Arctic Economics

Does Canada face a European Challenge in the Arctic?

In late November the European Commission released a discussion paper called "The European Union and the Arctic Region." The Commission news release describes the paper as a first step towards an E.U. Arctic policy.

Among other things, the paper recommends that, "...Member States and the Community should defend the principle of freedom of navigation and the right of innocent passage in the newly opened routes and areas."

Canada considers the straits of the Northwest Passage to be her own internal waters.  Some Canadians think the reference to "freedom of navigation" suggests a threat to this Canadian position.  Mark Collins has a helpful set of links to the Canadian debate over at The Torch:The Arctic and the Northwest Passage: The Euro threat.

What drives the Alaska economy?

The University of Alaska's Institute of Social and Economic Research (ISER) has released a new report by Scott Goldsmith - an economic base analysis of Alaska's economy: Structural Analysis of the Alaska Economy: What are the Drivers?

The Federal government (direct and indirect impacts) accounts for about a third of resident employment and 40% of resident personal income.  Petroleum is next, with about 30% of resident employment and almost 30% of income.  Seafood, mining, timber, agriculture, tourism, air cargo, and other manufacturing and services account for about 30% of employment and about 20% of income.  Retirement and non-earned income accounts for the rest.

Given the importance of the Federal government, it's reasonable to ask, How Vulnerable Is Alaska’s Economy to Reduced Federal Spending?, as Goldsmith did in an ISER policy piece last July:

"In Western Alaska, 52% of all adults use smokeless tobacco."

That's 52% as opposed to 2% nationally.  "...research of medical charts shows 82 percent of pregnant women in the region use tobacco -- 61 percent chew iqmik [a type of smokeless tobacco, see below - Ben] or a commercial tobacco and 21 percent smoke. Nationally, the smokeless tobacco use rate for pregnant women is under 1 percent."

The Yukon-Kuskokwim Delta in Southwest Alaska (Source: Wikipedia)

In the Yukon-Kuskokwim Delta region - the area referred to as "Western Alaska" in the title -  an area with a predominately Yupik Eskimo population - they mix tobacco leaves with "the ash of a fungus (Phellinus igniarius) that grows on birch trees."  The product, called "iqmik" is an unusually potent smokeless tobacco product.  "Researchers believe the ash raises the pH level in the mouth, which increases the dose and enhances delivery of nicotine to the brain. In effect, the user is freebasing nicotine."

Iceland Freezes Up

Nigel Holmes and Megan McArdle prepared a graphic overview of Iceland's financial crisis for the Atlantic : Iceland's Meltdown. 

Here are some more detailed reports: