Collapse of N. Korea’s Planned Economy, Rise of Markets Improve Food Supply

North Korea’s government, for reasons that are not clear, has begun allowing cash transactions for food imports, and the result is a significant increase in food flowing into North Korea’s ports:

As a result, Shinuiju harbor is witnessing a mass importation of rice and flour from China for the first time. The amount of food imports, which started to increase in early February, has reached its peak in late February and early March, importing 800 to 1,000 tons of rice and flour everyday. Prior to the changes, an average of 500 tons of food was imported daily.

The sources also say that three to four cargo ships enter into Shinuiju’s military-appointed harbors, such as the Dong Yang harbor (exclusive warship for the Escort Command) and the Kang Sung harbor (exclusively for the Ministry of the People’s Armed Forces), transporting daily imports. The amount of food these ships carry everyday reaches from 800 to 1,000 tons. As the rations are disembarked, they are immediately purchased by the awaiting wholesale traders and distributed throughout the country. [Open Radio]

One’s immediate suspicion is that the food imports would be allocated to only a select few; however, Open Radio also reports that as North Korea’s underground economy continues to develop, the imported food is flowing across district and provincial boundaries, and into North Korea’s hungriest regions. The decline of North Korea’s planned socialist economy means more abundance and more equality.

Repeat after me, kids: capitalism saves.

Separately, Open Radio also reports that South Korean food products coming in from Kaesong, including ChocoPies, chestnut bread, and coffee mix are hot sellers on the black market. It’s probably obvious enough to North Korean consumers that these products are from South Korea, which may have something to do with why the North Korean regime is moving steadily toward shutting Kaesong down. Kaesong proponents have claimed that their project would change the North by exposing its people to the lifestyle of the South. And since pretty much day one, I’ve predicted that as soon as such an effect was discernable, the North Korean regime would shut the project down.