By TIM SULLIVAN
KAESONG, North Korea (AP) - From here, Pyongyang can seem like a dream.
At what passes for rush hour on a Wednesday morning, there are few sounds in Kaesong's main traffic circle but the gentle squeak of bicycles and a tinny loudspeaker blaring anthems to Kim Jong Un, the baby-faced ruler who took power after his father's December death ("The footsteps of our respected General Kim! ... Spreading the sound of a brilliant future!").
Occasionally, a solitary car goes by.
There are no nightspots here, no modern apartment complexes, no electricity except for a few hours every evening. The shelves in most stores are noticeably half-empty, and dirt sidestreets lead to clusters of small houses, many little more than shacks, with bulging walls and broken roofs.
It is the reality of North Korean urban life _ with the notable exception of the capital city, 80 miles north of here, in a carefully crafted totalitarian Oz. That contrast, between Pyongyang and every other city in the country, reflects an ever-growing chasm between North Korea's elite and the daily struggles of everyone else.
Pyongyang has the Dolphinarium, a cavernous aquarium where smiling, fresh-faced trainers in skintight-suits make dolphins dance for ecstatic crowds. There's the new 3,000-unit Changjon Street apartments, lit up like a movie set long into the night, a proclamation that North Korea has electricity to spare. It has the Sunrise Restaurant, the latest destination for the city's nouveau riche, where tough-looking men drink grape Fanta from brandy snifters while their drivers wait outside with their Land Cruisers. It has good government jobs and the country's top university.
"When I finally saw Pyongyang, it was so wonderful, so incredible," said Kim Jong Hui, a cheerful 51-year-old from the northeastern city of Chongjin. She had traveled for two days on North Korea's decrepit rail network to make her first visit to the capital city for a series of national day celebrations.
Kim spent a recent afternoon watching friends play on the country's only putt-putt golf course, a small maze of plastic greens set between a new amusement park and a new swimming complex. "It's more exciting here, and more beautiful."
If North Korea can appear outwardly stagnant, a country frozen by poverty and Soviet economic policies, a small but resonant market economy has taken root over the past 15 years or so. While the country still has a per capita GDP of just $1,800 per year, according to U.S. figures, this new economy _ a mix of underground trading, investment funds, particularly from China, and the growth of government-authorized commercial enterprises _ has helped reshape Pyongyang.
Today, the Pyongyang rich, spending their dollars, euros and Chinese yuan, can buy everything from high heels to imported watches. They have bought enough cars in the past couple years to cause the occasional traffic jam.
But few of these changes have gone beyond the capital, and the elite who live there.
"Pyongyang is not just another city," said a doctor who spent most of his life in Kaesong, but who was educated in the capital. The doctor, who eventually fled to South Korea, spoke on condition of his name not be used, fearing retribution against relatives still living in the North. "It's like another country."
The urban divide can be seen in the industrial city of Hamhung, where the skies above the handful of working factories are filled with gray soot, and workers are ferried to the beach on their day off in crowded, cobbled-together trucks powered by wood-burning stoves. It's visible on the "Youth Hero Highway" outside the port city of Nampho, where there are so few cars on the eight-lane road that it looks like an empty parking lot stretching toward the horizon.
It's in the province around Chongjin, where U.N. data shows the rate of abnormally short children _ a key indicator of chronic malnutrition _ is 50 percent higher than around Pyongyang.
It's in Kaesong, where residents even have a little extra money because so many work in South Korean-owned factories in the nearby industrial zone, but who still see themselves as poor country cousins to people from the capital. Few from this city, though, ever move to Pyongyang. Kaesong was part of South Korea before the Korean War, and many of its residents are seen as potential security risks because of family ties to the south.
You can find it in the hospitals of those second-tier cities, according to people who have fled North Korea, and who spoke on condition their names not be used, fearing it would cause trouble for their relatives. They say desperate doctors struggle to treat patients with almost no medicine, using equipment that can be decades old.