Kim Jong-un may be hinting at economic reform

Posted on : 2012-04-17 13:28 KST Modified on : 2012-04-17 13:28 KST
New North Korean leader would have a tough time reforming NK’s stubborn system
 April 15. (AFP
April 15. (AFP

By Jung Nam-ku, Tokyo correspondent and Park Byung-soo, staff writer

North Korean leader Kim Jong-un is hinting at a turn toward economic pragmatism, Japan’s Mainichi Daily News reported Monday.

According to the newspaper, Kim told party officials at a Jan. 28 meeting, “Even when someone has thoughts about economic management, he doesn’t express them, since even economists who suggest trying such-and-such a method for economic management end up being criticized for attempting to introduce capitalist methods by people who wear color-coded lenses.”

The newspaper claims to have obtained records of Kim’s remarks but did not reveal the nature and background of the meeting or the circumstances by which they came into the paper’s hands. The two events reported by North Korea’s Korean Central News Agency as having been attended by Kim that day were an inspection of the Air Force Unit 378 and a parachute display by the Western Aviation Club, but there is also a possibility he attended an undisclosed event.

According to the report, Kim gave orders to develop suitable measures for improving the economy. “We cannot realize improvements through tailoring our methods of economic management to the realistic needs of development when all we do is criticize,” Kim was quoted as saying.

He was also reported as having said that the biggest problem with economic management was its lack of basis in theory or scientific calculations. Analysts interpreted Kim’s statements as stressing a pragmatic and scientific approach rooted in real life concerns for the sake of the country’s economic development, rather than sticking to outdated ideologies.

The Mainichi Daily News also quoted a Workers’ Party of Korea (WPK) official as saying that Kim had ordered the introduction of any available methods, whether they were “Chinese, Russian, or Japanese.” Experts said this recalled Deng Xiaoping, the architect of China’s market-oriented reforms. Deng famously said, “It doesn‘t matter whether a cat is white or black as long as it catches mice.”

The newspaper reported that the records also contained reference to Kim commenting on a basketball backboard painted black with white lines during a visit to a People’s Army unit. International rules state that the lines should be black on a white background, and the newspaper noted that specific reference was made in the records to Kim, the country’s top leader, commenting on the problem as soon as he saw it, expressing concern about the country’s defiance of international rules in its production practices.

But the Mainichi Daily News also said Kim’s detailed instructions could conflict with those of his predecessors. The records showed Kim commented on North Hamgyong’s Yombunjin Hotel, which is built on the coast in the shape of a gull. Noting its resemblance to Hamhung’s Majon Hotel, Kim is quoted as saying, “You can’t built every hotel like Majon Hotel just because you like Majon Hotel.”

But Majon Hotel was built according to detailed specifications made during field instruction by Kim Jong-il, meaning that subsequent North Korean hotels would also have to be built according to the same design.

The newspaper commented on Kim’s “dilemma,” remarking that his regime could lose legitimacy by straying from the policies of its predecessors and that the nation’s sustainability could be jeopardized if he continued along the same lines.

But many observers advised waiting to see whether Kim takes any immediate steps toward reforms and openness.

Noting that Kim Jong-il made similar statements and attempted economic reforms unsuccessfully, a government official said, “The key is how much power the economic reformists have in North Korean society. If Kim lacks the support of these reformists he is unlikely to succeed, no matter how determined he is.”

Pyongyang announced its July 1 economic management improvement measures back in 2002, when Kim Jong-il was National Defense Commission chairman. These measures included market expansions and increased management autonomy for companies. In Sept. 2003, Prime Minister Pak Pong-ju, a known reformist, was tapped to carry out economic reforms.

But Pak lost his position in Apr. 2007 due to objections by conservatives, and the Nov. 2009 currency reforms ended up throwing the brakes on market expansions.

Inje University professor Kim Yeon-chul said, “With reform and openness, the key isn’t language, but consistent execution.

"Given that there weren’t any notable selections of people who could be called ‘reformists’ at the latest WPK representatives’ meeting or Supreme People’s Assembly, it looks like it’s still too early to be talking about Kim Jong-un’s reforms and openness," Kim added.

 

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