Arctic Economics

It's getting relatively more expensive to live in rural Alaska

The cost of living differential between urban and rural Alaska has increased since 1985 - an important reason is the introduction of "big box stores" in urban Alaska. 

Pat Forgery has a nice piece in today's Alaska Empire summarizing testimony to the Alaska House Finance Committee by McDowell Group economist Jim Calvin: Urban, rural cost divide widens.  The McDowell Group was hired by the state to look at regional cost-of-living differentials.  This study will be used in labor negotiations.

In summary:

Are there enough people in Greenland for a whole country?

Greenlanders have been pressing for more autonomy from Denmark, and looking forward to independence.  Anne Sibert asks, "Undersized: Could Greenland be the new Iceland? Should it be?"  Greenland has 60,000 people, is that enough for a nation-state?

She points out that:

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:

Overview of the Northern Economy

Statistics Norway has pulled together a survey of the Arctic economy.  The report was edited by Solveig Glomsrød and Iulie Aslaksen: The Economy of the North. 

This is a systematic survey covering the same issues in a similar way across the various Arctic countries.  The editors have coordinated the efforts of a team with members from almost every Arctic country.

Chapters look at the distinctive elements of the circumpolar economy, the natural resources of the Arctic, the individual regional economies, the interaction between the traditional subsistence economies and modern market economies, and the impact of climate change on economic activity.

Recommended.

Edit Dec 23 2008