ACT Appeal DPR Korea: Relief & Rehabilitation - ASKP-31

Appeal Target: US$ 835,000
Balance Requested from ACT Network: US$ 535,000

Geneva, 24 March 2003

Dear Colleagues,

Being named in 2002 as one of the countries in the so-called axis of evil by the US president, George W Bush, brought about an immediate political and diplomatic shift in DPRK's relationship with the US and its neighbors. Yet, behind the political posturing and brinkmanship being played out on the world's stage, lies the harsh reality of a country still reliant on food aid from the UN's World Food Program and other international humanitarian agencies. After years of crop failures, disastrous weather and an economy that is at best described as fragile and embattled, millions of North Koreans today rely on this food to stay alive.

Threats of nuclear re-armament by the DPRK government has only increased the isolation of this country, which is known as the most secretive in the world. However, stopping humanitarian aid will not break the political stalemate - rather, it will leave millions of people in a situation where they could easily slip back into a state of crisis.

This appeal describes the continued response to the vulnerable people of the Democratic Peoples Republic of Korea (DPRK) by the ACT Alliance, through its co-ordinating agency Diakonie Emergency Aid (DEA).

Through the already existing network of implementing partners ACT/DEA will support Rehabilitation Programmes in the areas of agriculture and health. Relief assistance will still be available in case of new disasters and for the most vulnerable sections of the population.

It should be noted that also other ACT Members are providing bilateral assistance to the people of the DPRK.

Project Completion Date: 31 March 2004

Summary of Appeal Targets, Pledges/Contributions Received and Balance Requested

Please kindly send your contributions to the following ACT bank account:

Account Number - 240-432629.60A (USD)
Account Name: ACT - Action by Churches Together
UBS SA
PO Box 2600
1211 Geneva 2
SWITZERLAND

Please also inform the Finance Officer Jessie Kgoroeadira (direct tel. +4122/791.60.38, e-mail address jkg@act-intl.org) of all pledges/contributions and transfers, including funds sent direct to the implementers, now that the Pledge Form is no longer attached to the Appeal.

We would appreciate being informed of any intent to submit applications for EU, USAID and/or other back donor funding and the subsequent results. We thank you in advance for your kind cooperation.

ACT Web Site address: http://www.act-intl.org

ACT is a worldwide network of churches and related agencies meeting human need through coordinated emergency response.

The ACT Coordinating Office is based with the World Council of Churches (WCC) and the Lutheran World Federation (LWF) in Switzerland.

I. REQUESTING ACT MEMBER

• ACT/Diakonie Emergency Aid (DEA): Co-ordinating Agency for Act Response in the Democratic Peoples Republic of Korea (DPRK).

II. ACT CO-ORDINATING AGENCY INFORMATION

As in the years 1997 to 2002, ACT member Diakonie Emergency Aid (DEA) , the Humanitarian Aid Department of Diakonisches Werk (DW) Germany, is prepared to be the ACT Co-ordinating Agency for ACT response and appeal projects in the DPRK in the year 2003.

Within the given limits and circumstances beyond their control and/or influence, DEA will help to ensure co-ordination and facilitation of the ACT emergency response. It will also ensure that the critical tasks of assessment, relationship, procurement, transport, financial control, monitoring and reporting are carried out in close co-operation with the NGO Food Aid Liaison Unit (FALU) within the WFP office located in Pyongyang, and with UNICEF, Pyongyang.

III. INFORMATION on IMPLEMENTING MECHANISMS & PARTNERS

The Flood Damage Rehabilitation Committee (FDRC): This is a DPRK government office and is responsible for the planning and co-ordination of all external humanitarian aid in North Korea. The FDRC works in conjunction with the FALU office of the WFP and with other UN agencies such as UNICEF, FAO and UNDP.

The Agreement between the Government of the Democratic People's Republic of Korea, Action by Churches Together and the United Nations World Food Programme outlines provisions and obligations that govern the donation of commodities by the Non Governmental Agency "Action by Churches Together" (ACT) through the Food Aid Liaison Unit (FALU) of the United Nations World Food Programme (WFP).

World Food Program/Food Aid Liaison Unit (WFP/FALU): In order to ensure effective co-ordination of food and other material aid inputs from non-governmental organisations (NGOs), WFP proposed the establishment of the Food Aid Liaison Unit (FALU) in the WFP Pyongyang office. ACT facilitated the establishment of FALU in December 1996 in co-operation with other NGOs.

A new Memorandum of Understanding between the NGO Consortium - FALU and the WFP has been worked out and has become effective as of 1 January 2003. The NGO members of the FALU agreement with WFP, include ACT, Caritas, the Canadian Food Grains Bank, Mercy Corps International, ADRA and World Vision.

The FALU office and staff represent the interests of NGOs who are donating food and non-food relief for the DPRK crises. The operational costs of the FALU, including salaries, benefits, travel, housing, office operations and other required support are jointly funded by the NGO members of the FALU agreement.

UNICEF/ACT-DEA POH (Project Officer Health), MALU (Medical Aid Liaison Unit). Since 1998 assistance in the field of medical aid has been carried out through temporary technical consultancy in co-operation with the German Institute on Medical Mission (DIFÄM), while UNICEF/MALU has been entrusted with the facilitation and follow up in the country. For 2003, Diakonie will maintain the technical consultancy of DIFÄM on temporary assignments as deemed necessary.

The Korean Christian Federation (KCF) represents the Protestant churches in North Korea and is the equivalent of a National Christian Council. KCF joined the DPRK government appeal in 1995 and requested humanitarian assistance and support from ACT. Since then, ACT has worked co-operatively and in co-ordination with KCF, building on the long term relations already established through KCF's work with the World Council of Churches and utilising KCF's capacity whenever possible for the facilitation and provision of humanitarian work.

IV. DESCRIPTION of the SITUATION in DPRK

Background of ACT Response in the DPRK

The ACT emergency response in the DPRK began following the devastating floods which occurred during July and August 1995, for which the government of the DPRK appealed for assistance from other countries, relief agencies and churches.

Although the 1995 floods were followed by more disasters, it was not so much the recurrence of natural disasters that kept the country on the edge of collapse, but the inability of the weak and continuously declining economic system of the DPRK that does not allow either people or government to cope with such "natural" conditions. Even in times with no disasters, neither industrial nor agro-production is able to sufficiently provide goods for consumption and for a decent livelihood for the 22 million people.

Humanitarian agencies are facing a very special situation when working in DPRK. The Government seeks to be in control of everything, which impedes independent and self determined actions of agencies in order to avoid disturbances of the collective systems. The humanitarian aid agencies are constantly looking for ways to maintain the necessary independence and to follow basic humanitarian principles such as independent needs assessments, own monitoring and evaluations of their operations.

Within this specific context, ACT has developed pragmatic and effective relations with the DPRK authorities, which have enabled ACT to respond to the massive humanitarian needs of the North Korean people during the past seven years through the provision of food, ingredients for food production, seeds, fertilisers and other agricultural inputs, medicines, pharmaceutical raw materials and various non-food items. It also enables ACT to slowly effectuate a transition from relief oriented assistance like food and material aid towards context appropriate programmes leading towards sustainable and longer term rehabilitation.

Situation and needs

a) General situation:

Since the collapse of the Soviet Union North Korea has suffered from a lack of various products and resources essential for all kinds of economic activities such as fertiliser for satisfying agricultural production or spare parts for industrial plants and machinery; power supplies for all kind of transportation and communication or capital as input into production processes or trade.

During the last decade, the problems this lack of material resources created was exacerbated by a lack of flexibility and openness of the leadership with respect to much needed economic and societal reforms. Only recently, changes have been noted. In July 2002 a new system of prices and salaries for goods and services was initiated as well as a pilot-permit for private farmers' production and direct marketing. Efforts were made to attract foreign investment and establish free trade and production zones. However, it is too early to ascertain whether these efforts will be successful. In addition to these internal factors, the recent deterioration of external relations negatively affected all efforts towards more openness and change within the country.

In 2002, US President George W Bush included North Korea in the 'axis of evil' and withdrew or delayed US shipments of food and heavy fuel oil. North Korea's resumption of its nuclear programme and the disclosure of its kid-napping practice in the 70s, all contributed to a confrontative situation on the Peninsula. Although the US Government is still following a more diplomatic non-violent course, it is urging its allies in the region to follow this restrictive policy to put pressure on North Korea to end its nuclear arms efforts. DPRK has been denied membership of international finance institutions, such as World Bank, that could help rebuild its infrastructure as a precondition to improving any kind of production.

The actual humanitarian situation has seen some improvement especially with respect to the nutrition status of its people. Due to favourable climatic conditions, the harvest in 2002 was in most areas quite good. This, in combination with a good response through the humanitarian agencies, has caused a significant reduction in the rates of malnutrition: underweight children from 61 % in 1998 to 21 % in 2002; wasting (or acute malnutrition) from 16 % to 9%; stunting (or chronic malnutrition) from 62% to 42%. (Source: UN OCHA report Dec./Jan.2003). However it should be noted that these achievements can be easily endangered if there is a too early withdrawal of support for the country. "The crisis is not over. If the UN can't provide more medicine and food - and quickly - we will see malnutrition rise again, undoing much of the progress that has been made." James Morris, WFP Executive Director.

b) Special needs

Food production/Nutrition:

Although the harvest was satisfactory in 2002, there is still not enough production to be self-sufficient. Right at the beginning of the new year 2003, WFP reported an acute lack of enriched supplementary food to be given to the most vulnerable, i.e. 3 million children, pregnant women and elderly people. Also factories for local food production (LFP) had to reduce their production due to lack of raw materials like DSM, sugar, cereals or wheat flour. It is expected that during the first half of 2003, the rations provided by the still functioning public distribution system will again decrease from the present 300 or 200g/person/day. This will have a severe negative impact on the food security of those who depend totally on the distribution system such as the people in urban areas, orphans and elderly.

The newly introduced system of private food production (on pieces of land given to the farmers) and direct marketing deserves support as it will certainly contribute to a better food supply. However, the bulk of food is still produced on collective farms with too poor output and high vulnerability. The new economic system still has to prove that it can function and that everybody gets the chance to earn money and buy goods. There is also a great risk that part of the society will not benefit from this system and will continue to need support, like those who depend only on wages and have no access to land.

Health:

Clinics and hospitals still lack sufficient supplies of medicine and equipment, thus being unable to provide appropriate health care. During winter-time the situation of both patients and staff worsens as they also suffer from cold and unhealthy conditions. Distribution of medicine depends on availability of drugs and on the functioning of the distribution system. UNICEF has invested much into strengthening the medical ware-housing system and logistics of distribution. The provision of raw material to pharmaceutical factories in Pyongyang by ACT/DEA/Difäm and UNICEF to ensure the production of essential pharmaceutical products in Pyongyang will this year be complemented by the World Health Organisation (WHO). The shipments of raw material contributes significantly to a better medical care for people in North Korea, also assisting the further development of the national system of pharmaceutical production and distribution, which will contribute to the decrease of the country's dependence on outside help. Due to limited contacts of North Korean medical staff with the outside world, there is a growing need to update knowledge on best practices in medicine, drug use, health care and public health in order to keep pace with other pharmaceutical companies and fulfil international standards of good manufacturing practises.

Peace and Reconciliation

The hardening of aggressive and hostile talk and action, especially between the North and the South of the peninsula, and against the United States of America has a harmful effect on the people. Therefore, all efforts need to be supported that contribute to the harmonisation of the antagonistic positions between North and South, to the de-escalation of tensions and to the enhancement of mutual understanding and acceptance.

Many Koreans, both in the North and the South see the elaboration of peaceful solutions and a self-determined process from peaceful co-existence to reunification as the only option they have. This can only be reached through dialogue based on tolerance and compromise. Churches in the North and in the South are working on this aspect as much as possible under the given circumstances. They need our support and encouragement.

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