Aug. 30-31 DPRK Daily


7 of 10 Lawmakers Want Humanitarian Aid
Daily NK. 8/30/12 By Cho Jong Ik

A new survey has revealed that 7 out of 10 members of the 19th National Assembly are in favor of the consistent provision of humanitarian aid to North Korea, along with the separating of such aid from political and military concerns.

Professor Kang Dong Whan of Donga University reported the survey findings at a debate event held yesterday by the liberal 'Korean NGO Council for Cooperation with North Korea' and 'Korean Council for Reconciliation and Cooperation'.

According to the survey findings, 63 out of the 88 lawmakers polled responded that they either “agree” (39) or “strongly agree” (24) with the statement “Humanitarian aid should proceed independent of the inter-Korean political and military situation.”

Only 4 lawmakers came out against the statement, while 20 more gave a neutral response.

The survey, which was conducted by a combination of email, fax and face-to-face meeting between July 24th and August 22nd this year, included 39 lawmakers from the ruling Saenuri Party, 38 with the opposition Democratic United Party, 3 from the left wing United Progressive Party, 3 from the right wing Liberty Forward Party and 5 independents. There was no requirement to respond to every question.

Asked what the greatest benefit of humanitarian aid is, 25 responded that “it provides a minimum safety valve for inter-Korean relations” and 16 said that “it improves the North Korean people’s image of South Korea”, while both “it improves the humanitarian situation in North Korea” and “it improves inter-Korean relations” garnered 15 votes each.

In line with the findings, 34 of the respondents called for the phased removal of the May 24th Measures, the policy put in place following the Cheonan sinking of March 26th 2010, while 24 said the measures must be eased in some areas including humanitarian aid, and 22 called for the measures to be removed entirely with immediate effect.

More on GOP Foreign Policy I: The Platform
Peterson Institute for International Economics. 8/30/12 By Stephen Haggard

This week and next, we follow up on some earlier posts on Republican foreign policy, starting with the platform today and then looking at the major policy speeches by Senator McCain and former Secretary of State Condeleeza Rice.

There is a debate about whether party platforms matter. They are clearly not serious policy documents. No president in his right mind would be formally bound by them, and they are often seen as a sop to various otherwise-disaffected factions. On the other hand, platforms signal campaign themes and are revealing of policy currents within the party that might politically constrain the administration.

The title of the chapter of the Republican Party platform dealing with foreign policy is “American Exceptionalism.” The central doctrine is the standard claim that peace is best advanced through American military strength, an unobjectionable argument to which both parties would agree. But the Republican platform mixes this with a doctrine of American exceptionalism—“the conviction that our country holds a unique place and role in human history”—and that we should rely on Divine Providence to assure continued American greatness.

The main charge against the current administration is that it has “led from behind” and has “responded with weakness to some of the gravest threats to our national security this country has faced, including the proliferation of transnational terrorism, continued belligerence by a nuclear-armed North Korea, an Iran in pursuit of nuclear weapons, rising Chinese hegemony in the Asia Pacific region, Russian activism, and threats from cyber espionage and terrorism.”  A Wall Street Journal preview suggests that Syria and Iran are likely to get particular attention.

The administration’s weakness is evident in proposed defense cuts, about which there has been a tremendous amount of confusion, some of it purposeful on both sides of the aisle. Particularly maddening are charges by both parties that the other side is solely responsible for the looming sequestration cuts. In fact, the whole purpose of the sequestration cuts was to force compromise. But the Republicans appear to have gotten the better of this commitment mechanism because they can now blame the Democrats for military cuts.

That said, the Republicans are correct that the Obama administration has proposed a gradual decrease in military spending as a component of the much-needed fiscal consolidation; the Republicans have not—to my knowledge—outlined what role military spending plays in their efforts to move toward a more balanced budget.

The Council on Foreign Relations has an extraordinary useful set of graphics that place the Obama cuts in context. Some are the natural result of a decline in so-called Overseas Contingency Operations (Iraq and Afghanistan) but some of the cuts—setting aside the sequestration–are real and would drop spending below the trough of around 4% of GDP hit in 2000.

On the other hand, it is worth noting that this leaves the US accounting for about 42% of world military spending; if we add in NATO, Japan, South Korea, Israel and Saudi Arabia that total rises to about 64% If we sum military spending by all democracies—on the theory that such weapons are less likely to be turned against other democracies—the total rises to about 87%.

Ultimately, the debate should not be about a magic number but about the systems and personnel expenditures required to achieve strategic aims. But as we all know, the military budget is not just about security and the Republican platform makes clear that “a struggling economy…can ill afford to lose 1.5 million defense-related jobs.” (Politifact has a useful survey of how you can get to this number if the full $1 trillion of sequestration and planned budget cuts are made, mostly through the multiplier from declining defense procurement and base closings; needless to say, however, it is a worst case scenario and does not ask whether these workers could be more productively employed doing something else).

On Asia, several paragraphs are reproduced here, with some commentary:

The Platform. “We are a Pacific nation with economic, military, and cultural ties to all the countries of the oceanic rim, from Australia, the Philippines, and our Freely Associated States in the Pacific Islands to Japan and the Republic of Korea. With them, we look toward the restoration of human rights to the suffering people of North Korea and the fulfillment of their wish to be one in peace and freedom. The U.S. will continue to demand the complete, verifiable, and irreversible dismantlement of North Korea’s nuclear weapons programs with a full accounting of its proliferation activities.”

SH. We do not see anything here that differs in substance from the Obama administration approach, which continues to combine “strategic patience” and the willingness to resume talks when North Korea is serious about them; as we noted in the Brookings dialogue cited above, Romney spokesmen have said that a Republican administration would remain committed to the Six Party Talks. However, elsewhere the platform does state a more robust commitment to the development of missile defenses, including not only regional ones but a national system as well.

The Platform: “We will welcome the emergence of a peaceful and prosperous China, and we will welcome even more the development of a democratic China. Its rulers have discovered that economic freedom leads to national wealth. The next lesson is that political and religious freedom leads to national greatness. The exposure of the Chinese people to our way of life can be the greatest force for change in their country. We should make it easier for the people of China to experience our vibrant democracy and to see for themselves how freedom works. We welcome the in- crease in trade and education alliances with the U.S. and the opening of Chinese markets to American companies.

The Chinese government has engaged in a number of activities that we condemn: China’s pursuit of advanced military capabilities without any apparent need; suppression of human rights in Tibet, Xinjiang, and other areas; religious persecution; a barbaric one-child policy involving forced abortion; the erosion of democracy in Hong Kong; and its destabilizing claims in the South China Sea. Our serious trade disputes, especially China’s failure to enforce international standards for the protection of intellectual property and copyrights, as well as its manipulation of its currency, call for a firm response from a new Republican Administration.”

SH. The first paragraph strikes an appropriate tone and backs off some of the more hostile rhetoric that serves little concrete purpose. The concerns raised in the second paragraph are all legitimate, but I am straining to see the difference with the Obama administration, which also clearly shares these concerns; we again recommend Jeff Bader’s thoughtful reflection on the first Obama administration’s Asia policy.

Next: what do McCain and Rice have to say?

RMB Exchange Up 44% as 6.28 Fear Spreads
Daily NK. 8/31/12 By Kim Kwang Jin

The Chinese Yuan-North Korean Won exchange rate is exceedingly volatile these days even by North Korean standards.

Having struck a high point of 1300 North Korean Won on the 27th, a 44% rise over the rate the previous week, by the afternoon of the 30th the exchange rate had lost some of that value, falling back to 1100won. Nevertheless, 1100won is still extremely high; the price of Yuan only topped 1000won on the 27th, though it subsequently fell back.

In line with the rising exchange rate, rice is currently selling at very high prices; approximately 6500 Won in Hyesan, Yangkang Province yesterday. This is a huge increase; from 3000won/kg at the beginning of June to 4000won/kg at the beginning of August.

According to a source from the city, people cite the introduction of new economic management measures as the cause.

“People know that when new economic measures get announced, the prices of goods skyrocket," she explained. "Among the economic measures there is both a dramatic rise in wages and the raising of prices to realistic levels, and as people are now learning about those so rice keeps going up.”

The reason why news about new economic measures is able to inspire such volatility is that high rates of inflation also occurred on previous occasions when economic measures were implemented, noticeably the July 1st Economic Management Reform Measure of 2002 and the currency redenomination of November 2009. At this point, the source noted, people's fears about the 'June 28th Policy' are greater than their expectations.