From supplemented edition of Kim Jong Il’s Brief History, just published in Pyongyang, on page 150: “In talks to senior officials of the WPK, the state and economic organs on October 3, 2001 and June 18, 2008, he pointed out that an essential element of economic management was to identify an approach that earned the greatest profits while holding fast to socialist principles.”
While the October 3, 2001 talk is well known as widely quoted by Choson Sinbo, to my knowledge this is the first reference to the June 18, 2008 talk in official sources. Only a small fragment of Kim Jong Il’s words on that occasion, whose reliability was highly dubious, were published in a rough translation by foreign reformist scholars who disliked the content, and here is why: “Markets are both home to and a hotbed for un-socialist phenomenon and capitalist factors in the economic sectors.
Without devising a national plan about markets and neglecting them as they are, or further encouraging their activities and expanding their reach, the country’s economy will inevitably turn into a market economy. However, following the practical conditions by using the market to a certain extent while keeping it under national control does not necessarily mean a movement towards market economy. Markets and a market economy are not the same concepts. The question resides in how to perceive and treat the market, and how to use it following principles and direction.” (https://www.piie.com/.../north-korea.../kim-jong-il-market)
If true, these words show the General’s principled and scientific approach towards markets which appeared in the aftermath of the Arduous March. Unlike leaders of East-European former socialist countries, he didn’t allow markets to grow as “shadow economy” while pretending they didn’t exist. Also, unlike leaders of China and Vietnam, he didn’t promote markets to embrace all aspects of the economy and thus alter the nature of socialism.
He rather acknowledged the existence of such transitional elements in order to place them under state control and to gradually overcome them. To this aim, as we read on page 154 of his new Brief History, in later years “Kim Jong Il also channelled efforts into improving the supply of commodities and public welfare services.
Thanks to his concern, a number of commercial service bases, including department stores, were splendidly refurbished, commercial facilities and equipment were modernized, and commodity prices were adjusted. In addition, well-knit supply networks were established for selling commodities to the people on a regular basis, the presentation of goods and supply of services were improved, and shop assistants’ sense of service was enhanced.”
More than ten years have passed since the 2009 currency reform and subsequent price reductions. Today the DPRK is following the same road: improving economic management of socialist enterprises (see the socialist system of responsible business operation) to gain real profits and return them to the people as state benefits, making their life independent of the markets and fully restoring the socialist commercial system of Kim Il Sung’s days.
Against foreign observers who want to see wavering between “reform” and “conservatism”, the consistent lifeline of economic policies of Kim Jong Il and Kim Jong Un is socialism.
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