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The World in 2050_ Four Forces Shaping Civilization's Northern Future - Laurence C. Smith [134]

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people and a gross domestic product slightly larger than Hong Kong’s536 the circumpolar Arctic holds a bigger population and economy than most people realize, but both are still fleetingly small. For example, with just fifty-seven thousand people and $2 billion GDP per year, Greenland’s population and economy are 1% of Denmark’s. Furthermore, the mainstay of the Arctic economy is simply exporting raw commodities like metals, fossil fuel, diamonds, fish, and timber. Public services comprise the second-largest sector, followed by transportation. Tourism and retail are significant only in a few places. Universities are rare, and manufacturing extremely limited except for a robust electronics industry in northern Finland around the city of Oulu (Nokia is one of the better-known companies operating there). Thus, unlike the southern NORC cities, the Arctic economy is a restrictive blend of resource-extraction industries and government dollars, with an underskilled and undereducated workforce.

With few exceptions most of these natural resource profits leave the far North, creating an apparent “welfare state” situation in which NORC central governments prefer to deeply subsidize public services rather than surrender these profits to local taxation. Career choices are limited and although salaries are high, so also is the cost of living. One can expect to pay $250 per night for a cheap hotel room and $15 for a cheeseburger in an Arctic town. Gas pipelines and diamond mines generate enormous wealth but most of this revenue flows south (or west, in Russia), controlled by an array of private, multinational, and state-owned actors and central governments. In North America, much of what’s left is now controlled by aboriginal-owned business corporations and/or regulated through comprehensive land claims agreements. Northern Transportation Company Limited, Canada’s oldest Arctic marine operator, whose vice president, John Marshall, so kindly showed me around the shipyard in Chapter 6, was bought by two such corporations in 1985 and is now 100% aboriginal-owned.537

Put simply, the Arctic is not an easy place for fresh arrivals and business start-ups outside of a narrow range of activities. Add to all this the infernal cold and darkness of the polar winter, followed by the steaming heat and billions of mosquitoes of the polar summer, and we see the Arctic is not and will never be a big draw for southern settlers. Even the sub-Arctic boom cities of Fort McMurray, Noyabr’sk, and Novy Urengoy must recruit heavily to attract enough foreign workers. While Arctic settlements will grow with the region’s rising energy, mining, and shipping base, its fast-growing aboriginal population (in North America), and the ongoing urbanization trend, it’s hard to imagine big new cities spreading across it by 2050 or even 2100.

Instead, a better envisioning of the New North today might be something like America in 1803, just after the Louisiana Purchase from France. It, too, possessed major cities fueled by foreign immigration, with a vast, inhospitable frontier distant from the major urban cores. Its deserts, like Arctic tundra, were harsh, dangerous, and ecologically fragile. It, too, had rich resource endowments of metals and hydrocarbons. It, too, was not really an empty frontier but already occupied by aboriginal peoples who had been living there for millennia.

Like the New North, the American West presented a strong geographic gradient in terms of attractiveness for settlement, varying roughly with longitude instead of latitude. East of the Rocky Mountains, across the Great Plains and into Texas (then part of Mexico), there was sufficient rain to have a go at dryland farming, but not farther west in the harsher landscapes of what are now Arizona, Nevada, Utah, New Mexico, and California. What drew settlers there were gold and silver, culminating in rushes to California in 1849 and to Nevada a decade later. These metal rushes populated the American West just as tar sands and natural gas are doing today in Alberta and West Siberia, and as offshore finds

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