The improvement of economic affairs in the
Kim Jong Eun era is more an outgrowth of revitalized resident efforts poured
into commercial activity than a result of top-down policy decisions. According
to sources within the country, North Korean authorities have started relaxing
their tightfisted economic policies and tolerating growth of new markets
because they are worried about residents’ opposition.
In an article titled, “How to View North
Korea’s Recent Economic Improvement,” the Chinese weekly World Knowledge
reported that the continual increase of food production starting from Kim Jong
Eun’s rise to power in 2012 is due to the bunjo farming system.
The bunjo agricultural system falls under the June 28th Measures, announced by North Korea in 2012, which include policies set to increase the efficiency of
collective farms by reducing the amount of workers in each bunjo unit,
originally consisting of approximately 10 to 25 people, down to four to six. More importantly, the measures stipulate that a higher proportion of
output be distributed to the farmers, with 70% going to the state and the
remaining 30% and any surplus divided among the workers.
Some academic sources maintain that
economic growth can also be attributed to the “May 30th Measures,” announced in May
2014, which lay out policies for looser regulations of the manufacturing,
maintenance, and agriculture industries in order to stimulate production
growth.
Despite the harsh sanctions brought down by
the international community after North Korea’s 3rd Nuclear Test on February
12th, 2013, they assert that state policies like the June 28th Measures and May
30th Measures contributed immensely to growing and strengthening the economy.
But according to Daily NK’s inside sources, the bunjo changes have only been implemented in some regions–on an
experimental basis– and have done relatively
little to excite activity as of yet. Also, there is no verifiable evidence that the
loosened regulations on manufacturing and other industries resulting from the
May 30th measures have increased production. Because of this, claiming that
North Korea’s economic policies have been at the heart of the country’s recent
financial growth remains, for the time, an unfounded assertion.
Experts believe that the economic measures
taken up by North Korea during Kim Jong Eun’s reign have played a positive role
in the country’s growth, but insist this is dwarfed by the outpour of resident
effort into market activities. Though the scale of last year’s foreign trade decreased
and North Korea failed to attract significant foreign investment, the economy
continued to grow on the back of citizens who worked to expand the market.
Kwon Tae Jin, director of the North Korea,
Northeast Asia Research Center at the GS&J Institute, told the Daily NK, “As
long as foreign investment is nominal and the North Korean authorities continue
to implement rigid controls, money will not end up in the hands of everyday
people. Looser controls and aggregating state owned capital is key to stimulating
economic growth.”
He added that while he believes the
economic improvements such as the June 28th Measures and May 30th Measures have
made a positive impact on the economy overall, they must move in a direction
that stabilizes and expands the market in order to stimulate the economy.
Another expert on North Korea, who spoke on
condition of anonymity , added, “While we can positively evaluate economic
growth in the Kim Jong Eun era, it is fairly clear that said growth is the
result of market activity contributed by residents, not the consequence of
government policies. If North Korea loosens up regulations, I think we are
going to see even more growth in the future.”
*The contents of this article were broadcast to the North Korean people via Unification Media Group.
