KPW nearly obsolete as private economy expands

first_img News News NewsEconomy There are signs that North Korea is running into serious difficulties with its corn harvest KPW nearly obsolete as private economy expands SHARE AvatarDaily NKQuestions or comments about this article? Contact us at [email protected] News center_img Facebook Twitter RELATED ARTICLESMORE FROM AUTHOR North Korea Market Price Update: June 8, 2021 (Rice and USD Exchange Rate Only) By Daily NK – 2015.12.29 1:57pm With the greater relaxation of regulationson the market front this year, the private economy in North Korea expanded, butmost people are said to believe the looser grip on trade at the marketplace isnot to help improve people’s livelihoods but to secure more funds for the KimJong Un leadership, Daily NK sources have reported. “Crackdowns on markets have been much morelax this year compared to last year, so sales have been more vibrant,” a sourcefrom South Pyongan Province told Daily NK in a telephone conversation. “Somemerely take it as a change in policy, but a lot of people who have been sellinggoods for quite some time see it as a method of Kim Jong Un to gain morefunds.”“Donju [newly affluent middle class], whoare taking part in the larger market space, and cadre members who work withthem to earn in foreign currency, are paying up loyalty funds with that moneyto the Central Party,” he explained. “The relaxation of rules on the marketplaceactually has three prongs. The state wants to secure more funds for theleadership and state governance while also winning over people’s loyalty.”The growing presence of markets in theeconomy has led to greater use of foreign currency in everyday life. In thepast, foreign currency was only used for trade, donju product distribution, orfor wholesale transactions, but now U.S. dollars and the Chinese yuan are usedeven when people buy simple things like side dishes. Prices not only at theofficial general markets but also street stalls and alleyway markets are allmarked in dollars and yuan as a result. “The radius in which foreign currencies areused has expanded this year, and it’s not only in big cities but small citiesthat people use foreign money. Young people even consider using North Koreanmoney as being behind the times,” added the source. “It’s not uncommon to seeteenage girls asking for pocket money for snacks in dollars, saying they don’twant ‘money with the General [Kim Jong Il] present.’” Many people wonder out loud where all theforeign currency they now see circulating in the markets had been in the pastfew years, and donju who look to run a stable business pay up bribes to cadres higher up and that again goes to the central Party as ‘loyalty funds’, he said. Another source in North Hamgyong Provincealso confirmed the omnipresent use of foreign currencies, saying, “Almost allgoods at the market in border towns are traded in yuan.” She went on to add, “With the lax rules nowon market trade, using foreign currency, which is illegal, has now become ineffect permissible, so more people are using it.” When all is said and done, foreign moneywinds up with rich Party cadres and the donju, who turn over , as the sourceput it to us, “astronomical amounts to those even higher up at the provincialor higher levels of the Party and military.” “There are now even cadres at Party agenciesand their family members that specialize in taking care of needs for donjumoney-making operations,” she explained. “They work together with donju andaccumulate massive wealth, and then pay central Party high-level officials indollars and yuan to turn a blind eye.” Many donju and residents, unsure of whenthe North Korean state will flip its stance on foreign currency use, are saidto be seizing this opportunity to save up while they can. “The belief is thatregardless of your place in North Korean society, safety comes in one form andone form only: foreign currency savings.”  US dollar and Chinese reminbi plummet against North Korean won once againlast_img

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