Category: Capitalism

Kim Jong Un seeks friends and funds abroad as he isolates his people.

In the three years that he has been in power, His Porcine Majesty has found plenty of time for Dennis Rodman, but none for meetings with foreign leaders. Suddenly, in the last two months, he has flirted with (1) a summit with South Korean leader Park Geun-Hye, (2) inviting Japanese Prime Minister Shinzo Abe to Pyongyang, (3) and a visit to Vladimir Putin in Moscow in May. His central bank even “committed itself to implementing the action plan of ‘international...

N. Korea Perestroika Watch: Woman sent to firing squad for “gambling and drug use”

Did you hear the one about how Amerikkka’s prisons are filled with small-time drug offenders? Well, the workers’ paradise has solved that problem: In mid-November 2014 in Sinuiju, North Pyongan Province, a woman in her 50s considered part of the donju [new affluent middle class] was publicly executed for “gambling and drug use,” Daily NK has recently learned. According to Daily NK’s source in North Pyongan Province, the woman was “the wife of a North Korean trader in Dandong who...

N. Korea perestroika watch

Following North Korea’s expansive crackdown on illegal mobile phone calls being placed to other countries – namely South Korea and China – some 30 residents of North Hamkyung Province’s Musan County have been arrested. “One or two minutes after you switch on your phone and start talking, security agents with detectors show up. So you’re putting your life at risk when you make calls to other countries,” a source based in North Hamkyung Province told the Daily NK on Wednesday....

N. Korea perestroika watch: corruption defeats information crackdown

I’ve previously reported on Kim Jong Un’s efforts to crack down on illegal cell phones, memory sticks, DVDs, and other subversive information flows, even as some wishful observers clung to sketchy evidence to argue that Kim Jong Un was a reformer. The good news is that after an initial period in which smuggled DVDs became hard to find, they are making their way back into circulation. “People caught for watching South Korean dramas aren’t being punished that harshly anymore,” a source based in Pyongyang...

Cougar Town, North Korea

Twenty years ago in North Korea’s outer provinces, heavy industry seized up. In short order, so did most of the beneficial functions of government, including the food distribution system. The state continued to do other things, of course, most of them mean or silly. In former industrial regions, it still enforced the primacy of men as breadwinners by forcing them to report each day to idled factories that couldn’t pay their wages. A consequence of this was that market-savvy wives supplanted...

Robert Potter’s “third way” is a good way, but it’s really a second way

Writing at The Diplomat, Potter takes on the futile task to navigating between pro-engagement extremists like Mike Bassett, Felix Abt, and someone named Joe Terwillager, on one hand, and anti-engagement extremists like me, on the other. Potter proposes this third way: Sanctions of the right kind can ensure that the Kim dynasty never becomes wealthy enough to close the markets down, but removing them entirely could empower the Kims and make the regime less likely to tolerate change. As for engagement, pointing...

China’s bridge to nowhere?

The AP’s Pyongyang Bureau Chief reports that as China completes a $350 million bridge across the Yalu River from Dandong to Sinuiju, and weeks after its announced opening date, the North Korean side is largely an unfinished abutment. Now, it is beginning to look like Beijing has built a bridge to nowhere. An Associated Press Television News crew in September saw nothing but a dirt ramp at the North Korean end of the bridge, surrounded by open fields. No immigration or customs...

North Korea perestroika watch

Two new reports from The Daily NK update us on Kim Jong Un’s efforts to (as Don Gregg put it) “change the nature of his country.” Certain areas bordering China in Yangkang Province have been labeled “danger zones” as the latest effort by the North Korean authorities to beef up surveillance and inspections in the region. This move, in conjunction with the installation of new radio wave detectors to track down those making international calls, is the latest measure aimed at preventing...

North Korea perestroika watch

The Daily NK reports that North Korean security forces in the bleak border province of North Hamgyeong are “shaking down” smugglers to make them rat out the identities of those who’ve escaped to South Korea. They’re identifying the smugglers by intercepting the cell phone signals of money-smugglers, who in turn are forced to rat out goods and people smugglers, who rat out the refugees, whose families are then vulnerable to shake-downs and collective punishment. For many of the stay-behinds, what...

Another reason North Koreans need an independent cell phone network: online banking

The AP’s Hyung-Jin Kim reports on how the 25,000 North Korean refugees in the South use Chinese cell phones, which reach across the border into North Korea, to send remittances to their families at home, and to keep food in their bellies. Once Lee was certain she was talking to her sister, a broker took the phone on the North Korean end. Lee transferred 2 million won ($1,880) to a South Korean bank account belonging to a Korean-Chinese who was...

NKPW: North Korea cracks down on remittances from refugees to their families

Our latest edition of North Korea Perestroika Watch comes via the Chosun Ilbo, which quotes North Korean insiders as saying that the tolerance of markets is temporary, and that a crackdown will come in due course: Hyun Dong-il at Yanbian University said, “Major changes are taking place in North Korea, but the ruling elite says it is still intent on adhering to the planned, socialist economic model.” North Korean academics studying at Yanbian University apparently say that the changes are “temporary”...

What if the capitalist North Korea is just as bad as the communist North Korea?

There are many reasons why the Sunshine Policy failed, most of them rooted in the character of the men who rule in Pyongyang, and in the character of the men in Seoul who conceived and executed it. And in that conception, the flaw that was obvious to some of us from the very beginning was that Sunshine — and its surviving derivatives — invested its monotheistic faith in economic reform, yet in practice (and to a large extent, in theory,...

Crackdowns fail to reverse marketization of Peoples’ Economy

THE ELITES ARE DISGRUNTLED at Kim Jong Un’s impulsive temper and insensitivity, according to this Chosun Ilbo report. Separately, this report talks about endemic corruption and economic inequality in North Korea. Meanwhile, a third Chosun Ilbo survey of 100 North Koreans in China suggests that the marketization of the peoples’ economy has passed the point of no return. Between 70 and 90 percent of North Koreans make ends meet by buying and selling goods in the grey or black market now that the...

Must-read: Myers (again) and Noland on the ethics of engagement

Brian Myers isn’t finished making his argument that “engagement” transforms its foreign participants more than it transforms North Korea. The [Associated Press’s] presence in Pyongyang is a good example, I think. Its staff is too afraid of losing access even to test the limits of what can be said, so the regime gets the image benefit of hosting foreign reporters without having to worry about negative consequences. Whether those contacts are moral or immoral is a much more difficult question to answer...

WaPo: North Korea Lifts Market Restrictions

In Part Three of my capitalist manifesto, I’d documented North Korea’s efforts throughout 2009 to destroy the markets on which most of the North Korean people had come to rely on for their survival. The efforts included with bans on imported goods, the closure of large markets, the imposition of restrictions on who could sell in others, and finally, the Great Confiscation, which wiped out the savings of millions of families, along with the working capital of the traders who...

Overthrowing Kim: A Capitalist Manifesto

[Originally published at The New Ledger, May 2010; edited for brevity in October 2017] Within the next 48 hours, South Korea is expected to announce that North Korea torpedoed and sank the warship Cheonan and killed 46 of her crew. Among the evidence the multinational investigation will cite will be the North Korean serial number on the torpedo’s propeller, recovered from the ocean floor. The sinking of the Cheonan may be the most serious North Korean provocation since 1968 —...