North Korea’s Cabinet has reviewed economic progress during the five years of the Eighth Party Congress and announced tasks for the remainder of the period.
“In a preliminary review of five years of progress on the work of the Eighth Party Congress on Aug. 30, the Cabinet detailed accomplishments and shortcomings and informed each ministry and the people’s committees of each province, city and county about areas that need improvement,” a source in North Hamgyong province told Daily NK recently.
The Cabinet identified manufacturing as the sector that has seen the most economic growth over the past five years. More specifically, manufacturing showed signs of recovering production capacity in machinery, chemistry and light industry.
The Cabinet also noted that construction had made good progress on building regional infrastructure and residential buildings in urban centers. In particular, the Cabinet cited large-scale construction projects in strategic areas such as Pyongyang, Samjiyon and Wonsan as examples of successful projects orchestrated by the Central Committee.
Another accomplishment reported by the Cabinet was higher output of strategic minerals—including iron ore, coal and rare earths—in the mining sector. However, electricity shortages and limited transportation capabilities had created a disconnect between mine output and resource distribution, the Cabinet said, emphasizing that there was significant room for improvement in that area.
Russia emerges as key economic partner
The Cabinet said that strong performance in the manufacturing, construction and mining sectors was due to technical assistance and resource trading with Russia. In effect, strategic economic cooperation with Russia was the main driver of growth in these sectors, the Cabinet concluded.
North Korea’s economic cooperation with Russia has expanded in various areas, including imports of grain and energy, exports of mineral resources, loans of construction equipment, and interaction between technical workers. That cooperation was an important factor behind progress made during the five years of the Eighth Party Congress, the Cabinet said.
The Cabinet attributed those accomplishments to the “wise leadership and diplomatic acumen of the Marshal,” referring to North Korean leader Kim Jong Un.
At the same time, the Cabinet urged party members to be wary of excessive reliance on foreign cooperation, which could hinder efforts to bolster self-reliance.
“Officials in the people’s committee in Kimchaek, North Hamgyong province, were informed about the Cabinet’s report in an administrative meeting. Officials were excited to hear about the party’s achievements and shared opinions and concerns about practical difficulties,” the source said.
“Officials noted that the Cabinet’s report on Aug. 30 not only highlighted progress made during the five years of the Eighth Party Congress but also pressured them to meet economic goals in the remaining period. The Central Committee is attempting to play up progress for political reasons, but officials on the ground are concerned about how to make up for shortages and achieve their goals,” the source added.
Officials are anxious that the Central Committee may launch more audits and take direct control of more economic projects during the second half of the year.
