North Korea’s central government recently handed down a directive to increase the Rason Free Economic Zone’s level of urbanization with a view to transform it into a tourist zone.
“On Mar. 27, the Rason Municipal People’s Committee was given an order to completely eliminate the city’s agricultural areas with a view to urbanize the region and turn it into a tourist zone,” a reporting partner in North Hamgyong Province told Daily NK yesterday, speaking on condition of anonymity due to security concerns.
According to the reporting partner, North Korean authorities believe that Rason feels more like a rural township than a proper city and intends to transform the area into an urban zone on par with the country’s capital of Pyongyang.
Through the order, the North Korean government hopes to overhaul the city’s international image and showcase the spirit of socialist North Korea to international visitors and investors, he said.
The order emphasizes that acquiring materials is the most important factor in successfully turning Rason into a tourist-friendly city and makes clear that materials must be imported from abroad to achieve that goal.
“The order said that Rason must secure materials it lacks to complete housing construction projects in the city, particularly cement and rebar. The order instructed Rason officials to acquire as much furniture as possible in contrast to other provinces, cities and counties that provide just a few pieces of furniture like wardrobes for home interiors,” the reporting partner said.
He added: “The state said it will take care of about 20% of the needed materials while emphasizing that Rason residents should be grateful for the government’s generosity and that they should push forward with the urbanization project as quickly as possible.”
In fact, the North Korean government’s efforts to speed up Rason’s urbanization is part of its larger goal to accumulate foreign currency, according to the reporting partner.
Upon opening up the region and turning it into a large-scale international trade and tourism area, the government aims to collect more than 50% of the foreign currency generated in the area, he explained.
As such, the North Korea’s government has high hopes for the city’s urbanization project, with officials believing that if state investment successfully develops Rason into an international trade and tourism zone, the city could become a frontrunner of economic growth among cities on the China-North Korea border. The government also presented plans to pay for its part in the project in dollars.
News of the government order, however, has faced a mixed reaction among Rason officials, the reporting partner said.
“Many officials in the city have expressed dissatisfaction, claiming that what the government calls ‘investment’ is actually closer to pushing high-interest loans on them.”
Translated by Rose Adams. Edited by Robert Lauler.
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