DPRK at economic crossroads
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Few people know that the Democratic People's Republic of Korea (DPRK) was a relatively prosperous country in the late 1970s and 1980s. In 1979, its grain output reached 9 million tons, increasing to 10 million tons in 1984. In fact, it used to be a rice exporter during that period.
The DPRK economy started declining in the 1990s when a lot of its resources were diverted to defense and heavy industries, seriously hindering the development of agriculture and light industries. Besides, environmental destruction damaged the rich soil, making it impossible for the country to return to its past agricultural glory.
As a result, the DPRK's economy registered negative growth in the late 1990s, and didn't improve until 2000.
In 2009, when the international community was still worried over its second nuclear test in May, the DPRK launched economic development campaigns such as the "150-day battle", and vowed to make the year a turning point toward economic strength and prosperity.
Let's see the changes in the country after more than one year of the campaigns.
This year has seen many changes in the DPRK. New technologies such as computerized numerical control have been introduced to help light industries, and more cash crops grown to raise funds or exchange them with other countries for grain.
The year has seen a remarkable increase in the number of neon lamps and lights on Pyongyang's roads and in residential buildings. Thanks to the construction of hydropower stations such as the Huichon Power Station in Chagang province and Wonsan Youth Power Station in Kangwon province, Pyongyang and Kangwon's Wonsan city now get relatively stable electricity supply.
A drastic change in the DPRK's economy this year is the drop in the price of rice. The DPRK government has lowered the price of rationed rice from 46 won to 24 won a kg.
In the open market, rice price dropped from 2,000 won a kg in 2009 to 1,500 won a kg in September this year. In November, it fell further to 900 won a kg in Pyongyang's markets.
The availability of consumer goods has increased both in variety and quantity because of more and improved supply channels. Residents now rely on goods rationed by the government, as well as those available in markets and convenience stores. More special shops are selling necessities, although they cost more than in ration shops.
Contrary to some experts' prediction, currency reform has not created a crisis or led to economic depression in the country. In 2009, the exchange rate of the yuan to the won was 1:500. This year it is 1:200, more than doubling the purchasing power of people in the DPRK.
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