As from North Korea economy bone, hints of relaxation isolation | Business and economic news

When a mysterious virus got sick people in China in begin 2020 became North Korea the first country to seal its borders from the world.

After almost two years of in the neighbourhood-total isolation because of what the world Now that we know it’s COVID-19, there are signs that Kim Jong Un’s secret regime is cautious steps to loosen controls while the country struggles with severe economic deprivation after a collapse in trade with China.

South Korea’s spy agency last week told lawmakers it was north in talk with China and Russia over to resume key cross-border train routes already this month and that the authorities in increased shipments accepted in recent months of emergency supplies.

The briefing came after the release of Chinese customs data shows that total trade between the allies more then doubled in September to $69.9 million.

The numbers are still a fraction of the pre-pandemic peak, with total trade in the first nine months of this year reaches $185.3 million, compared met $1.95 billion in same period in 2020.

The north, whose ill health system would struggle to deal with a major COVID-19 outbreak has not yet reported a single case of the virus, a record doubted by many observers given the country’s vast land border with China.

The World Health Organization also announced last month it resumed shipments of medical supplies to the country, after Pyongyang earlier this year an offer declined of three million doses of the Chinese-made Sinovac vaccine.

China Dandong BridgeNorth Korea trusts on China for more than 90 percent of to be trade, with border towns such as Dandong serve as key gates between the two sides [File: Dake Kang/AP]

Tim Peters, a Christian counselor who runs Helping Hands Korea in Seoul, told Al Jazeera he had observed a “very limited opening” of cross-border transport” since the summer.

“I am aware of of this because sure of our humanitarian shipments were able to get around die time over the border be brought to very vulnerable burgers”, said Peters, adding that his organization was working outside government channels and trusted on “unofficial methods”.

Another helper, who spoke on condition of anonymity, told Al Jazeera that their organization is no help in could have gotten the country and that any relaxation of restrictions seemed to be limited to high level official trade.

“I realize all things” in North Korea is effectively controlled by the government, but there are degrees of control, and from what I see, it seems that whatever trade is happening is at a pretty high level,” said the source, referring to the north by its official name of the People’s Democratic Republic of Korea.

“It doesn’t seem like ‘regular’traders have been able to resume more pedestrian trading activities.”

appalling conditions

Get Accurate information out of North Korea is notoriously difficult because of the regime’s tight control of the country and has become even more difficult since the pandemic caused diplomats and aid organizations leave the country en masse last year.

Few observers expect the north, long known as the ‘hermit kingdom’, to open up up anywhere at any time soon, and some analysts warn: against over-interpretation of recent characters of a cautious relaxation of controls.

“Trade figures between China and North Korea obviously do not take into account” met for smuggling, and official numbers have long been manipulated by Chinese customs, which is why I don’t think we should use these as robust data points for analysis,” says Theo Clement, adjunct lecturer at Pyongyang University of Science and technology and an advisor who conducted fieldwork on the border between China and the DPRK.

“About China-DPRK trade, Although various proxies are useful to get an idea of the trade activity between the two countries, nothing beats qualitative fieldwork and we are not going to do that except for Chinese researchers access the border and set up interview anytime soon’ he told Al Jazeera.

However, there is broad consensus that the country facing appalling economic conditions.

North Korea counts on China for more than 90 percent of to be trade, including import of vital goods such as grains, fertilizers and agriculture equipment, And his population has trusted for a long time on cross-border smuggling and black markets as a supplement to expired state rationing system.

In addition to the pandemic isolation, the North economy has been hard hit extreme weather and international sanctions aimed at suppressing the regime’s nuclear and missile programs.

The countries economy contracted 4.5 percent last year, the steepest decline in over two decades, according to a July estimate by the power station bank.

Even before the pandemic, the United Nations estimates that: more then one in four North Koreans suffered from malnutrition.

In July, the UN Food and Agriculture Organization predicted the country could fall short of his food needs met 860,000 ton in 2021.

Kim, the third member of to be family until rule the secret state, has itself acknowledged the hardships facing to be population, and even compares the crisis met the Korean War of 1950-1953.

Kim Jong-unNorth Korean leader Kim Jong-un has acknowledged growing hardship in the country [File: KCNA/Reuters]

“Even when the harvests are good, North Korea is barely self-sufficient in grain even at the reduced levels on die it calculates,” Alastair Morgan, who served as ambassador to the United Kingdom in the north between 2005 and 2008, Al Jazeera said.

“It’s not clear for me that every branch of North Korean industry – including the relatively successful light industry – is completely self-sufficient of could be.”

Morgan said he doubted of the North would do that . give up on trying to keep the virus out, but the known authorities may not have expected this how long would the pandemic last.

“The consequences of closing the air, Nations – met intervals – sea borders will probably be very clear in the country,” he said.

Peters, the aid worker, said the pandemic isolation had caused informal markets, known as jangmadang, become “paralyzed” in obtaining the necessary goods to make available to the public, which has made hardship for normal people all the more grave”.

Potential liability

Although the north economy is far behind behind Which of neighboring South Korea for For decades Kim oversaw modest growth in the first years after he took power according to the death of to be father in 2011.

In a speech on the occasion of the birthday of the ruling Workers’ Party last month, Kim emphasized the need improve people’s living conditions, having previously admitted that his five-year had an economic plan failed.

Benjamin Katzeff Silberstein, co-editor of North Korean Economy Watch, told Al Jazeera that Kim may be feeling… more full of confidence to”begin to open upafter the authorities quarantine facilities in construction on the border.

“In the long-term” run, I think the economic downturn has significant potential risk met entails, although it is bad hard say,” Katzeff Silberstein said. “The North Korean public has endured hard times before, but it’s different story when the state first spends years sending the signal that the public should expect living conditions to improve, only to see them deteriorate.”

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