By If this is true, than the unrest in North Korea after the currency reform that confiscated what little money many North Koreans had, must have been as bad as advertised:
The North Korean government has made a rare apology for a policy blunder and lifted a ban on using foreign currency, South Korean news organizations said Thursday.
Recent changes to the North Korean monetary system had triggered an unusually public outcry against the authoritarian regime. If confirmed, the apology and the policy reversal are further signals that the North is retreating from its war against the free markets that have proliferated in the impoverished country.
After years of struggling to contain the markets, which are technically forbidden, North Korea took its boldest step yet by abolishing its old bank notes in late November: The regime allowed people to exchange only a limited amount of old money for the new currency, at a rate of 100 to 1. The measure effectively wiped out much of the private wealth that had been accumulated by entrepreneurs who profited from the markets.
The government also banned the holding or use of foreign currency, which is widely used to smuggle in basic goods from China.
The policy backfired. Prices skyrocketed as market activities ground to a near halt, while state-run stores failed to meet the demand.
In recent weeks, Seoul-based Web sites that collect news from sources inside North Korea have reported starvation in some towns in the North, elderly military veterans held a protest rally and women argued with soldiers trying to shut down markets.
“I offer a sincere apology about the currency reform as we pushed ahead with it without sufficient preparation and it caused a great pain to the people,” the North Korean premier, Kim Yong-il, was quoted as telling a meeting in Pyongyang last Friday, according to the Chosun Ilbo, a mass-circulation daily in Seoul. The paper’s account, published Thursday, quoting an unnamed source inside the North. [New York Times]
Of course One Free Korea has more on this. Here is a sample:
Furthermore, in a system where power is a zero-sum commodity, for the first time, people fought the system and lived to fight again. To a lot of people used to being under the heel of absolute power, an apology is going to look like weakness. It will invite more challenges. [One Free Korea]
1:40 am on February 11th, 2010 1
The government apologizing? That's great news. Hopefully the people will begin to engage in much more bolder endeavors.
10:21 am on February 11th, 2010 2
it sure sounded like the dumbest idea ever.
11:11 am on February 11th, 2010 3
This is not only evidence that capitalism may have taken permanent root, but a sign that democracy may have started to sprout.
When people recognize they have the power to change the State, they will start demanding freedom from more of their restraints.
12:10 pm on February 11th, 2010 4
Sounds like too many of the elite (those allowed to live in Pyongyang) got burned on the transaction. No big deal if the folks in the northeast starve, but you can't upset your hometown fans.
6:16 pm on February 11th, 2010 5
I smell fear among the Nork leadership. And fear they should feel (see this).
11:24 am on February 12th, 2010 6
Its would seem to me that North Korea would be ripe for revolution, should any country outside of North Korea decide to finance it, and provide even limited support. I doubt it would be very expensive to bring about a popular uprising in the north east or in several other areas. All that would be needed would be some weapons and won, and not a large amount at that, to begin.
It would certainly put Pyongyang in an even more defensive mood while enabling the people to rally. Russia, China, or South Korea, would be best in providing the means, the US the least, as the US has no means to infiltrate the areas affected.
On the other hand South Korea, China, and Russia will be left wringing their hands over the eventual collapse of the North and how they will deal with it when it happens. And it will happen eventually.
The only question is who will gain control.