U.N. should fund its aid programs from Kim Jong Un’s Swiss accounts.

The Wall Street Journal updates us on the dire financial state of the U.N. World Food Program’s operations in North Korea.

The United Nations aid program for malnourished North Koreans may close after raising only a fraction of the money it needs to operate in the country, a senior U.N. official said in a call for donations.

“We may need to scale down or think about closing altogether,” Dierk Stegen, the Pyongyang-based North Korea head for the U.N. World Food Program, said in an interview.

The agency, which has operated in North Korea since 1995, could shut early next year if there is no indication it will be able to raise needed funds by the end of October, he said. One complication is that North Korea’s humanitarian crisis has been overshadowed by the conflict in Syria and Ebola outbreak, he said. [Wall Street Journal, Jonathan Cheng]

Whatever your views on aid policy and what the U.N. should do, the situation is profoundly tragic for the North Korean people, who are starving because of their government’s deliberate policy choices. If this regime were overthrown tomorrow, the direct effects of this would still last for a generation:

“For many of the children of North Korea, it’s already too late,” said John Aylieff, the WFP’s deputy regional director for Asia. “They’ve been dealt a life sentence of impaired mental functioning and impaired physical development.”

The decline in foreign aid coincides with ration reductions by the regime, and more ominously, crackdowns on private food smuggling, growing, market distribution and finance, which have become the most important source of food to most North Koreans.

The Wall Street Journal article embeds a video in which I’m interviewed. It also a features graphic showing that Switzerland is now by far the largest donor to the WFP, at $6.7 million a year (think of it as a customer loyalty rebate). The next-highest donor, Russia, gives just $3 million a year. Although China is listed as contributing $1 million, it’s probable that other bilateral donations from China and South Korea are not counted in that graphic.

Of course, as I pointed out the other day, the Swiss may well have enough North Korean money laying around in their banks to fund the WFP’s operations for years. This isn’t just idle snark. After his death, assets of the Qaddafi family were confiscated from foreign accounts and returned to the new Libyan government. There is even a U.N. convention on point, as noted by an attorney from the Justice Department’s Asset Forfeiture and Money Laundering Section in a recent paper:

The UN Convention against Corruption (“UNCAC”), signed in Merida, Mexico, in December 2003, provides an entirely different, and mandatory, scheme for the recovery and return of corruption proceeds. In further discussing the G8 and global initiative against grand corruption, this paper will cover these provisions in greater detail in a subsequent section. The UNCAC took effect in 2005, and has been ratified by over 137 States Parties.

Section 104(b)(1)(F) of the North Korea Sanctions Enforcement Act authorizes the blocking — but not the confiscation — of funds derived from kleptocracy. Other provisions require the blocking of property of persons who knowingly contribute to money laundering, weapons trafficking, proliferation, censorship, and human rights abuses.

Blocked property remains the legal property of its owner, but can’t be moved or spent. Confiscated property is transferred from one owner to another by a government with the power to control it. For now, practically speaking, it’s a distinction without a difference, because food won’t reach the North Korean people unless the regime allows it to. There is plenty of precedent for blocking the assets of sitting dictators; the Treasury regulations are filled with examples of this. Until now, the confiscation of a kleptrocrat’s assets generally had to wait for the kleptrocrat to be overthrown, killed, or both.

Either way, how unfortunate it would be for the world to sit idle while action could still force real reforms and save lives. If and when the U.N. Security Council takes up the U.N. Commission of Inquiry’s report, it should consider authorizing either the blocking or confiscation of North Korean slush funds, which would then draw interest until North Korea allows them to be spent on food, medicine, and other humanitarian uses.

1 Comment

  1. If Junior was to kick the bucket, who inherits the throne and the Swiss accounts? I don’t think he has any legitimate spawn does he?

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