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    Korea
     Jul 19, 2008
An elusive new face for North Korea
By Donald Kirk

WASHINGTON - United States think-tankers risk giving the impression of having stepped from another planet as they meditate on ways to pull the North Korean economy from the brink of another famine and to bring the North into viable economic and security relationships with surrounding countries.

With North-South dialogue at a standstill and North Korea demanding immense payoffs for every agonizing move it makes to disable its nuclear complex at Yongbyon, they talk earnestly of ways of persuading the North to clean up its act and generally behave.

"It's becoming apparent that the regime has not made the decision to reform economically," said David Hawk of the National

 

Endowment for Democracy, a well-endowed private tank that relies on appropriations from the US Congress. He added, however, that he believed "human rights should come up in all talks" - all, that is, except for negotiations on North Korea's nukes.

An author of studies on North Korean human rights, Hawk spoke of North-South Korean working groups, of economic and social issues that might come up, of development "from the bottom up" and funding from ethnic Koreans abroad - as if any of these ideas had a chance in the current North-South atmosphere.

He and others who inhale the rarefied hot air of Washington think-tanks seemed oblivious to the North-South standoff that has worsened with the killing on July 11 of a 53-year-old South Korean housewife as she wandered beyond the tightly circumscribed limits to which tourists are confined in the Mount Kumkang tourist zone on the east coast above the North-South line.

"Is there a case for economic cooperation by ethnic Koreans that could be guaranteed by the governments of the five countries?" Hawk asked, meaning China, the US, Russia, Japan and South Korea, the other five countries in the six-party talks.

As Hawk and others considered such notions, South Korean officials expressed doubts about North Korea's report on the killing of the tourist in the Kumkang zone and demanded much more information about it. North Korea, standing fast against appeals for cooperation, has demanded an "apology" from the South for the tourist's strolling out of bounds.

The killing came after months of North Korean denunciations of the conservative President Lee Myung-bak's hard-line policies - and refusal of his suggestion for dialogue until he has agreed to abide by the agreement reached last October between North Korean leader Kim Jong-il and Lee's presidential predecessor, Roh Moo-hyun, in October. The agreement includes pledges to develop a "peace regime" that South Korean conservatives see as a trap for extending North Korean control.

Hawk spoke at a forum at the National Democracy Foundation, a conference focusing on the extent to which North Korea's record on human rights should be a consideration in providing economic aid.

Marcus Noland, senior fellow at the Peterson Institute for International Economics, suggested at the forum the desirability of money going into North Korea "in ways that minimize the state's ability to take a cut". That remark was presumably a rejoinder to Hawk's suggestion of a steady flow of remittances from abroad. However, he neglected to explain how to keep the regime out of the process. Neither Noland nor Hawk thought to note that Koreans living in Japan have been sending money to North Korea for years, all for the benefit of the North Korean state, not individual recipients.

" ... Even nominally private exchanges are monopolized by military or state organizations," said Noland, author of books and papers on the North Korean economy. According to Noland, ventures that depend on South Korean private enterprise, such as the Mount Kumkang tourist zone or the Kaesong economic zone beside the truce village of Panmunjom, "may or may not have broader impact".

Still, Noland insisted it was "important to avoid a top-down approach" and "emphasize development and engagement by the private sector" in a process that would encourage market forces.

The only clue Noland gave as to how to reach this goal was for one of the "working groups" formed under the aegis of the six-party talks to "transfer to a broader economic agenda" and "not degenerate into a mechanism providing resources of the socialist state".

Just how North Korea could be persuaded to go along with such a "transfer" was left unmentioned.

Nicholas Eberstadt, economist at the American Enterprise Institute and also the author of books and studies on North Korea, introduced a note of realism into the discussion by apparently ruling out the possibility of aid going into private coffers or supporting bottom-up development.

"If we are to promote human rights, we need to have muscularly intrusive aid," he said, raising a scenario that would require a major overhaul of the North Korean system.

In view of the existing circumstances, Eberstadt suggested withholding all aid in the same spirit in which the US stopped providing economic aid for South Korea after Park Chung-hee seized power in a coup in 1961.

"The US threat of cutting off American assistance led to the rise of South Korea economically," he said. "Strategic non-lending means withholding of resources if it seems the outlook is going in the wrong direction."

Eberstadt made the link to human rights, asking, "Will human rights be improved by providing resources or making resources more difficult to obtain?"

His own answer was perhaps, adding that "We should think about contract enforcement" conditioned on human rights. This is yet another impossible goal considering that North Korea refuses to discuss human rights problems at all.

More practically, Eberstadt said one form of technical assistance might focus on training people outside North Korea in such areas as law and commerce - albeit, he said, "not nuclear physics".

Probably no Washington think-tanker has been quite so divorced from reality of late, at least in public utterances, as Michael O'Hanlon of the Brookings Institution.

In a recent commentary he held up Vietnam as an example of "what might a reformed North Korea look like". North Korea today "is about where Vietnam was in the late 1970s", he wrote, but "that former US enemy has restructured its economy and begun to open its society and politics while retaining communism as official dogma".

O'Hanlon did not find it necessary to mention that Vietnam did not begin this process until conquering South Vietnam in a protracted war. Nor did he show any awareness of the immense economic power of capitalist South Korea - or the fears engendered among South Koreans by the idea that unification might happen on any terms remotely acceptable to North Korea.

"Vietnam has proved that a more gradual path to reform can work for all concerned, including the US and its regional allies," O'Hanlon wrote.

But another factor he failed to mention in Vietnam's economic evolution is a transition of leadership - something no one is forecasting for North Korea.

Journalist Donald Kirk has been covering Korea - and the confrontation of forces in Northeast Asia - for more than 30 years.

(Copyright 2008 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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