04/30/2010
Generational Change on all levels in North Korea on the way
From April 26th until 28th, a time where inner Korean tensions were high and channels of dialogue with Pyongyang were very few, the representative of the Friedrich Naumann Foundation for Liberty in Korea, Mr. Walter Klitz, visited Pyongyang and spoke to members of the nomenklatura. For more than six hours he discussed the current situation within the country and pressing political affairs with senior officials of the Worker’s Party.
The North Korean side acknowledged that last year’s currency reform had not quite been as successful as expected. It was admitted that not all aspects within the process of implication had been taken into consideration. Some party- and administration members had lacked “the selfless spirit of officials towards their people” and not predicted the reaction of the market to the intervention; namely a skyrocketing of prices. Those responsible had been called to account. Despite of some minor irritations in the early aftermath of the reform, they said, the prices have meanwhile stabilized on a quite high level. Due to the usual annual food shortages before the harvest they are expected to increase again.
The objectives of the currency reform clearly had been fighting inflation, regaining control over the markets, rebuilding the public distribution system and fighting illegal trade. This was to ensure that people would no longer engage in any kind of private market activities but go back to their regular jobs within the socialist system instead. Due to limitations of exchanges from old to new currency, most personal savings were wiped out. Since markets had collapsed for weeks, the reform led to some uncertainty within the population. Some parts of the currency reform therefore were withdrawn or softened rapidly.
Still, as a matter of fact, the purchasing power of the North Korean Won today is higher than it was ahead of the currency reform. Since wages were not affected by the reevaluation, the average citizen today can purchase more than last October. In late May 2009, one kilogram of potatoes was sold for 1700 (old) Won. The last weekday ahead of the currency reform, on Friday October 30th, Pyongyang’s market women charged 3500 Won. In mid February, after the markets had opened again, one kg potatoes was sold for only 300 (new) Won. Prices rose to 700 Won in March but dropped to 330-400 Won until mid of April 2010. An almost similar development can be observed for other consumer products such as pork (1kg was worth 5500 old Won in October 2009, 1000 new Won in February, 2500 Won in March and 1700-1900 Won mid of April 2010) or cabbage, the essential for Korean kimchi (1kg was sold for 1000 old Won in October 2009, 250-500 new Won in February, 500 Won in March and 250 Won mid of April 2010).
But “apart from the currency reform, North Korean authorities seem to pursue other strategic approaches to regain control over the markets as well” Mr. Klitz stated after visiting a new apple plantation close to the capital. “True to their Juche policy of self reliance, it seems as if the leadership in Pyongyang actively tries to challenge imports by investing significantly in domestic farming projects and the production of other products for everyday use”. In order to provide revolutionary Pyongyang with apples, 2,2 million trees were planted in February 2009 at alone.
Apart from the currency reform the nuclear summit in Washington, the nuclear strategy review of the United States and the upcoming NPT revue conference were subject to the political talks as well.
In the context of the NPT review conference the North Korean counterparts expressed their strong willingness to participate in the international fight against terrorism. The DPRK, they claimed, had always supported this goal and stated this intend at multiple occasions. Another rather unexpected remark referred to the stability of the regime. “Socialism” an official of the Worker’s Party noted, “can not survive in isolation” and concluded that the DPRK was following a “strategy to unclench to the world”.
For those travelling to North Korea on a regular basis it seems clear that times in Pyongyang are crucial and some affairs may be put on new tracks. A generational change at all levels of the administration and the party is obvious. The leadership is surrounding itself with young followers and builds up new loyalties.
