Two recent articles on NK on the eve of the 2nd summit
Yesterday, the WSJ had a front page article on the current economic conditions in NK. In contrast to the popular view in this country, people are not reduced to eating tree bark. Additionally, the sanctions imposed by the US are not having a profound impact. The economy of NK was described as entrepreneurial and resilient.
Quote:
The U.S. has been leading a world-wide campaign to pressure North Korea into giving up its nuclear arsenal through an increasingly stringent sanctions regime. Available evidence suggests it’s not working.
Economic indicators show day-to-day commerce in the country has remained resilient. And many residents, having lived through much harsher conditions in the 1990s, appear to be adapting as market forces take deeper root, according to three dozen defectors, humanitarian workers, government officials and other visitors interviewed by The Wall Street Journal.
The lack of impact is making things tricky for President Trump as he heads to this week’s summit with North Korean leader Kim Jong Un in Hanoi. The U.S. wants Pyongyang to freeze its nuclear weapons and missile programs while the two sides continue far-reaching talks on denuclearization.
Tougher sanctions, including new restrictions on foreign trade approved in 2016 and 2017, have caused North Korea some pain, depriving the regime and elites of revenue from commerce with other countries, including China.
In other ways, North Korea’s economy appears to be holding up well. Rice prices have remained stable, and gasoline prices, which rose after sanctions were tightened, have fallen significantly from highs in the fall of 2017.
North Korea’s currency, the won, has held steady against the U.S. dollar. Construction projects continue in the capital. And many foreign products that were more visible before tighter sanctions, such as Chinese processed foods, have been replaced with locally made options as domestic factories expand output, former residents and recent visitors said.
Several visitors to Pyongyang and a few other major cities said they even observed some improvements in daily life, including more electricity and cheaper coal, which makes it easier to heat homes.
Then in an article in the NYT this morning Vietnam has encouraged NK to follow their obviously successful model of dealing with the US.
This mission is one where I believe trump (and the US) have to succeed through diplomacy and to that end I wish him---and us success.
