Case Analysis Presentation

Looking for a Crack in the Armor:
North Korea’s Knowledge Economy

Geoff Blizard and Mariam Samsoudine

Global Knowledge Newspeak Consulting Alliance

November 2010

This presentation was prepared for the GKE Workshop “Case Studies in Knowledge Development,” held in Washington DC, November 29, 2010, and organized by the United Nations Economic and Social Council (ECOSOC), which serves as the central forum for discussing international economic and social issues, and for formulating policy recommendations addressed to Member States and the United Nations system. The findings, interpretations, and conclusions expressed in this paper are those of the authors from the firm Global Knowledge Newspeak Consulting Alliance, and do not necessarily represent the views of ECOSOC, the UN, or the Member States they represent.

Arirang: Mass Mind in North Korea’s Mass Games
Mariam Samsoudine

Mass Gymnastics Games

·   Cultural and Political Roots

·   Nationalism

Power in Logistics

•     Spectacle

•     Societal Mobilization

Ideology: Through Four Acts

•     Act I: Looking Backwards

–  Legends and the Cult of Personality

–  aesthetic model of culture

•     Act II: Military Might

–  Manifesting self-reliance and isolation

•     Act III: Technology for the future

–  CNC

–  The future leader for technology

Flip-card Mosaic displays "CNC" for "computer numerical control"
 promoting technology and the future role of Kim Jong-un

Kim Jong-un first public appearance at Arirang

•     Act IV: Reunification with South Korea

Conclusions on Arirang

Despite its emphasis on weapons and building a physically strong nation, the biggest threat to the authoritarian regime is information, and the perceived threat of outside information. This begs the conclusion that increased flows of information from outside the country would show North Korean citizens that society can exist for the benefit of individual people.

Takeaways 

• The cult of personality may weaken with succession of Kim Jong-un.
• His foreign education may result in a more open and progressive agenda
• He supports modernization in IT, but will this extend to other sectors?
• Antagonistic diplomacy and sanctions, help the North Korean government reinforce nationalism and Juche ideology, perpetuating isolation.
• Cultural affinities with neighboring South Korea, and IT sector, are likely best entry points for international action.

Deal or No Deal: Foreign Investment in North Korea
Geoff Blizard

Legislation for Investment

•     Origins

•     Contractual Joint Ventures

•     Equity Joint Ventures

•     Foreign Enterprises

•     Centralized Mindset

–  The “Detroit Model”

Contemporary Investment

•     Samsung, 1999

•     Entrac and Hanabiz.com

•     Orascom, 2008

–  $400 Million towards network infrastructure improvements

Recommendations

§  Advising North Korea it is in its best interest to continue to open its borders to international business, particularly with respect to South Korea, because it is already a major player in the ICT sector, and likely has investors that, like Samsung, would be interested in investing in North Korea.

§  North Korea needs help to build up its infrastructure, and this could be achieved and accelerated through working with South Korea, or even China.

§  Promoting even a censored version of the internet, like China’s model, would benefit North Korea economically, and increase information flows.

§  Joint contracts, like the one given to Orascom in 2008, should be encouraged, as they are high yielding R&D initiatives, and allow for injection of new ideas, increased collaboration, and efficient use of resources.

§  Diplomatic and business channels should be opened, because sanctions and diplomatic impositions only give more political fuel to Kim Jong-il and the ruling party over their own population, and increase isolation.