In a resilient North Korea, can sanctions work?

As the US Congress passed a new set of sanctions on North Korea this week, South Korea shut down the last symbol of inter-Korean economic cooperation and the United Nations Security Council discussed its own measures to punish the North for what it claimed was its first H-bomb test and subsequent rocket launch, people in Pyongyang were literally dancing in the streets.

Few countries have endured sanctions as deep and longstanding as the Democratic People’s Republic of Korea. But somehow life goes on. 

“Sanctions and pressure will never work on the DPRK, which has been exposed to all kinds of sanctions and blockade for decades,” its state-run Korean Central News Agency wrote in an editorial last week. “Despite the enemies’ ever-increasing threats and sanctions, the foundation of the Juche self-supporting economy of the DPRK has been further consolidated and its nuclear deterrence for defending the sovereignty has also been bolstered on a daily basis.” Juche is the North’s policy of self-reliance.

Despite the bluster, previous sanctions against the North over its nuclear program have taken a toll. Power outages, partly due to the impact of sanctions and partly because of the way the North allocates its scarce resources, are taken for granted. Hospitals, schools and homes are often almost as cold inside as the winter is outside.

To most international investors, banks and even aid organizations, North Korea is like kryptonite. It’s illegal in many cases for them to get involved, and even if they’re willing to accept the risks of dealing with an unpredictable autocracy, their images could be damaged by being associated with the North. And yet, North Koreans seem almost blase about sanctions, even as more appear to be headed their way. That may be because at least some of them still manage to get what they want. Sanctions intended to deprive North Korea of luxury goods, for example, have been around for years. Even so, for anyone with the money — and there’s good reason to believe their numbers are growing — it’s easy to find a bottle of $600 Remy Martin cognac in Pyongyang, to buy an ornately wrapped gift bag filled with the best brand-name cosmetics from Japan, or to stock up on Pampers diapers and Heinz ketchup. It’s not uncommon to see a young couple in a cafe in Pyongyang who would not look out of fashion in Seoul. Children dressed in brightly colored knitted hats and jackets are evidence that many parents have at least enough wherewithal to fulfill their desire to dote.

While far less upscale, the shelves at the handful of department stores in Pyongyang are well-stocked these days, though the selection of goods available at any given moment can vary widely. Many have grocery floors with fruit and vegetable corners, baked goods and fresh meat. Street stalls selling everything from apples to shrimp chips and cookies from Vietnam are commonplace.