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    Korea
     Dec 14, 2012


SPEAKING FREELY
Pyongyang has what it wants
By Alexander Acimovic

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing.

Since the succession of Kim Jong-eun last December, many observers and analysts of North Korea have speculated on the likelihood of the Kim regime pursuing economic reform and opening, possibly along the lines of the Chinese reforms initiated in the late 1970s by Deng Xiaoping.

The implication of much of this speculation has been that, if pursued, the two processes of reform and opening up will be pursued together. Unfortunately for the majority of North Koreans, the history of the dynasty and the actions so far taken under Kim

 
Jong-eun all indicate that if economic reforms are attempted, they will likely be designed to rejuvenate control by the state rather than to loosen it, and that the regime sees opening North Korea to the outside world as diametrically opposed to the complex system of political repression by which it survives, and something it will avoid at all costs.

Several policy changes initiated during the past year bear the stamp of intentions to retrench the existing system:
  • An increase in the number of visas granted for travel to China by approved North Korean citizens was complemented by a restructuring of the border patrol units, leading to at least a temporary reduction in illegal border crossings by economic migrants, potential defectors and unsanctioned traders. The government was also said to have started more strictly enforcing the very harsh penalties for those caught attempting to cross the border, and to have redoubled its covert surveillance and retributive efforts within China against both illegal migrants and humanitarian aid groups, mainly South Korean, assisting them.

    With the desire to cross unabated by conditions within North Korea, these measures opened the possibility for a substantial increase in the amount paid as bribes both for illegal allowance to cross the border and to return over it and to avoid or reduce penalties for those caught, such as temporary or permanent sentences to concentration camps.

    Additionally, those who, in the reshuffled border patrol force, received the bribes would be more likely to kick the expected tithes up the ladder, and that the system would therefore receive a small influx of cash.

  • The announced increase in state-approved travel across the Chinese border gave rise to the possibility of realizing the potential for more North Koreans to serve as guest workers in industrial areas of northeast China - an attraction to the Chinese businesses and factory owners for the low wages they hoped to get away with paying the North Koreans.

    For the North Korean government, strong motivation was provided by the possibility of an influx of hard currency through garnishing a large chunk of their migrant citizens' wages (as is done, for example, with the salaries of North Korean loggers and other workers employed in far eastern Russia and those already in China), while having them employed in a place where North Korean agents can monitor their activities and maintain enforcement of regime discipline.

    It also presented a potential diversion of the currency flow, since illegal migrants send earned income home through brokers and then to their families, depriving the regime of a cut.

  • The much-hyped "June 28" agricultural reforms - following in large part the design of previously announced but little realized farming policy changes - promised collective farms the right to sell at market prices and to non-state purchasers either 30% plus any excess of agricultural production quotas, or at least the excess amounts, for their own benefit, as well as a reduction in the mandated size of farm work groups.

    Besides the obvious hedge that with production quotas being variable and set by the state, whether potential excess output could be consistently realized and profited from was doubtful, the slim prospect of any increase in the quantity and quality of fertilizer and farming equipment, or of the likelihood of the regime purchasing the farms' output at market rates rather than below-market prices that allow it to subsidize food distribution in non-farming areas, discourage the possibility of either increases in gross production at all or of farmers' prospects for improving their take.

    As yet, even the meager reforms that have been declared have barely been put into effect, but one announced part of the reform package that has been implemented was the regime's insidious confiscation of numerous privately held and farmed plots of land around the outskirts of collective farms - so providing the state system with a small increase in productive land and decreasing the amount of productive land from which it does not skim off the top.

    Other prospective economic changes, such as the institution of special economic zones, have thus far yielded little more than announced intentions similar to those emitted for the last two decades, while joint ventures from foreign investors - such as that with a Chinese mining company which recently ended with mutual recriminations - have been pursued in a manner more beneficial to short-term regime gains than one that would be systematically sustainable.

    Meanwhile, new regime presentations to accompany the new ruler - in-vogue pop music bands, knock-off Mickey Mouse shows, and deep concern over the infrastructure condition of Pyongyang amusement parks - most of which are more in the way of attempts to co-opt and follow trends which the populace has acquired a taste for through smuggled goods and media than anything of original production, have not been followed by even a hint of relaxation of political controls.

    This should come as no surprise whatsoever. Those things that could be most easily identified as signs of opening - greater freedom of internal and external movement, allowance of unsupervised external communications or internal association, freedom of choice as to type and location of employment - are the very things that under Kim Il-sung the North Korean regime set up an intricate, repressive system to forbid, and which have been refined over several decades to suit the changes of time and function efficiently.

    They have been and continue to be employed with unswerving discipline.

    As Kim Jong-eun nears the completion of his first year in power, what has been seen to date is the standard dynastic pattern of pronouncements and attendant propaganda showing the leader's awareness of and sympathy with popular sufferings, followed by promises to solve the country's economic problems that are intended to raise hopes, followed by aborted implementations of these solutions - the main actualizations being those that benefit the state, followed by blame for failures being laid on outside forces, (be they unfavorable weather, the hostility of other countries, or subversion by internal enemies) despite the leader's superhuman efforts.

    Whether or not it is possible to have a market economy without substantial opening to the wider world is open to debate. But the primary question is whether North Korea wishes or intends to try even that much, and to date the answer is highly doubtful.

    For the ruling caste, there is very little motivation to implement major reforms, as despite dire predictions from some observers, the current situation is in fact quite stable. Whether new production yields much or little, the elite will continue to commandeer enough to support their plush lifestyles and maintain the state apparatus that protects their power.

    Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing. Articles submitted for this section allow our readers to express their opinions and do not necessarily meet the same editorial standards of Asia Times Online's regular contributors.

    Alexander Acimovic is an independent historian and policy analyst based in New York

    (Copyright 2012 Alexander Acimovic)





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