[KS] price confusion

[Ruediger Frank]

Dear list,

the good old days when journalists + academic writers attempted to verify 
their data are gone. Mysterious numbers on the July 2002 price changes in 
North Korea pop up everywhere, of course without naming the source. Leonid 
just posted a link to an article, which contains the following information 
(quote):
 >>The economic changes included raising prices and wages, devaluing the 
North Korean won against the dollar and cutting state subsidies for failing 
businesses. Wages were increased between 900 percent and 1,500 percent. 
Prices, which are in theory set by the state, went up as well. Rice went up 
4,000 percent, corn 3,700, pork 700, diesel fuel 3,700, electricity 5,900, 
apartment rent 2,400 and subway tickets 900. <<

How wonderful. Now get confused when looking at People's Korea 
(http://www.korea-np.co.jp/pk/ , PK archives, August 17, 2002, "New 
Economic Policy Enforced in DPRK; Seeking Maximum Profits While Maintaining 
Principles") and I quote again:
 >>... To take staple foods for example, the price of rice per kilogram has 
been increased from 0.08 won to 44 won; that of maize per kilogram from 
0.49 won to 20 won. A bus fare has gone up from 0.1 won to 2 won. Apartment 
dwellers each are to be charged for rooms and utilities. Electricity rates, 
for example, have been raised from 0.035 won to 1.8 won per kwh... The 
basic wages of workers have been up from 110 won to 2,000 won. However, the 
basic wages and allowances are varied according to the quality and quantity 
of work done as well as to the extent of the contributions a worker has 
made to the economic development of the country. A typically special 
increase in this regard is the wages of coal miners--their basic wage is 
6,000 won. <<

Increasing the price of rice from 0.08 Won to 44 Won is a 550 time 
increase, i.e. 55,000%, not 4,000%!!!
Increasing the rice of corn from 0.49 to 20 Won is a 40.8 time increase or 
4,080, not 3,700%.
Increasing the normal/basic wages from 110 Won to 2000 Won is a 1818% 
increase, and not 900%.
etc. etc.

One side is certainly giving wrong information here. I am somehow inclined 
to - this time - trust the (pro) North Korean source, i.e. People's Korea. 
Did anybody with access to the Rodong Sinmun find anything there? The 
changes were official July 1st, 2002.

Cheers,

Ruediger





*******************************

Dr. Ruediger FRANK
Columbia University
East Asian Institute
International Affairs Building
420 West 118th Street, MC 3333
New York, NY 10027
- USA -
Phone: (212) 85 49 206
Fax: (212) 74 91 497
email: rf2101 at columbia.edu

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