Driving forces in the Greenlandic urbanization Kåre Hendriksen, Arctic Technology Centre Technical University of Denmark
The right frame of reference? Discussions and analysis of the Greenlandic urbanization is generally based on a Western, Nordic or Danish frame of reference where the driving forces for urbanization is mainly seen as a result of changes in the economic and industrial structures The question is to what extent these drivers fit the Greenlandic context? And to what extent the Greenlandic economic, industrial, and settlement structures are different?
A micro-state of many island economies With 56.000 inhabitants Greenland is a micro-state however, the largest in the world The population is dispersed across 17 towns and 58 settlements
Characteristics for a micro-state economy A limited domestic marked and highly dependent on import To maintain the trade balance export must be very large Greenland had almost never succeeded to achieve a trade balance Only app. 15% of all trade of goods takes place within Greenland while the vast majority is directly transported by sea between Denmark and each individual town or settlement in Greenland
500 Greenland s trade balance in constant 1979 prices 0-500 -1.000-1.500-2.000-2.500
Micro-states are generally mono-economic dependent on one or a few export products For Greenland fish and shellfish contribute with about 90 % of the export income
Mio. kr. 1.600 Combined export of selected goods from 1982 to 2010 in constant 1979 prices 1.400 1.200 1.000 800 600 400 Combined export Fish and shellfish and products hereof Ore and metal residue Other exports 200 0
Not one but many islands economies A crucial characteristic of Greenland is that all settlements are isolated with their own infrastructures No possibilities for commute on a daily basis Local production of energy, heat and water Tele and data transmission is based on relay chain or satellite
A subsidized economy Caused by the 821.768permanent 792.361 large deficit on the trade balance Greenland is highly dependent on Production and import taxes subsidizes from Denmark 4418.303 Distribution of public financing 2012 3653.461 Continuous income- and capital gains taxes Other income EU institutions Block grant and other subsidies from the Danish Government Direct Danish operating costs 312.498 985.480
Over time most towns and a good part of the settlements have lost the original coupling with the local resource and livelihood Scrimp fishery that contributes with app. 50 % of the total export have been concentrated on fewer larger vessels Processing of shrimp has been transferred to low wages countries The number of districts with shrimp production has been reduced from 16 in 1994 to 4 in 2012 Halibut contribute with 25 % of export and 80 % are exported unprocessed Same tendency with other species and many local production plants have been closed down The decoupling of localization and resource base has crucial consequences when it is not possible to commute on a daily basis
During the last decades a number of administrative and political decisions has encouraged a centralization of the population. A few examples: 1994: The 'uniform price system' in retail was abolished and the public subsidy has been gradually phased out 2005: The flat-rate for electricity and water was abolished. Electricity prices in most places are 2.5 times higher than in the major cities with hydropower plants, and water rates in most places are three times higher than the cheapest 'big cities'. 2008: A mobility enhancing payment was introduced 2009: The 18 municipalities was merged into 4 2011: The 16 hospital districts was merged into 5 regions 2012: A new management plan of halibut fishing intents to phase our fishery from dinghies and hand over the quotas to larger vessels that may come from other districts
In the public debate it is often stated that the outlying districts and especially the settlements are more costly for the public economy than the larger towns Generally spoken the public cost per capita in settlements and towns are equal For the social groups consisting of unskilled, fishers and hunters and people outside the labor marked, the cost are significantly less per capita in the settlements (Hendriksen 2013)
Both the main income as well as the job generation in Nuuk are mainly financed by the public and thereby by the Danish subsidies The national administration and functions The headquarters of public or semi-public companies The headquarters of private companies based on public financed tasks
Dkr. 50.000 Local income tax and Home Rule wages per. capita 2008 45.000 40.000 35.000 30.000 25.000 20.000 15.000 Local income tax Home Rule wages 10.000 5.000 0
There is a clear correlation between administrative and political decisions and the development of the settlement pattern Settlement populations excluding Kangerlussuaq from 1997 to 2013 12.000 10.000 8.000 6.000 4.000 2.000 0
Model for settlements' development dynamics Institutional framework Base for existence Human resources
Themotheus from Kullorsuaq: "Climate change - it's something we have to adapt to - the threat to our way of life comes from Nuuk." Pia from Innaarsusit: The reports we never see. Those we can find on the Self-Government website, I do not understand. They are not translated into Greenlandic. When they finally are translated, is it a bad Greenlandic. They do not write as we speak with our hearts
While urbanization in Denmark and the Nordic countries to a great degree is based on the development in economic and industrial structures, you may ask to what degree the Greenlandic urbanization is a consequents of political and administrative decisions or lack of decisions? and not anchored in substantial economic and industrial structures?
Qujanaq Thank you krhe@byg.dtu.dk