In less than one year three meetings have been held between the North Korean Leader and the South Korean President, Moon Jae-In.
In the initial meeting the two leaders had decided to put an end to the state of war between their two countries. They had also reaffirmed the goal of denuclearization of the entire peninsula, with the consequent destruction of the nuclear potential of South Korea and of the United States, in particular. They also decided to create an inter-Korean Liaison Office between the two sides of the Demilitarized Zone and to bring together the families dispersed between the two Koreas. Finally, the idea was to create new communication infrastructure — railway lines, in particular — a project by which Russia has always set great store.
Indeed, Russia is betting many of its cards on a reunification between the two Koreas, capable of enabling it to keep its excellent relations with South Korea — which are essential for the economy — and to also support North Korea, which is Russia’s unavoidable strategic goal.
Now the two Koreas are dealing on their own, without the U.S. brokerage and intermediation with respect to South Korea, although President Donald J. Trump has recently stated that President Moon Jae-In is his official "delegate" for the denuclearization of the Korean peninsula.
The United States is scarcely interested in the internationalization of the North Korean economy. It only wants denuclearization, while Kim Jong-Un wants denuclearization to develop his country’s economy and maintain its geopolitical and national autonomy.
A serious problem — both in talks and in the final or working documents — is also to define an effective mechanism to check denuclearization.
Indeed, between September 17 and 19, 2018, the signing of the Joint Declaration of Pyongyang has not fully clarified the mechanism of checks on the denuclearization of the Korean peninsula. Kim Jong-Un's idea is to organise these checks with a series of "experts" appointed by the friendly powers, while the South Korean idea is to accept the maximum possible denuclearization to start the long process of reunification.
The two respective Defence Ministers, however — namely Song Young Moo for South Korea and Rho Kwang Chul for North Korea — have just signed a separate document from the rest of agreements.
In that text confidence-building measures between the parties are put first, with North Korea’s acceptance of dismantling a launch pad and a site for checking jet engines, with the presence of yet unspecified, but friendly international experts. From IAEA? We have some doubts, in this case.
Subsequently North Korea could also dismantle the Nongbyon site, if the United States does the same in South Korea.
It should also be recalled that most North Korean missiles are built to be launched by mobile vehicles, not from fixed bases.
In short, North Korea wants the United States to remove the nuclear umbrella protecting South Korea and Japan while, in the recent talks with North Korea, the United States thinks of a bilateral treaty regarding only the Korean peninsula and, at most, some classes of North Korean missiles.
In the U.S. mind, the planned reduction of North Korean long-range missiles could be even equivalent to a nuclear and conventional decrease of its troops stationed in Guam.
On the basis of a new future agreement, both Koreas (and God only knows how and to what extent the North Korean conventional military potential would be useful for a South Korea unified with North Korea) would also define maritime and land buffer zones, as well as a no-fly zone over the old border, with a view to avoiding clashes or accidental air battles.
This is already partially clear, but much work shall be done to define all the details.
There would also be plans to cover or reduce artillery batteries along the coast.
Obviously, should these talks run aground, the only concrete political result would be the progressive divergence between South Korea and the United States, precisely on the problem of the peninsula’s denuclearization.
Furthermore, over and above the aforementioned sites, North Korea will dismantle the site of Dongchang-ri, in addition to the site of Yongbyon, while Kim Jong-Un is also very interested in the building of fast railway links between South and North Korea.
The two Koreas will get the industrial site of Kaesong back in shape and the old tourist project concerning Mount Kumgang back in track, besides planning new joint economic and tourist areas.
The inter-Korean agreement regards also collaboration for medical and environmental issues, as well as for the protection from epidemics.
In other words, both Koreas think of an economy of compensation between them, which could also develop at a later stage and become a need for the development of both countries.
An economic-political symbiosis that could get the United States out of play and later reinstate Russia, which is increasingly interested in the South Korean economy, as well as finally favour China, which has no intention of leaving the Korean peninsula to the hegemony of North Korea alone.
At the end of the Treaty, there is also the project of a joint participation in the Tokyo 2020 Olympic Games and a joint candidature for the 2032 Olympics.
A few days ago, North Korea also expressed its intention to join the International Monetary Fund and the World Bank — a sign that the internationalization of the North Korean economy is now a certainty.
Hence it is a de facto peace treaty between the two Koreas.
If North Korea continues along this line, it is very likely that South Korea will gain a tactical advantage over the sea while, if the relations between South Korea and the United States remain as they currently are, there should be no significant changes in bilateral relations between the USA and South Korea.
However, what is the current state of relations between the United States and North Korea?
In fact, while the inter-Korean relations are all in the framework of effective confidence-building measures, the clear purpose of the fourth round of talks between the two Korean leaders is to preserve a strong U.S. engagement in the whole negotiation process.
Kim Jong-Un wants to engage the United States for his global economic projection and he certainly does not want to remain tied to a regional economy, albeit open and "reformed" according to China’s rules.
For North Korea, the procedure is simple: at first, bilateral talks with the U.S. support for South Korea; later peace between the two Koreas and finally what is only interesting for the USA, namely denuclearization.
It is not even unlikely that the United States does not accept this timing, but it is also unlikely that it realizes the strategic and economic aspects of this timing.
North Korea wants a fundamental agreement with South Korea because: a) it is an unavoidable asset for the modernization of its economy; b) it is the fundamental strategic factor to have the support of both Russia and China, who want to avoid North Korea’s hegemony over the peninsula, but also want to keep it as a rampart for US forces in South Korea; c) it is only through South Korea that North Korea will eventually be in a position to be connected to the Chinese maritime economic and strategic system and reach up to the Mediterranean.
In fact, if the relations between the United States and North Korea improve further, the site of Yongbyon could be dismantled definitively.
Hence currently Kim Jong-Un wants to thoroughly test the U.S. goodwill, rather than South Korea’s goodwill, in developing a long or very long-term peace policy.
In Kim Jong-Un’s mind, there is in fact a key factor: the U.S. behaviour in the phase in which Muammar Gaddafi accepted its proposal to dismantle his nuclear project.
Kim Jong-Un thinks that not even the story of Saddam Hussein is a guarantee for the U.S. long-term reliability and for the stability of its leaders’ word of honour.
This is the real important factor in the strategy of the North Korean Leader.
Moreover, the U.S. immediate reactions to the last meeting between the two Korean leaders have been fast and positive, both by President Trump and by Secretary of State Mike Pompeo.
And North Korea’s autonomous foreign policy has been seen also recently, with the 70th Anniversary military parade.
North Korea’s military parade and its important national celebration, was attended by Li Zhansu, ranking third in the internal power hierarchy of the Communist Party of China (CPC); by Valentina Matviyenko, President of the Russian Federal Council, the third elected office in the Russian Federation; by a very significant figure, Mohamed Ould Abdel Aziz, President of Mauritania, and finally by Hilal al Hilal, deputy-General Secretary of the Syrian Baath Party.
With peace, North Korea will significantly develop its already multiple economic and political relations with Africa, which will be essential for its new economic development.
At the military parade staged on September 9, there were also authorities from Iran, South Africa and Singapore — which is the never forgotten model of the Chinese "Four Modernizations" — as well as other 60 delegations from "friendly" countries.
At economic level, in August, shortly before the big military parade of the 70th Anniversary, there was the International Fair of Razon, which hosted as many as 114 companies of which 52 North Korean ones.
The North Korean product lines mainly included pharmaceuticals, foodstuffs, textiles, electronics, and cosmetics.
However, there were many Chinese large companies selling their products in North Korea despite the UN sanctions.
As from September 17, there was also the Autumn Fair which brought together 320 commercial companies from Russia, New Zealand, Australia, and China.
This is in fact the new paradigm of North Korea’s foreign policy.
The dollar has also grown in the exchanges with the North Korean currency, both on the official and on the "parallel" markets.
If all goes well at geopolitical level, the North Korean project will be to further improve its light industry, in addition to the diversification and quantity of products, with a view to trying its own autonomous way on the market world, as was the way of the nuclear system.
It should be recalled that this was also Kim Il-Sung’s project.
Professor Giancarlo Elia Valori is an eminent Italian economist, manager, and businessman. Professor Valori has lectured on International Relations and Economics at the world’s leading universities such as Peking University and the Hebrew University. In 2002 he received the title of “Honorable” of the Academies des Sciences de l’Institut de France.
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