19 December 2011

Kim Jong Il's death facts and sources UPDATES

I was driving near Taupo when I heard the news about Kim Jong Il's sudden death, and missed turning off.  Perversely you might think, I have a relationship with the DPRK, given it is the most totalitarian regime the world has ever seen - and know people there.  I studied it extensively in the 1990s and travelled there.   I am overwhelmingly joyous about his passing, but am thinking a lot about those who I know are there and who are looking for reform to come, knowing there must be change.  However, I am going to be driven nuts by reporters who are going to get a lot wrong about the place.

Let's get some points clear:

1.  Kim Jong Il was 70 NOT 69.  He was actually born in 1941 in the Soviet Union, not 1942 on "sacred" Mt. Paektu whilst his father was leading the liberation from the Japanese.  The 1942 birth year is a fabrication which appeared in the 1970s in publications.  The sole reason was to match his father, Kim Il Sung's, birth year of 1912.  So when Kim Il Sung turned 60, Kim Jong Il turned 30 etc etc.  The point of his birth in the USSR (near Khabarovsk I believe) is that Kim Il Sung had fled to the country due to the Japanese takeover, along with his mother Kim Jong Suk (who died in 1949 under circumstances that have multiple versions).

2. Kim Jong Un is expected to succeed him, but reality is likely to be quite different.  There is a significant power struggle about to happen (there was one when Kim Il Sung died as his second wife, Kim Song Ae sought to overthrow Kim Jong Il), and the list of members of the National Funeral Committee is very significant (see article here).  Kim Jong Un leads the list, number two is the rather  elderly Chairman of the Supreme People's Assembly Kim Yong Nam, Choe Yong Rim is third, and is Prime Minister and an ally of Kim Jong Il and Kim Jong Un.  Those two are close allies and expected to ensure Kim Jong Un leads.  Ri Yong Ho is number four, and is effectively now de-jure head of the military as a whole, and his ability to ensure loyalty to Kim Jong Un is likely to be critical.  At 69 he is not too old to achieve that, but his name will be one to watch.  Kim Yong-Chun is alongside him and may be expected to be a challenger as head of the army.

3.  Kim Jong Il's closest living relative is his sister Kim Kyong Hui, the most powerful woman in the country.  She may well seek to shadow Kim Jong Un because she is sole remaining issue of Kim Il Sung and Kim Jong Suk.  Kim Jong Il's half sibling Kim Pyong Il is not listed in the funeral committee, and was reportedly in Pyongyang earlier year because his mother- Kim Il Sung's second wife Kim Son Ae, is terminally ill.  He may seek to challenge Kim Jong Un, but has not be around in the country sufficiently to do so.   Kim Pyong Il and Kim Kyong Hui are the two people best placed to mount a civilian challenge of the leadership.

4.  North Korea is not as isolated as it once was.  The elite have mobile phones and are extensively aware of life in the outside world, with DVDs, CDs and other material circulating among the ruling classes.  Yet, the mass of the population do not have a clue, and may think the world is mourning with them.  They haven't the slightest clue of the wealth prosperity and freedom of South Korea.  Internet access is not available to anyone except a tiny elite, satellite TV is only available to that elite and in three hotels in Pyongyang, and it is a crime to own a radio that can receive foreign broadcasts.

5.  He died TWO DAYS AGO, which is astonishing.  It is telling that so much time passed compared to news of the death of his father.  Kim Jong Un will have sought to ensure he was not directly threatened.  However, it will be far more interesting in coming months.

The latest report is that the country is under curfew, under actual visible martial law.

If you want the most useful coverage of events then you will find it hard to beat the following sites:

- Daily NK - Providing the most regular, up to date and informed coverage of events.  In English, but originally Korean.   If you use any single source to follow events in coming weeks, use this.

- North Korea Econ Watch - Russian academic Andrei Lankov's excellent blog on events in the DPRK, with many sources of those who do business, travel and visit there.  Lankov is one of the world's leading DPRK watchers, with some fluency in Korean, as well as English and Russian, and a long history of visiting the place over many years.

- North Korea Leadership Watch - Self explanatory blog by Michael Madden, includes a great Kim Jong Il family tree

North Korea's own state monopoly news agency (no others allowed, absolutely no free speech or independent media or publishing of any kind) the Korean Central News Agency is here in English.

North Korea's international radio station, Voice of Korea in English
More will be added in coming days

UPDATE 1:  No foreign delegations allowed to Kim Jong Il funeral or for mourning.   Big questions regarding existing Western tour groups in the country.

UPDATE 2: TV3's Nightline coverage (New Zealand) is sloppy.  First, Kim Jong Il has NOT been the "Dear Leader" for over 10 years, but rather "Leader".  Secondly, the "military first" policy (Songun) is not "60 years old".  It dates from 1995 although is claimed to have arisen in 1961.

UPDATE 3: Daily NK is clearly managing to get unofficial reports from the DPRK presumably through a mix of sources.  Markets closed, night curfews, people prohibited for being outside.  Particular issues in the town of Musan.

14 December 2011

Norway's butter shortage and "food security"

This SHOULD be a no-brainer.

Norway has adopted the similar kind of nationalist/socialist environmentalist claptrap supported by the Greens.  The idea that trade and agricultural policy should be focused on local supply and "food sovereignty", which of course is just another word for protectionism and rent seeking by farmers.

Norwegian farmers get a lot of that.  Around NZ$400 million a year to Norwegian dairy farmers in price, income and other subsidies.  For that they can't even produce enough to meet domestic demand.  To top that off there is a 29% tariff on imported butter, so Norway already prices imported butter away from its market. 

Yet that's not all.  You might fairly assume subsidising dairy farmers might mean there is more production than would otherwise be the case, and that the lack of demand shouldn't mean that tariffs get in the way of imports.  You're right.  Norway also restricts imports to a quota.  Only 575 tonnes of butter can be imported under its quota with a tariff of 60% on that.

You see the 29% tariff is actually the general tariff it applies, which is meaningless because of the quota.  If there was no quota, the tariff would be 29%, but in actual fact Norway restricts imports of butter and then taxes it.

If there were New Zealand journalists worth their oxygen they would be off to Norway with the Minister of Foreign Trade suggesting a free trade agreement between NZ and Norway to include dairy products (which Norway wont accept, but the media there might raise questions about its ridiculous agricultural trade policies).

There is no need for any country to have a "butter shortage".  After all there isn't a sock shortage or a TV shortage or a light bulb shortage is there?

What the lobbyists wont tell you about the Kyoto Protocol

There are three types of countries that signed up to the Kyoto Protocol (the US is outside and now Canada is too):

-  Annex 1 countries:  Those that commit to reducing their emissions, covering both "industrialised countries" and "countries in transition".  New Zealand and the UK are in this category, along with all other EU Member States, Russia, Japan and others.  Total of 41.  So they all bear the costs of reducing activities that reduce emissions, or must buy emissions allowances, or mitigate their emissions.

- Annex 2 countries:  A subset of Annex 1 countries that also include New Zealand and the UK.  They not only are obliged to reduce emissions, but their taxpayers are required to subsidise the likes of others to reduce emissions.  This includes the "rich" EU Member States, i.e. Greece and Portugal, not Poland and Slovenia. 

- Developing countries: That is everyone else.  They are not obliged to reduce emissions at all, unless Annex 2 countries pay for them to adopt new technologies to allow it.  They can "volunteer" to become Annex 1 countries when they have developed.

The environmental movements don't challenge this.  Yet let's look at who is in the category of developing countries.  These are countries the New Zealand government, both the Clark and now the Key governments, have committed to helping subsidise to gain new technologies.

Qatar - Which has 6.8 times the per capita emissions of New Zealand and 6.2 times that of the UK, with per capita GDP (Purchasing Power Parity basis) 2.5 times that of the UK and 3.3 times that of New Zealand.  Bear in mind Qatar basically earns virtually all of its income from exporting oil, so it can earn money from "selling CO2 emission" then emit as much as it likes, and get money from poorer countries to buy new technologies. Nice.

UAE - Has 4.4 times the per capita emissions of the UK, 4.5 times the per capita emission of New Zealand, with per capita GDP 1.4 times that of the UK and 1.8 times that of New Zealand.  A similar economy to Qatar.

Bahrain, Brunei, Kuwait all have higher per capita emissions that the UK and NZ, and all but Bahrain have higher per capita GDP.   All richer more polluting economies, all making money from selling CO2 emitting energy, all expected to do nothing, all entitled to get taxes from NZ and British taxpayers to dabble in being more environmentally friendly.  Nice that.

China, Brazil and India of course are all classed as developing countries being poorer per capita, despite having significant foreign exchange surpluses and rapidly growing emissions.  You might ask quite why China is owed subsidies from Western taxpayers when it sits on a growing mountain of money it earns from exporting to those people.
A few other countries are classed as "developing" and deserving of subsidies, and able to emit all they wish, yet have HIGHER per capita incomes than New Zealand, such as Singapore, the Bahamas and Israel.

You might ask yourself quite why these little details are seen as acceptable by a government claiming to be looking after your interests.  Why you might have to pay more, whilst the descendants of oil sheikhs and Chinese millionaires need not face anything, and your taxes might even subsidise their dabbling in green technologies.

You might even wonder why nobody asked any of the major political parties those questions.



11 December 2011

What's going on in the EU? Part One - What's good

Finally, the UK government's rejection of a pan-EU treaty to create effectively an EU megastate, has started debate, albeit with many European politicians pointing fingers at British PM David Cameron for not playing ball.

Quite right, it is about time.

The tensions and politics around the EU are complex, so do try to resist the inevitable efforts of journalists across the political spectrum to over-generalise about what is right and wrong about the EU.  It isn't all bad and certainly isn't all good.  The Euro is not the key source of the problems facing the southern European states, but the EU is also not the source of peace in Europe since World War 2.  The EU does have several very good features that have promoted freedom and prosperity in Europe since the 1950s, but it also has carried some that have done the opposite.

What the terrible twosome of Angela Merkel and Nicholas Sarkozy are trying to do is paper over the tensions created by a union and project that has positively protected those governments which have embarked on decades of deficit spending.  It is seeking to combine the political goals of both Germany and France in a new EU - one that does not fundamentally accommodate the economic policies of many EU Member States and which replaces the flawed, limited but still real democratic accountability of Member States with an EU/EC/Council of Ministers led accountability.

In the next few articles I hope to present a step by step explanation of the EU - the good, the bad and the ugly, and present an alternative for the UK, and any other EU Member State that doesn't want to be part of a pact of central control, with socialism running right through it.

To outsiders the EU can look quite marvellous.  After all, if you produce goods in one part of the EU you can sell it anywhere else, with no customs barriers, tariffs or import restrictions.  Well, except for alcohol, tobacco, audio-visual services, literature subject to censorship, oh and quite a few services.  Free trade within Europe has promoted prosperity since the internal barriers to trade started tumbling down in the 1960s, and most recently the massive expansion from 15 to 27 Member by incorporating all of the former Eastern Bloc states, plus Slovenia and three former occupied Soviet Republics, has done wonders to improve competitiveness, create new markets and spur growth.   No Eurosceptics I know of want that to change, except the far left in the union movement and the British National Party.

Free movement of people has produced similar benefits, albeit with greater controversy.  Citizens of any one EU Member State can live and work in any other, creating a massive labour market and massive education market as people live, work, learn wherever they choose.  The controversy has been that this has allowed many from lower income Member States to work in higher income ones undercutting local labour.  For overpriced builders and plumbers in the UK, the arrival of hard working enthusiastic Poles has not been good for them, but it has been good for the Poles and their customers.   

Thirdly, with these measures have come the means for the European Commission to force countries to abide by rules to ensure open borders and competition between countries remains so.  Domestic markets in services such as telecommunications, bus services, banking, electricity, insurance, supermarkets, postal services, airlines and the like have been required to be opened up to create a single European market.   Low cost airlines would not have succeeded in Europe had the likes of Ryanair and Air Berlin not been able to open bases in other countries and fly from wherever to wherever in the EU in competition with national carriers.  Attempts to subsidise, regulate or otherwise interfere with some sectors have faced European Court action.  

If it all stopped there, then I'd be very happy with the EU.  Breaking down barriers and markets, enforcing deregulation and even stopping national governments from offering subsidies to protect domestic businesses (but not if the subsidies are available to any EU businesses) is a good thing.  To be fair, efforts in some of the newer Member States to tackle corruption, organised crime and the like in those countries at government levels have also been positive (although Bulgaria is hardly a model of government without links to organised crime). 

The thing is that you don't have to be in the EU to get most of that. Three European countries are not in the EU, but have free trade and free movement of people with it.  Iceland, Norway and Switzerland all have almost the same freedoms with the EU and each other, as Member States of the EU.  Their own domestic reasons for rejecting EU Membership are unimportant (protect fisheries from subsidised EU competition, protect oil incomes from funding EU transfers to poor countries, protect national sovereignty and independence), but notable for being inconvenient to EUphiles.  The European Free Trade Agreement (EFTA) which paralleled the EU, has provided a treaty bound mechanism to enjoy freedoms within Europe without the bureaucracy or the commitment to fund he EU.  Remember that, because it is important.  There is an alternative to the EU to get most of the benefits of the EU.

The downside of all of this comes with certain obligations which I will write about later.  These are:
- Welfare tourism.  Don't like the housing, health care, education or welfare benefits in your own country within the EU?  Move to another EU Member State and enjoy all it has to offer, without having had to pay for it.
- Fortress Europe.  Try getting goods or services into the EU from outside the EU/EFTA area.  Tariffs, import controls and other mechanisms means the EU has raised walls around itself as much as it has destroyed them internally.
- Common Agricultural and Fisheries Policies.  Call it, how to sustain the grossly inefficient farming practices of France and Spain (and fishing practices of Spain) using British, Dutch and German taxes, whilst impoverishing farmers from poorer countries in Latin America, Africa, Asia and Australia/NZ.   Nothing quite like having European taxpayers subsidising the properties of the British Royal Family though, especially when it is so unaffordable that farmers in the newer Member States are only offered one-third of the equivalent subsidies of those in the West.  There ARE walls within Europe, including the one that means a Greek farmer doing the same as a Bulgarian farmer gets three times the subsidies of the Bulgarian one.
- EU common regulatory framework.  The number of laws Member States must pass to meet EU wide obligations on everything from labour laws to protecting "human rights" (which are not all bad to be fair).  Micro-managing domestic legislation to iron everyone flat.
- Joining the EURO.  Other than Denmark and the UK, other Member States joined or are committed to joining the EURO.  That's a whole other story, for although it is much maligned, it is more a problem for being a transnational fiat currency than being a single currency.   Think of why Greece felt it could borrow endlessly from a high value low interest rate currency that was largely supported by German economic productivity.
- EU vanity megaprojects.  The EU has pursued more than a few large scale multi-billion Euro vanity projects to put Europe on a level with the US and other very large economies.  These have all proven to be wealth destroying political projects driven mostly by the Franco/Latin bloc of countries seeking to outdo the US.
- EU wealth transfers.  The massive set of subsidies, funds and loans from richer EU Member States to poorer ones, to lift them up to wider EU income levels without actually making them be more productive and to buy subservience from relatively low tax, open, ex. communist bloc countries to accept the socialism promoted by France and Germany
- EU arrogance.  Time and time again the European Commission and those pushing the EU project have implicitly recognised they could never get consent for the project from voters directly, so have resisted referenda or even making the European Commission or Council accountable to the European Parliament (which cannot actually initiate new laws itself).  If voters say no, the EU expects them to try again and give the right answer.  The entire project reeks of bureaucratic insistence of its own superiority over its subjects.  Those who reject what it wants are wrong and must be made to submit.   Worst, those who reject the EU are painted as wanting out of everything, as being nationalistic, narrow minded, parochial, even risking war and conflict.

In a later article I will also write about why things are the way they are, and what national interests and drivers motivate the biggest players, but also why it should be possible for the far more numerous others to get things to change, if they weren't all being bribed implicitly by the system that will ultimately harm their interests. 

02 December 2011

Know someone with a dog that wont leave your leg alone?

After a week or so of unbridled seriousness, some humour - except this item exists.

The perfect present has arrived. 

If you are easily offended by sexual material don't click and don't read on.  This isn't suitable for children, or those who prefer the mating habits of animals


Not a present you want in view of house guests, children, or anyone excessively sensitive.  

Not a present you want kept outside so any Tom, Dick or Rover can treat it as the town bike.

Not a present for someone who wont wash the "pink hole".

Not a present for someone who thinks such gifts for pets are a mark of the decline of civilisation.

Wait for the first owner to paint eyes and a smile on the toy, or dress it and wonder why it is no longer interesting to a real dog.

Wait for the first dog to tweet that Snoopy doesn't look how he does in cartoons.

Wait for the first comedian to  use it as a prop in stand up.  

Wait for the first animal rights activist to claim that castration of dogs should be banned, as they can be given one of these.

Wait for the first animal rights activist who will claim that anyone whose dog (not bitch) doesn't have a partner and doesn't have one of these, is having his rights infringed.  

Wait for the first A & E centre or fire brigade call from the jackass who decided to have a go himself and got stuck. 

Wait for the first images of someone actually doing that seeping its way online, as someone will somehow feel proud of what he did, in multiple positions.

Wait for the feminist animal rights activist who demands an equivalent toy for bitches.

Wait for the feminist animal rights activist who demands to know why there is only one hole.

Wait for the gay animal rights activist who demands that toys get made for gay dogs too.

Wait for the African-American rights activist who wants to know why the white poodle is humping the big black toy.  

Wait for the post-graduate thesis paper written on why the manufacturer wisely chose the smaller toy to be white and the larger one is black, and how that reflects changes in capitalism's recognition of the sensitivities created among African-American communities over structural inequalities, perceptions of subjugation, racism, sexual stereotyping, and sexist portrayals of black women.

Wait for the cat lovers who laugh that anyone thinking of making one for cats has never encountered a cat.