Action by Churches Together (ACT)
Appeal - North Korea
DPRK Relief & Rehabilitation ASKP-31
Appeal Target: US$ 835,000
Balance Requested from ACT Network:  US$ 535,000
Geneva,  24 March 2003


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
                                        US$
Total Appeal Target(s)                835,000
Less: Pledges/Contr. Recd.            300,000
Balance Requested from ACT Network    535,000


Elizabeth Ferris		Thor-Arne Prois		Robert Granke
Co-ordinator			Director, ACT		Director
Diakonia & Solidarity					LWF/World Service
World Council of Churches



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


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.


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.


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 needsFood 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.



GOAL & OBJECTIVES

Goals: 

To help restore self-reliance through appropriate humanitarian assistance
and gradual insertion of rehabilitation and development.

To assist in establishing processes of production, in the sector of
agriculture and health * both regarding quantity and quality, and

To assist in acute emergencies with life-saving measures.



These goals are pursued through the implementation of Relief and
Rehabilitation Projects, through which ACT Partners may allocate their
donations, resources and other supportive activities.

Relief and Rehabilitation Projects

Objectives:

For the past years, ACT has provided basic items, food and non-food items,
to various target groups and geographical areas focussing on the following
sectors:

Agriculture - to help increase the food production for own consumption and
marketing;

Health - to help revive the local production of medicines / pharmaceutical
factory Pyongyang in order to improve availability of essential drugs in
clinics and hospitals;

Emergency - to respond to acute emergency situations that affect peoples'
lives and living conditions;

Peace and Reconciliation - to support activities with material and
non-material aid as part of a wider Ecumenical Response towards Peace and
Reconciliation.



Beneficiaries:

Beneficiaries, belonging to the most vulnerable sections of the
population, are identified through the UN offices of WFP/FALU, FAO, UNICEF
and UNDP, or the Korean Christian Federation, working in conjunction with
the DPRK government Flood Damage Rehabilitation Committee (FDRC) and other
authorities.



DESCRIPTION of ASSISTANCE & IMPLEMENTATION

ACT members have provided food and non-food items to various target groups
and geographical areas since 1996. The strength of ACT is its flexibility
to respond swiftly to emerging food gaps and other special needs which is
possible through the close co-operation with FALU and WFP.


Relief and Rehabilitation  
Agriculture

The agriculture component will continue with the provision of specific
materials but will be more and more directed towards interventions that
lay a basis for longer term rehabilitation programmes geared to decreasing
the food insecurity levels of the most vulnerable households and groups.

Provision of seeds, fertiliser and/or plastic sheeting, material for the
protection of seedlings and seed propagation, etc.

Continuation to assist with in-country training/exposure as well as
sponsor Korean agricultural experts and farmers to gain exposure to
agricultural developments * both in science and on the farm level * in
institutions outside DPRK, in China and elsewhere

Secondment of an agricultural specialist for the improvement and
adjustment of the ACT strategy to improve food production and marketing on
farmers or co-operative level in a certain area;



Health

Support to the local production of drugs from imported raw materials,
started in late 1997. Since then, some 500 mio tablets have been
fabricated and distributed to the clinics under the monitoring of UNICEF.
The project enjoys the support of WHO and UNICEF. UNICEF has already
integrated the distribution of locally produced tablets in its hospital
support programme; WHO has recently signalled that in 2003 it will also
provide pharmaceutical raw material to support the production of the
Pyongyang Pharmaceutical Factory.



The ACT assistance will continue with:

Provision of pharmaceutical raw materials (and
equipment/machinery/devices, if deemed necessary) for local production.

Organisation of training programmes / extension courses for staff in order
to help improve manufacturing practices (GMP); particular attention is
being paid to issues such as quality assurance, procurement of raw
materials, warehousing and utilisation of essential drugs in the public
sector.

Maintaining the expertise and technical guidance of the DIFÄM (German
Institute for Medical Mission).



Emergency

Although the emphasis of the assistance is shifting towards longer term
rehabilitation, there is still a need for emergency assistance both in the
event of a (natural) disaster and to maintain the assistance to the most
vulnerable groups within the society, of which many are living in
institutions like orphanages.

Identification of needs after a disaster occurs; provision of material
goods for the alleviation of acute hardship of vulnerable groups;

Provision of ingredients for local food production to improve nutrition
status of the most vulnerable within the society;

Peace and Reconciliation

The Ecumenical Family is in various ways involved in the dialogue with
churches in North and South Korea. This dialogue is meant to identify and
support ways and forms of communication, exchange, co-operation and
promotion of all efforts towards reconciliation which are acceptable to
both sides. This dialogue includes visits, invitations, written
communication and access to information, as well as the planning of an
Ecumenical Forum on Korea in 2003.



Activities and contributions in this sector will not be handled by the
lead agency for this ACT Appeal, DEA, but by the WCC in Geneva and other
ecumenical partners.


Other ACT Member Responses

The strength of the ACT Alliance, through its global membership is the
flexibility and the ability to respond quickly to the most critical needs
in the DPRK to help alleviate human suffering and to search for innovative
measures whenever appropriate. Although not a part of, nor accounted for
in the ACT Appeals, there will continue to be direct and bilateral
assistance provided by other ACT members to partners in North Korea as a
sign of solidarity with the people of North Korea: eg. ACT members in
Canada through the Canadian Food Grains Bank (CFGB); Church World Service
USA; PCUSA; the South Korean Churches; National Christian Council in Japan
and Hong Kong Christian Council. ACT Member Hungarian Baptist Aid has
opened an office in Pyongyang. Much of this assistance is in the form of
in-kind donations, through bilaterally organised shipments of essential
and urgently needed goods (food and non-food) according to identified
needs in the country.  This assistance is based upon bilateral agreements
between partners and follows the possibilities and means of the funding
ACT member.

Whereas the co-ordination, provision and monitoring of ACT assistance is
provided primarily through the established structures of FDRC and WFP/
FALU, some of these ACT member donations are consigned solely to KCF. In
consultation with the WCC/Asia Desk, ACT will continue to involve KCF
whenever possible and if deemed necessary. KCF will be a major partner for
all activities in the field of 'Peace and Reconciliation'. During the past
years, KCF has been extremely helpful in hosting delegations and working
with various ACT members.



ADMINISTRATION, FINANCE, MONITORING & REPORTING

ACT-Diakonie Emergency Aid Germany: ACT-DEA is the 'Co-ordinating Agency'
for the ACT assistance in DPRK as outlined under this appeal. Within the
given limits and circumstances beyond their control and/or influence,
DEA's responsibilities include:

Co-ordination of all aspects of ACT response in DPRK in conjunction with
the ACT Co-ordinating Office but excluding in-kind donations and relief
shipments from other ACT members which will be arranged for and
facilitated by the sending agency. The sending agency will share
information with the ACT Co-ordinating Office, Geneva.

Maintaining relations with DPRK authorities, KCF, WFP, UN agencies and
other NGOs.

Arrangements for the procurement and transport of ACT relief commodities
and materials to the DPRK utilising appeal cash donations forwarded to
ACT-DEA

All ACT appeal financial expenditures, controls and reporting

Assist in the monitoring of ACT appeal assistance consigned through
WFP/FALU

Reporting and communications regarding ACT assistance in the DPRK.



The administration and facilitation of the ACT network support and
partnership in the NGO Food Aid Liaison Unit (FALU) within WFP office
located in Pyongyang is presently handled by Caritas Hongkong. This
includes:

  Administration of WFP/FALU International Officer positions.
  Communications and administration with WFP offices.
  Representing and facilitating the FALU meetings of all participating 
    NGOs


World Food Program/Food Aid Liaison Office (WFP/FALU): This office
facilitates and co-ordinates the food and non-food inputs of ACT and other
NGOs. The FALU International Officer is directly responsible for
monitoring the ACT inputs channelled through WFP, FDRC and PDS (Public
Distribution System). Regular reports, updates and relevant communications
are provided by the FALU Officer to ACT and other NGOs. The FALU
International Officer also assists with hosting various ACT delegations to
DPRK and works co-operatively with KCF.

UNICEF/ACT-DEA POH (Project Officer Health), MALU (Medical Aid Liaison
Unit): For 2003, Diakonie will maintain the technical consultancy of DIFÄM
on temporary assignments as deemed necessary. To ensure effective
co-ordination of the medical aid from the ACT network, Terms of Reference
have been worked out and agreed upon by Diakonie and UNICEF. The Pyongyang
Programme Officer Health (POH) will have day to day responsibility for
supporting implementation, including monitoring of the emergency project
entitled "Essential Drugs " as well as the regular health program.


Monitoring

ACT Appeal assistance will be monitored through the following mechanisms:

WFP/FALU: One International Officer & 2 National Officers are supported by
23 International WFP monitors operating from Pyongyang and 5 Sub-Offices.
There is provision of monitoring and reporting directly to ACT/DEA.  
Every shipment will be followed by a monitoring report from FALU
Pyongyang, detailing the agreement, arrival, distribution, use and impact
as well as resulting recommendations.

UNICEF/ACT-DEA/POH: Monitoring and reporting of ACT/DEA medical aid
programmes; monitoring of the situation and developments in the field of
health and nutrition.


The POH will mainly:

Manage the rehabilitation of local drug production with ACT/DEA's material
and financial support

Provide, validate and/or revise estimates of the resources required for
national level support for integrated health care for children and women

Assist the MoPH to better assess national requirements and determine
UNICEF/ACT- DEA support for essential drugs, with respect to available
stock consumption, utilisation data forecast of needs and the sources of
supplies

Monitor distribution of supplies sent by ACT/DEA

Provide progress reports on project activities to ACT/DEA

Liaise with counterparts and other international aid agencies including
WHO and FALU




The major part of the operational costs for the POH (salary, benefits,
travel, housing, office operation and other) are being funded through
DEA's contribution to the ACT Appeal. ACT CO will share information on
visits by ACT Members / Delegations / the CO itself to the DPRK and make
travel reports available to the network, concerning activities of the
wider ACT/WCC family especially with respect to 'peace and
reconciliation.'

Before the end of the year an ACT meeting is planned to review the
assistance as well as its focus and approach, to allow for making
decisions regarding continuation of the assistance and of the structure,
and enables the network to respond to any significant changes within the
country.



IMPLEMENTATION TIME TABLE
The appeal covers a period of 12 months: 1 April 2003 * 31 March 2004. 

BUDGET  (for projects under ACT-DEA)

Income 		US$Diakonie Emergency Aid 	300,000
Expenditur                                        US$

Agriculture 		300,000
Agricultural inputs
In- and external training/exposure /extension programmes
Agricultural Programme Support		

Health				250,000
Pharmaceutical raw material
Equipment for Pharmaceutical Production/Factory
Training programme / extension courses for technical and 
policy staff involved in the production of essential drugs
Technical expertise, guidance and process accompaniment (DIFÄM)

Emergency (as deemed necessary and appropriate after an disaster)	150,000
Basic needs 
Supplementary Food 		                                   

SUB-TOTAL		700,000


FALU - ACT costs 2003 							55,000
UNICEF * ACT/DEA POH costs 2003		80,000

TOTAL EXPENDITURE		USD   835,000

Balance Requested from ACT Network		USD   535,000
 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Action by Churches Together (ACT) is a worldwide alliance of churches and
their related agencies, meeting human need through co-ordinated emergency
response.  The ACT Coordinating Office is based with the World Council of 
Churches (WCC) and the Lutheran World Federation (LWF) in Switzerland.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -


   Ecumenical Centre                          Phone: ++41-22-791.60.33
   150, route de Ferney                         Fax: ++41-22-791.65.06
   P.O. Box 2100                             E-Mail: act@wcc-coe.org
   1211 Geneva 2                              Telex: 415 730 OIK CH
   Switzerland                                 http://www.act-intl.org


distributed by
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Center for International                  web: www.cidi.org
    Disaster Information             listserv: www.cidi.org/listsub.htm
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
comments/suggestions/requests to incident@cidi.org