Mixed Signals from North Korea
“One of the few synoptic policy statements released by the North Korean government is the annual New Year’s Day Joint Editorial, promulgated by the three leading state newspapers. This year’s editorial comes in the wake of aggressive attempts by the DPRK state to control burgeoning market activity through a redenomination of the North Korean won, and, reportedly, a ban on the use of foreign currency. Pyongyang’s monetary policy reforms were moderated somewhat in the face of serious popular resistance, and so far appear to be ineffective in achieving their primary stated purpose of reining in inflation (along the Chinese border, the new won is trading at an even weaker value against the renminbi). The redenomination and foreign currency ban are likely to run directly counter to the overarching motto of the 2010 editorial – ‘improving the people’s standard of living,’ as well as an important subtheme of attracting foreign investment. Is the populist and pacifist tone of the 2010 editorial rhetorical cover for real policies that are heading in precisely the opposing direction? Or are they hints that the apogee of ‘military-first politics’ is passed, and modest opportunities exist to moderate North Korea’s foreign relations and domestic political economy?” says John Delury, Associate Director of Asia Society’s Center on U.S.-China Relations and Project Director of the Society’s task force report “North Korea Inside Out: The Case for Economic Engagement."
John is in New York. To arrange an interview, please contact the Asia Society communications department at 212-327-9271 or [email protected].