Development of External Economic Relations in a Multilateral Way is an Important External Economic Policy of the DPRK

 2016.3.29.

Under the wise leadership of the great leaders, the external economic exchanges, including trade and investment, have been promoted systematically, and there have been subsequant growth in the organizations involved in foreign trade, equity joint venture and contractual joint venture in several branches of national economy. Diversified external economic relations with many countries of the world have brought about remarkable success in building an economically powerful nation and enhancing people's living standard.

The respected Comrade Kim Jong Un pointed out that the development of external economic relations in a multilateral way is an important task for building an economically powerful nation and enhancing people's living standard on the basis of scientific analysis of the present situation of our country and the trends in the world economic development.

The respected Comrade Kim Jong Un said:

"We should foster external economic relations in a multilateral way and accelerate the projects for economic development zones, including the Wonsan-Mt Kumgang international tourism zone."

Development of external economic relations in a multilateral way as one of the government policies is being considered more important at present in our coutnry. It is accounted for as follows:

First, a sure guarantee has been laid to concentrate human and material resources of the country on the building of an economically powerful nation and improvement of people's living standard, as well as to expand and develop economic relations with the other countries of the world.

We successfully put "Guangmyongsong–№.2" onto its orbit on April 5, 2009, following the successful launch of "Guangmyongsong–№.1" on August 31, 1998. And there was another amazing event that happened in our country; we succeeded again in launching "Guangmyongsong №.3-2", a satellite also designed and made for peaceful purpose.

All these were important events that provided the opportunities to make clearer the position of our Republic in the world and demonstrate dauntless spirit of our people who are forwarding with full force, smashing any autocracy and arbitrary decisions of hostile forces.

Many countries in the world have come to recognize our science and technology that reached the world level and the powerful war-restraint force of our country; they begin to pay great attention to improving a relation with our country.

In the past, some countries with inveterate enmity against the DPRK tried to reject the relations with our country, not only political and diplomatic but also economic and commercial, just following the hostile policy of the US government towards our Republic.

Today, however, many countries, and even those that call themselves "great countries", admit our strong military power and demand that the USA and Europe provide a political security to Korea.

Thus, many countries of the world treat our country with new appreciative attitude, the country that has won victory after victory, advancing along the road of independence, self-reliance and self-defense without swaying at least at the maneuvers of persistent military invasion and isolation and stifling by the US and other hostile forces.

From the beginning of the new century up to now, our country has achieved great political and diplomatic victory by establishing diplomatic relations with many countries including United Kingdom, Germany, Spain, Italy, Austria, Sweden, Norway, Finland, Denmark, Switzerland, Luxembourg, Poland, Romania, Hungary and Canada.

This provides favourable condition for us to focus on economic construction and improvement of people's living standard and to realize our economic interests by expanding and developing external economic relations with many countries of the world.

Seeing with their own eyes the reality of Juche Korea today, the country with firm political and military foundation for economic construction and improvement of people's living and also for multilateral development of external economic relations, our people and the world progressive people are expressing admirations for the great leader Comrade Kim Jong Il who made our country a strong political and military power thorough his Songun revolutionary leadership, without a moment's sleep or rest.

Second, many organizations in the national economy have more favoubable conditions for their external economic activities than ever before.

Today, the enterprises in our country have the legal rights to conduct foreign trade, equity joint venture and contractual joint venture independently and creatively to get funds, raw materials and machinery necessary for normalization of production and expanded reproduction.

These rights allow the enterprises to export to and import from individuals and organizations of other countries or to establish and run the equity joint ventures or contractual joint ventures.

The enterprises of our country can exerice their rights in making contracts for foreign trade and joint ventures, creating bases for export, interview with foreigners, international communication, sales of products, international settlement and income distribution in proportion to percentage of investment, etc,.

The right of foreign trade and joint ventures given to individual enterprises in our country is one of actual management rights granted to enterprises under state ownership and is exercised in realizing both interests of state and enterprise under the unified guidance and control of the state for external economic affairs.

These rights are given to the business-accounting bodies in production sector so that they can solve by themselves the problems of funds, raw materials and machinery necessary for their production and construction.

This led to the increase in the number of people involved in foreign affairs and the expansion of areas for external activities.

Third, the multilateral development of external economic relations is an important condition for sweeping away economic sanctions and blockade imposed on our Republic by the hostile forces.

The maneuvers of hostile forces against our country are not merely limited to the military pressure and provocation. The hostile forces including the USA fear, of course, our greatest military power, but they are, in fact, more afraid of thunder-like cheers for the Workers' Party of Korea that come out of the people's hearts in appreciation of the improvement in their living and great upsurgy in the building of economically powerful nation in our country. The USA and its followers, therefore, are maneuvering in all directions to stop our people's struggle for building an economically powerful nation in the peaceful environment. They have so far been hanging upon the maneuvers of economic sanction and blockade in order to economically suffocate our country.

The hostile policy of the USA towards our country is not a recent product but has its root as long ago as more than half a century and it is becoming more and more persistent and vicious.

When the USA provoked a war in Korea on June 25, 1950, it forced the UN Security Council to pass the resolution in which our Republic was defined as "aggressor", and completely stopped an export to our country through, what is called, "Export Control Act" adopted on June 28, 1950. On December 17 in the same year, the USA declared our Republic "the hostile state threatening the security of the USA" and blcked the economic relations with our country by invoking the "Trade With the Enemy Act". In 1951, it conceived the "Trade Agreement Extension Act", by which to apply tariffs 10 times higher to any goods traded with our Republic for the only reason that our country is a socialist state.

In the 1960s, the USA completely blocked all the channels for trade with our country, not only in the level of governments but also individual enterprises and banks, by invoking the "External Aids Act"; in the 1970s and 1980s, through the "Trade Act", "Exteranl Economy Emergency Measure Act", and "Export and Import Bank Act", it expanded sanctions against us to all fields including trade, investment, insurance, trust, loan and lease. The USA also branded us the "terror-support state" and mobilized all kinds of laws such as "Export Control Act", "External Aids Act", "Weapons Export Control Act" and "International Financcial Organizations Act" to strengthen the level of sanction against us. Starting from the 1990s, the USA began to speak loudly about "Nuclear Development" and brought the problem of special inspection on our nuclear facilities to the UN Security Council by instigating International Atomic Energy Agency.

Entering the 2000s, the USA completely canceled the Korea–US Geneva Agreement, branding our country "axis of evil", and "advanced base of despotism", and ran madly about overall sanctions against us.

The US and its dependent forces fabricated a gangster-like resolution for sanction against the Republic, the resolution No.1718 and No.1874, at United Nations Security Council in 2006 and 2009 respectively, and after that even illegalized the right of launching a peaceful satellite in our country by fabricating a UN Security Council resolution on sanction against us following the successful launching of "Guangmyongsong No.3-2" on December, 2012.

Under such conditions that our hostile forces make serious barriers against building economically powerful nation and improving people's living standard, we should crash sanctions and blockade maneuvers against our Republic by strengthening further the economic relations and co-operations with other countries of the world.

When we develop external economic relations in a multilateral way by exploding an encircling net against Korea in all regions and countries, we could provide a convenient conditions and environment for building an economically powerful nation and improving people's living standard.

Four, the trends of multiporarization of the world is becoming stronger as the USA is losing its position as a "coordinator of the world " and its downfall is being accelerated.

Today, the USA, that has boasted itself as "playing a role of a coordinator" in the world is now declining rapidly and being pushed out to the back, which is now the highlighted point for debate among the world public.

One reason for this change in the position of the USA is political and cultural decay within the country.

The decay in the USA includes the vicious "social cancers" such as racial discrimination, frauds and trickeries of political organizations, crimes, divorce, infant pregnancy, homosexual marriage and abortion, all of which are characteristic of only the USA where it is hard to find sound reason as befits human society. Because of this decay, the US is becoming unable to give its influence on the world-wide problems.

Another reason is an economic decomposition of the US.

At present, the unemployment rate in the US is over 9% and the government debt reaches 100% of GDP, so the US is sinking down into economic straits unprecedented in its history. This is just a result of economic decomposition in the US.

The decline of the US economy is inevitable because it depends greatly on the bubble capital which is a hotbed for decay. The US economy has maintained depending on swelling of bubble capital, but when Standard & Poors lowered the creditstanding of the US long-term government bonds from AAA to AA+ on August 5, 2011, the investor credit fell fast and now it is faced with the instability of the value of its risk assets.

The scientific and technical advantages boasted by the US itself show no hope because they were achieved by the brains of foreigners the US bought.

This means that the American style of capitalism is out of date and the US has already lost its control and command over the world economy.

With the decline of American economy and the loss of its position as a "coordinator" of the world economy, the "unipolarization" by the US is becoming meaningless and multipolarization becomes more meaningful day by day.

The most intensive expression of mutipolarity can be seen from the fact that the days of G7 with the US as its core are umbered, i.e. their monopolistic control of the world economy is coming to an end.

"Eurasia Group", one of the consulting organizations in the US, suggested "G-Zero", an expression meaning the first risk on the list of "10 Big Risks in the World" (2011), the list issued at the beginning of each year. This means that international organizations which are said to coordinate the interests of the countries, including G7, IMF, World Bank, and so on, and the cooperation between the states via those organizations are in unsubstantial situation. This, in other words, shows that the era when the US tries to realize its own interest through the "unipolarization" had gone.

For example, G7 tried to maintain the world economic order and to coordinate the interests of all countries of the world in the past, but today it is G20 including newly emerging economic powers that has taken its place. At present, the newly emerging economic powers are actually holding higher position and having louder voice at IMF and World Bank. Through regulation at IMF, a share of voting for developed countries decreased from previous 65.4% to the present 57.7%, but that for developing countries increased from previous 34.5% to 42.3%. After the regulation, the shares of voting for India, Russia and Brazil increased up to 2.751%, 2.706%, 2.316% respectively, so they became one of the top 10 shareholders at IMF. At the World Bank, the rights of voting for developing countries reached to 47.19% with an increase of 3.13%. The rights of voting for Brazil and India increased from 2.07%, 2.78% to 2.24%, 2.91% respectively, but those for the US and Japan decreased from 16.36%, 7.85% to 15.85%, and 6.84% respectively, and for both United Kingdom and France reduced from 4.30% to 3.75%, for Germany, decreased from 4.48% to 4.00%.

Another expression of mutipolarity is seen from the fact that the position held by newly emerging countries in the world economy becomes higher and they have greater influence on the international issues. For example, Brazil is No.8, rising up from No. 9, Russia No.10 up from NO.16, and India No.11 up from NO.12.

Members of G8 and 5 developing countries (China, India, Brazil, South Africa, and Mexico) are forming and using a talk system and this reflects the change in the position of developing countries on the basis of the success in their economic development. It shows that the developed countries have to recognize the influence of newly emerging developing countries and solve the world economy problems by discussing with the developing countries.

All these show that the "unipolarization" by the US is unrealistic now, and the objective conditions have matured for many countries to make and put into practice their own objectives according to their strategic interests.

Development of external economic relations in a multilateral way is a fully realistic external economic policy since it reflects the changes in subjective and objective factors for expanding and developing many types of economic exchnges including trade, investment and exchange in science and technology.