{"id":2869,"date":"2016-12-27T11:55:44","date_gmt":"2016-12-27T02:55:44","guid":{"rendered":"http:\/\/www.01.asiapress.org\/rimjin-gang-2\/2016\/12\/report\/20161227-market-economy-realty-06\/"},"modified":"2018-08-24T18:20:48","modified_gmt":"2018-08-24T09:20:48","slug":"20161227-market-economy-realty-06","status":"publish","type":"post","link":"https:\/\/www.02.asiapress.org\/rimjin-gang\/2016\/12\/society-economy\/20161227-market-economy-realty-06\/","title":{"rendered":"\uff1cInside N.Korea\uff1e Expansion of the market economy as the driving force behind social transformation--based on sources from inside N.Korea. (PART6) Collapse of the food rationing system weakened control over the people. by ISHIMARU Jiro"},"content":{"rendered":"
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The \u201cTaegori\u201d ladies taking a shortcut by the bikes in an effort to evade the state security. They are carrying food from a rural place to a city. In August 2008 in a rural farm at a suburb of Pyongyang. Taken by Chang Jeong-gil (ASIAPRESS)<\/p><\/div>\n

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2016\/Dec\/27<\/em><\/p>\n

5 Social transformation caused by the expansion of the market economy
\n <\/strong><\/h2>\n

The rapid progression of the market economy considerably changed the social structure of North Korea.\u00a0 The mindsets of the people show the progress the market has made.\u00a0 Although North Korea has the whole population under strict control, the harshest in the world, the system has been weakened due to the development of market economy.<\/p>\n

5-1 The end of the monopolized calorie, or the \u201cgovernance based on the food supply\u201d<\/strong><\/p>\n

I\u2019ve already mentioned that the \u201cgovernance based on the food supply\u201d means that the state, prohibiting individuals to buy and sell food, has ultimate control of the food supply.\u00a0 This implies a compulsory bond, \u201cI feed you, so you must obey me.\u201d<\/p>\n

As of January 2016, the food supply has been accessible to only those whose royalty matters to the state such as workers at some privileged mines and military factories, soldiers, the police, high ranking officials, and Pyongyang citizens. I assume they are only 20-30% of the entire population in North Korea. Other people earn money by engaging themselves in market activities. [*Note 2]\n Related Article:\u00a0\uff1cInside N. Korea\uff1e Expansion of the market economy as the driving force behind social transformation\u2013based on sources from inside North Korea. (PART1)<\/a><\/span><\/strong><\/p>\n

The end of \u201cgovernance based on the food supply\u201d made a lot of people leave their jobs.\u00a0 Since they could not earn enough food and wages from their jobs, they needed to either engage in private businesses or sell their labor to earn cash and food.<\/p>\n

Similar to the official wage of railway workers, workers in administrative departments, party members, the police, and also teachers earn only enough to buy one kg of corn at the market.\u00a0 Those who work for public sectors need to work in the markets or they become involved in illegal activities such as bribery and corruption to earn hard cash.<\/p>\n

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The market price at a general market in a North Hamkyung Province as of January 2016 based on our research.\u00a0 The prices of food are per kg.<\/p>\n

Only the price of the egg is per piece.\u00a0 The exchange rate is 1 USD = 8,200 Won.
\n Next page:\u00a0 How does the government react to people leaving their assigned jobs?<\/strong><\/p>\n

In order to prevent people from leaving their jobs, the government had imposed tight punishments such as detention and short-term forced labor. The government was afraid that one of the most important governing systems in North Korea, \u201cassociational life\u201d, would lose its importance.\u00a0 [*Note 3] [ Note: \u201cassociational life\u201d will be explained in the next chapter]\n

However, officials of work places understand that it is necessary for the workers to join black market activities since there is no food supply or wages.\u00a0 They started to charge money to those who would like to earn \u201ctime\u201d for doing other business.\u00a0 It was profitable and reasonable not only for the workers but the officials since the work places at that time had financial difficulties and a shortage of cash. So the workers could skip their jobs without being criticized by higher ups, but they would have to pay.<\/p>\n

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Transferring foreign aid, food, from the goods wagon to a truck. Those people are \u201cfreelancers\u201d and are paid per piece. August 2008, in a suburb of Pyongyang. Taken by Chang Jeong-gil (ASIAPRESS)<\/p><\/div>\n

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Contrary to women, men are not allowed to open stalls at markets.\u00a0 Therefore, they have to try to find a job which does not catch the eyes of state authorities.\u00a0 There are various types of jobs, it is common for a man in a city to become a \u201cTaegori,\u201d carrying and selling for wholesaling things such as rice and agricultural products from farm to city.\u00a0 Furthermore, privately-hired manual labor such as loading heavy baggage, working at construction sites, and also buying one\u2019s own bicycle-drawn cart to carry things are all favored by male workers.\u00a0 Due to the end of the \u201cgovernance based on the food supply\u201d and the inability of the Party to manage the workers, a number of \u201cfreelancers\u201d have emerged.
\n Related Article:\u00a0\uff1cInside N. Korea\uff1e Market survey shows \u201cResolution 2270\u201d, the toughest-ever sanctions, didn\u2019t work<\/a><\/span><\/strong><\/p>\n[*Note 2]: There are many cases in which joint ventures between North Korean and Chinese companies provided workers with a certain amount of food.\u00a0 Also, the North Korean government orders some domestic factories and restaurants to obtain the raw materials and the financial resources for their operations by themselves.\u00a0 Workers at such workplaces may find access to food.\u00a0 However, it is not the traditional food supply, but just a benefit from collaborating with the black market.<\/p>\n[*Note 3]: For up to a year, a \u201clabor training camp\u201d (rodong danryeondae) detains those who have committed minor crimes like violating the dress code and or leaving one\u2019s job.\u00a0 They are considered as a force to disrupt the social order and enforce a moral discipline.\u00a0 The police can imprison citizens without even having a trial.<\/p>\n

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Barber stalls exist all over the country. In many cases, barbers used to work for state-owned companies but have quit due to the worsening economic condition. Now they are \u201cfreelancers.\u201d March 2013 in South Pyongan Province. Taken byPaek Hyang (ASIAPRESS)<\/p><\/div>\n

Next page: 5-2People leaving their jobs and <\/strong>disregarding<\/strong> the \u201cassociational life\u201d<\/strong><\/p>\n

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5-2 <\/strong>People leaving their jobs and <\/strong>disregarding<\/strong> the \u201cassociational life\u201d<\/strong><\/p>\n

For every North Korean the \u201cassociational life\u201d starts from the time they join the \u201cYoung Pioneer Corps,\u201d in the fourth grade. Their associations then change as they grow older and enter the work place, the \u201cInminban (Neighbor Watch Group),\u201d the military, etcetera. People must join an association and undergo various types of volunteering work and political indoctrinations, and they must attend events.\u00a0 In their respective associations, one must participate in a weekly \u201cself-criticism\u201d session, a meeting during which participants are required to criticize oneself and each other\u2019s shortcomings, in order to show the loyalty to the leader and the Party.\u00a0 These associations also have a function that serves as a sort of mutual surveillance.
\n Related Article:\u00a0[Video Report] National bus network of the North Korean market economy<\/a><\/span><\/strong><\/p>\n

\u201cGovernance based on the food supply\u201d did not only play a pivotal role of the planned economy but it was also an effective tool to control the people in North Korea. Places of work, where people produce food and goods, were also places for the \u201cassociational life\u201d in which the people must be obedient to the ideology and the policies of the Party. Political indoctrination takes place in every organization, and the workers have no choice but to participate.\u00a0 They need to be loyal to the words and the policies from Kim Il-sung and Kim Jong-il.\u00a0 However, the role of places of work to control the people has been weakened since the number of people leaving their assigned jobs to go start businesses has increased.<\/p>\n

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A lady with a Bicycle-drawn cart waiting for a passenger near a market. Business owners sometimes hire a few workers. They are not working under the control of the Party. October 2008 in Sariwon, North Hwanghae Province. Taken by Shim Ui-cheon (ASIAPRESS)<\/p><\/div>\n

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The number of capitalistic entities, financially self-supporting, has also increased, which has resulted in the end of the \u201cassociational life.\u201d\u00a0 As mentioned above about the traffic situation, private companies operate under the name of state authorities such as the military, the police, and the Party since they are \u201cnot allowed\u201d to exist.\u00a0 They are called \u201cbasements.\u201d They are for-profit organizations that have emerged and developed due to the collapse of the planned economy. The number of \u201cTonchus\u201d running \u201cbasements\u201d sanctified under the authorities has been increasing.<\/p>\n

In North Korea all work places must have an organization operating under the Party and hold weekly \u201cself-criticism\u201d session\u2014so do \u201cbasement\u201d operations. But in \u201cbasements\u201d the sessions are much less strict as compared to that of state-owned companies.\u00a0 Reportedly, some members of the Party pay bribes in order to evade such sessions.\u00a0 [Note: This is according to testimonies from our reporting partners inside North Korea, such as the one who reported on the small-scale coal mining industry, a \u201cbasement\u201d operation, in September 2011.]\n

Those who start businesses, \u201cfreelancers\u201d at a market for example, increase the self-supporting entities which means the economy is getting more out of the Party\u2019s hands.\u00a0 The ideology and the policies that the Party intends to enforce have become much less influential than before. [To be continued in part 7<\/a><\/span>]\n

\uff1cMarket Economy in N.Korea\uff1e View article sections<\/a><\/span><\/strong><\/p>\n

\u3010Related Article<\/strong>\u3011
\n \u25c6 [Video Report] A rare glimpse of \u2018No. 10 Checkpoints\u2019 set up by the State Security Department<\/a><\/span>
\n \u25c6 Delinquent Juveniles Mobilized For Forced Labor<\/a><\/span>
\n \u25c6 [Video Report] Back alley of Pyongyang: Never let foreigners go. Residents of central Pyongyang live on businesses in the market<\/a><\/span><\/p>\n

\"rimjingang_banner001\"*\u00a0<\/span><\/a>Editor\u2019s notes on North Korean reporters<\/a>
\n <\/a>ALL REPORTS >>><\/a> <\/strong><\/span>
\n ARCHIVE(pdf) >><\/a><\/span>
\n DPRK MAP >><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

  2016\/Dec\/27 5 Social transformation caused by the expansion of the market economy The rapid progression of the ma\u2026<\/p>\n","protected":false},"author":3,"featured_media":3566,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0},"categories":[12,13],"tags":[20],"_links":{"self":[{"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/posts\/2869"}],"collection":[{"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/comments?post=2869"}],"version-history":[{"count":0,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/posts\/2869\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/media\/3566"}],"wp:attachment":[{"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/media?parent=2869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/categories?post=2869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.02.asiapress.org\/rimjin-gang\/wp-json\/wp\/v2\/tags?post=2869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}