Greenland, the paradoxically named Arctic territory, took a historical step towards independence this
week, as the largest smallest country in the world celebrated gaining
significant autonomy from Denmark – a country that has ruled the island since
the 18th century
Greenland, which would be the 13th largest
country in the world in terms of land area, voted overwhelmingly in favor of
home rule in a referendum held last November. 76% of Greenlanders approved the change, giving the 57,000
odd people control over their judicial system, international recognition of the
Inuit language and people and, but most significantly, management of the
country’s natural resources.
Take that, Queen Margrethe II
While cultural recognition may be vindicating
for the Inuit majority of Greenland, it is control over mineral and
petroleum resources that could finance a fully independent Greenlandic
state. The island currently
receives a subsidy of $637 million from Denmark, which constitutes roughly a
third of Greenland’s GDP.
With half of oil and mineral revenue now going into Greenlandic
government coffers, and the other half going to Denmark, discounted from the
annual subsidy, Greenland could well be on its way to fiscal self sufficiency.
Doubts linger over whether or not Greenland, Naalakersuisut in Greenlandic Inuit, can ever be fully free from
foreign powers. In this era of
global economic integration, few countries are (see United States, trade
deficit). More specifically
though, some believe that Greenlandic
infrastructure will crumble if Danish aid is ever fully withdrawn. With the United States, Canada, Russia,
Norway intrigued, however, it is unlikely that foreign capital will neglect Greenlandic
natural resources, including oil, diamonds, uranium and precious metals.
The U.S. government, in particular, is bound to take a
greater interest in a newly sovereign Greenland. First of all, Greenland could have a lot of oil. There is also an American air force base, Thule, on the
island already. Then, there’s the
oil issue.
Finally, Greenlandic Prime Minister Kuupik Kleist has said
that he is looking
forward to cooperating with the United States, particularly in the areas of
trade and education. Did I mention
they may have oil?
With Prime Minister Kleist expressing his desire to open up
to as many trading partners as possible, the U.S. is bound to face some
cold-blooded competition for that Greenlandic black gold. Even far-off China
and Japan import more from Greenland than the United States.
It’s not easy being Green
Movement towards independence, as exciting as it may be, may
not prove beneficial to Greenlanders.
Though they may now be tempted by lucrative resource extraction, this is
only possible because of global warming. Climate changed has caused the Greenland ice sheet,
covering some 80% of the country, to recede paving the way for mining,
drilling, and even agriculture.
The net effect on the country is unclear.
Though it may create opportunities, climate change,
paradoxically, is also creating problems for Greenland. Global warming is threatening
Greenland’s fresh water reserves, which constitute a tenth of the entire
world’s supply. More
importantly, the fishing industry, the country’s foremost industry, also stands
to suffer from rising global temperatures and sea levels. By opening up the island to foreign
companies, Greenland could merely be enabling the world’s oil addiction, making
the problem worse and threatening life on the island as we know it.
Life on Greenland as we know it, however, is barely
sustainable as it is. The country
suffers from many
social problems including alcoholism, an alarmingly high suicide rate,
domestic violence and sexual abuse.
Greenlanders appear to be their own worst enemy.
Money brought in from extracting hydrocarbons, however,
could help fight these problems.
Regardless of the result, the decision making will no longer be done in
Copenhagen, but in the slightly-less-famous Nuuk. Population: you could sit the entire city in Madison Square
Garden.