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In addition to Shin, the author interviewed a number of people about political corruption in North Korea. One notable example is the trader who took part in a state-run global insurance fraud, making successful claims for losses caused by natural disasters and industrial accidents. Reinsurance companies eventually realized that they were being conned, but, in the meantime, large quantities of money were being funneled directly to the North Korean government.
Ironically, North Korea was hit by a severe famine in the 1990s and suffered widespread poverty as a result. The country’s recovery relied significantly on foreign aid, despite the government’s proclamations of self-sufficiency. However, the North Korean government demanded that they have complete control over the distribution of this aid. The foreign doors were not happy about this arrangement but had little choice but to capitulate given the severity of the situation. However, their concerns were apparently well-founded, as a significant percentage of aid did not reach the general population. According to scholars and aid agencies, approximately 30 percent was stolen by “bureaucrats, party officials, army officers and other well-placed government elites” (86).
Famine also prompted the government to (reluctantly) provide incentives to encourage farming. To this end, private farming on small plots of land became legal in 2002.
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