Author: Ruediger Frank, University of Vienna

Kim Jong-il is no more. The state news agency KCNA reported that he died on his train on Saturday 17 December 2011. This is the official version (now doubted internationally) that observers of North Korea have actually seen under preparation for quite a while, including in works of art that were discussed here.

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Author: Ruediger Frank, University of Vienna

The North Korean leadership has, for reasons that we do not yet fully understand, made a crucial mistake around the beginning of the 21^st century. After the severe shock of the famine from 1995-1997, the regime had the economy back under control. The country could have returned to the pre-crisis economic model, which was essentially a de-monetised economy where the state distributed almost all goods directly to most of its citizens. However, the new leader Kim Jong-il decided otherwise. Rather than eliminating or limiting the market elements that had gained strength during the famine, he embraced the market in public statements. Economists followed suit and in 2002 declared, in the country’s only economic journal Kyŏngje Yŏn’gu, that markets had always been part of a socialist system.

North Korea was set to become the next China – an authoritarian regime that has moved beyond totalitarianism, has an autocratic yet collective leadership, and an efficiency-oriented, market-style economy. Read more…

Author: Rudiger Frank, University of Vienna

On January 29, 2010, the Foreign Trade Bank of the DPRK issued document No. DC033 10-004 to diplomatic missions and international organisations in North Korea. The use of foreign currency was to be stopped, payments were to be made in the form of non-cash cheques, and the official exchange rate of the euro to the North Korean won was changed from 188.2 North Korean won to 140 North Korean won, effective January 2, 2010. Making a payment even for everyday purchases has become quite burdensome for foreigners. Obviously, locals are not supposed to deal in foreign currency, only the domestic currency.

In the preceding weeks, North Korea had made international headlines with what appeared to be a concerted economic policy initiative. Read more…