Applying the Lessons of South African Nuclear Disarmament to North Korea

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The abstract examines North Korea's renewed nuclear activities, highlighting the imminent production of weapons-grade plutonium and uranium enrichment, which threaten disarmament progress. It suggests that lessons from South Africa’s nuclear disarmament—driven by security, economic, and normative factors—could inform North Korea’s potential denuclearization, emphasizing that improved security and economic interdependence may incentivize Pyongyang to relinquish its nuclear arsenal.

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IntroductionSatellite imagery has revealed steam coming from the renovated North Korean nuclear reactor at Yongbyon,1 implying that Pyongyang has renewed efforts to accumulate plutonium, which can be processed from the reactor's waste products, in order to expand its stockpile of nuclear warheads. If this is true, it represents a fresh phase of nuclear escalation from North Korea, made all the more serious since this action nullifies previous disarmament progress made in 2008 when Pyongyang demolished a cooling tower at the Yongbyon reactor,2 partially disabling its nuclear weapons program.Worryingly, the reactor needs to run for at least a year before spent fuel rods can be removed for plutonium harvesting, and the predicted date when the DPRK can begin reaping fresh weapons grade plutonium is fast approaching. Additionally, North Korea has a uranium enrichment program, which was first detected in 2002, and could also produce uranium-based nuclear arms. Despite the lack of concrete intelligence regarding the efficacy of Pyongyang's uranium enrichment for weapons building, it would be fair to assume that if left to its own devices, the DPRK's pool of nuclear explosives is set to grow.However, Pyongyang's behavior does not preclude an improvement in disarmament prospects leading to nuclear rollback. Turning to the South African nuclear disarmament model, hope for North Korean nuclear disarmament can be salvaged by the fact that Pretoria decommissioned its entire nuclear munitions manufacturing capability along with all operational atomic bombs. Hence, if the latter can relinquish its nuclear deterrent, so can the former.Learning from South Africa's Nuclear DisarmamentRevisiting the decommissioning of the South African nuclear weapons program from 1990 to 1991,3 permits the parsing of ideas for North Korean denuclearization despite the disparate nature of both states. South Africa's status as the only country to indigenously build and dismantle its nuclear arsenal should provide pointers as to how North Korea can be encouraged to relinquish nuclear arms.Concerning factors driving President F.W. de Klerk to order the dismantlement of Pretoria's nuclear weapons program in 1989, it can be substantiated that: (1) weakening Soviet support for Angola and Mozambique lessened the security threat that these two adversarial states posed against South Africa's northern borders4; (2) years of sanctions due to the imposition of apartheid had battered the South African economy, leading to a desperate need for externally driven economic rehabilitation5 (which would be jeopardized by pariah status from nuclear arms possession) and; (3) De Klerk strongly believed in the morality of nuclear disarmament.6As such, South African nuclear disarmament was brought about by a pacification of serious national security threats, the realization that sanctions induced economic autarky was intolerable, and the positive effect of international nonproliferation norms. Correspondingly, if the North Korean security paradigm improves, benefits from economic interdependence become tangible and prestige or legitimacy from rogue status cessation can be gained, Pyongyang might agree to denuclearize.North Korean Economic, Norms-Based and National Security RealitiesNorth Korea has a moribund economy. Despite the autarky promoting state ideology of Juche, North Korea seems incapable of surviving without foreign assistance. For instance, its economy suffered a dip as soon as socialist support was withdrawn in 19917 and shrunk by almost half from 1990 to 1999.8 Additionally, the North Korean economy only grew once from 2009 to 2011 with gross domestic product only increasing by 0.8 percent in 2011.9 Moreover, the DPRK has been constantly unable to feed its population in contemporary times with crop failure in 2014 brought about by drought,10 and serious food shortages from 1995 onward due to natural disasters and economic mismanagement, thereby degrading labor productivity and societal sustainability. …

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  • North Korean Review
  • Sven Horak

IntroductionSince the death of Kim Jong-il in 2012, the international media has speculated whether the new leader, his son Kim Jong-un, will put economic development on his political agenda and open up the North Korean economy for foreign investors. In his new year's speech held in 2013, Kim Jong-un called for far-reaching reforms in the following year including an opening up of the economy to foreign investors and achieving better relations with South Korea.1 While skepticism remains as to whether an economic opening can be achieved in the short term, potential foreign investors need to focus on business opportunities and market attractiveness.While not yet being considered an emerging market by the major indices,2 the popular media ascribe the country basic potential to become an emerging market in the future due to its relatively large domestic market, with its population of 24 million inhabitants and due to its richness in natural resources (e.g., gold, silver, copper, magnesite, coal, uranium and iron ore). If economic reform takes place, Goldman Sachs, for instance, sees enormous growth potential in the North Korean economy.3 The bank's analysis of the North Korean economy assumed the value of domestic mineral resources at 140 times of the 2008 gross domestic product (GDP). However, the country has a relatively young and technologically educated labor force which is available at low labor costs of around USD 160 per month.4A comparatively small but increasing number of international investors have already ventured into business with North Korea. The Cairo-based firm Orascom established the first GSM mobile phone network there in 2008 and contributed to funding the construction of the 105-story Ryugyong Hotel, located in the capital, Pyongyang, that is planned to open in 2013 and which will be managed by the Swiss luxury hotel group Kempinski Hotels.5If North Korea fully opens up its economy to foreign investors, the business opportunities will be plentiful.The Ethical Dilemma SituationDespite potentially lucrative business prospects, international investors are at the same time faced with ethical dilemmas and substantial business risk when intending to invest in North Korea. From a theoretical point of view, ethics in business used to be defined as behavior that is consistent with the principles, norms, and standards of business practice that have been agreed upon by society.6 But what if society is not free to participate in political decision-making processes but is instead oppressed by a dictatorial leadership, as is the case with North Korea (more details will be provided in the further course of the study)? How should foreign investors respond to such an environment? Engage in business activities and risk receiving bad press that may cost them consumers in the firm's home country?7 Theoretically it is assumed that a country which violates human rights, in which legal arbitrariness prevails, in which corruption is high and which lacks predictable rules in business does not attract foreign businesses and remains economically backward.8 Firms usually weight chances, risks and ethical concerns in order to benefit from first mover advantages or to skip a venture in emerging markets.9 As this case will show, levels of tolerance towards ethical issues differ among countries that show an interest in doing business with North Korea.It has to be noted that research on North Korea is inherently difficult. Data availability and data credibility are typical problems. However, as foreign firms are already engaged in sponsoring North Korean athletes and media started reporting about those experiences, a decent base of information is made available in order to discuss ethical dilemma situations in international business. This is of particular value for research aiming at practical relevance and implications for managers.Achievements and International Recognition of North Korean AthletesThe North Korean sports industry is one of the sectors which is attractive to international investors since on the one hand it lacks financial resources, but on the other hand it has achieved international recognition ever since the soccer World Cup in England in 1966 when the North Korean team beat Italy 1-0 and made it to the quarter finals. …

  • Research Article
  • Cite Count Icon 4
  • 10.3172/nkr.4.2.49
Changes in the North Korean Economy Reported by North Korean Refugees
  • Sep 1, 2008
  • North Korean Review
  • Young-Hoon Lee

Research Purpose and SummaryThis research is designed to assess the current state of the North Korean economy caused by the July 1 measures in 2002, through interviews with North Korean refugees, whose numbers have recently increased dramatically (see Table 1).* Research target: North Korean refugees who fled into South Korea in 2006 and who currently reside in Seoul, Gyeonggi Province, and Busan* Research period and methodology: November to December 2006, survey and in-depth interviews with ten refugees* Numbers: 335 refugees, or 1 7 percent of the total number of North Korean refugees who fled into South Korea in 2006.* We interviewed 21 9 North Koreans who fled from North Korea between 1997 and 1999 and between 2004 and 2006, to ascertain changes in the North Korean economy after the July 1 measures (see Table 2).* Contents of research: profile of North Korean refugees, income and consumption, and market activitiesResearch FindingsA Profile of the North Korean RefugeesOur findings concerning gender are shown in Table 3:* Among the refugees, the proportion of men increased remarkably, from an average of 7 percent during 1997-9 to an average of 44 percent during 2004-6.* The particularly high proportion of women among those refugees who had left North Korea before the July 1 measures results from the fact that women were allowed to retire early and therefore it was easier for them to escape from North Korea.* The number of male refugees has gradually increased since the July 1 measures, because the increased number of men engaged in trade has made it easier for them to move, and female refugees have helped their families and relatives to leave North Korea.Age profiles are shown in Table 4:* Overall, the proportion of those refugees in their twenties is highest, but in recent years the proportions of the youngest age cohort (those aged between ten and nineteen) and of those in their forties have increased, while the proportion of those in their twenties has decreased.* The shares of the youngest age group and of those in their forties among the total number of refugees have increased since the July 1 measures, because those in their forties engaged in trade and they helped their families to move to South Korea.The educational background of the refuges is shown in Table 5:* The percentage of refuges who had not finished high school has decreased, while the proportion of those refugees who had completed high school and college education has increased.The occupations of refugees when they were in North Korea are shown in Table 6:* The proportion of production workers has declined, whereas that of the unemployed has risen.* This is largely attributable to the gradual increase in the early retirement of women engaged in production.Income StructureIncome structure is shown in Table 7:* As shown in the table, there is not much difference in the income structure of those two groups of refugees who had fled North Korea before and after the July 1 measures.* Wage income amounts to less than 10 percent of total income, and trade income accounts for about 90 percent of total income.* Table 7 indicates that it is difficult even for workers with a job to earn enough money to live on their wages alone.Income level is shown in Table 8:* The income level of the refugees after the July 1 measures is substantially higher than that of the earlier group of refugees.* The average monthly income per capita more than tripled, from $6 for the three years from 1997 to 1999 to $20 for three years from 2004 to 2006.Consumption Structure and LevelThe consumption structure is shown in Table 9:* The table shows that food consumption as a percentage of refugees' total expenditure fell after the July 1 measures, while expenditure on clothing increased after the July 1 measures; food accounted for the largest portion of refugees' total expenditure before and after the July 1 measures. …

  • Research Article
  • Cite Count Icon 5
  • 10.3172/nkr.7.2.73
Strategic Patience or Back to Engagement? Obama's Dilemma on North Korea
  • Sep 1, 2011
  • North Korean Review
  • Changsop Pyon

IntroductionAre the days of hope for North Korea's nuclear denuclearization over once and for all? North Korea's recent disclosure of its uranium enriched program (UEP), in addition to its plutonium-based nuclear arsenal, the possible instability of power succession from North Korea's top leader, Kim Jong Il, to his son Kim Jong Un, and the North Korean leadership's blind reliance on its nuclear program as the ultimate guarantor of its regime survival, all point to a pessimistic assessment that it would be impossible to persuade North Korea to negotiate away its nuclear program for whatever rewards might obtain from the United States and the international community.Admittedly many people hoped for some sort of breakthrough on the nuclear front as the Obama administration took office in January 2009, expressing its willingness to engage North Korea. Although he didn't mention North Korea by name, President Obama pledged in his inaugural address to reach out to isolated regimes. As Democratic presidential candidate, Obama also expressed an active interest in engaging North Korea in a presidential debate in September 2008 when he criticized the Bush administration's lack of diplomatic engagement with North Korea, and supported sustained, direct and aggressive diplomacy to resolve North Korean nuclear issues.2Obama's criticism was clearly directed against the Bush administration's non-engagement policy toward North Korea during its first term. In fact, such an approach was inevitable, given the Bush team's fundamental distrust of the Pyongyang regime that had failed to keep its promises despite a series of previous nuclear pacts with the United States, including the Agreed Framework in 1994. The Bush administration avoided any further nuclear deal with North Korea during its first term, determined not to accept any demands from Pyongyang because doing so might leave them open to comparison with the Clinton Its North Korea policy was even described as the ABC (Anything but Clinton) policy.3However, the Bush team's hawkish stance began to crumble when North Korea carried out its first nuclear test in October 2006. Tension was already rising since Washington made a big issue of Pyongyang's secret uranium enrichment program (UEP) in October 2005. North Korea initially acknowledged its presence, but has denied it ever since. Hard pressed by the urgent need to keep North Korea's unfettered nuclear pursuits at bay, chief U.S. negotiator Chris Hill hastened to pull off a series of nuclear deals with North Korea, with the full support of President George W. Bush and Secretary of State Condoleezza Rice. North Korea froze its plutonium activities and finally submitted its nuclear declaration in 2009, for which it received political benefits from the United States, including being removed from the U.S. terrorism list. However, the previously uneventful nuclear talks stalled when both sides failed to iron out the differences on verification of North Korea's nuclear declaration.It was against this backdrop that many people expected some sort of breakthrough in the stalled nuclear talks when the new Obama administration came in. However, such expectations were shattered by North Korea's unexpected provocations right from the beginning of the Obama administration. On April 5, 2009, North Korea launched a l ong-range ballistic missile that, it argued, was the satellite Kwangmyongsong-2, intended to be put into orbit through a space launch vehicle, Unha-2. The strong U.S. condemnation, followed by the unanimous UN Security Council Resolution 1874, prompted North Korea to embolden rather than change its behavior. In defiance of the UN resolution, the North conducted its second nuclear test in May 2009, which dealt a fatal blow to the Obama administration's efforts for engagement. The second nuclear test unequivocally demonstrated once again Pyongyang's intention of not giving up its nuclear program despite a series of nuclear pacts with the previous Bush administration. …

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