[imText1]There has been an opinion reported that after the “Economic Management Measure entered into force on July 1, 2002, decentralization phenomenon has been stimulating in North Korea. North Korea
RFA on May 22 reported on some of the contents Richard Ragan of the World Food Program-Pyongyang presented in the Academic Conference held in Washington on May 12, sponsored by CSIS. Mr. Ragan’s presentation is known to be about “Transformed Daily Life of the North Korean People.”
Mr. Ragan pointed out that the Economic Management Improvement Measure brought a phenomenon where the planned economy started out break up and has cause a decentralizing effect.
He noted that the small scale production sectors located in districts or towns have been requested to manage local people in a very different manner than before the economic measure took place. He further said, the local managers have more passive attitude towards the WFP than the Central Government managers.
He analyzed that in case of negotiating the problem of reaching out to the local people, the local managers are much more flexible than the central managers. This seems to be due to the spread of the decentralization phenomenon where the local managers are forced to solve the various local problems themselves.
Furthermore, he added that local managers are obliged to assure the WFP staffs that why the food distribution must place in their local places. Now we can see more local managers visiting around the local places, as the result of the change after the new economic measure.
Mr. Ragan also mentioned about the activation of the common market after the measure.
“In North Korea, the economy divides into three parts; national economy, market economy, and military economy, but what all focuses on is the market economy. Previously there have been markets controlled by the central government, but through the economic measure, the government recognized the existence of the markets.
On the other hand, Mr. Ragan noted how the new economic measure has cause a high increase of prices and led to difficulty of the people.
“For example, the wage of a retired school teacher is only about 800won to 1200 won a month, where as the real currency exchange rate is about 2600won to 3000won per one dollar. With the wage only, it is hard to make a living.”
He added, “When the measure was enforced at first, the problem was in the currency rate settlement but also in the high inflation rate. In the current market 1kg of rice costs about 600won, which indicates us that a common North Korean person has to spend half of his salary to buy a kilo of rice.”
Mr. Ragan is the only American citizen officially residing in North Korea, and currently lives in the Foreigner Residence Area located in Pyongyang city.
