New Economic Policy to Start October 1st

North Korea has announced domestically that the so-called ‘June 28th Policy’ of economic management measures are to go into force nationwide on October 1st.

One of a number of sources inside North Korea confirmed to Daily NK over the weekend, “We have been told by the authorities that the economic management improvement measures known as the ‘6.28 Policy’ will be implemented from October 1st. They said in lectures delivered in enterprises and people’s units that the policy will be implemented along fixed legal and systemic lines.”

Given that the new measures will be implemented on October 1st, it is likely that the June 28th Policy will come to be known as the ‘October 1st New Economic Management Reform Measures’ in the same way as the July 1st Economic Management Reform Measures of 2002, which were branded the ‘October 3rd Policy’ until their implementation because October 3rd was the date upon which Kim Jong Il delivered his first statement on the issue to the Party.

The ‘June 28th Policy’ is seen by many analysts as an extension of the 2002 measures. Among its key tenets, agricultural producers are to receive 30% of production under the state plan plus any overproduction, while workers in small and medium-sized enterprises are to no longer receive state distribution, instead being paid entirely in cash.

However, the people of North Korea are concerned, the source explained, saying, “The truth is that they shut down the July 1st Measures after just 3 years, so people are feeling pretty anxious now.” Therefore, he added, “They are backing it up with legal measures to show that it will be applied consistently.”

The source explained that he assumes the authorities are using both education targeting all levels of the adult population and the application of legal and systemic modifications to try and ensure that the tentatively titled ‘October 1st New Economic Management Reform Measures’ succeed. However, if they are not followed by significant opening to the outside world and/or massive levels of external support, the source added that the chances of success will significantly diminish.

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