Photo courtesy of AFP
In November of last year, North Korean Workers’ Party finance director Pak Nam-gi, implemented a currency change with the hopes of curtailing the market activities in North Korea. However, the change has been an economic disaster for the socialist state, as it has made a bad situation even worse. There have been reports of increased starvation, and even civil unrest when security forces have attempted to stop individuals from trading or smuggling food.
The North Korean citizens began resorting to illegal markets, to get the bare essentials that the government was failing to provide, after the famine in the 1990s. Pak’s program consisted of exchanging its currency, where the older Won currency would be changed for new ones at a rate of 100 to one. It was an attempt to wipe out the cash holdings of the emerging merchant class, who risked getting caught if they used the older currency, or deposited them in banks.
As a result, there has been even less available for people to buy, and prices of what is available has risen sharply. The sanctions imposed on North Korea by the United States, hasn’t helped the situation either.
Reports from the Chosun Ilbo indicate that Kim Jong-Il has fired Pak.
