Kim Jong-il's death: the world responds

How global leaders have responded to the death of the North Korean dictator at the age of 69.

The Kim is dead, long live the Kim. No sooner had the death of Kim Jong-il ("the dear leader") from a heart attack been announced than his son, Kim Jong-un ("the great successor"), had been anointed as the next leader of the world's only hereditary communist dictatorship. "At the leadership of comrade Kim Jong-un, we have to change sadness to strength and courage and overcome today's difficulties," declared the country's authorities.

Kim Jong-il, who, like Gaddafi and Saddam Hussein, died at the age of 69 (an age that is to dictators what 27 is to rock stars) will be remembered as yet another tyrant toppled in this year of revolt. "I'd like to think God let Havel and Hitchens pick the third" is the best line currently doing the rounds. (The video below shows the moment North Koreans were told of his death on state television.) Analysts are suggesting that his son's reign could either lead to greater repression or greater reform and emphasising that he may yet fall victim to an internal power struggle.

We'll have more reaction to Kim's death later but, for now, here is how the world's leaders have responded.

Spokesman for South Korean President Lee Myung-bak

President Lee urged the public to go about their usual economic activities without turbulence.

The two leaders (President Lee Myung-bak and President Barack Obama) agreed to closely co-operate and monitor the situation together.

Ma Zhaoxu, spokesman for the Chinese Foreign Ministry

We were distressed to learn of the unfortunate passing of Comrade Kim Jong-il, the senior-most leader of DPRK [North Korea].

We express our deep sorrow, and extend our most sincere condolences to the people of DPRK.

Comrade Kim Jong-il was a great leader to the people of DPRK, a close friend to the people of China, and he made an important contribution to the development of socialism in DPRK, as well as co-operation and friendship between the two countries.

We believe that people in DPRK can turn their grief into the power to move on, and continue to promote socialism in DPRK in unity.

China and DPRK will continue to work together, to consolidate and develop the traditional friendship between the two parties, the two countries, and the two peoples, as well as contributing positively to peace and stability in the Korean peninsular and in the region.

Jay Carney, White House spokesman

We are closely monitoring reports that Kim Jong-il is dead. The President has been notified, and we are in close touch with our allies in South Korea and Japan.

We remain committed to stability on the Korean peninsula, and to the freedom and security of our allies.

William Hague, British Foreign Secretary

The people of North Korea are in official mourning after the death of Kim Jong Il. We understand this is a difficult time for them.

This could be a turning point for North Korea. We hope that their new leadership will recognise that engagement with the international community offers the best prospect of improving the lives of ordinary North Korean people.

We encourage North Korea to work for peace and security in the region and take the steps necessary to allow the resumption of the Six Party Talks on denuclearisation of the Korean Peninsula.

Osamu Fujimura, Japanese Chief Cabinet Secretary

We would hope that this sudden development would not have ill effects on peace and stability on the Korean peninsula.

We were given orders to closely exchange information with the concerned nations of US, South Korea and China, and take all measures needed to prepare for the unexpected.

Kevin Rudd, Australian Foreign Minister

Two critical points need to be emphasised at this important time.

The first is that all governments, including the government of North Korea, should at this time be exercising maximum calm and restraint both in terms of what they do and in their diplomatic signalling.

It is at times like this that we cannot afford to have any wrong or ambiguous signalling.

This time also presents an important opportunity to the new North Korean leadership to engage fully with the international community on how to improve their economy in order to properly feed their people and critically on how to deal with the outstanding problem of North Korea's nuclear weapons programme.

The political succession in North Korea is uncertain. It will be difficult to read in the immediate days ahead precisely what will transpire in terms of the future of the North Korean leadership.

George Eaton is political editor of the New Statesman.

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.