Archive for the ‘General markets (FMR: Farmers Market)’ Category

Foreign used clothing popular in DPRK

Sunday, June 12th, 2011

According to the Daily NK:

The North Korean authorities are reportedly reacting more strictly than normal to overt sales of products from South Korea in the country’s domestic markets.

One Korean-Chinese man engaged in business in Pyongan and Hwanghae Provinces told The Daily NK on June 11th, “They’re cracking down hard on products from the Kaesong Industrial Complex in the jangmadang, and are reacting more strongly than before to South Korean products, too. There are no South Korean goods on sale openly.”

Sources say that in many cases this means that traders are being told to remove tags indicating South Korean origin.

The same trader explained, “Community watch guards come to the jangmadang and tell us to remove tags written in Chosun then sell them. They are thoroughly cracking down on things saying ‘Made in Korea’. Even though the clothes are of good quality, and therefore clearly South Korean, if there is no tag, then they are not prohibited.”

Currently, used clothes are said to be selling better than new ones, however. This is partly because people have little cash and are gravitating towards the cheaper prices, and partly because they don’t trust new products.

The trader explained, “The image of South Korean clothes is good as far as used clothes selling better than new ones goes. People think that new clothes are of poor quality and really expensive.”

He explained the reason for the low quality, saying, “Currently, producers are buying fabric in China to bring back and manufacture clothes in Chosun, and then they put ‘Made in China’ tags on them.”

A woman’s short-sleeve t-shirt is now worth 5,000 won for a new one but just 1,500 won for a used one. Since the price difference is huge and new ones are of questionable quality, decent used ones sell better.

Another source from Changbai in China corroborated the story, explaining, “Everybody from North Korea asks us to send them used stuff to sell. We go to Guangzhou to buy used clothes smuggled in from South Korea, and send them to North Korea. The demand from North Korea for South Korean used clothes is pretty high.”

Meanwhile, due to mobilization for seasonal agricultural work, the North Korean markets are currently operating from 5 PM to 7PM. They normally open at 2 PM.

However, the Korean-Chinese trader explained that despite the afternoon market closures, farms are facing an uphill battle, saying, “Since anyone who wants to survive has to trade, the number of traders has doubled. And since almost everyone is trading and their focus is on that, there is no way the farming work can go well.”

Read the full story here:
“Remove Tags, then Sell Them”
Daily NK
Park Jun Hyeong
2011-6-13

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Retail competition in the DPRK

Wednesday, May 25th, 2011

A visitor to the DPRK sends in a picture of a 10% discount coupon received at a hard currency shop in Pyongyang.

The coupon is issued by the 6.17 Trading Company, and according to a member of my crack translation team it reads:

One coupon per party is given when the party has spent more than 50 Euros at our restaurant during their visit. The next time you visit our restaurant, 10% discount will be applied to your bill.  This coupon cannot be used twice or split over visits. The expiration date of this coupon is in two months.

I am also told that the coupon lexically equates “discount” with “service” as in “we will serve you at 10% lower price”.

The coupon is interesting because it signals that there seems to be some real price competition among hard currency shops in the capital. These shops not only cater to foreigners, but also to North Koreans with sufficient forex balances, so they don’t just have to compete against each other, but also with the black market.

Do other readers have any experience with discount coupons in the DPRK, or is this a relatively new phenomenon?

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Some current economic data points

Tuesday, May 17th, 2011

According to Daily NK:

Things are growing more difficult for many North Korean people as they pass through the spring lean season, according to a new interview with a citizen from the edge of Pyongyang, Kang Mi Soon. There has been little distribution this year, even in the capital, which has traditionally received preferential treatment, and while people are trading to try and improve matters, it’s not easy at the moment.

This is because, as a lingering after-effect of the currency redenomination, a lot of people have exhausted their reserves of cash, while prices have returned to levels commensurate with before the redenomination. In spite of relative commercial freedom in the jangmadang, the number of transactions has fallen and the class of small traders which lives day-to-day is struggling.

Kang, who hails from Gangdong County in Pyongyang, revealed this and more news from the city in an interview she gave to The Daily NK in Yanji, where she recently visited relatives,

The following is a transcript of the interview with Kang:

– What is the state of the distribution system?

In December last year and then January this year, there were eight days-worth of distribution. In February there were ten days, including the 16th (Kim Jong Il’s birthday), but in March there was no distribution. In April there were five days, including the Day of the Sun (Kim Il Sung’s birthday).

(One day of distribution ordinarily means 700g of rice or other grain for laborers, 900g for miners and workers in other strategic industries, 800g for members of state security, 400-500g for students (depending on grade) and 300g for housewives)

– Is the jangmadang operating well?

The jangmadang is working normally. However, the situation is that though the number of sellers is on the rise, people do not have money so products are not selling well.

– What things are selling the most?

Mostly, rice and corn are the mainstays of jangmadang sales. Since February of this year, there has been a drastic reduction in sales of other household items and industrial products. Though the supplies of rice and corn in the jangmadang are similar to last year, the number of buyers and the amounts being bought are both decreasing.

– What is the overall situation in terms of prices?

Overall, they have risen to a level similar to that of before the redenomination. In the case of Chinese products, prices have increased to more than before the redenomination. Socks made in China were 1,500won before, but now they are 2,000won.

– They say that the food situation during the spring lean season is hard. Can you tell us more?

Starting from last year, after the currency redenomination, the situation started getting worse, and this year it is really bad.

– Has anyone starved to death?

In Gangdong [Kangdong] County, since the beginning of February about twenty people, including two families which committed suicide, have died of hunger.

(Gangdong County had a population of 221,539 in 2008)

– What is the overall food supply situation?

60% of people in the county are living off three meals a day of corn porridge or corn flour noodles, 30% on corn rice and the remaining 10% are eating three meals of rice a day. In March and April of last year, the number of people eating three meals of rice was 30 or 40%, and less than 5% were living on corn porridge or noodles; the rest are corn rice.

– What about other regions?

With the exception of central Pyongyang and other big cities (Sinuiju, Pyongsung, Chongjin etc), it seems to me that other rural regions are in the same situation as Gangdong. The price of rice looks likely to stay the same or rise, and so, until around June 10th when the potatoes are gathered, the numbers of starving people is likely to rise.

Read the full story here:
Gangdong County Hit by Spring Shortages
Daily NK
Choi Cheong Ho
2011-5-17

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On the DPRK’s informal credit markets…

Monday, May 16th, 2011

According to the Daily NK:

Loan-sharking of both money and food is back to being widespread in North Korea these days, and sources say this is causing problems.

The activity is said to have waned for a time in the face of strict crackdowns during the currency redenomination in 2009; however, according to sources, a lot of those people who were expropriated by the currency redenomination have now started borrowing money from loan sharks in order to begin trading or get access to food, meaning it has spread widely once again.

A source from Hyesan, Yangkang Province explained on the 13th, “Those without funding for trade tend to borrow money at high interest. If they borrow money from an acquaintance, the interest rate is five percent, or they make an agreement with a loan-shark, who they don’t know well, to give ten percent.”

“Some loan-sharks get from 15 to 20 percent interest from smugglers for loans over a single night! Even though it is risky, depending on the regulations, they lend money to smugglers because they can earn large sums of money in just a few days.”

Loan sharks have been the target of crackdowns for years. In August 1997, the Ministry of Public Security (formerly the People’s Safety Ministry) released a decree stating that authorities could go so far as to execute those caught loaning food at high interest rates. Additionally, right before the currency redenomination in September of 2009, the National Security Agency cracked down on loan-sharking, releasing a decree calling on officials to “Map out measures to uproot usury.”

However, given that even agents of the People Safety Ministry use loan-sharking for the trading activities of their families, the crackdowns are doomed to fail.

According to sources from several provinces, the activity is also more common in rural areas than in cities, because in cities people have more survival mechanisms, but rural people do not have many alternative ways to get hold of money or food.

Loans are used in these agricultural areas in order to borrow grain from March to May, and are paid back double in the harvest season. In Yangkang Province, meanwhile, when people borrow one kilogram of rice or flour, they must pay it back in the form of 2.5 or 3 kg of potato starch, since the major product of the province is potatoes.

It is the kind of interest rate that was applied during the March of Tribulation, but people still apply it now.

This is a vicious circle of poverty, another defector pointed out. “Those who suffer loan-sharking each year face another worrying fall because their harvest must be paid to the loan sharks.”

The author of this Daily NK story unfortunately chooses to describe the DPRK’s “informal lenders” as “loan sharks,” making them morally equivalent to thieves and bullies, rather than describing them as lenders in a high-risk market.  This sort of pejorative name-calling is common among those who don’t understand how credit markets work, particularly in a high-risk business environment such as the DPRK.

The reality is that informal and black market lenders in the DPRK are making de jure illegal loans from their own savings.  This means that if the loan is officially discovered, the lender (and probably the borrower) will face criminal charges.  Even if the lender is not arrested, he must pay regular protection money to keep it that way.  Additionally, there is little property in the DPRK which can be credibly used as collateral in a loan, which means that even if the loan is not discovered by the authorities, if the borrower defaults or absconds with the funds there is little the lender can take possession of to recover his capital.  This level of risk requires borrowers to pay much higher interest rates to coax scarce lenders into the market.

In addition to the high interest rates that black market lenders usually charge, they also earn a bad reputation for their resort to “informal” mechanisms to insure and recover these loans.  Some insurance mechanisms, such as lending to family members and close acquaintances, might work well.  Other mechanisms, such as making threats of harm (and following through), are not as widely respected. But these are “technological” adaptations and responses to the DPRK business environment, not purely sadistic behavior.  In other words, these market practices are completely predictable given the institutional environment and not unique to the DPRK.  If the DPRK court system impartially enforced contracts, and collateral could be legally secured, these sorts of technologies would be unnecessary.

I am not claiming that black market lenders are angels, or even pleasant people (in fact some of them may be powerful individuals in the party and security infrastructure), but they are financing the development of the DPRK’s unofficial economy out of nothing more than financial self-interest.  Without their efforts a whole class of informal and black market entrepreneurs would be unable to access capital markets to start new businesses or finance operations.  The unpleasant side of black market lending should not be placed on the market participants themselves, but on the DPRK’s policymakers who have pursued economic policies that have made this sort of behavior necessary.

Read the full Daily NK story here:
Loans Creating Circle of Poverty
Daily NK
Kang Mi Jin
2011-5-16

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The closing of the Phyongsong wholesale market

Tuesday, May 3rd, 2011

The pictures above are from Google Earth.  The picture on the left is dated 2009-4-9.  The picture on the right is dated 2010-3-28.

The Phyongsong (Pyongsong, Pyeongseong, 평성) wholesale market was the DPRK’s largest.  The market emerged spontaneously to achieve this position due to its strategic location just outside the boundaries of Pyongyang. Merchants from across the country could travel here without obtaining a Pyongyang permit, yet it was close enough to Pyongyang that shoppers and merchants from the capital could “easily” travel here to conduct business.

Rumors first emerged in June 2009 that the market had been closed either as part of a larger campaign to crack down on market activity or to reduce the scale of the Phyongsong market relative to other markets.  IFES later reported in July 2009 that the market was briefly closed in April but reopened after just over a week due to its importance in the nation’s supply chains.

In September 2009, however, IFES reported that the Phyongsong market was permanently closed in June 2009.  The motivations for the closing appear to be political: cracking down on corruption, etc.

In January 2010, IFES reported that not only had the Pyongsong Market been closed in 2009, but that the second- and third-largest national wholesale markets in Chongjin  and Hamhung were also in Pyongyang’s cross-hairs.  Google Earth satellite imagery of the Sunam market in Chongjin (41°47’25.24″N, 129°46’0.07″E) was captured in 2006, so it is not possible to determine the market’s status in this way. However, Google Earth imagery of the Chupyong Market in Hamhung (39°53’42.92″N, 127°32’20.11″E) is dated 2010-4-14, and it indicates that market activity continued until at least mid-April of last year.

Sadly we cannot say the same of Phyongsong.  Although current Google Earth imagery (dated March 2010) was shot nearly 9 months after the Phyongsong market was reportedly closed,  there does not appear to be any new official market places under construction.

There is room for hope, however.  Maybe the Phyongsong market closing is only temporary and the facility is simply being upgraded (this has happened before).  If anyone has more recent satellite imagery of the market, please send it to me!

Another point to remember is that the closing of official market places does not mean the end of market activities.  It does mean that transactions costs and thus dead-weight losses will grow, but satellite imagery reveals that Phyongsong citizens continue to carry out their business activities to the best of their abilities in the alleys and residential areas:

Finally, if the market has been permanently closed, satellite imagery reminds us that the story of the Phyongsong market runs contrary to the trend of market growth  in other [distant] cities around the country.  This might imply that the Phyongsong market was closed because of its obvious importance to and corrupting influence on the Pyongyang consumer economy, but Workers Party cadres are content to let citizens in far-flung cities continue to meet their needs through market exchange.

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Lankov on private farming in the DPRK

Monday, April 25th, 2011

Pictured above on Google Earth: hill-side farming plots in the DPRK

Lankov writes in the Korea Times:

Every visitor to North Korea who has passed through mountainous areas in the country has seen some peculiarities of the modern North Korean landscape.

Somewhere high in the mountains one can see small fields of strange, irregular shapes which look quite different from the orderly, rectangular shapes of the cooperative farm fields. If asked about these fields, North Korean minders will probably avoid giving a straight answer. This is understandable ― even though the existence of such fields is tacitly accepted by the authorities, from a purely ideological view, which minders are obliged to present, these fields are not supposed to exit.

We are referring to sotoji, private plots, which have been spreading across North Korea over the last 15 years and now play a major role in food production in North Korea.

It would be only a minor exaggeration to say that in his policies, Kim Il-sung tended to be more Stalinist than Joseph Stalin himself. He took the state-run economy to its natural (or unnatural) extreme and collective farming was no exception. Once upon a time, the North Korean peasantry was herded into so-called “agricultural cooperatives.” The description of these institutions as cooperatives is actually misleading because they were essentially state-run farms, where farmers had basically no influence over management or income distribution.

But North Korea has one important peculiarity: unlike Stalin’s Soviet Union, in North Korea farmers were not allowed to cultivate even small private plots. In the Soviet Union a farming family would be allowed a plot which might have been as large as a few thousand square meters. In North Korea, the maximum size of an individual plot was limited to a paltry 100 square meters – barely enough to grow some pepper and spice and clearly not enough to make any meaningful economic difference.

This was done on purpose ― North Korean policy planners assumed that farmers, being deprived of any alternative means of existence, would work more efficiently in state-owned fields. In agricultural cooperatives farmers essentially worked for their daily ration ― one full day of work was rewarded with 700g of grain (similar to the ration of the average worker in a city).

This system was never especially efficient but for a few decades it managed to exist and function somehow. However the collapse of the North Korean economy in the early 1990s produced a devastating blow to state-run agriculture. In 1995 and 1996 the harvests were around half of what was necessary to keep the North Korean population alive, so many North Koreans starved to death (the exact numbers are disputed but it seems that between 500,000-1,000,000 perished) and the survivors began to look for ways to make a living outside the state-run-economy. Predictably enough, farmers did what one would expect them to do ― they began to develop their own food production.

Unlike their Chinese counterparts, the North Korean elite refused to disband the state-run agricultural cooperatives. Therefore farmers had no choice but to acquire land on their own, outside of what would be normally considered arable land. Usually they went to the mountains, since all arable land in the valleys had long been cultivated within state-run farms.

In some cases, farmers would make agreements with local forestry departments whose officials agreed to turn a blind-eye to unlawful activities in protected forest areas. In some other cases the local authorities tolerated and even encouraged the sotoji cultivators.

A quick look through satellite images of North Korea shows the widespread nature of the sotoji phenomena. In some counties near the Chinese border, the percentage of land under the cultivation of sotoji owners roughly equals that under cultivation by state-run farms. In other areas the level of private production may be smaller but it seems clear that private food production makes a major contribution to North Korea’s food supply today.

Indeed, in the above-mentioned borderland counties, sotoji fields seem to produce as much as 60 percent of all food sold on the local market. This might be an exception because the current county in question is covered by mountains and contains a lot of places where people can hide from police. Nonetheless sotoji produced food is found widely in the country’s markets.

In the last 15 years or so, North Koreans have developed a large and successful private economy of which the sotoji phenomenon is an important part. However their cultivators are not high on the newly emerging social ladder. Sotoji are usually tilled by people who do not have the money, skills or inclination to start a more conventional business. Some of them are essentially market-orientated enterprises which make profit but the majority lose money.

Nonetheless, the random new shapes of North Korean mountains nowadays are yet another reminder of how much the country has changed over the last two decades.

Read the full story here:
Sotoji — small private plot
Korea Times
Andrei Lankov
2011-4-24

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DPRK 2011 foot and mouth disease outbreak

Wednesday, April 20th, 2011

UPDATE 6 (2011-4-20): The DPRK is experiencing a new wave of foot and mouth outbreaks.  According to Yonhap:

A new outbreak of foot-and-mouth disease (FMD) occurred in four counties in North Korea last month and infected nearly 300 pigs and cows, a news report said Wednesday.

A total of 141 out of 298 animals died after being infected with the disease, the Voice of America said, citing a North Korean report submitted to the World Organization for Animal Health (OIE) on Monday. The news report said Pyongyang quarantined the infected areas in an apparent attempt to stem the spread of the disease.

The North confirmed its first case of the disease in December, and the virus has since spread to six other cities and provinces, Seoul’s Agriculture Minister Yoo Jeong-bok said in February.

Last month, the World Organization for Animal Health said North Korea urgently needed around US$1 million worth of equipment and vaccines to help stem outbreaks of the deadly disease.

The disease does not pose a direct health threat to humans, but affects cows, sheep, goats and other cloven-hoofed animals, causing blisters on the nose, mouth, hooves and teats.

North Korea has 577,000 heads of cattle, 2.2 million pigs and 3.5 million goats, according to the OIE.

The OIE data mentioned in the above Yonhap story can be found here.

The OIE provides the map below as well as details about the outbreaks:

Three of the four cases take place in North Hwanghae:

Sinphyong county, Myongri district (2011-3-21)

Sangwon county, Rodong-ri (2011-3-16)

Hwangju county, Ryongchon-ri (2011-4-4)

The final case is in Singyo-ri, Kumgang County, Kangwon Province. It reportedly took place on 2011-4-6.

The data is also available here.

UPDATE 5 (2011-3-24): UN FAO Press Release:

North Korea: FAO says urgent vaccine and equipment needed to contain Foot-and-Mouth Disease

Capacity of national veterinary services to manage animal disease must also be strengthened

24 March 2010, Rome/Paris – Around a million dollars of equipment and vaccines are urgently required to help stem outbreaks of deadly Foot-and-Mouth disease (FMD) in North Korea, followed by a more prolonged and concerted effort to modernize veterinary services in the country.

A joint FAO and World Organization for Animal Health (OIE) mission travelled to North Korea at the government’s request between 27 February and 8 March. The mission found that the country’s capacity and that of veterinary services to detect and contain FMD outbreaks need significant strengthening — in particular as regards implementing best-practices in biosecurity measures and improving laboratory infrastructure and capacity.

Outbreaks of Type-O FMD have been reported in diverse locations in eight of North Korea’s 13 provinces. To bring the situation under control, the team recommended the following steps:

  • Thorough surveillance to locate and map disease clusters
  • Protecting unaffected farms through movement controls and biosecurity measures
  • Adequate sampling in order to correctly identify the virus strain or strains involved
  • Improving biosecurity measures to prevent further spread of the disease
  • The strategic use of the appropriate vaccines to contain and isolate disease clusters

FAO estimates around $1 million is required immediately for training, supplies and infrastructure, vaccine acquisition and the setting up of monitoring, reporting and response systems.

The FAO-OIE mission visited several collective farms as well as the national veterinary laboratory and various animal health field stations.

Virus identification

FAO and OIE provided guidance to North Korean veterinary authorities on taking and handling of FMD samples — new samples will be collected by North Korea and sent to an international reference laboratory for testing.

Only by accurately typing the virus or viruses involved in the outbreaks will it be possible to identify the most effective vaccine to use against it.

Food security bulwark

FMD does not pose a direct health threat to humans, but affected animals become too weak to be used to plough the soil or reap harvests, suffer significant weight loss, and produce less milk. Many animals are dying from the disease.

Farm animals are crucial to food security in North Korea. Cows and oxen are primarily used for dairy production and are a key source of draft power in agricultural production. Goats and pigs, also susceptible to FMD, are important source of dairy products and meat.

Current North Korea’s livestock population consists of 577,000 head of cattle, 2.2 million pigs and 3.5 million goats.

FMD affects cattle, buffaloes, sheep, goats, swine and other cloven-hoofed animals. It is highly contagious and spreads through mucus, saliva or body fluids that can contaminate materials such as clothing, crates, truck beds, and hay and be transmitted to other animals.

UPDATE 4 (2011-3-22): Pork prices rising with FMD meat on sale.  According to the Daily NK:

With North Korea seemingly unable to bring an outbreak of foot-and-mouth disease centered on the Pyongyang region under control, inside sources have revealed that the price of good pork in the markets is skyrocketing as a result of diminishing supplies, while infected meat is being sold on the quiet for lower prices.

Speaking with The Daily NK on the 22nd, a source from North Pyongan Province explained, “Pork is right now selling for 6,000 won per kilo in the market. The price, which was 2,600 won in the market last December, is climbing all the time, and now is at the point where the average person has no chance of being able to buy it.”

According to sources, the situation is similar in Nampo, where pork was selling for 3,500 won in December, but had reached 6,500 won by February. In Sariwon in North Hwanghae Province, the price had hit 5,000 won by the end of February.

The news of an emerging foot-and-mouth disease problem in North Korea first emerged through sources earlier this year, but the authorities only confirmed it officially and reported control measures via Chosun Central News Agency on February 10th.

According to an official report submitted by the North Korean authorities to the World Organization for Animal Health (OIE) at around the same time, the outbreak had by then spread to 48 places across much of south and central North Korea, with 15 of those places falling within the Pyongyang administrative region.

The report outlined how North Korea first attempted to combat the outbreak with an indigenously produced vaccine, but this was of limited use. It also noted that official North Korean policy is to bury those animals that die from the disease and quarantine those that are infected.

However, inside sources say that in reality people are digging up buried animals in order to sell the meat in the market at a lower price.

The North Pyongan Province source explained, “Meat infected with foot-and-mouth disease is being sold in the market tacitly; the price of it is somewhat lower. The work of burying pigs with foot-and-mouth disease is being done, he said, but it is said that animals continue to be dug up and are sometimes being sold in the market.”

The source gave the example of a pig farm in Pyongsung, where 6 people dug up previously buried pigs last December to sell in Pyongsung Market. They were selling the meat for 2,000 won/kg, he said, but were caught by the authorities.

The source also revealed that on December 30th, 2010, 500 pigs were buried near Pyongyang, but two days later had disappeared, while in Sinuiju it is said that “If it is buried in the daytime, people say that by that very evening it will appear in the market.”

Of course, the fact is that the North Korean authorities are unable to put in place an efficacious policy to combat the outbreak of foot-and-mouth disease or the selling on of infected meat, not least because persons caught for selling infected meat can simply navigate their way out of trouble and go back to their activities.

UPDATE 3 (2011-3-2): A UN FAO team is in the DPRK to inspect the foot-and-mouth outbreak.  According to the Joongang Ilbo:

An official at the FAO was quoted by RFA as saying that the scale and variety of the aid would be determined after discussions with North Korean government officials. The exact itinerary of the group was not released.

The UN food agency also said that along with the team that arrived in North Korea last month, additional officials, including an expert on contagious diseases, would be sent to the area.

The South Korean government has said that it has been monitoring the development of the outbreak. However, the South Korean Ministry of Unification said after North Korea’s official report on the disease that Pyongyang has not made any requests for aid nor did Seoul have plans to offer any assistance.

North Korea announced on Feb. 10 that over 10,000 pigs and cattle had been infected with FMD, prompting North Korean officials to alert the UN of the outbreak.

The North struggled with FMD cases in 2007 and 2008, which led to the culling of thousands of pigs and cattle. During those episodes, the FAO and the South Korean government provided aid.

UPDATE 2 (2011-2-27): The Daily NK reports that the OIE report shows animals are not being culled:

Unlike in 2007, when North Korea reacted swiftly to an outbreak of the disease by culling animals, this time the authorities appear to have reacted poorly despite the fact that the disease has now been found at more than 48 locations in Pyongyang City and Pyongan, Hwanghae and Kangwon Provinces.

According to an OiE report derived from the letter, in which the North finally confirmed the rumored outbreak after a month of silence, Pyongyang has apparently tried to address the situation using a combination of disinfection measures and a domestically produced vaccine, but this has met with little success.

“Given the number of livestock which have died of foot-and-mouth disease, it is uncertain just how far the infection has spread,” Korea Rural Economic Institute Vice-President Kwon Tae Jin explained to The Daily NK. “The small number of infected heads of cattle reported by North Korea is also difficult to accept at face value.”

“If the North Korean authorities have not destroyed the infected cows and pigs in the hope that they will recover, then it is a serious problem. It means we have no idea how far the disease has spread,” Kwon added.

15 of the existing locations in which the disease has so far been detected are in Pyongyang and surrounding areas. In order to combat the spread of the disease to other regions, the authorities are said to have implemented across-the-board restrictions on movement into and out of the city.

However, news of the disease has still not been reported officially, and domestic sources have told The Daily NK that they have not heard anything about it to date.

UPDATE 1 (2011-2-18): DPRK report (below) shows extensive damage from foot-and-mouth disease.  According to Yonhap:

North Korea has reported to a global animal health agency that it had suffered a total of 48 outbreaks of foot-and-mouth disease (FMD) since Christmas last year.

The impoverished communist state made the report to the Paris-based World Organization for Animal Health (OIE) on Feb. 8, saying about half of 17,522 “susceptible” pigs had died from the disease.

Only 3 percent of 1,403 cows suspected of being infected had died from the disease, according to the report posted on the OIE Web site, while none of the 165 susceptible goats had died.

At the time the report was filed, no livestock were yet culled as a preventive measure, according to the report created by Ri Kyong-gun, a quarantine director for the Ministry of Agriculture. A map of outbreaks showed the disease had spread out over almost half of North Korea.

“Vaccination has been applied with a locally developed vaccine but was not effective to control the disease,” the report said, adding that the origin of the outbreak remains “unknown or inconclusive.”

North Korea has banned the inflow of pork and beef from South Korea since late last year for fear that the disease — rampant south of the heavily armed border — may spread there.

Despite the measure, the North, which suffers serious food shortages, reported the outbreak to the United Nation’s Food and Agriculture Organization earlier this year.

The country said in the OIE report that it has restricted movement and conducted “disinfection of infected premises and establishments” to fight the spread of the animal disease.

In 2007, North Korea suffered similar outbreaks, prompting South Korea to dispatch a team of animal health experts amid a mood of reconciliation.

FMD is highly contagious and affects cloven-hoofed animals like cattle, pigs, deer, goats and sheep. The disease causes blisters on the mouth and feet of livestock and leads to death. It is rarely transmitted to humans.

ORIGINAL POST (2011-2-18): Below is a map and list of reported foot and mouth disease outbreaks in the DPRK:

The World Organisation for Animal Health (OIE) has reported 48 outbreaks of foot and mouth disease (FMD) in Democratic People’s Republic of Korea.

The outbreaks are located in:

–Kangwon (Anbyon, Kimhwa, Phangyo, Phyonggang)
–Kumgang
–Pyongyang (Sadong, Ryokpo, Rakrang, Kangdong, Mangyongdae)
–Nampho (Nampho and Kangso)
–North Hwanghae (Kangnam, Sangwon, Hwangju, Yonsan, Sinphyong, Suan, Songrim)
–North Pyongan (Thaechon, Pakchon)
–South Hwanghae (Chongdan)
–South Pyongan (Anju, Phyongwon)

The OIE posted a report developed from an official letter sent by the DPRK dated 7 February 2011 and received on 8 February 2011.  You can see the OIE report here.

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Wonsan and other market developments

Thursday, April 14th, 2011

UPDATE: Some of these images were picked up by Radio Free Asia and Yonhap.

ORIGINAL POST: Google has provided new imagery of Wonsan, the capital of Kangwon Province. Using satellite imagery we can see the continued expansion of the city’s markets.

Pictured below is the formalization of Wonsan’s largest market (39.145886°, 127.455761°):

(Above) The image on the top-left is from Google Earth and it is dated 2002-11-11.  The picture on the top-right is from Bing Maps and the date is not known.  The bottom image is from Google Earth and it is dated 2009-10-3.

We can also see the formalization and expansion of a street market only 900m to the west (39.148420°, 127.443440°):

(Above) In the left-side picture dated 2002-11-11 you can see a small street market.  In the right hand picture dated 2009-10-3 you can see a large formal market has been constructed in city.

The growth in the numbers and sizes of markets throughout the country is not limited to provincial capitals.  This process can be seen in the smaller county capitals and worker’s districts as well. Below are some less prestigious examples:

Sunchon’s Puhung-dong  market upgrade (순천군, 부흥동: 39.485129°, 126.012211°):

 

Kangryon market expansion (강령군: 37.906801°, 125.505416°):

Ongjin Market expansion (옹진군: 37.928589°, 125.364248°):

But sometimes the process can move in reverse.  Here in Saepyol (새별군: 42.813426°, 130.205220°), the market was replaced by new housing.  I have still not located a replacement market in this city, though one will likely emerge.  In the meantime, people will simply trade in the streets or in a vacant plot of land:

You can see previous posts which show market expansion using Google Earth satellite imagery here, here, here, here, and here.

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Some recent material on DPRK markets

Wednesday, March 30th, 2011

First, Kim Song Min  (김성민), founder of Free North Korea Radio, has posted another clandestine video of a North Korean market:

You can (probably) see the ten-minute video here.  It will not work in China.  Again, the market is surprisingly ordinary; lots of fish, potatoes, and greens.

I posted a similar video several weeks ago which you can see here.

Secondly, the March 24th WFP/FAO/UNICEF Rapid Food Security Assessment Mission (PDF of the report here) included some interesting information on the DPRK’s markets:

5.2. Markets
The mission had unprecedented access to markets in the country. All teams spent a considerable amount of time surveying different markets and their attributes. In DPRK there are three main types of markets where people can buy food and non-food stuff: 1) State Shops; 2) Farmer’s Markets; and 3) City Markets.

State Shops
State Shops are open seven days a week to provide families with such essentials like the soyabean sauce, soya-bean paste, and cooking oil at discounted prices. Each household is assigned to a state shop and, for certain commodities, is entitled to a monthly quota that is set by the Ministry of Commerce. Essential food items include: soya-bean sauce (50 grams /person/day); soya-bean paste (30 grams/person/day); and cooking oil (20 grams/person/day).

Whether households can purchase their full allocation primarily depends on availability. For example, many households reported that soya-bean oil has not been available since early February. Others households informed that meat is only available on special occasions like the New Year or the birthdays of Kim Il Sung (15 April) and Kim Jong Il (16 February).

The Peoples Neighborhood Unit (PNU) [Inminban] announces when new supplies arrive and informs the household’s entitlement. Payment is collected from the households and tokens are issued, specifying items and quantities that can be collected from the state shops.

The variety and quantity of food and non-food commodities varies from county to county. Some shops were observed to have other food items for sale, such as wild vegetables, biscuits and salt. The mission observed that State Shops in rural areas have fewer commodities available than those in large urban centres.

The mission also observed non-food commodities in State Shops, including: school supplies, clothes, shoes, blankets, kitchen utensils, ceramics, cigarettes, beer, rice wine, children’s toys, and single-band radios.

Farmers Markets
The Farmers’ Markets occur every ten days or three times each month. Sellers bring their food and non-food produce to the market where they pay a fee of KPW10 to secure a two meter stall for the day. The sale of cereals is officially prohibited. The mission did not observe any cereals being sold. The main food items observed in these markets were vegetables, potatoes, fruits, eggs, meat, fish, lentils and spices. Non-food items included basic farming equipment, woven baskets, school supplies, clothes, knitted socks and gloves.

Any exchange of cereals between households is privately done through barter trade or households who are PDS [Public Distribution System] dependants get cereals as gifts from relatives and friends in Cooperative farms. The surplus cereal produced by the farmers over and above their grain allocation for home consumption has to be sold to the State Food Procurement Agency.

Some sellers were able to quote terms of barter trade including: two kilograms of maize can be exchanged for one kilogram of rice; one kilogram of fish can be exchanged for one kilogram of rice; one-half kilogram of pork meat can be exchanged for one kilogram of rice; and five eggs can be exchanged for one kilogram of rice. Sellers were hesitant to quote rice and maize prices in KPW other than what is paid through the PDS.

Interestingly sellers only brought commodities in small quantities despite the fact that these markets happen only three times a month. The number of sellers out numbered the buyers but that could be the mission effect as people were wary of foreigners asking questions, particularly outside Pyongyang. The difference in the prices paid in these rural markets compared to Tongil market in Pyongyang was astounding. A bundle of spinach that cost KPW 20 in rural market was being sold for KPW 1000 in Tongil market—50 times more. However, this may not be of concern to ordinary citizens as Tongil caters more to the foreigners and DPRK elite.

City Markets
City markets are held daily in cities and often in the same structures as the farmers markets.Mission members did not observe any cereals for sale in the market. Food items observed were potato, vegetables, pulses, wild vegetables, seafood, fish, eggs, and meat, including rabbit, chicken, and duck. Non-food items included farming tools, baskets, brooms, school supplies, clothing, and other household items. Commodities were available in small quantities speaking to the size of the market. The prices in these markets were competitive and the produce similar to the farmers market.

Finally, Yonhap reports on the travels of a British Envoy to the DPRK:

Martin Uden, Britain’s ambassador to South Korea, said Sunday that a marketplace in Pyongyang, the capital of North Korea, appear to be stocked with large amounts of food, poultry and electronic products, despite the communist state’s ongoing search for food aid abroad.

Uden, who traveled to Pyongyang and Wonsan, a port on North Korea’s east coast, from March 11-14, said he witnessed plenty of chicken, fish and vegetables and an array of computer and camera accessories during his visit to the “Dong-il” market in the capital city.

In his travelogue that was written after his second trip to the North following the first in 2008 and sent to Yonhap News Agency, Uden said that overall, both the variety and quantity of food products available at the Pyongyang market were a “fair bit less” compared with three years ago, noting the absence of beef was especially noticeable.

“This March, I saw no beef and a tiny amount of pork. But plenty of chicken of all sizes, both cooked and uncooked, and some duck. Large amounts of good-looking fish and plentiful root vegetables,” the British diplomat said in his travelogue that offers insights into the daily life of ordinary Pyongyang citizens.

“In terms of the food aid that the DPRK is seeking at present, it’s worth remembering that even if this one market appeared reasonably stocked, it’s not possible to draw wider conclusions from that,” he said, using the abbreviation of the North’s official name.

Uden said he arrived in Pyongyang on the second Friday of March, the day of a devastating earthquake and tsunami in Japan, but was kept in the dark about the disaster until Monday, when the state news organizations carried reports about it. He called the incident an eloquent example of information control by the government.

“In (North Korea), you can only know what the state wants you to know,” he said.

The full text of his travelogue can be found here.

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Competition in “oldest profession” in Sinuiju

Tuesday, March 29th, 2011

According to the Daily NK:

An inside source has reported that the number of pimps in Sinuiju continues to increase, with security agents driving up prices by taking a growing slice of the profits. As a result, many women are apparently working to find other ways to make money from the activity whilst avoiding losing money to a growing list of middle men.

The source, who comes from the city explained, “Since there is so very little food, it is not difficult to find cases of even university students selling their bodies. Young women sit around in the market selling themselves.”

According to the source, the cost of sex with a local university student (20~25 years old) is around $100, but can run to a maximum of $130. In the case of a working woman (19~25 years old), it is $70~100, and housewives (26~30 years old) allegedly cost $20~30.

The security services, which should be controlling the situation, have joined the process. According to the source, they demand a substantial cut of the illegal profits.

He explained, “Security agents and pimps are both involved in the business, colluding to fix the price at whatever level they want,” before adding, “Therefore, the person directly involved is unable to earn much money.”

For this reason, many prostitutes have begun to sell themselves secretively in local markets.

According to the source, if a woman is selling a small number of eggs in the market, it means that she will sell herself. When a man asks “How much is this?” bargaining over the price of the woman rather than the eggs begins. The source reported that it is commonplace to see a woman and man disappear off somewhere shortly after reaching agreement on price.

The source added, “Recently the number of women selling flowers one-by-one has been rising. These are also women selling their bodies.”

However, the source pointed out that because security agents are connected with pimps and profit from prostitution, those women who try to sell themselves individually face strict inspection. The source said, “In front of train stations and markets, for example, it is not rare to see a struggle between prostituting females, their customers and the security agents who chase them.”

Other well-organized prostitution is conducted in established brothels, but these are not inspected either because there, too, security agents simply take money to look the other way.

Read the full story here:
Battle for Prostitution Profits Fierce in Sinuiju
Daily NK
Park Jun Hyeong
3/29/2011

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