Country Report North Korea February 2011

Economic policy: A New Year editorial sheds little light on economic policy

The lengthy joint New Year editorial published this year by the three major daily newspapers in North Korea-those of the party (Rodong Sinmun), the army (Joson Inmingun) and the WPK's youth league (Chongnyon Jonwi)-setting out tasks for the year ahead provided a rare statement on economic policy, but little clarity otherwise. As was the case for 2010, light industry was again mentioned in the editorial's headline, although unlike last year agriculture failed to win similar top billing. Unusually, for the first time in 50 years the editorial appeared inside the papers, whose front pages instead carried the music and lyrics of revolutionary songs. It is not clear what this change might signify.

It was encouraging that the main theme this year was once again economic rather than political, ideological or military. Light industry was mentioned 21 times and "people's livelihood" 19 times, as opposed to just 14 mentions for the Songun doctrine and eight for Kim Jong-il himself. However, the editorial itself provided little in the way of concrete measures, much less reforms, instead relying on the usual rhetoric. South Korea's Ministry of Unification noted that the North had been calling for a revolution in light industry for 25 years, without saying how to achieve it.

A renewed emphasis on economic self-reliance (juche), not only in minerals (with which North Korea is fairly well endowed), but also in technology, provided an ominous subtext. The editorial speaks of "a bright prospect of mass-producing the juche-based steel, fibre and fertiliser". This refers partly to the recent revival of vinalon, a fabric that was much touted by Kim Il-sung and that is made from limestone, but which is uncomfortable, shiny, prone to shrinking and difficult to dye; North Korea's elite conspicuously do not wear it. There was also reference to a need to lead progress in the knowledge-based economy, citing nanotechnology and bioengineering as fields to be "developed radically". Yet North Korea's achievements in the field of enriching uranium-which is emphatically not a juche technology-must surely demonstrate that science cannot develop successfully on the sort of closed basis that is being advocated. Unlike last year, the editorial made no mention of foreign trade or investment.

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