The Basket Case of Asia

Starvation

While pundits in the U.S. prattle about the epidemic of obesity among the poor, North Korea shows us what real poverty looks like. In the mid- to late 1990s that country managed to starve something like 10% of its population to death. While conditions had been slowly improving over the next ten years, the government destroyed its tiny fledgling private markets last November. Per the Guardian, "With less than 24 hours notice, all of the money in circulation was abolished and the markets closed. People were issued with a limited quantity of new money to buy subsidised food from state stores."

Now famine looms again. After the currency was destroyed, inflation caused an abrupt doubling in food prices. Even privileged officials who used to appreciate gifts of Scotch from visiting aid workers are now begging for rice on the next visit. North Korea's per capita spending on healthcare (which is theoretically provided free of charge) is 50 cents a year, one-tenth of Burma's. Surgeries, such as amputations, are performed without anesthesia. Five percent of the population is infected with tuberculosis.

It takes many years of effort to produce this kind of failure. In the late 1950s North Korean farms were collectivized. For some decades, subsidized imports from the USSR permitted a conversion to electrically driven irrigation, chemical fertilizers,diesel-powered tractors, and massive earth-moving to create terraced fields. After the collapse of the Soviet Union, however, the subsidized imports were cut off.

In 1992-1993 the North Korean media began to argue the benefits of having only two meals a day as opposed to the traditional three, claiming the latter was unhealthy and excessive. . . . However, the North Korean government did not follow the example of China or Vietnam, where the return to private agriculture led to an instant revival in food production. In the early 1990s the Pyongyang leaders saw how the reformist Communist governments of East Europe had been wiped out, and they considered any reform potentially dangerous to their own survival.

In 1995, the entire Korean peninsula was struck by disastrous floods. While the economic impact on South Korea was negligible, North Korea never recovered. Its already meager food production was cut in half.

The most recent plunge into famine seems to have been caused by pure human stupidity, with scant help from natural disasters. Per a March 2010 L.A. Times article:

The idea behind the [November 2009] currency exchange, economists say, was to confiscate the cash of people who had become relatively rich selling on the private market and to restore the equality espoused by the communist system. . . . Immediately after the currency revaluation was announced, police shut down the markets where people had been buying most of their food. In theory, people were supposed to buy it from state stores at subsidized prices. But the state stores had no food and people were forced to scrounge for whatever they could purchase at exorbitant prices from black marketeers. . . . By the end of December, North Korean authorities had retracted the ban on markets. But the merchants had lost all their cash and couldn't restock their merchandise.

Several months later, a 77-year-old apparatchik was blamed for the currency-destroying policy and executed by firing squad, an action that, despite its popular appeal, did nothing to address the famine.

Will anything change this time? A woman from the border town of Musan told the L.A. Times: "My son thinks that something might happen. I don't know what, but I can tell you this: People have opinions. . . . It is not like the 1990s when people just died without saying what they thought." But a 28-year-old North Korean, who told of children starving, offered a different take: "I don't doubt [Kim Jong-Il's] good intentions. It is the people under him who are corrupt." The L.A. Times reported that North Koreans on the whole blamed the 1990s famine on U.S. sanctions. As one escapee to China explained, in North Korea "even little children know you are a bad person if you talk that way about the leadership. It is hard to change that mind-set."