DPRK Business Monthly Volume 1, Issue 12 - January 2011
Key Developments in North Korean Economy
1. High-Level Meetings and Investments
- Orascom's Expansion in North Korea: The Egyptian telecom giant, Orascom, led by Naguib Sawiris, secured a state banquet with Kim Jong Il, the North Korean leader, following a visit to Pyongyang. Orascom holds a significant stake in North Korea's 3G cellular network, Koryolink, demonstrating the company's interest in emerging markets despite the challenges.
2. International Investments and Economic Agreements
- China's $2 Billion Investment: China's Shangdi Guanqun Investment plans to invest approximately $2 billion in North Korea's Rason area, aiming to transform it into a regional export base. This is part of China's broader economic engagement with North Korea, indicating a shift towards full economic cooperation.
3. Media and Cultural Ties
- British Film Broadcast: The first Western film, "Bend It Like Beckham", was broadcast in North Korea, showcasing cultural exchange efforts through media. This event highlights the growing interest in Western culture and sports in North Korea.
4. Economic Sanctions and Trade Resilience
- Limited Impact of Sanctions: Despite international sanctions, trade volumes between North Korea and China have remained relatively stable, indicating resilience in bilateral economic relations. This underscores the importance of China as North Korea's primary economic partner.
5. Small-scale Border Trade Promotion
- Encouragement of Border Trade: The North Korean authorities are reportedly encouraging small-scale border trade with China, potentially facilitating informal economic activities and supporting local economies along the border.
These developments illustrate the complex interplay between international interests, strategic partnerships, and economic policies shaping the North Korean economy. The involvement of major players like Orascom and China suggests a growing interest in North Korea as a market, despite the challenges posed by political tensions and international sanctions.
