Book Description

Since 1995, the United States has provided over $1 billion in foreign assistance to the Democratic People's Republic of North Korea (DPRK, also known as North Korea), about 60% of which has taken the form of food aid, and about 40% in the form of energy assistance channeled through the Korean Peninsula Energy Development Organization (KEDO). Additionally, the Bush Administration has proposed offering North Korea broad economic development assistance in exchange for Pyongyang verifiably dismantling its nuclear program and cooperating on other security-related issues. Although the President has considerable flexibility to offer some forms of short term development assistance, longer term aid would likely require congressional action. Since the current North Korean nuclear crisis erupted in October 2002, when North Korea reportedly admitted that it has a secret uranium enrichment nuclear program, the dollar amount of U.S. aid has fallen by an order of magnitude. No U.S. funds have been provided to KEDO since FY2003, and the Bush Administration's position is that it would like to permanently end the KEDO program. U.S. food aid also has fallen considerably in recent years. This report describes and assesses U.S. aid programs to North Korea, including the controversies surrounding the programs, their relationship to the larger debate over strategy and objectives toward the DPRK, and policy options. The roles of China, South Korea, and Japan in providing assistance to North Korea are discussed, highlighting the likelihood that any dramatic decrease in U.S. aid to North Korea may have only marginal effects without the cooperation of these countries, particularly China and South Korea. This report will be updated as circumstances warrant.