Somewhat surprisingly, the private sector is in the focus of a recent report of the UN human rights Council on North Korea. Behind it dashed hopes of the West on the economy could put reforms in the country.
The UN Report with the title “The Price Is Rights” is based on Interviews with over 214 North Korean refugees that have been conducted in the years 2017 and 2018. A gloomy picture of the everyday life of the population is drawn: the North Koreans, participating in the private markets in the country, would regularly is the victim of state arbitrariness and corrupt authorities – because the private sector is in a legal grey area – even though the sector up to 50 percent of the economy, estimated to contribute power in the country. The extent to which dealers will not be tolerated, depends solely on the arbitrariness of government officials.
Many of the inhabitants, whose lives are the basis of semi-legal trade depends on activities that can at any time be taken by the authorities to be prosecuted. Only those who are able to pay bribes, can buy from the penalties free. In addition, systematic mismanagement of the regime would lead to a broad population can reach layers not beneficial standard of living.
North Korea had failed to “establish a functioning rule of law private sector to the economic misery of mitigating a large part of the population”, – stated in the report. A refugee is quoted with the words: “If you simply follow the instructions of the state, and then you starved to death”.
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The hungry years
To understand the economic system under the Kim dynasty in the year 2019, one must look back to the 90s: After the collapse of the Soviet Union, by far the most important oil supplier and trade partner, collapsed, the North Korean economy completely. Added to this was a series of long periods of drought, followed by flood disasters. Crop failures led to serious famine, its consequences, according to conservative estimates, several hundred thousand North Koreans have died. The food rations that the state is doling out for decades, its population reached only a small Elite.
From the catastrophe, positive change resulted, ultimately, virtually overnight, the previously Stalinist-run economy could no longer care for their residents. They had to take their Survival into their own hands. These were the beginnings of the black markets in the country, the spread, despite the repression of the regime soon all the provinces. North Korean merchants began to smuggle goods across the border to China, they sold on their own for food and everyday goods in the informal markets in their home cities.
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A particularly ruthless capitalism
“In North Korea, a particularly ruthless Form of capitalism prevails at present, a bit such as at the time of the industrial Revolution in England: You can do even with modest conditions, a fortune, if you work hard, ruthless is to manipulate ripped, understands,” says Andrei Lankov of Kookmin University in Seoul: “at the same time you can go hungry, but also to death”.
Lankov, who had served as a young Student from the Soviet Union, a Semester at Kim Il Sung University in Pyongyang, observed for years, the rise of a new merchant caste: those North Koreans from politically unwelcome families, which were denied to date, all privileges, had now risen, due to their wealth generated for the Elite. Those “Donju” – Korean for “Prince of money” – are, however, not oppositional: they go rather for a pragmatic purpose, relationship with the old political Elite. Revolution is bad for business, says North Korea expert Lankov.
Who can, looking for earning opportunities off such government projects
Private merit is possible – anti-bribery
Sokeel Park is working with the NGO “Liberty in North Korea” for years with North Korean refugees He helps them both escape route, as well as their Integration into their adopted home of South Korea. He confirmed the findings of the UN report: “North Korean refugees have reported to me consistently, that it was violated in North Korea is against the law, in order to survive. And you also say that you can fix with money in North Korea, everything”. So a bribe, according to Park, many North Koreans to their superiors, not to the state of work appear and instead, a much more lucrative market activities.
“In a certain way in the UN report, Pyongyang calls on us to cooperate in the legalization of market activities in the country,” says Andray Abrahamian, Korea-researchers from the Griffith Asia Institute, Stanford University. According to Abrahamian, the North Korean Regime has driven its economic reform experiments towards the end of 2015 shut down, as the nuclear conflict with the United States increasingly intensified. The country wanted to first of all stabilise its geopolitical Situation, before it continues with economic reforms, says Abrahamian.
Workshop on the theme of the market economy in North Korea
The UN report one-sided?
But the UN report is criticized by experts: Martin Weiser, an independent North Korea-researchers in Germany, points to several weaknesses in the study: for example, that the UN has focused exclusively on the statements of North Korean refugees, and these explanations have taken.
Wise refers to the DW a guide to the North Korean Ministry of people’s security, from the year 2009: it States that not all of the market should be followed activities of the population, but only those that lead to “excess profits”. A differentiated view of the UN-report, track, way, miss. In fact, the German North Korea expert has forwarded the text of the law two years ago to the representative of the UN human rights Council in Seoul, without receiving a response.