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491. A Nuclear North Korea and Prospects for the Korean Economy: An International Business Perspective

Author:
Yoon-Shik Park
Publication Date:
03-2007
Content Type:
Journal Article
Journal:
International Journal of Korean Studies
Institution:
International Council on Korean Studies
Abstract:
In October 2006, North Korea (officially the Democratic People's Republic of Korea or DPRK in short) tested a nuclear bomb based on plutonium, thus proclaiming it to be a full member of the select nuclear bomb club. Whether the test was a resounding success or not is still not fully resolved, and the status of North Korea's uranium enrichment program is yet to be admitted by the DPRK government. Faced with strong international condemnation and a movement towards punitive sanctions coordinated by the United Nations, DPRK reached an agreement at the six party talks on February 13, 2007, under which DPRK eventually agreed to abandon its nuclear programs in return for aid. The accord implements a deal reached in September 2005, but the talks had stalled until early 2007. Paradoxically, a nuclear North Korea may lead to successful denuclearization of the Korean peninsula and robust economic developments there. As the DPRK regime feels confident enough in security terms now that it is recognized as a nuclear club member, it can enter into a “big deal” with its main opposing powers, the United States, Japan and South Korea, for swapping its nuclear weapons program for an iron-clad security guarantee and massive economic assistance for the modernization of the DPRK economy.
Political Geography:
Japan, South Korea, and North Korea

492. Preview of the 17th Presidential Election in Korea: Candidates, Issues and Cleavages

Author:
Kap Yun Lee
Publication Date:
03-2007
Content Type:
Journal Article
Journal:
International Journal of Korean Studies
Institution:
International Council on Korean Studies
Abstract:
At present, all signs seem to point in the direction of a conservative victory in the 17th presidential elections that will be held on December 19, 2007.1 President Roh Moo-hyun's job approval rating has been lower than 30%, and often below 20%, for more than two years, and his UP (Uri Party) is supported by barely 10% of the public. The opposition GNP (Grand National Party) has become by far the most popular party, enjoying more than 40% of the popular support. The economy has been in doldrums since 2002, slowing down to an annual growth of 4%, after an average annual growth of 7% in the preceding decade. Business and consumer confidence in the market is declining, gaps between the rich and the poor are ever more increasing, and unemployment among young people is steadily on the rise. North Korea's Kim Jong-il did not help Roh either. Despite the sincere and continuous provision of economic aid to the North by the Roh government, North Korea responded only by demanding more unconditional aid without taking any reciprocal measures to contribute to the peace and prosperity of the peninsula. The nationalistic public mood soured, in particular after a nuclear test by the North in 2006, and the people no longer wholeheartedly support Roh's conciliatory policy.
Political Geography:
North Korea and Korea

493. North Korea-Russian Relations: A Strained Friendship

Publication Date:
12-2007
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
North Korea's relations with Russia have been marked by unrealistic expectations and frequent disappointments but common interests have prevented a rupture. The neighbours' history as dissatisfied allies goes back to the founding of the Democratic People's Republic of Korea (DPRK) with Soviet support and the Red Army's installation of Kim Il-sung as leader. However, the Soviets were soon written out of the North's official ideology. The Sino-Soviet split established a pattern of Kim playing Russian and Chinese leaders off against each other to extract concessions, including the nuclear equipment and technology at the heart of the current crisis. Since Vladimir Putin visited Pyongyang in 2000, diplomatic initiatives have come undone and grandiose economic projects have faltered. Russia is arguably the least effective participant in the six-party nuclear talks.
Topic:
Conflict Resolution and International Relations
Political Geography:
Russia, Europe, Asia, North Korea, and Pyongyang

494. The Korea-US Free Trade Agreement: A Summary Assessment

Author:
Jeffrey J. Schott
Publication Date:
08-2007
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The Korea–United States Free Trade Agreement (KORUS FTA) is a historic accord that should enhance bilateral economic rela¬tions and reinforce our longstanding partnership on political and security matters. Like any negotiated deal, the KORUS FTA is not the optimal result for either country, but it provides substan¬tial benefits that make Korea and the United States considerably better off than they would be in the absence of the pact.
Topic:
Markets
Political Geography:
United States, Asia, and North Korea

495. Exit Polls: Refugee Assessments of North Korea's Transition

Author:
Stephan Haggard, Marcus Noland, and Yoonok Chang
Publication Date:
12-2007
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Results from a survey of more than 1,300 North Korean refugees in China provide insight into changing economic conditions in North Korea. There is modest evidence of slightly more positive assessments among those who exited the country following the initiation of reforms in 2002. Education breeds skepticism; higher levels of education were associated with more negative perceptions of economic conditions and reform efforts. Other demographic markers such as gender or provincial origin are not robustly correlated with attitudes. Instead, personal experiences appear to be central: A significant number of the respondents were unaware of the humanitarian aid program and the ones who knew of it almost universally did not believe that they were beneficiaries. This group's evaluation of the regime, its intentions, and accomplishments is overwhelmingly negative—even more so than those of respondents who report having had experienced incarceration in political detention facilities—and attests to the powerful role that the famine experience continues to play in the political economy of the country.
Topic:
Development, Economics, and Politics
Political Geography:
China, North Korea, and Korea

496. North Korea's External Economic Relations

Author:
Stephan Haggard and Marcus Noland
Publication Date:
08-2007
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
North Korea's international transactions have grown since the 1990s famine period. Illicit transactions appear to account for a declining share of trade. Direct investment is rising, but the county remains significantly dependent on aid to finance imports. Interdependence with South Korea and China is rising, but the nature of integration with these two partners is very different: China's interaction with North Korea appears to be increasingly on market-oriented terms, while South Korea's involvement has a growing noncommercial or aid component. These patterns have implications for North Korea's development, the effectiveness of UN sanctions, and its bargaining behavior in nuclear negotiations.
Topic:
Markets and United Nations
Political Geography:
China, Asia, and North Korea

497. Inside North Korea: A Joint U.S.-Chinese Dialogue

Author:
Bonnie Glaser and Chietigj Bajpaee
Publication Date:
01-2007
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
To better understand perspectives in the United States and China on internal developments in North Korea, the U.S. Institute of Peace and the Center for Strategic and International Studies, in partnership with the China Institutes of Contemporary International Relations, convened a daylong conference on December 5, 2006. The conference took place on the eve of the resumption of the Six-Party Talks in Beijing, which subsequently ended without tangible progress. The participants discussed North Korea's economy, the role of external actors on North Korea's decision-making, and Chinese and U.S. visions for the future of the Korean Peninsula. The seminar also included a simulation based on a scenario of an explosion at Yongbyon that creates a radioactive plume that moves across the Sea of Japan.
Topic:
Conflict Resolution and International Relations
Political Geography:
United States, Japan, China, Asia, and North Korea

498. Public Health and Conflict in North Korea

Author:
Sarah Dye
Publication Date:
03-2007
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
During the mid-1990s, North Korea experienced a famine that killed millions of people, mostly in rural areas. Despite the severity of that famine and the ensuing deterioration of public health, the political leadership in North Korea has obstinately blocked the effective delivery of humanitarian aid to its citizens. On November 16, 2006, the United States Institute of Peace (USIP) and Johns Hopkins Bloomberg School of Public Health (JHSPH) Task Force on Public Health and Conflict held its first symposium, which selected North Korea as a case study. The Task Force is committed to raising the profile of conflict analysis and resolution in the field of public health education through a year-long series of events. The speakers at this first symposium included Scott Snyder of the Asia Foundation; Sophie Richardson of Human Rights Watch; two South Korean physicians, Kim Jin-Yong and Lee Yun-Hwan; Courtland Robinson, a Johns Hopkins faculty member and researcher; and one North Korean refugee who addressed the symposium under a pseudonym. This USIPeace Briefing summarizes the symposium's discussion on public health and conflict in North Korea.
Topic:
Conflict Prevention, Security, Health, and Humanitarian Aid
Political Geography:
United States, South Korea, and North Korea

499. Disabling DPRK Nuclear Facilities

Author:
David Albright and Paul Brannan
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
During the February 2007 Six-Party Talks in Beijing, negotiators reached agreement on a series of actions aimed at starting the process of verifiably dismantling the nuclear weapons program of the Democratic People's Republic of Korea (DPRK). A key part of this agreement stipulated that after the DPRK shuts down its nuclear facilities, it would “disable” them. The February agreement did not state which facilities would be disabled or how they would be disabled, except to imply that these issues would be subject to further negotiations.
Topic:
International Relations and Regional Cooperation
Political Geography:
Beijing, North Korea, and Korea

500. Chinese Views: Breaking the Stalemate on the Korean Peninsula

Author:
Scott Snyder and Joel Wit
Publication Date:
02-2007
Content Type:
Working Paper
Institution:
United States Institute of Peace
Abstract:
The second North Korean nuclear crisis, which climaxed with the test of a nuclear device on October 9, 2006, has influenced the views of Chinese specialists. By revealing the status of North Korean nuclear development, Pyongyang's nuclear test was a poke in the eye of Chinese leaders, who had tried privately and publicly to dissuade North Korean leaders from conducting a test. As a result, China has taken stronger measures to get Pyongyang's attention, including a temporary crackdown on North Korea's illicit financial activities. These changes spotlight an ongoing debate within the Chinese academic community over whether North Korea (DPRK) could become a strategic liability rather than a strategic asset. This debate centers on whether it is necessary to set aside China's loyalty to the current North Korean regime in order to maintain good U.S.-China relations and achieve China's objectives of developing its economy and consolidating its regional and global economic and political influence. Or is maintaining North Korea as a strategic buffer still critical to preserving China's influence on the Korean peninsula? An increasingly vocal minority of Chinese specialists is urging starkly tougher measures in response to North Korea's “brazen” act, including reining in the Kim Jong Il regime or promoting alternative leadership in Pyongyang. Although their sympathy and ideological identification with North Korea has waned, many Chinese policy analysts clearly prefer North Korea's peaceful reform to a U.S.- endorsed path of confrontation or regime change. China's policymakers have sought to forestall North Korean nuclear weapons development, but they continue to blame U.S. inflexibility for contributing to heightened regional tensions over North Korea's nuclear program. Chinese analysts fret that economic and political instability inside North Korea could negatively affect China itself. They have shown more concern about the North Korean regime's stability in recent months than at any time since the food crisis in the late 1990s. Chinese policymakers ask how to encourage North Korea's leaders to embark on economic reform without increasing political instability. Discussions with Chinese experts reveal considerable uncertainty about the future of North Korean reform. The possibilities of military confrontation on the Korean peninsula, involving the United States and either a violent regime change or destabilization through North Korea's failure to maintain political control, are equally threatening to China's fundamental objective of promoting regional stability. These prospects have increased following North Korea's nuclear test and the strong reaction from the international community, as shown by UN Security Council Resolution 1718. China's economic rise has given it new financial tools for promoting stability of weak states on its periphery. Expanded financial capacity to provide aid or new investment in North Korea might help it achieve political and economic stabilization. The Chinese might prefer to use the resumption of benefits temporarily withheld as a way of enhancing their leverage by reminding the North of its dependence on Beijing's largesse. Managing the ongoing six-party talks will pose an increasingly difficult diplomatic challenge for China. Chinese diplomats take credit for mediation and shuttle diplomacy, but their accomplishments thus far have been modest. Talks have been fairly useful in stabilizing the situation, but they have also revealed the limits of China's diplomatic influence on both the United States and North Korea. U.S. intransigence is as much an object of frustration to the Chinese as North Korean stubbornness. Chinese analysts clearly have given thought to potential consequences of regime instability. For example, the Chinese military's contingency plans for preventing the spillover of chaos into China and for seizing loose nukes and fissile material imply that Chinese forces would move into North Korean territory. Without effective coordination, simultaneous interventions in the event of unforeseen crisis inside North Korea could lead to direct military conflict among U.S., Chinese, and South Korean military forces. Rather than accept South Korean intervention backed by the United States as a prelude to reunification, Chinese analysts repeatedly emphasize that “the will of the North Korean people must be considered” in the event of instability. If intervention were necessary, China clearly would prefer insertion of an international peacekeeping force under UN auspices. Such a force would establish a representative government, which would then decide whether to negotiate reunification with South Korea.
Topic:
International Relations and Economics
Political Geography:
United States, China, Beijing, Asia, South Korea, North Korea, and Korea