Archive for the ‘Foreign aid statistics’ Category

DPRK asks Hungary to write off debt

Wednesday, August 18th, 2010

According to the Financial Times:

Hungary has revealed that it was asked by North Korea to write-off more than 90 per cent of its outstanding debt in the latest indication of the secretive totalitarian regime’s financial distress.

Hungary’s economy ministry told the Financial Times that North Korean negotiators had tabled the request in November 2008 during a meeting in Pyongyang.

“They asked [us] to take good consideration of the Democratic People’s Republic of Korea’s current economic difficulties and asked for cancellation of over 90 per cent of the total debt amount,” the ministry said.

The revelation follows a report in the FT last week that Pyongyang had asked the Czech Republic to write-off 95 per cent of its Kc186m ($10m) debt.

The cash-strapped totalitarian state offered to settle 5 per cent of the debt in ginseng, a root that is said to combat lethargy and impotence.

North Korea appears to be struggling to meet its financial obligations owing to the pressures of a moribund domestic economy and international trade sanctions imposed over its nuclear weapons programme.

Following the mysterious sinking of a South Korean warship in March, Washington vowed to further crack down on North Korea’s international financing, money laundering and narcotics operations.

Pyongyang’s outstanding debts are estimated at about $12bn, about two-thirds of which is owed to former communist states.

Its Hungarian debt emerged from a trade surplus between the two countries, mostly in the period before the fall of the Iron Curtain, an official said.

The total debt is 29.6m clearing roubles – an accounting unit used in the former Soviet Bloc.

Hungary said North Korea had agreed in principle to pay the debt in cash, with partial cancellation.

Details such as the clearing-rouble conversion rate and the size of the cancellation must still be settled, however.

Officials were unable to say when the negotiations would resume. Ginseng was not mentioned during previous talks.

Read the full sotry here:
Hungary reveals North Korean debt request
Financial Times
Chris Bryant
8/18/2010

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DPRK-PRC trade statistics

Monday, August 16th, 2010

According to the Daily NK:

Trade between North Korea and China for the first half of 2010 was $1.29 billion, a 16.8% increase over the corresponding period of last year.

Using Chinese customs statistics, the South Korean embassy in China revealed the details of Sino-North Korean trade on Monday. According to the statistics, North Korean exports to China fell by 1.1% in the same period to $350 million, while imports from China increased by 25.2% to $940 million.

As a result, North Korea’s trade deficit with China was $590 million, a 48.5% increase over the previous year.

According to the statistics, North Korea imported 140,000 tons of food, 300,000 tons of oil and 100,000 tons of fertilizer during the period. Notably, flour imports rose by 383%.

Reduced inter-Korean trade and other economic exchanges following the Cheonan sinking and reduced international humanitarian aid due to UN sanctions were two of the most significant causes of the burgeoning reliance upon China.

Read the full story here:
Sino-North Korean Trade Deficit Rises
Daily NK
8/16/2010

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DPRK-PRC trade up 18.1% from January to May 2010

Tuesday, July 13th, 2010

Institute for Far Eastern Studies (IFES)
NK Brief No.10-07-08-2
7-8-2010

As inter-Korean commerce has all but dried up in the wake of the Cheonan incident, trade between North Korea and China appears to have continued to grow. According to Chinese customs statistics released on July 6, trade with North Korea from January to May amounted to 983.63 million USD; 18.1 percent more than the 833.07 million USD reported for the same period last year.

North Korea imported 727.192 million USD-worth of Chinese goods (29 percent increase over the same period last year), but exports dropped by 4.9 percent, amounting to only 256.438 million USD. This indicates a 60 percent increase in North Korea’s trade deficit with China, which was 470.757 million USD in the first part of 2009. With South Korean sanctions against the North halting all inter-Korean trade outside of the Kaesong Industrial Complex following the sinking of the Cheonan, it is expected that Pyongyang will become even more economically dependent on Beijing.

During this period, crude oil accounted for most of North Korea’s imports from China, as Pyongyang bought 254,000 tons (slightly more than the 247,000 tons in early 2009). However, due to rising international fuel prices, this oil cost the North 157.097 million USD, a 76 percent increase over what Pyongyang spent during this period last year.

In addition, rice (24,400 tons), corn (31,400 tons), beans (20,500 tons), flour (34,000 tons) and other necessary food imports totaling 11,300 tons reflected a 41 percent increase over the same period in 2009. The cost of fertilizer imports also jumped sharply, amounting to 81,943 tons, or 115.6 percent more than the 38,004 tons imported from January to May 2009. Increasing imports of food and fertilizer are a result of the growing agricultural difficulties being faced in the North. Based on current prices, aviation fuel imports also grew by 46.8 percent, freight trucks by 98.7 percent, automobile fuel by 47.4 percent, and bituminous coal by 137 percent.

The top ten official imports of Chinese goods by North Korea were as follows: crude oil (21.6 percent); aviation fuel (3.1 percent); freight trucks (2.9 percent); automobile fuel (2 percent); bituminous coal (1.9 percent); fertilizer (1.8 percent); beans (1.6 percent); flour (1.6 percent); rice (1.5 percent); and corn (1.1 percent).

North Korea’s exports to China were mainly underground natural resources. The top ten exported goods were: iron ore (17.1 percent); anthracite (16 percent); pig iron (9.6 percent); zinc (5 percent); Magnesite (3.6 percent); lead (2.4 percent); silicon (2.3 percent); men’s clothing (2.2 percent); frozen squid (2.1 percent); and aluminum (1.9 percent).

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Miscellaneous foreign assistance documents

Monday, July 12th, 2010

Several reports on various foreign assistance programs in the DPRK have been piling up on my desktop so I thought I would go ahead and post them for you.  They are not particularly timely, but they are full of interesting information.

U.S. Bilateral Food Assistance to North Korea Had Mixed Results (PDF)
US GAO
June 2000

DPRK: Water and sanitation in three counties of Kangwonin three counties of Kangwon Province (Thongchon, Chonnae, Popdong)
Reliefweb Mission Report
March 2002

Rehabilitation of Thongchon, Popdong and Chonnae Water Supply systems (Kangwon Province, DPR of Korea)
Reliefweb Mission Report
June 2002

Democratic People’s Republic of Korea: Operations Report
International Federation of Red Cross and Red Crescent Societies
Appeal no. MDRKP001
November 15, 2007

The IFRC contains the below photo of a flooded clinic:

nyongwon-clinic-flooded-ground.JPG

This clinic is in Nyongwon at 39°50’3.51″N, 126°32’18.64″E.  Here is a satellite image:

nyongwon-clinic-flooded-satellite.JPG

The sad part is that the damage caused by flooding is in large part an unintended consequence of agriculture, deforestation, and hydro-power policies.  This clinic lies behind the Taedonggang Dam in Tokchon (satellite image here).

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DPRK aid update

Sunday, July 11th, 2010

According to KBS:

Red Cross to Help NK Prepare for Monsoon Season

The International Federation of Red Cross and Red Crescent Societies reportedly plans to allocate around nine million dollars this year for projects to support North Korea ahead of the monsoon season.

Radio Free Asia said Wednesday that the Red Cross plans to select 31 towns that are considered to be the most vulnerable to natural disasters and will provide them with up to nine-and-a-half million dollars for preparedness training and to build dams and reservoirs.

The report said the international organization’s plans aim to help some eight-point-two million North Koreans this year.

The Red Cross also plans to form a committee on preventing natural disasters in the North from this month until mid-September, when the region is affected by monsoon rains.

And according to another KBS story:

WFP to Spend $2.8 Mln on NK Food Aid

The U.N. World Food Program (WFP) has decided to spend nearly two-point-eight million U.S. dollars on food aid for North Korea.

The funding for the aid was provided by the Swedish government.

Radio Free Asia quoted WFP global media coordinator Greg Barrow as saying that his agency will use the Swedish donation to help North Korea, which is in desperate need of emergency food aid.

Barrow said that the North will require even more donations from countries around the world, given that the current amount of food aid for the impoverished nation is expected to run out by September.

Read the full stories here:
WFP to Spend $2.8 Mln on NK Food Aid
KBS
7/7/2010

Red Cross to Help NK Prepare for Monsoon Season
KBS
7/7/2010

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Nomura: More ‘Bad Behavior’ from N. Korea Possible before G20 Summit

Thursday, July 8th, 2010

According to Yonhap:

North Korea could take more provocative acts before the November summit of the Group of 20 nations in South Korea if history is any indication, a Japanese investment bank said on June 4.

Nomura International warned that North Korea may display more “bad behavior” similar to the March sinking of South Korea’s 1,200-ton corvette Cheonan, of which North Korea stands accused.

“Experts are wondering whether North Korea’s bad behavior… may be no coincidence,” said Alastair Newton and Kwon Young-sun, two Nomura economists, explaining that North Korea has done similar acts when South Korea hosted global events.

North Korean agents bombed a Korean Air jet in mid-air 10 months before the 1988 Seoul Olympics, killing all 115 passengers and crew members on board, while naval ships of the two Koreas clashed in the Yellow Sea in 2002, the year South Korea co-hosted the World Cup event with Japan.

“Especially given the domestic stresses and strains from which North Korea appears to be suffering at present, we should be braced for the possibility of more of the same — and, possibly, worse — for some time to come,” the economists said in a 40-page report titled “North Korea: Through a Glass Darkly.”

The economists expected that tensions on the Korean Peninsula will ease somewhat shortly, but were skeptical whether there will be practical progress in the global efforts to denuclearize the secretive regime.

“If the six-party talks resume — and we believe they may as China in particular looks to keep Pyongyang in check without risking regime collapse — we are doubtful that North Korea will be prepared to make or deliver on meaningful concessions in response to the demands of the international community,” the report said.

Nomura said it sees a low probability of North Korea’s imminent collapse, especially in the run-up to Kim Jong-il’s succession and the 100th anniversary of the birth of Kim Il-sung, the leader’s father and the founder of the regime, in 2012.

At the same time, the bank doubted the political status quo in Pyongyang is sustainable for more than a short period.

While placing a relatively low probability on the reunification of the two Koreas in the foreseeable future, the Nomura report said the cost of the reunification will be heavy and burdensome.

In order to reduce the possible costs, the Nomura economists suggested of adopting “less ambitious and more realistic” methods — such as the “one country, two systems” model used by China and Hong Kong.

You can download the Nomura report here (PDF).

Additional reports and statistics on the DPRK economy can be found here.

Congressional Research Service (CRS) reports can be found here.

Other unrelated studies can be found on this post as well.

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China-DPRK trade rises

Tuesday, July 6th, 2010

According to Yonhap:

Trade between North Korea and China in the January-May period increased 18 percent compared to last year, a sign that Pyongyang continues to expand economic ties with Beijing amid soured relations with Seoul, figures showed Tuesday.

North Korea imported US$727.2 million worth of goods from China and exported $256.4 million in the five-month period this year, according to figures recently released by Chinese customs authorities and obtained by Yonhap News Agency.

Read the full story here:
Trade between N. Korea, China rises, signaling closer economic ties
Yonhap
Sam Kim
7/6/2010

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ROK approves additional shipments of humanitarian aid to DPRK

Tuesday, June 15th, 2010

According to Yonhap:

South Korea has approved four shipments of humanitarian assistance to North Korea, a government official said Tuesday, upholding its policy of supporting those in need of such aid despite the sinking of a warship blamed on Pyongyang.

The aid, worth slightly over 300 million won (US$245,000), comes after South Korea approved two shipments of infant food to North Korea on June 8. North Korea is one of the poorest countries in the world, and its children suffer from chronic malnutrition.

“The latest shipments will be delivered to a nursery, a tuberculosis clinic, a maternity hospital and a kindergarten” in four different North Korean areas, Unification Ministry spokesman Chun Hae-sung told reporters.

Wouldn’t it have been nice if he told us the names of the facilities and cities where the aid was going? Or if someone from the press asked him?

Read the full story here:
S. Korea approves additional shipments of humanitarian aid to N. Korea
Yonhap
Sam Kim
6/15/2010

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South Korea to send aid, ban travel for 6.15 events in DPRK

Thursday, June 10th, 2010

According to AFP:

The unification ministry, which must authorise all cross-border exchanges, said the shipments from private groups of milk and other items totalling 320,000 dollars would be sent late this month.

The South cut off most trade with the North after accusing its neighbour of firing a torpedo to sink the ship in March with the loss of 46 lives. It exempted humanitarian aid.

The impoverished North suffers severe food shortages. The UN Children’s Fund says one in three of its children is stunted by malnutrition.

And according to KBS:

The Unification Ministry is prohibiting South Koreans from going to North Korea to celebrate the tenth anniversary of the signing of the June 15th Joint Declaration.

The ministry recently rejected a South Korean group’s request to travel to the North to attend the ceremony marking the signing in Pyongyang.

The ministry said it could now allow the trip due to heightened inter-Korean tensions over the sinking of the Cheonan.

Representatives from South and North Korea and overseas Korean communities had planned to hold a joint ceremony in Pyongyang after holding working-level contacts in the North Korean border city of Gaeseong in May. 

Read the full stories here:
S.Korea to ship aid to North despite tensions
AFP
6/9/2010

S.Koreans Banned From Attending 6.15 Event in NK
KBS
6/9/2010

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CanKor on DPRK-Canadian assistance

Sunday, June 6th, 2010

According to CanKor Report #323, 2 June 2010:

North Korea began opening up to nongovernmental organizations in the 1990s, when severe food shortages forced it to seek outside aid. While both the famine of the mid-90s and the efforts to alleviate it got a good deal of press at the time, attention to this aspect of North Korea has fallen off in recent years as most press coverage now deals with the nuclear issues or questions of leadership succession. But while NGO activities may have dropped off over the last decade, a select few groups continue in their efforts to better the lives of ordinary North Koreans, despite all the limitations and difficulties they face in doing so.

CanKor has collected a partial list of nongovernmental organizations from the non-six-party talk countries currently engaged in humanitarian activities in North Korea. While some have been left out at their own request due to the politically sensitive nature of their work, we will endeavour to present regular updates on current or new projects in the DPRK. Readers are encouraged to write in and inform us of any activities we may report.

Featured Project:  Mennonite Central Committee

MCC has been engaged in the DPRK since the mid 1990s, the earlier years through the Canadian Food Grains Bank (CFGB) in partnership with other organizations to support the Food Aid Liaison Unit (FALU), and also together with other non-resident NGOs such as Caritas International, American Friends Service Committee (AFSC), and Foods Resource Bank/Church of the Brethren Global Foods Crisis Fund to support sustainable agriculture and provide humanitarian assistance. Between 1995 and 2006, approximately $15 million in food and other material resources was sent to the DPRK by MCC.

Since 2006 and the dissolving of FALU, MCC has worked in the DPRK through its MCC NE Asia office. MCC has continued to send food and material resources to orphanages, initially via First Steps, and eventually in direct relationship. Soymilk production equipment was also provided to assist orphanages and soymilk production facilities to increase production of their own nutritional needs. MCC also sends food and material resources to tuberculosis hospitals and rest homes through its partnership with Christian Friends of Korea. Greenhouses have also been provided to enable these facilities to raise more of their own food needs.

Here   is a story on MCC’s partnership with First Steps in sending soybeans to orphanages in the DPRK and

Here   is a story on MCC’s cooperation with Christian Friends of Korea in sending food and other material resources to TB facilities.

Beginning in 2009, MCC is partnering with the Ministry of Agriculture in the DPRK on a three- year food security project. Given the success of conservation agriculture in other climatically-similar districts around the world, including Asia and Canada, this project aims to build longer-term food security at three cooperative farms and surrounding areas by increasing the scale of conservation agriculture practiced on each farm.

This is being done through the provision of technical support, training, specialized equipment and inputs. The program will benefit 12,287 residents on the three project farms. The total budget for the 3-year project is U.S.$1 million, with approximately 75% of the funding provided through CFGB and the remainder through individual donations to MCC. Click here   for a news release about the conservation agriculture project. In the interest of further engagement, MCC has also hosted delegations from the DPRK in both the U.S. and Canada, most recently an agricultural delegation to Canada in the fall of 2008. MCC also looks for ways to advocate DPRK engagement with Canadian and American governments. MCC seeks to share its resources in the name of Christ with those in need, placing emphasis on people-to-people relationships.

CanKor has more on NGOs here.

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