Signs Emerge Of Economic Change In North Korea As North Korea prepares for an unusual parliamentary meeting Tuesday, farmers have told the Western media that new agricultural rules will give them more control over their crops — which would mark a significant change for the state-run economy. It raises hopes that the country is on the verge of a major shift.

Signs Emerge Of Economic Change In North Korea

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Now, next door to China in North Korea there's an unusual parliamentary meeting scheduled to open tomorrow. This comes amid speculation that there could be sweeping changes ahead in the isolated country. The Associated Press got a hint of change in a rare news report from within North Korea. Farmers told the AP they would be given more control over their crops under new agricultural rules. NPR's Louisa Lim examines whether North Korea could really be on the cusp of reform.

KIM JONG-UN: (Foreign language spoken)

LOUISA LIM, BYLINE: With a straw hat jauntily perched on his head, North Korea's young leader Kim Jong-un is shown on state television. He's visiting a collective farm, examining a group of skinny cows. No one knows for sure what's happening inside North Korea, but the country may be on the verge of something big.

One recent pilot program allowed some farmers to keep 30 percent of their crops, instead of giving almost everything to the state as in the past. It also shrunk collective farms to just three or four people, according to Andrei Lankov, at Kookmin University in Seoul.

ANDREI LANKOV: It's very important. They're making the family unit into the major official production unit in the state-run collective farms.

JONG-UN: (Foreign language spoken)

LIM: In his first speech, Kim announced that North Koreans would never have to tighten their belts again. If families are given more control over their crops, Pyongyang would be embarking on a Chinese path of reform. Some, however, argue such a step is necessary just to keep pace with what's already happened on the ground. People used to get rations from the public distribution system. When that collapsed, everything changed, according to Chung-in Moon from Yonsei University in Seoul.

CHUNG-IN MOON: What has been filling the gap? There that farmers markets and other kinds of so-called quasi, you know, private market. I would say this is simply a matter of formalization. But that mechanism existed, otherwise North Korea could never have coped with food crisis.

LIM: Whatever is happening, private markets are struggling to digest the change. Analysts say inflation has been at 200 percent the past few months. The currency is collapsing and the price of rice has skyrocketed. This is one of the dangers of reform, according to Andrei Lankov.

LANKOV: So people who are in control of North Korea, they want to change things. But I'm not sure they understand even the very basic stuff - stuff about inflation, about prices. They are remarkably ignorant about it.


UNIDENTIFIED WOMAN #1: Jang Song-thaek, the uncle of DPRK leader Kim Jong-un, left Beijing on Saturday, after...

LIM: North Korea's main economic backer, China, has long lobbied for change. Last month, Jang Song-thaek - Mr. Kim's uncle and key policy adviser - visited China. He won Beijing's commitment to help build two special economic zones. But unusually, there was no big economic aid package. China is facing its own leadership change, and Adam Cathcart, from Queens University, Belfast, says this could be one factor pushing the North to act.

ADAM CATHCART: Look at the overall environment, so heavily dependent on trade with China. The North Koreans are highly sensitive to transitions of power. And so, they really want to lock this in and try to keep the Chinese on board.

LIM: And then there's the difficulty of getting North Korea's powerful military on board.


UNIDENTIFIED MAN: (Foreign language spoken)

LIM: In July, North Korean television announced the sudden sacking of army chief Ri Yong-ho. Analysts said his downfall was part of a power struggle; civilian leaders moving to exert control over lucrative trading rights once the preserve of the military.

Removing military privilege could cost Kim support, making it harder to push through his agenda. But it's not clear how deep or broad the changes will be. The risks, however, are huge. Here's Cheng Xiaohe at Renmin University in Beijing.

CHENG XIAOHE: (Through Translator) The possibility of failure is really big. If they fail, it could threaten the existence and legitimacy of the regime.


UNIDENTIFIED WOMAN #2: (Singing in foreign language)

LIM: Here have been signs of change in state-run propaganda; girls in short skirts in a new band and the appearance of American icons like Mickey Mouse. The introduction of Kim Jong-un's young fashionable wife also shows he wants to present himself as a new style of leader, a modernizer.

This untried 20-something now faces tough tests ahead. Economic reforms are dangerous, and increase the possibility of a crisis which might bring him down. But without reform, his regime is destined to fail.

Louisa Lim NPR news



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