Human Rights and the Characteristics of the North Korean System
B. Human Rights Abuses Due to Economic Hardship
North Korea’s planned economy has been gradually deterio- rating due to internal contradictions that have accumulated over a long period of time. With the collapse of the Socialist economic bloc on which North Korea had depended, the North Korean economy began to collapse and stagnate from the early 1990s onward. The production plans and distribution systems based on centrally directed economic plans were for most purposes paralyzed, and North Koreans began to experience extreme food shortage and economic hardship. In addition, natural disasters struck North Korea in the summer of 1995, creating a major humanitarian crisis. Shortly after, North Korea requested relief aid
2_ The Constitution stipulates Chairman of the National Defense Commission as
“the Supreme Leader” and “Supreme Commander-in-Chief,” who will also provide
‘overall’ guidance for all national projects.”
I. Human Rights and the Characteristics of the North Korean System
from the international community. In fact, food rations normally provided by the government had to be suspended in parts of North Korea starting in the early 1990s, and people had begun looking for food on their own. As a result, many individuals began to engage in a variety of buying and selling activities in the streets and markets. However, private business activities were illegal at the time, and many had to face penalties and punishment or run from the law. As economic hardships worsened and the grain rationing system failed to function properly, the peoples’ unruly social behaviors began to increase rapidly. To maintain law and order, the authorities initiated heavier penalties and punishments to address the situation. This vicious cycle contributed to a further degradation of citizens’ fundamental human rights.
In 2002, North Korea decided to implement the July 1st Measures. Under these measures, the authorities partially allowed economic market functions, raised wages levels, adjusted prices of major daily commodities--including agricultural products-- to the black market prices, and officially permitted markets to operate legally. The measures were part of an effort to improve the efficiency of the Socialist planned economic system and eliminate its shortcomings. The July 1 Measures were also a limited step to bring the people’s economic market activities into the official national economic system. However, the measures have had a negative impact on the people’s daily lives. For example, the authorities raised the wage levels for workers, but the enterprises, which could not operate at full capacity due to a lack of energy and raw materials, were unable to pay wages as expected. Furthermore, living conditions of those with poor purchasing power rapidly deteriorated as the costs of various services and prices of essential commodities, went up quickly. Corruption and illicit practices were
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rampant throughout the society, and the gap between rich and poor was widening even more. It was reported that since the July 1 Measures, new types of jobs that had not existed in the past began to appear in North Korea, for example, temporary jobs offered by private individuals.3
North Korea’s central distribution system (ration or public distribution system) was closely related to the government policy of controling the people’s movement and economic activity. The collapse of its central ration system, therefore, meant the loss of government control over the people. North Korean authorities have repeatedly announced to its people that the government would resume the food (grain) ration system. In fact, the ration system had returned in parts of North Korea for a few months in late 2005, but that was all. Inconsistent government policies have disappointed the people and betrayed the people’s trust.
Nevertheless, the authorities have tried to resume the ration system to prevent further weakening of its control and to buttress Kim Jong Il’s leadership.
Despite economic difficulties, North Korea is trying to trans- form its market structure into a series of “farmers’ markets” for fear of free circulation of information and the spread of capitalist attitudes through the marketplace. The expanding inter-Korean economic cooperation, like the Kaesong Industrial Complex, is contributing to a transformation of the North Korean economic system, though this is limited in scope. Some of the new regula- tions include the Law for the Kaesong Industrial District, as well as development, labor, insurance, residence, and entry-
3_ Testimony of defector XXX (Defecting North Korean Residents in South Korea) during an interview in Seoul on Jan. 20, 2006. In this White Paper, we have chosen not to disclose personal identities of our interviewees to protect their personal safety.
I. Human Rights and the Characteristics of the North Korean System
exit regulations. Discussions on the detailed implementation of these rules continue, and systems compatible with international standards will soon be introduced. Effective December 1, 2008, for political reasons North Korea has placed tight restrictions on
“entry/exit and stay” in the Kaesung Industrial Complex, which is supposed to be a showcase of its openness. North Korea further jeopardized North Koreans’ right to life by taking additional steps in 2009, such as a second suspension of traffic to and from the Complex (March 13th) and the declaration of the nullification of all existing laws and contracts concerning the Complex (May 15th).
Yet the Kaesung Industrial Complex continues to operate despite North Korea’s various restrictive measures. In 2009 North Korea enacted various market control measures in an effort to absorb or integrate market resources into the official sector. Because of these measures the quality of life of North Koreans who used to depend on market activities has worsened. North Korea launched a currency reform on Nov. 30, 2009 in order to strengthen central control, increase revenues, and streamline its planned economy.
But the currency reform had the effect of further exacerbating the economic situation, resulting in hyperinflation, at least in the short term. Concurrent with the currency reform, North Korea attempted to stifle private market functions. Faced with strong public opposition and widespread complaints, however, the authorities had to partially allow market operations to resume.
In addition, in 2009 North Korea once again applied the so-called “speed war” method, which it has used in the past to maximize the mobilization of domestic resources. In mid-April 2009 it launched a “150-day struggle” (April 20th-Sept. 16th), and then another “100-day struggle” (Sept. 23rd-Dec. 31st). Obviously, the North Korean people have suffered from such repeated mass
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mobilizations.
North Korea is known to have dispatched a large number of workers abroad, including to Russia’s far eastern provinces, Monglia, Eastern Europe, and the Middle East. The dollar earnings of these workers will also con-tribute to North Korea’s foreign exchange reserves. North Korea has also attempted to garner some economic support from China. North Korea and China expanded exchanges and cooperation through visits by high-ranking officials on the occasion of the 60th anniversary of diplomatic relations. Due to North Korea’s second nuclear test and China’s support for UN Resolution #1874, the relationship turned shaky for a while, even as economic exchanges and cooperation continued to expand. The net result is that North Korea’s dependence on China has deepened.
And most of the commodities sold in the marketplaces today are made in China.