15
Economic reform and marketisation

• Constrained by geopolitical situation US policy
• Washington holds the key
• July 2002 substantial price, wage and
  marketisation reforms
• For those with money things are much better
• Access to domestic and international products
• For urban unemployed things getting worse
• Shift to agricultural with people replacing
  machines

16
Farmers?

• Those with better land, access to fertilisers,
  gravity-fed irrigation etc. and markets better
  off
• Others still struggling

17
Attempts to expand trade and investment

• PIINTEC

18
PYONGYANG INTERNATIONAL INFORMATION CENTRE OF
NEW TECHNOLOGY AND ECONOMY
PIINTEC
19
Background

• PIINTEC was founded in Oct. 2003, as a
  non-governmental and non-profit organization with
  the support and participation of a wide range of
  academic, industrial and social institutions of
  Democratic Peoples Republic of Korea (DPRK) and
  foreign NGOs to join a global partnership for
  development.
• PIINTEC aims to provide an opportunity for
  exchange and cooperation in the fields of
  economy, technology and science between
  universities, research institutes, enterprises,
  individuals and NGOs of the DPRK and other
  countries.
• PIINTEC s special position is calling it to be
  at the centre of knowledge transfer among DPRK
  and foreign institutions, organizations and
  individuals. It provides a way for exchange and
  to bring the latest information to and from the
  DPRK.
• It, therefore, could very well function as a
  catalyst for further economic and sustainable
  development of the DPRK on a non-governmental
  level.

20
Activities

• Assisting businessmen, scientists and technicians
  to develop exchange programs
• Arranging joint research programs between
  universities and research institutes of the DPRK
  and foreign countries and providing opportunities
  for Korean experts to travel abroad and study
  advanced economy, science and technology
• Organizing the Pyongyang International Book Fair
  for Science and Technology in partnership with
  the DPRK Committee for Cultural Relations with
  Foreign Countries
• Introducing foreign scientific and technical
  publications and information materials and
  disseminating them throughout the country
• Inviting foreign scientists and technicians for
  joint research and lectures in specific fields of
  new technology and economy in DPRK
• Building databases on New Technology Information
  and disseminating them through the local intranet
  and other means on a widest possible scale
• Providing services as Patent and Trademark Agency
• Providing consultancy services to foreign
  institutions and companies interested in
  scientific exchange and economic cooperation with
  the DPRK including joint venture, investment,
  export and import business
• Creating a green technology park for sustainable
  development at Hwasong-ri, Ryongsong District,
  Pyongyang City

21
Photos, video, discussion

• Photos street scenes, farm, shops
• Video
• Nick Bonner, Koryo Tours, Beijing
• Rehearsal for concert
• Parade for opening of arts festival
• Egyptians
• Performance
• Pyongyang cityscape
• Pongsu church
• Korea-NZ Friendship school
• Korea-NZ Friendship Farm
• WFP-funded biscuit factory
• World Food Programme- Richard Ragan and Jakob
  Kern