North Korea rolling out agricultural policy changes

Several media outlets that employ North Korean defectors, including Washington-based Radio Free Asia, have reported that Pyongyang is rolling out agricultural policy changes that mark a significant break from the state-controlled economy.

Those measures, according to the reports, reduce the size of cooperative farm units from between 10 and 25 farmers to between four and six. The decrease is critical because it allows one or two households, not entire communities, to plan and tend to their own farms. Farmers still must hit production quotas, but they can keep 30 percent of their crops, up from less than 10 percent. They can sell the rest to the government at market prices, not state-fixed prices, and they can keep (and sell privately) anything exceeding the quota.

The changes do not apply to the entire country; they have been introduced in three rural provinces and took effect in July, according to reports.

It remains unclear what is driving the government to allow farmers more personal control. The North could be trying to wring more production from its farmers “out of necessity, not out of virtue,” because its centrally planned rationing system is broken, said Victor Cha, a former White House director of Asian affairs. If and when the North’s food shortages ease, he said, the country is likely to retreat.

“Having said that, the more time they have to do this and let the economy function on its own, the better off we all are,” Cha said. “You can say to farmers, ‘Okay, for six months, you can keep 30 percent,’ but the more times you do this, the harder it will be to pull back.”

Few foreign government officials or scholars on North Korea expect a big-bang economic makeover or official announcements about reform.