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We have been pretty skeptical about the DPRK’s recent efforts to attract foreign investment. Rajin-Sonbong (now Rason) has a checkered history, Kaesong has been a political football, and some of the plans on offer for new zones strike us grandiose. Even the Chinese appear to have difficulties, as both we and others have shown. And then there is the small problem of the country’s cartoonish military posture.
Well, maybe we are just too faint of heart. Less constrained by geopolitics, the Europeans have been more willing to put their toes in the water. We recently heard from a Dutch group, GPI Consultancy that is drumming up business. Their pitch:
“In the current financial and economic situation, companies face many challenges. They must cut costs, develop new products and find new markets. In these fields, North-Korea might be an interesting option. It is opening its doors to foreign enterprises, the labor costs are the lowest of Asia, and its skilled labor is of high quality. It established free trade zones to attract foreign investors and there are several sectors, including textile industry, agro business, fishing, shipbuilding, logistics, mining and Information Technology that can be considered for trade and investment. Although the Cold War is not ended, a growing number of European firms are exploring the country - for example companies currently producing in China, and where the wages are rising fast. And despite the deteriorating relations with South-Korea, the output of the South-Korean factories in North-Korea rose last year with 26%. The Chinese exports to North-Korea grew with 50% and an Egyptian provider launched a successful mobile phone service.”
Their report on a 2009 mission has pictures of a new Air Koryo jet, a Philips computer monitor at an IT firm and—yes—a cooler stocked with Heineken at a “local restaurant.” Proost!
