While the world is worried about the health of the North Korean nuclear program, possibly Kim Jongun’s leader, the long-standing economic crisis in the hermit state of East Asia is sweeping through. Fitch Ratings is a credit rating detection according to 1997, there was the last such trouble in North Korea as it is now.
As they write, the performance of the national economy will decrease by 6 percent this year, and the last time the situation was similar in 1997, when the country’s GDP could account for minus 6.5 percent. Isolated from most of the world, sanctioned In the state, financial problems are synonymous with famine among the masses: according to Fitch, a humanitarian catastrophe is expected with a decline of around 6 percent. This most recently occurred during the economic crisis of the mid-1990s: when the country’s economy collapsed due to aid slumping with the break-up of the Soviet Union.
As early as 2017, the Food and Agriculture Organization of the United Nations (FAO) warned that there is growing concern about food security in North Korea. The ominous analyzes were backed up when Kim Jongun, a leader in Pyongyang, in August partially acknowledged the failure of the five-year economic plan announced in 2016. At the time, the leader also said his government would develop another program by January, which Western analysts welcomed with some regret:
But the food supply concerns are also supported by the news published by the North Korean news agency KCNA in recent days.
Kim Jongun called on the people of his country to achieve all the goals set in all sectors in an 80-day campaign until another five-year plan is defined in January. Although the announcement does not address famine, MTI also recalls that the leader in Pyongyang has previously stated that despite the difficulties caused by the coronavirus epidemic, all goals must be met. Kim announced a “frontal breakthrough” last year in a fight to make the country self-sufficient.
Food independence is an old goal of a Stalinist regime facing the majority of the world. Only 17 percent of North Korea’s total land is suitable for agricultural cultivation, so it is still heavily dependent on aid from China, Japan, South Korea, and Russia and the United States. Due to the famine in the country in the 1990s, the government declared a “potato revolution”, which they quadrupled. And in 2014, Pyongyang launched a greenhouse program to significantly increase fruit production.
Food supply problems have been offset by the ticket system since the 1950s. The essence of the supply system once used in Hungary is that the producers supply everything to the state, and then the government redistributes all this. As a result, about 70 percent of the population receives food exclusively from public sources, which for political or even economic reasons typically does not provide the internationally accepted minimum caloric intake of 1,200 days.
The situation could be particularly bad even now, according to Victor Cha, a South Korean security policy expert at the CSIS Research Institute in Washington. Addressing the Index, Cha said the North Korean economy was particularly vulnerable to the coronavirus epidemic.
He added that in the past one or two months, however, the voicing of infection-free has stopped, which may indicate that the coronavirus has also begun to spread in the hermit state. Although there is no credible information on the extent to which the virus has spread among the North Korean population, the expert said the economic consequences of the pandemic are already visible.
According to the World Health Organization (WHO), roughly three thousand people in North Korea have been tested for the coronavirus, meaning the country has responded beyond the borders. Victor Cha also drew attention to the fact that Kim Jongun was less featured in the media, and the lack of regular recordings in her generals ’ring suggests that they are protecting the leader’s health, sparing her from appearing.
Added the expert, who said that this decision would hit the North Korean economy a lot. Added to this, he continued, is that North Korea has been hit by floods in recent weeks, which also has a direct impact on agriculture. Kim also responded to this problem in person, and the villages affected by the drought were also visited by the leader. Victor Cha is therefore the events in North Korea
Because of the coronavirus limited foreign trade, a international sanctions and that floods they hit the country at the same time, which, according to the expert, will be reflected in food supply. He added that international aid organizations are preparing to respond to the humanitarian catastrophe, the U.S. Department of Agriculture has also begun preparations for increased aid.