North Korea's new rich: How the other 0.0000001% live

Economist ^ | 05/29/08

[TigerLikesRooster]

North Korea's new rich

How the other 0.0000001% live

May 29th 2008 | PYONGYANG

From The Economist print edition

The hermit kingdom's elite spend, spend, spend

EVERY developing country worth its salt has a bustling middle class that is transforming the country and thrilling the markets. So does Stalinist North Korea. Oblivious of rumours that famine is gathering again and that the state's food-distribution system is breaking down, the country's pampered elite went on a shopping spree at the Pyongyang Spring International Trade Fair, held on May 12th-15th.

Originally designed to promote business-to-business contacts, the trade fair, along with a companion event in the autumn, has become one of the few opportunities for North Koreans—or, more accurately, a few thousand residents of the capital—to buy, or gawk at, foreign merchandise. More than 100 Chinese companies, together with some from Taiwan, Indonesia, Britain and North Korea itself, offered up everything from T-shirts to heavy machinery. Cutting-edge technology it wasn't. Duvets, refrigerators, flat-screen televisions, DVD players, cooking pots and cosmetics were the most popular items. More than 15 units of one of the show's most expensive items, a $1,200 refrigerator from Haier, a Chinese company, were snapped up. Counterfeit iPods were also popular, even if downloading is illegal.

[TigerLikesRooster]

These folks are showcased as a sign that N. Korea's "economic reform" is producing "results." The truth is much closer to what happened to Saddam's cronies in Iraq during its economic sanction. His cronies got fabulously rich from running smuggling operations and diverting/selling humanitarian aid materials at obscenely high price in the market. It is the same in N. Korea. In N. Korea's case, you could add revenues from various counterfeiting operations of such items as supernotes and cigarettes. They run drugs, too, but I heard its sales dropped due to stepped up policing in Japan.

[TigerLikesRooster]

Ping!

[Jet Jaguar]

BTTT!!!!!

Good to see ya.

[BunnySlippers]

Thanks for posting this.

All country’s have “super-rich”. But it’s most bizarre in extreme Third World counties like Zimbabwe, Haiti, Sierra Leone et al ...

[TigerLikesRooster]

There is another difference between Iraq and N. Korea. In N. Korea, the country is in self-imposed sanction. It frowns on private business and private international trade.

[BunnySlippers]

Gak! Disgusting spelling BUMP!

[Jay Howard Smith]

Haven’t seen you in a while ... :>)

[TigerLikesRooster]

Yeah, it's a long story.:-)

[Jay Howard Smith]

Yeah, it's a long story.:-)

Write a book; Make some money ..!

[rockinqsranch]

Yeah, it’s a long story.:-)

Regardless, good to see you again. Looking forward to more of those good posts.

[nw_arizona_granny]

Hope you are well.

Thank you for your efforts to keep the rest of us informed.