Since June of 2004, North Korea ceased to respond to the call for six-party talks which led the government into political stalemate ever since. Starting August and in September of 2004, North Korean authorities asked U.N. agencies and nongovernmental organizations (NGOs) resident in Pyongyang to shift their operations from humanitarian relief aid to cooperation for developmental projects. Obviously, there was a change of policies in North Korea to relate with outside organizations, including those of South Korea. Such a seemingly positive sign was taken as a one-sided announcement and made international organizations including U.N. agencies embarrassed. Intergovernmental relations between North and South Korea were diminished, and South Korean NGOs were denied visas for nearly 10 months beginning in July of 2004.
Donor fatigue followed, and people were forced to sit back and watch instead of generating willingness and mobilize resources. The U.N.'s World Food Program (WFP), for instance, used to provide for more than 6 million people with their food distribution projects. In early April 2005, WFP announced that the number of beneficiaries might have to be cut down to half or even fewer. Shortage of food was predicted by WFP in the earlier part of the year and the organization warned that malnutrition might follow.
I don't think the situation may fall into another round of famine. The people have experienced repeatedly shortages of food and have learned how to manage such difficulties.
I can't talk about U.S. food pledge of 50,000 metric tons but will comment on the half-million tons offered by South Korea. On the 12th [of] July, South Korea and North Korea agreed to ship 500,000 metric tons of rice from the South. The shipping schedule will last until the end of December.
In terms of economic activity, what are you personally seeing or experiencing that is new, reflecting perhaps the economic reforms, entrepreneurial activity, or hardships or privations related to the economic transition? Are you seeing, for example, more cars, different clothing, use of cellphones, public advertising, new activity by enterprises such as hiring and firing or altering prices, etc.?
The implementation of economic reforms has reached out to the people over the last two years, although the law and regulations were stipulated in July of 2002. The experiences in a marketplace must have been shocking and exciting ones for people who have depended on public distributions of the basics for living.
People have become attentive to foreign currencies, including the euro and U.S. dollar. I have learned that inflation of prices in [the] marketplace is quite widespread. Many have observed that people have become more actively motivated to earn money. But the major challenge for the government is how to control inflation under a socialist system to keep peoples' aspirations up. Of course, there are more cars on the streets. More colored clothing is seen on the streets.
But people are not using cellphones. There are more shops and even hawkers with signs but not much advertising as such.
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