Chapter 51

Overview: More than 90% of this command economy is socialized; agricultural land is collectivized; and state-owned industry produces 95% of manufactured goods. State control of economic affairs is unusually tight even for a Communist country because of the small size and homogeneity of the society and the strict rule of KIM Il-song and his son, KIM Chong-il. Economic growth during the period 1984-88 averaged 2-3%, but output declined by 3-5% annually during 1989-92 because of systemic problems and disruptions in socialist-style economic relations with the former USSR and China. In 1992, output dropped sharply, by perhaps 10-15%, as the economy felt the cumulative effect of the reduction in outside support. The leadership insisted in maintaining its high level of military outlays from a shrinking economic pie. Moreover, a serious drawdown in inventories and critical shortages in the energy sector have led to increasing interruptions in industrial production. Abundant mineral resources and hydropower have formed the basis of industrial development since WWII. Output of the extractive industries includes coal, iron ore, magnesite, graphite, copper, zinc, lead, and precious metals. Manufacturing is centered on heavy industry, including military industry, with light industry lagging far behind. Despite the use of improved seed varieties, expansion of irrigation, and the heavy use of fertilizers, North Korea has not yet become self-sufficient in food production. Five consecutive years of poor harvests, coupled with distribution problems, have led to chronic food shortages. North Korea remains far behind South Korea in economic development and living standards. National product: GNP - purchasing power equivalent - $22 billion (1992 est.) National product real growth rate: -10% to -15% (1992 est.) National product per capita: $1,000 (1992 est.) Inflation rate (consumer prices): NA% Unemployment rate: NA% Budget: revenues $18.5 billion; expenditures $18.4 billion, including capital expenditures of $NA (1992) Exports: $1.3 billion (f.o.b., 1992 est.) commodities: minerals, metallurgical products, agricultural and fishery products, manufactures (including armaments) partners: China, Japan, Russia, South Korea, Germany, Hong Kong, Mexico Imports: $1.9 billion (f.o.b., 1992 est.) commodities: petroleum, grain, coking coal, machinery and equipment, consumer goods partners: China, Russia, Japan, Hong Kong, Germany, Singapore External debt: $8 billion (1992 est.) Industrial production: growth rate -15% (1992 est.) Electricity: 7,300,000 kW capacity; 26,000 million kWh produced, 1,160 kWh per capita (1992)

*Korea, North, Economy

Industries: machine building, military products, electric power, chemicals, mining, metallurgy, textiles, food processing Agriculture: accounts for about 25% of GNP and 36% of work force; principal crops - rice, corn, potatoes, soybeans, pulses; livestock and livestock products - cattle, hogs, pork, eggs; not self-sufficient in grain; fish catch estimated at 1.7 million metric tons in 1987 Economic aid: Communist countries, $1.4 billion a year in the 1980s Currency: 1 North Korean won (Wn) = 100 chon Exchange rates: North Korean won (Wn) per US$1 - 2.13 (May 1992), 2.14 (September 1991), 2.1 (January 1990), 2.3 (December 1989), 2.13 (December 1988), 0.94 (March 1987) Fiscal year: calendar year

*Korea, North, Communications

Railroads: 4,915 km total; 4,250 km 1.435-meter standard gauge, 665 km 0.762-meter narrow gauge; 159 km double track; 3,084 km electrified; government owned (1989) Highways: about 30,000 km (1991); 92.5% gravel, crushed stone, or earth surface; 7.5% paved Inland waterways: 2,253 km; mostly navigable by small craft only Pipelines: crude oil 37 km Ports: primary - Ch'ongjin, Hungnam (Hamhung), Najin, Namp'o, Wonsan; secondary - Haeju, Kimchaek, Kosong, Sinuiju, Songnim, Sonbong (formerly Unggi), Ungsang Merchant marine: 80 ships (1,000 GRT and over) totaling 675,666 GRT/1,057,815 DWT; includes 1 passenger, 1 short-sea passenger, 2 passenger-cargo, 67 cargo, 2 oil tanker, 5 bulk, 1 combination bulk, 1 container Airports: total: 55 usable : 55 (est.) with permanent-surface runways: about 30 with runways over 3,659 m: fewer than 5 with runways 2,440-3,659 m: 20 with runways 1,220-2,439 m: 30 Telecommunications: broadcast stations - 18 AM, no FM, 11 TV; 300,000 TV sets (1989); 3,500,000 radio receivers; 1 Indian Ocean INTELSAT earth station

*Korea, North, Defense Forces

Branches: Korean People's Army (including the Army, Navy, Air Force), Civil Security Forces Manpower availability: males age 15-49 6,567,684; fit for military service 3,996,893; reach military age (18) annually 208,132 (1993 est.) Defense expenditures: exchange rate conversion - about $5 billion, 20-25% of GNP (1991 est.); note - the officially announced but suspect figure is $1.9 billion (1991) 8% of GNP (1991 est.)

*Korea, South, Geography

Location: Northeast Asia, between North Korea and Japan Map references: Asia, Standard Time Zones of the World Area: total area: 98,480 km2 land area: 98,190 km2 comparative area: slightly larger than Indiana Land boundaries: total 238 km, North Korea 238 km Coastline: 2,413 km Maritime claims: continental shelf: not specified territorial sea: 12 nm; 3 nm in the Korea Strait International disputes: Demarcation Line with North Korea; Liancourt Rocks claimed by Japan Climate: temperate, with rainfall heavier in summer than winter Terrain: mostly hills and mountains; wide coastal plains in west and south Natural resources: coal, tungsten, graphite, molybdenum, lead, hydropower Land use: arable land: 21% permanent crops: 1% meadows and pastures: 1% forest and woodland: 67% other: 10% Irrigated land: 13,530 km2 (1989) Environment: occasional typhoons bring high winds and floods; earthquakes in southwest; air pollution in large cities

*Korea, South, People

Population: 44,613,993 (July 1993 est.) Population growth rate: 1.05% (1993 est.) Birth rate: 15.72 births/1,000 population (1993 est.) Death rate: 6.16 deaths/1,000 population (1993 est.) Net migration rate: 0.91 migrant(s)/1,000 population (1993 est.) Infant mortality rate: 22.5 deaths/1,000 live births (1993 est.) Life expectancy at birth: total population: 70.29 years male: 67.1 years female: 73.68 years (1993 est.) Total fertility rate: 1.64 children born/woman (1993 est.) Nationality: noun: Korean(s) adjective: Korean Ethnic divisions: homogeneous (except for about 20,000 Chinese) Religions: Christianity 48.6%, Buddhism 47.4%, Confucianism 3%, pervasive folk religion (Shamanism), Chondogyo (religion of the heavenly way) 0.2% Languages: Korean, English widely taught in high school Literacy: age 15 and over can read and write (1990) total population: 96% male: 99% female: 94% Labor force: 19 million by occupation: services and other 52%, mining and manufacturing 27%, agriculture, fishing, forestry 21% (1991)

*Korea, South, Government

Names: conventional long form: Republic of Korea conventional short form: South Korea local long form: Taehan-min'guk local short form: none Abbreviation: ROK Digraph: KS Type: republic Capital: Seoul Administrative divisions: 9 provinces (do, singular and plural) and 6 special cities* (jikhalsi,, singular and plural); Cheju-do, Cholla-bukto, Cholla-namdo, Ch'ungch'ong-bukto, Ch'ungch'ong-namdo, Inch'on-jikhalsi*, Kangwon-do,, Kwangju-jikhalsi*,, Kyonggi-do, Kyongsang-bukto, Kyongsang-namdo, Pusan-jikhalsi*, Soul-t'ukpyolsi*, Taegu-jikhalsi*, Taejon-jikhalsi*, Independence: 15 August 1948 Constitution: 25 February 1988 Legal system: combines elements of continental European civil law systems, Anglo-American law, and Chinese classical thought National holiday: Independence Day, 15 August (1948) Political parties and leaders: majority party: Democratic Liberal Party (DLP), KIM Young Sam, president opposition: Democratic Party (DP), LEE Ki Taek, executive chairman; United People's Party (UPP), CHUNG Ju Yung, chairman; several smaller parties note: the DLP resulted from a merger of the Democratic Justice Party (DJP), Reunification Democratic Party (RDP), and New Democratic Republican Party (NDRP) on 9 February 1990 Other political or pressure groups: Korean National Council of Churches; National Democratic Alliance of Korea; National Federation of Student Associations; National Federation of Farmers' Associations; National Council of Labor Unions; Federation of Korean Trade Unions; Korean Veterans' Association; Federation of Korean Industries; Korean Traders Association Suffrage: 20 years of age; universal Elections: President: last held on 18 December 1992 (next to be held NA December 1997); results - KIM Young Sam (DLP) 41.9%, KIM Dae Jung (DP) 33.8%, CHUNG Ju Yung (UPP) 16.3%, other 8%

*Korea, South, Government

National Assembly: last held on 24 March 1992; results - DLP 38.5%, DP 29.2%, Unification National Party (UNP) 17.3% (name later changed to UPP), other 15%; seats - (299 total) DLP 149, DP 97, UNP 31, other 22; the distribution of seats as of May 1993 was DLP 167, DP 95, UPP 14, other 23 note: the change in the distribution of seats reflects the fluidity of the current situation where party members are constantly switching from one party to another Executive branch: president, prime minister, two deputy prime ministers, State Council (cabinet) Legislative branch: unicameral National Assembly (Kuk Hoe) Judicial branch: Supreme Court Leaders: Chief of State: President KIM Young Sam (since 25 February 1993) Head of Government: Prime Minister HWANG In Sung (since 25 February 1993); Deputy Prime Minister LEE Kyung Shick (since 25 February 1993) and Deputy Prime Minister HAN Wan Sang (since 25 February 1993) Member of: AfDB, APEC, AsDB, CCC, COCOM (cooperating country), CP, EBRD, ESCAP, FAO, G-77, GATT, IAEA, IBRD, ICAO, ICC, ICFTU, IDA, IFAD, IFC, ILO, IMF, IMO, INMARSAT, INTELSAT, INTERPOL, IOC, IOM, ISO, ITU, LORCS, OAS (observer), UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WIPO, WMO, WTO Diplomatic representation in US: chief of mission: Ambassador HAN Seung Soo chancery: 2370 Massachusetts Avenue NW, Washington, DC 20008 telephone: (202) 939-5600 consulates general: Agana (Guam), Anchorage, Atlanta, Chicago, Honolulu, Houston, Los Angeles, New York, San Francisco, and Seattle US diplomatic representation: chief of mission: (vacant), Charge d'Affaires Raymond BURGHARDT embassy: 82 Sejong-Ro, Chongro-ku, Seoul, AMEMB, Unit 15550 mailing address: APO AP 96205-0001 telephone: [82] (2) 732-2601 through 2618 FAX: [82] (2) 738-8845 consulate: Pusan Flag: white with a red (top) and blue yin-yang symbol in the center; there is a different black trigram from the ancient I Ching (Book of Changes) in each corner of the white field

*Korea, South, Economy

Overview: The driving force behind the economy's dynamic growth has been the planned development of an export-oriented economy in a vigorously entrepreneurial society. Real GNP increased more than 10% annually between 1986 and 1991. This growth ultimately led to an overheated situation characterized by a tight labor market, strong inflationary pressures, and a rapidly rising current account deficit. As a result, in 1992, focusing attention on slowing the growth rate of inflation and reducing the deficit is leading to a slow-down in growth. The economy remains the envy of the great majority of the world's peoples. National product: GNP - purchasing power equivalent - $287 billion (1992 est.) National product real growth rate: 5% (1992 est.) National product per capita: $6,500 (1992 est.) Inflation rate (consumer prices): 4.5% (1992 est.) Unemployment rate: 2.4% (1992 est.) Budget: revenues $48.4 billion; expenditures $48.4 billion, including capital expenditures of $NA (1993) Exports: $76.8 billion (f.o.b., 1992) commodities: textiles, clothing, electronic and electrical equipment, footwear, machinery, steel, automobiles, ships, fish partners: US 24%, Japan 15% (1992) Imports: $81.7 billion (c.i.f., 1992) commodities: machinery, electronics and electronic equipment, oil, steel, transport equipment, textiles, organic chemicals, grains partners: Japan 24%, US 22% (1992) External debt: $42 billion (1992) Industrial production: growth rate 5.0% (1992 est.); accounts for about 45% of GNP Electricity: 24,000,000 kW capacity; 105,000 million kWh produced, 2,380 kWh per capita (1992) Industries: textiles, clothing, footwear, food processing, chemicals, steel, electronics, automobile production, shipbuilding Agriculture: accounts for 8% of GNP and employs 21% of work force (including fishing and forestry); principal crops - rice, root crops, barley, vegetables, fruit; livestock and livestock products - cattle, hogs, chickens, milk, eggs; self-sufficient in food, except for wheat; fish catch of 2.9 million metric tons, seventh-largest in world Economic aid: US commitments, including Ex-Im (FY70-89), $3.9 billion; non-US countries (1970-89), $3.0 billion Currency: 1 South Korean won (W) = 100 chon (theoretical)

*Korea, South, Economy

Exchange rates: South Korean won (W) per US$1 - 791.99 (January 1993), 780.65 (1992), 733.35 (1991), 707.76 (1990), 671.46 (1989), 731.47 (1988) Fiscal year: calendar year

*Korea, South, Communications

Railroads: 3,091 km total (1991); 3,044 km 1.435 meter standard gauge, 47 km 0.610-meter narrow gauge, 847 km double track; 525 km electrified, government owned Highways: 63,201 km total (1991); 1,551 expressways, 12,190 km national highway, 49,460 km provincial and local roads Inland waterways: 1,609 km; use restricted to small native craft Pipelines: petroleum products 455 km Ports: Pusan, Inchon, Kunsan, Mokpo, Ulsan Merchant marine: 431 ships (1,000 GRT or over) totaling 6,689,227 GRT/11,016,014 DWT; includes 2 short-sea passenger, 138 cargo, 61 container, 11 refrigerated cargo, 9 vehicle carrier, 45 oil tanker, 12 chemical tanker, 13 liquefied gas, 2 combination ore/oil, 135 bulk, 2 combination bulk, 1 multifunction large-load carrier Airports: total: 103 usable: 93 with permanent-surface runways: 59 with runways over 3,659 m: 0 with runways 2,440-3,659 m: 22 with runways 1,220-2,439 m: 18 Telecommunications: excellent domestic and international services; 13,276,449 telephone subscribers; broadcast stations - 79 AM, 46 FM, 256 TV (57 of 1 kW or greater); satellite earth stations - 2 Pacific Ocean INTELSAT and 1 Indian Ocean INTELSAT

*Korea, South, Defense Forces

Branches: Army, Navy, Marine Corps, Air Force Manpower availability: males age 15-49 13,286,969; fit for military service 8,542,640; reach military age (18) annually 432,434 (1993 est.) Defense expenditures: exchange rate conversion - $12.2 billion, 3.6% of GNP (1993 est.)

*Kuwait, Geography

Location: Middle East, at the head of the Persian Gulf, between Iraq and Saudi Arabia Map references: Africa, Middle East, Standard Time Zones of the World Area: total area: 17,820 km2 land area: 17,820 km2 comparative area: slightly smaller than New Jersey Land boundaries: total 464 km, Iraq 242 km, Saudi Arabia 222 km Coastline: 499 km Maritime claims: continental shelf: not specified territorial sea: 12 nm International disputes: in April 1991 Iraq officially accepted UN Security Council Resolution 687, which demands that Iraq accept the inviolability of the boundary set forth in its 1963 agreement with Kuwait, ending earlier claims to Bubiyan and Warbah Islands, or to all of Kuwait; the 20 May 1993 final report of the UN Iraq/Kuwait Boundary Demarcation Commission was welcomed by the Security Council in Resolution 833 of 27 May 1993, which also reaffirmed that the decisions of the commission on the boundary were final, bringing to a completion the official demarcation of the Iraq-Kuwait boundary; Iraqi officials still make public statements claiming Kuwait; ownership of Qaruh and Umm al Maradim Islands disputed by Saudi Arabia Climate: dry desert; intensely hot summers; short, cool winters Terrain: flat to slightly undulating desert plain Natural resources: petroleum, fish, shrimp, natural gas Land use: arable land: 0% permanent crops: 0% meadows and pastures: 8% forest and woodland: 0% other: 92% Irrigated land: 20 km2 (1989 est.) Environment: some of world's largest and most sophisticated desalination facilities provide most of water; air and water pollution; desertification Note: strategic location at head of Persian Gulf

*Kuwait, People

Population: 1,698,077 (July 1993 est.) Population growth rate: 8.67% (1993 est.) Birth rate: 30.29 births/1,000 population (1993 est.) Death rate: 2.39 deaths/1,000 population (1993 est.) Net migration rate: 58.74 migrant(s)/1,000 population (1993 est.) Infant mortality rate: 13.1 deaths/1,000 live births (1993 est.) Life expectancy at birth: total population: 74.62 years male: 72.47 years female: 76.87 years (1993 est.) Total fertility rate: 4.11 children born/woman (1993 est.) Nationality: noun: Kuwaiti(s) adjective: Kuwaiti Ethnic divisions: Kuwaiti 45%, other Arab 35%, South Asian 9%, Iranian 4%, other 7% Religions: Muslim 85% (Shi'a 30%, Sunni 45%, other 10%), Christian, Hindu, Parsi, and other 15% Languages: Arabic (official), English widely spoken Literacy: age 15 and over can read and write (1990) total population: 73% male: 77% female: 67% Labor force: 566,000 (1986) by occupation: services 45.0%, construction 20.0%, trade 12.0%, manufacturing 8.6%, finance and real estate 2.6%, agriculture 1.9%, power and water 1.7%, mining and quarrying 1.4% note: 70% of labor force was non-Kuwaiti (1986)

*Kuwait, Government

Names: conventional long form: State of Kuwait conventional short form: Kuwait local long form: Dawlat al Kuwayt local short form: Al Kuwayt Digraph: KU Type: nominal constitutional monarchy Capital: Kuwait Administrative divisions: 5 governorates (mu'hafaz'at, singular - muh'afaz'ah); Al Ah'madi, Al Jahrah, Al Kuwayt, 'Hawalli; Farwaniyah Independence: 19 June 1961 (from UK) Constitution: 16 November 1962 (some provisions suspended since 29 August 1962) Legal system: civil law system with Islamic law significant in personal matters; has not accepted compulsory ICJ jurisdiction National holiday: National Day, 25 February Political parties and leaders: none Other political or pressure groups: 40,000 Palestinian community; small, clandestine leftist and Shi'a fundamentalist groups are active; several groups critical of government policies are active Suffrage: adult males who resided in Kuwait before 1920 and their male descendants at age 21 note: out of all citizens, only 10% are eligible to vote and only 5% actually vote Elections: National Assembly: dissolved 3 July 1986; new elections were held on 5 October 1992 with a second election in the 14th and 16th constituencies scheduled for 15 February 1993 Executive branch: amir, prime minister, deputy prime minister, Council of Ministers (cabinet) Legislative branch: unicameral National Assembly (Majlis al 'umma) dissolved 3 July 1986; elections for new Assembly held 5 October 1992 Judicial branch: High Court of Appeal Leaders: Chief of State: Amir Shaykh JABIR al-Ahmad al-Jabir al-Sabah (since 31 December 1977) Head of Government: Prime Minister and Crown Prince SA'D al-'Abdallah al-Salim al-Sabah (since 8 February 1978); Deputy Prime Minister SABAH al-Ahmad al-Jabir al-Sabah (since 17 October 1992)

*Kuwait, Government

Member of: ABEDA, AfDB, AFESD, AL, AMF, BDEAC, CAEU, ESCWA, FAO, G-77, GATT, GCC, IAEA, IBRD, ICAO, IDA, IDB, IFAD, IFC, ILO, IMF, IMO, INMARSAT, INTELSAT, INTERPOL, IOC, ISO (correspondent), ITU, LORCS, NAM, OAPEC, OIC, OPEC, UN, UNCTAD, UNESCO, UNIDO, UPU, WFTU, WHO, WMO, WTO Diplomatic representation in US: chief of mission: Ambassador Muhammad al-Sabah al-Salim al-SABAH chancery: 2940 Tilden Street NW, Washington, DC 20008 telephone: (202) 966-0702 US diplomatic representation: chief of mission: Ambassador Edward (Skip) GNEHM, Jr. embassy: Bneid al-Gar (opposite the Kuwait International Hotel), Kuwait City mailing address: P.O. Box 77 SAFAT, 13001 SAFAT, Kuwait; APO AE 09880 telephone: [965] 242-4151 through 4159 FAX: [956] 244-2855 Flag: three equal horizontal bands of green (top), white, and red with a black trapezoid based on the hoist side

*Kuwait, Economy

Overview: Kuwait is a small and relatively open economy with proven crude oil reserves of about 94 billion barrels - 10% of world reserves. Kuwait is rebuilding its war-ravaged petroleum sector and the increase in crude oil production to nearly 2.0 million barrels per day by the end of 1992 led to an enormous increase in GDP for the year. The government ran a cumulative fiscal deficit of approximately $70 billion over its last two fiscal years, reducing its foreign asset position and increasing its public debt to roughly $40 billion. Petroleum accounts for nearly half of GDP and over 90% of export and government revenue. National product: GDP - exchange rate conversion - $15.3 billion (1992 est.) National product real growth rate: 80% (1992 est.) National product per capita: $11,100 (1992 est.) Inflation rate (consumer prices): 5% (1992 est.) Unemployment rate: NEGL% (1992 est.) Budget: revenues $7.1 billion; expenditures $10.5 billion, including capital expenditures of $3.1 billion (FY88) Exports: $750 million (f.o.b., 1991 est.) commodities: oil partners: France 16%, Italy 15%, Japan 12%, UK 11% Imports: $4.7 billion (f.o.b., 1991 est.) commodities: food, construction materials, vehicles and parts, clothing partners: US 35%, Japan 12%, UK 9%, Canada 9% External debt: $7.2 billion (December 1989 est.) note: external debt has grown substantially in 1991 and 1992 to pay for restoration of war damage Industrial production: growth rate NA%; accounts for NA% of GDP Electricity: 6,873,000 kW available out of 7,398,000 kW capacity due to Persian Gulf war; 12,264 million kWh produced, 8,890 kWh per capita (1992) Industries: petroleum, petrochemicals, desalination, food processing, building materials, salt, construction Agriculture: practically none; dependent on imports for food; about 75% of potable water must be distilled or imported Economic aid: donor - pledged $18.3 billion in bilateral aid to less developed countries (1979-89) Currency: 1 Kuwaiti dinar (KD) = 1,000 fils Exchange rates: Kuwaiti dinars (KD) per US$1 - 0.3044 (January 1993), 0.2934 (1992), 0.2843 (1991), 0.2915 (1990), 0.2937 (1989), 0.2790 (1988)

*Kuwait, Economy

Fiscal year: 1 July - 30 June

*Kuwait, Communications