The Beginning of the Economic Problems in North Korea

The government refused to admit that there was an economical problem in order to keep the respect of those within the nation and outside the nation.

Most jobs that were available were offered by the state and even they didn’t offer nearly enough money to live on. The only other way to earn money was by setting up your own market, as there were no large independent business’s; even this was ineffective as there were very few things that could be sold legally and even that was shunned upon.This means the government could ensure that most would work hard and show complete allegiance to the regime every day just to receive coupons which can be handed in to the state run stores.

However this system failed  in the 1990s when people began to realise the economy was failing. The rations were becoming smaller and more sporadic Koreans were forced to look at other ways to get food. The appeal of buying from the black market increased as the quality and availability of food from the state stores decreased;the foreign food on the black market is often of better quality and cheaper. The more successful the black market is the more people consider becoming a part of it, both as buyers and as storekeepers.

Another piece of evidence the people were presented with about the fall in the economy in the 1990s was the fact that there was no longer money to buy resources for people’s jobs. It became a domino effect ,once the material for the clothes could no longer be made at one factory there was no longer anything for the employees at the the clothes factory to do. Eventually the government ran out of money to pay their employees.

They were kept at work under the false pretences that the lack of resources was temporary, keeping the citizen’s faith in the economy. Employees had to arrive on time for work everyday because otherwise they risked being punished; if it was up to a week and they didn’t have a good reason then they would be sent to a labor camp. They were kept at work to stop them from working at black markets and other places that would take the money away from the government.
Electricity began to run out, at first it would go of randomly, then it would come on randomly, eventually people began to realise that the electricity wouldn’t come on again.

North korean Coupon

 

The Economic Reform That Backfired

For years North Korea had been experiencing inflation and in 2009, when the government tried to fix the problem it backfired and only made matters worse. The government implemented a reform to redenominate the economy, that is lowering the value of every note by two decimal places and therefore increasing the value of the won. Redenomination can  be helpful as it makes everyday transactions simpler, however when mishandled it can lead to families left bankrupt and problems for the economy nationwide. Unfortunately in North Korea it was mishandled, as the country only gave citizens 6 days to exchange their money and they were only allowed to exchange 100,000 won at a 100:1 rate and more than that 100,000 won at a 1000:1 rate.This means that a citizen could only exchange the value of $740/£445 at a normal rate.

The effect of this was essentially a tax on even the mildly wealthy. Kim Jong Il’s reasons are unknown, but it is hard to believe it wasn’t to further the centralisation of the economy; taking money from the markets and giving him control over the money as well as the people.

This move was possibly a step too far because ,whilst it controlled some, even well trained North Koreans were forced to disobey the law which caused problems for the economy. People began to exchange with other currencies (mainly Japanese yen, Chinese yen and the American Dollar) because they no longer trusted the won or simply because they couldn’t exchange their money in any other way(this is called dollarization).Unfortunately the value of the won internationally was incredibly low because the limited items that could be bought from  North Korea weren’t valuable and the world was now more than ever aware of the economic crisis.This resulted in higher inflation rates than ever before.

Why a One Man Show Never Works, Especially in Economics

The Economy of North Korea is ‘centrally planned’; meaning most of the money is controlled by the government, citizens can only buy from government stores and they only receive money from their state jobs. The problem with this is whilst an entrepreneur their mistakes as their company will suffer because of them a dictator isn’t the one realises who pays for his mistakes so he often doesn’t realise the full effect of his mistakes until it is too late. The dictator’s of North Korea don’t use the things that are made in factories, so they don’t realise that whilst the citizens will use the products as they have no choice they won’t sell any exports because everyone else has better alternatives. This results in no money from abroad. Meaning the government can’t afford to lose money through exports. They are always guaranteed food to eat and a comfortable bed to sleep in so the don’t have to be fully aware of the food they are taking away when they yet again develop their nuclear program.

Poem by Jang Jin-sung. A North Korean Poet

The woman was emaciated / The sign hung from her neck / "Selling my daughter for 100 won" / With the little girl standing next to her / The woman stood in the market place.

The woman was a mute / She gazes at her daughter / Her maternal feelings are being sold / Cursed at by passers-by / The woman stares only at the ground / The woman has no more tears.

Clutching her mother's skirt / "My mother's dying," cries the daughter / The woman's lips tremble / The woman knows no gratitude / The soldier gave her 100 won, saying / "I'm not buying your daughter, I'm buying your motherly love" / The woman grabs the money and runs off.

The woman is a mother / With the 100 won she received for the sale of her daughter / She hurries back, carrying bread / She shoves the bread into her daughters mouth / "Forgive me," wails the woman.

Jang Jin-sung poem translated by Kevin Kim; 100 won is roughly equivalent to 73 US cents or 47p

Join the Campaign for North Korea

China and Laos both seem to consider their own power more important than saving North Korean citizens.They sustains their relationships with North Korea so refuse to consider North Korean Defectors refugees and sends any refugees found back to North Korea where they face certain death.

One of the easier steps that can save lives today is getting the neighbouring countries to accept North Korean defectors as refugees. This not only saves lives but tells the North Korean government that it doesn’t have power over it’s neighbours and strengthens it’s opposition. It is also unlikely to cause any military threats on North Korea's behalf.

http://www.change.org/petitions/help-north-korean-refugees-escapenorthkorea?utm_source=share_petition&utm_medium=url_share&utm_campaign=url_share_before_sign

Sign this petition to campaign against the countries that send back NK defectors

And now just to remind you that whilst these are serious issues they can still be laughed at:

"I think China will soon tell that pudgy little creep with the bad haircut and the binoculars to sit down and shut up."

Websites to visit:

http://www.dailynk.com/english/read.php?cataId=nk03100&num=2172 
A 2008 Chinese march against sending back defectors

http://www.timeslive.co.za/world/2013/05/30/u.n.-concerned-about-north-korean-defectors-in-china

The Un’s reaction to Laos sending back child refugees in May

Cannibalism in North Korea?

As food becomes more scarce people in poverty are forced to look else where for food. Some at their most extreme revert to cannibalism. A North Korean who escaped, "One of his strongest thoughts was … if he hadn't taken steps to leave North Korea, he would've become a North Korean who ate human flesh," an interpreter for Mr Jeong told news.com.au. North Koreans are becoming more and more desperate, as they are starving to death. These people in need are in dire need for assistance, as they sacrifice family for their own needs as matters get worse.

To Read more:

http://www.express.co.uk/news/world/392610/North-Korean-reveals-cannibalism-is-common-after-escaping-starving-state

Charities Helping North Korea

CONCERN Worldwide
Working with the world's poorest people to transform their lives

Concern's charity work in the Democratic People's Republic of Korea mainly focuses on water and sanitation, forestry and agriculture.
Concern's work is unable to take away the oppression of dictatorship, but Concern's work can help people. Their is a sever lack of clean drinkable water and edible food, causing people to die slowly and painfully. Concern are aiming to increase sustainable food production in North Korea.
They are investing in:

• Urban Greenhouses
• Irrigation Systems
• Goa Milk Processing Facilities
• Working with locals to increase their technical and management skills.

It will benefit over 43,000 people. With more help and donations they will be able to help more and more people in need.

In the Phyongan province Concern is focusing on Sanitation and Waste Disposal, This includes:

• Building Water Systems
• Improving Sewage Treatment
• Improving Latrine Conditions in the area

It will benefit over 55,000 people.

Between 2004 and 2009, Concern provided 252,000 people in the country with clean drinking water. This was achieved with:

• The Renovation of Pump Stations
• The Provision of Household Connections
• The Installation of Gravity-Fed Systems
• The Use of Solar Powered Water Pumping Systems

Around 47,000 people benefited, including schools, nurseries and the county hospital!

To donate money to help the people of North Korea or to find out more go to:

https://www.concern.net/where-we-work/asia/democratic-peoples-republic-korea