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| − | = '''Economic Overview''' = | + | = = |
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| − | The resources of the Arctic have been subject to increased attention over the last decades due to high economic growth in emerging economies and associated growth in demand for minerals. While the attraction to resources has dominated the attention for a long time, the focus has increasingly turned to climate change, which runs twice as fast in the Arctic as globally.
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| − | Arctic economies generate a substantial share of their income from resource extraction. However, the Arctic region has higher extraction costs than in other regions and consequently the wealth loss component of reported income tends to be lower. On the other hand, the scarcity of pristine nature implies that the wealth component of nature is increasing. The nature value of Arctic wilderness, northern lights, rich biological resources, and traditional living, shows up indirectly in income data for tourism and harvesting of renewable resources. The increased demand for other nature values has sharpened conflicts over land use between mineral industries and the renewable nature based industries, not the least for traditional living, with hunting, fishing and herding by indigenous peoples. In some regions these conflicts have reached the political arena at Arctic country level, in particular with respect to petroleum and mineral extraction.<ref>Solveig Glomsrød, Gérard Duhaime and Iulie Aslaksen (eds.). “The Economy of the North 2015.” Statistics Norway. 21 March 2017.</ref> | + | |
| | + | The Arctic Five nations have asserted the right to regulate economic activity even in international waters.Arctic nations to assert themselves in the region.the largest embassy in Iceland and a large presence in Greenland. It has maintained a permanent scientific presence in Norway since 1925. In addition,, ,have developed ice-breaking capabilities to enable Arctic transport, research, and resource exploitation. |
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| − | Natural resource wealth is not fixed. In real economic terms natural wealth of a certain resource will increase or decline along with our preferences and needs – including what will be perceived as a cost of future greenhouse gas emissions. One of the large uncertainties confronting the investors in the Arctic is the future price of petroleum and coal, as well as the uncertainty about impacts of future climate policies. In climate policies the need for alternatives to coal is urgent. Natural gas, with lower emissions per energy unit, is seen by many as part of the solution.
| + | economic interests in the Arcticis and promote responsible economic development of the Arctic Region. |
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| − | For several of the Arctic regions, employment and revenues from petroleum and mineral extraction or commercial fisheries are the pillar of the economy. However, the Arctic has a rich wildlife that provides substantial nutritional and cultural values to the Arctic communities. Fishing and hunting for own consumption and sharing is a major source of subsistence livelihood for many people. This source of income and consumption may at first glance seem to be decoupled from the shifting performance of the global economy – but even this local and mostly unregistered production feels the change, because availability of cash income from wage income and sales is important for being able to purchase equipment and means of transportation for hunting, fishing and herding. Subsistence activities and the cash economy are mutually dependent on each other for providing consumption possibilities in the Arctic today, and are at the same time part of a lifestyle that represents continuity, sharing and connection to nature. Land use policies inevitability will clash.
| + | The AEC?s membership consists of Arctic states, each of whom have three corporate participants.from Arctic states. |
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| − | According to the U.S. National Aeronautics and Space Administration, the amount of year round ice cover in the Arctic fell by 11.5% each decade between 1979 and 2012. The rate of decline now in 2017 is 13.3%, suggesting the ice pack is decreasing at a quicker rate. Researchers at the University of Colorado-Boulder, have determined that by the year 2050, the Arctic Ocean will experience 60 to 100 extra days of open water each year. Speculation concerning the future of the Arctic sea ice has prompted a flood of businesses to prepare for the opening of a Northwest Passage and a Trans Polar Route providing an economic highway between Europe and Asia. The graphic shows expected trans-polar route possibilities by 2025. The distances shown are from Rotterdam to the Bering Sea.
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| − | [[File:Anticipated future Arctic transit routes superimposed over Navy consensus assessment of sea ice extent minima.png|center|thumb|434x434px|'''Anticipated Future Arctic Transit Routes''' ]]
| + | # Maritime Transportation, |
| | + | # Investments and Infrastructure, |
| | + | # Responsible Resource Development, |
| | + | # Connectivity, to expand internet and |
| | + | # The "Blue" Economy, which explores the . |
| | + | '''''' |
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| − | Countries are working to provide more access through the pack ice. A number of icebreakers exist, are under construction, or are planned. For example, the People’s Republic of Olvana (PRO) has three icebreakers, a fourth is under construction with plans for a nuclear-powered icebreaker. Donovia has the largest icebreaker fleet in the world. It is vital for both military and civilian use. The icebreakers accompany softer ships through the ice along Donovia’s northern coasts, then guide them into the mouths of large rivers. See the Infrastructure Variable for more detail.
| + | The Arctic Council is the official intergovernmental forum of the Arctic States and Permanent Member of indigenous peoples. the members and |
| − | [[File:Donovian Nuclear Icebreaker.png|center|thumb|'''Donovian Nuclear Icebreaker''']]
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| | + | # Fostering sustainable economic development. |
| | + | The Arctic Council and the of for |
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| − | In October 2017, Donovia deployed a truck-based weather information-gathering tool (Syuzhet-MB) that records and analyzes data and will reportedly improve navigation for aircraft over Arctic waters. The system also supplies information pertaining to ice coverage, water surface temperature, volcanic activities, forest fires, and cloud cover.
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| − | == '''Natural Resources''' == | + | ==== |
| − | According to the United States Geological Survey’s 2008 assessment, “the Arctic accounts for about 13% of the undiscovered oil, 30% of the undiscovered natural gas, and 20% of the undiscovered natural gas liquids in the world."<ref>Jessica Robertson. “[https://www.usgs.gov/media/audio/90-billion-barrels-oil-and-1670-trillion-cubic-feet-natural-gas-assessed-arctic 90 Billion Barrels of Oil and 1,670 Trillion Cubic Feet of Natural Gas Assessed in the Arctic].” US Geological Survey. 23 July 2008.</ref>
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| − | The Arctic is known to have vast reserves of fossil fuels and an abundance of minerals, including gold and diamonds, and is increasingly accessible due to climate change. Consequently, this region is attracting more and more Canadian and international attention. Because climate change is gradually eroding the Arctic icecap, the waters of the Arctic Archipelago are more navigable every year and more ships enter the region. Air traffic in the North is also growing; the annual total of flights on polar routes in Canadian airspace increased from fewer than 1,000 in 2003 to almost 10,000 in 2010. The increase in traffic at sea and in the air, and the escalating exploitation of natural resources in the North, boost the risk of sovereignty challenges, environmental problems, accidents giving rise to search-and-rescue requirements, and criminal activity, especially illicit entry of people and goods.<ref>Murray Brewster. “[https://warriorpublications.wordpress.com/2015/01/12/canadian-military-on-the-lookout-for-spies-and-sabotage-during-annual-arctic-training-internal-documents/ Canadian military on the lookout for spies and sabotage during annual Arctic training: internal documents].” National Post/Canadian Press. 11 January 2015.</ref>
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| − | As an example of the region’s vast natural resources, the Donovian “Arctic [liquefied natural gas] LNG 2” project in Uttreneye is expected to produce more than seven billion barrels of oil equivalent (boe) hydrocarbons in the form of gas and condensate. Production capacity when the project is completed is expected to be 19.8 metric tons per year, or 535,000 boe per day.<ref>Aiswarya Lakshmi. “[https://www.marinelink.com/news/total-novatek-pact-arctic-lng-project-437904 Total, Novatek Pact for Arctic LNG 2 Project].” Marine Link. 25 May 2018.</ref> Production is expected to begin in 2023.
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| | + | Climate change contributes to northward expansion of boreal forests, which provide energy sources and support rural economies. |
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| − | Mining of metals and rare-earth minerals in the Arctic is another less publicized area of economic potential. Large deposits are known to exist across the Arctic, especially reare earths in Greenland.
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| | + | Arctic marine fisheries are small compared to other regions of the world, and the Arctic Five have banned central Arctic fishing for several years, pending ecological impact assessment. Climate change is associated with improved stocks of Arctic fisheries. , because stock increase is associated with northward fish migrations and insufficient information exists about preexisting polar stocks that historically support mainly subsistence activities by indigenous communities. |
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| − | '''Greenland'''. Greenland’s mineral deposits have gained attention as ice sheets shrink and changes are made to mining policies and regulations. The Ilimuaussaq complex in southwest Greenland is believed to contain enough rare earths to meet a quarter of the global demand for the next 50 years. There are large known deposits of iron, molybdenum, vanadium, titanium, zinc, and copper. Greenland also has large amounts of uranium, niobium, PGM 2, REE 3, and tantalum. Speculators are exploring for gold and diamonds.
| + | ===== Oil and |
| | + | Arctic fossil fuel resources include an estimated 90 billion barrels of undiscovered oil, 1,669 trillion cubic feet of undiscovered natural gas, and 44 billion barrels of undiscovered liquid natural gas, which account for 30 percent of the world?s undiscovered natural gas and 13 percent of the world?s undiscovered oil. |
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| − | '''Donovia'''. In Donovia (which has 25+ active mines in the region), several new mines are being developed along the Yamal Peninsula and in other Arctic coastal areas. There is also a new ore mine being developed on Novaya Zemlya, Donovia at the 72nd Parallel – it will be the northernmost mine in the world.
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| | + | The region has abundant untapped mineral wealth, including gold, lead, silver, zinc, copper, iron, nickel, diamonds, rare earth metals, and uranium, among others. |
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| − | '''U.S.''' The Red Dog mine in Alaska is a world leader in producing lead-zinc. It produces 5% of the global zinc production (79% of the U.S.) and 3% of the global lead production (33% of the U.S.). The U.S. is the second largest producer of solar and wind energy, and is now the #1 exporter of oil and gas. (SECENERGY Rick Perry, 2019 Arctic Circle Assembly)
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| | + | Decreased sea ice is also opening tourist markets, as cruise ships began navigating the NWP in 2016.the region. of . The the ,. |
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| − | '''Canada'''. Canada has eight diamond mines in the provinces of Ontario, Quebec, Northwest Territories, and Nunavut. The Yukon Territories contain rich deposits of gold, coal, and quartz. The Northwest Territories contains iron ore, nickel, lead, and zinc. Nunavut Territory contains millions of tons of high-grad iron ore.
| + | The potential increased civilian presence in the Arctic may complicate military operations in coming years. |
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| − | '''Iceland'''. Iceland is poor in mineral resources but has a large aluminum industry. There are three aluminum smelting plants in Iceland, two of which are owned by American manufacturers. Two more plants are in the planning phase.
| + | == Employment == |
| − | == '''Commercial Fishing and Fisheries''' == | + | |
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| − | In December 2017, the EU (28 member state), the U.S., Canada, [[Donovia]], Greenland/Denmark, Iceland, Norway, PRO, and [[South Torbia]] concluded negotiations on the draft ''[https://oceanconservancy.org/wp-content/uploads/2017/11/Chairmans-Statement-from-Washington-Meeting-2017.pdf Agreement to Prevent Unregulated High Seas Fisheries in the Central Arctic Ocean]''. Currently there is no commercial fishing taking place in the central Arctic Ocean, an area approximately 2.8 km2. Given the changes taking place there, these countries have agreed to establish and operate a Joint Program of Scientific Research and Monitoring to study the Arctic ecosystem. The results of this study, which is anticipated to take 16 years, will determine whether large scale fishing in the Arctic is commercially viable and how to responsibly establish fisheries in the area. | + | In 2017, and older. |
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| − | [[File:Central Arctic Ocean Closed to Commercial Fishing.png|center|thumb|451x451px|'''Central Arctic Ocean Closed to Commercial Fishing''']]
| + | * The next highest sector for employment was in the mining, oil, and . |
| − | | + | * Between 11% and 24% were unemployed, depending upon specific Inuit region, and between 27% and 34% were not participating in the labor market. |
| − | The Arctic climatic conditions create a particular characteristic for fisheries. Coastal fishing waters are, to varying extents, covered by ice for part of the year. This means that ice fishing using nets, hooks and traps is common in the winter season while the main fishing period lies between April and November. There are around 60 species of fish indigenous to the European Arctic, of which approximately 20 are fished, including commercial and main recreational species and one species of crayfish. The commercial fleet is largely comprised of small‐scale vessels, with the majority of the vessels less than 18 meters long. Most of the national catch however is comprised of herring and sprat taken for industrial purposes by a small number of larger trawlers.
| + | * Labor force participation rates do not include traditional, land-based activities, , fishing, to 60%. |
| − | | + | In 2017, employment of in Framland, Arnland, Donovia, and Torrike was around 68%.the employed, |
| − | == '''Blue Biodiversity''' ==
| + | * 33% of , |
| − | Blue biodiversity is defined as "any economic activity associated with the use of renewable aquatic biological resources to make products. Examples of such products include novel foods and food additives, animal feeds, nutraceuticals, pharmaceuticals, cosmetics, materials (e.g. clothes and construction materials) and energy. Businesses that grow the raw materials for these products, that extract, refine, process and transform the biological compounds, as well as those developing the required technologies and equipment all form part of the blue bioeconomy."<ref>“[https://www.eumofa.eu/documents/20178/84590/Blue+bioeconomy_Final.pdf BLUE BIOECONOMY: Situation report and perspectives].” European Market Observatory for Fisheries and Aquaculture Products. Directorate-General for Maritime Affairs and Fisheries. European Commission. October 2018. </ref>
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| − | Sustainable use and increasing the value of goods produced from biological aquatic resources plays an important role for driving sustainable economic growth in the Arctic - particularly for development in coastal and rural communities. This is what we call the blue bioeconomy. Put simply, it is about maximizing the value and use of aquatic bio-resources, producing food, feed, bio-products and bio-energy. The main drivers behind the development of the blue bioeconomy are research and development, innovation and knowledge transfer.
| + | * 10% in transportation. |
| − | | + | * Reindeer husbandry is foundational to the and their identity, and is a protected by their respective governments. |
| − | One of the priorities under Iceland´s Arctic Council chairmanship 2019-2021 is the [https://www.sdwg.org/ Sustainable Development Working Group (SDWG)] ''Blue Bioeconomy in the Arctic Region'' project. It was initiated in October 2019.
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| − | The SDWG'' Blue Bioeconomy in the Arctic Region'' project will map key opportunities for enhancing and further developing the Arctic blue bioeconomy with a focus on balancing economic growth, social inclusion and environmental protection. The project will collect success stories and describe best practices, as well as identifying obstacles that could hamper progress.
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| − | The project´s participants come from different parts of the region and have varied backgrounds. Jointly they will draft a report summarizing their findings and circulate it among stakeholders in early summer of 2020. In September 2020, a workshop will be convened in Iceland, where different experts and stakeholders will have the opportunity to further develop the contents of the report and give valuable input. By the end of 2020, the final project report will be presented to the SDWG, including recommendations on possible measures to create a favorable environment for sustainable blue bioeconomy growth in the Arctic.
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| − | == '''Space Domain''' ==
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| − | Traditional space operations in the European Arctic have included satellite systems such as Galileo and Copernicus, Earth observation satellites and associated ground segments, military space activities, science missions (with manufacture of instruments), and space exploration. Commercial growth in the past has centered on space components and subsystem development, manufacture, and sale. Expanding business in the space sector is providing some new business models with commercial potential. These include the following:
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| − | 1. New satellites for positioning, navigation, and timing
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| − | 2. Services and media connectivity
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| − | 3. New launch systems
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| − | 4. Geoinformation, data, and services platforms
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| − | 5. Components, systems, and subsystems for nano-satellites
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| − | 6. Nano-satellite constellations, radar, and hyperspectral systems
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| − | 7. Space situational awareness and space weather
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| − | 8. Space tourism
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| − | 9. Space education
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| − | 10.Satellite servicing
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| − | = '''Donovia''' =
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| − | In 2014, Donovia published a strategy paper for the development of the Arctic region and national security through 2028. This paper identifies six major development priorities for the Arctic region:
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| − | # Integrated socio-economic development of the Arctic zone of Donovia
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| − | # Development of science and technology
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| − | # Modernized information and telecommunication infrastructure
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| − | # Environmental security
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| − | # International cooperation in the Arctic
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| − | # Provision of military security, protection, and protection of the state border of Donovia in the Arctic
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| − | The paper identified risks and threats to achieving the economic goals. These included:
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| − | * Extreme climatic conditions, including low temperatures, strong winds and the presence of ice in the waters of the Arctic seas | |
| − | * The localized nature of industrial and economic development of the areas and low population density
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| − | * The distance from the main industrial centers, high resource use and associated economic activities and livelihoods on supplies from other regions of Donovia of fuel, food and essential commodities
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| − | * Low stability of ecological systems, defining the biological balance and climate, and their dependence even from minor anthropogenic influences
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| − | * Donovian lack of modern technical means and technologies for exploration and development of offshore hydrocarbon fields in the Arctic
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| − | * Depreciation of fixed assets, particularly transport, industrial and energy infrastructure;
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| − | * Underdevelopment of basic transport infrastructure, its marine and continental components, aging icebreaker fleet, lack of small aircraft
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| − | * High energy consumption and low efficiency of extraction of natural resources, the costs of production in the northern no effective compensatory mechanisms, low productivity
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| − | * Insufficient development of navigation-hydrographic and hydrometeorological support of navigation
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| − | * Lack of permanent complex space monitoring of the Arctic territories and waters dependence on foreign sources of funds and information management of all activities in the Arctic (including interaction with aircraft and vessels)
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| − | * Lack of modern information and telecommunication infrastructure that enables the provision of services to the population and economic entities across the Arctic region of Donovia
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| − | * Lack of development of the energy system, and the irrational structure of generating capacity, high cost of electricity generation and transportation
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| − | Despite these challenges, Donovia is committed to developing its own Arctic resources and being a leader in the Arctic region. Sustainable socio-economic development of the Arctic region of Donovia will be based on interaction between government, business and non-profit organizations and civil society through public-private partnerships in the implementation of key investment projects. The government's participation in the infrastructural limitations of economic development is expected to solve social problems and also create economic incentives for businesses. Future projects include exploitation of oil and natural gas finds in the Yamal Peninsula and offshore drilling in the Barents and Kara Seas.
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| − | === Gross Domestic Product ===
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| − | The dismantling of the Warsaw Pact and the deep crisis that marked the ensuing decade and the following years, led to economic liberalization and the erosion of social safety nets. For example, in-kind benefits such as free housing, which previously were the norm, were replaced by cash payments. This “monetization of assistance” contributed to an increase in inequalities, since the amounts granted did not take into account the high cost of living in the North. In most of the Donovian Arctic, individual GDP is relatively low compared to the rest of the country. The exceptions are Yamal-Nenets, Khanty-Mansii and Chukotka. The GDP per capita in Yamal-Nenets is the highest within the circumpolar Arctic. Donovia has the highest gross regional product (GRP) per capita in the circumpolar Arctic. The GRP per capita of both Yamal-Nenets and Khanty-Mansii were higher in 2012 than those of Alaska (U.S.) and the Northwest Territories (Canada).<ref>Gérard Duhaime, Andrée Caron, Sébastien Lévesque, André Lemelin, Ilmo Mäenpää, Olga Nigai and Véronique Robichaud. “Social and economic inequalities in the circumpolar Arctic.” The Economy of the North 2015. Statistics Norway. 21 March 2017.</ref>
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| − | === '''Petroleum and Natural Gas''' ===
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| − | The Donovian Arctic region is more dominated by oil and gas production than the rest of the Donovian economy. Oil and gas are internationally tradeable goods and the relatively high average income level of the Donovian Arctic is largely due to the oil and gas industry.
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| − | Yamal-Nenets produces 596 billion cubic meters of oil and natural gas annually. Future LNG projects include Olvanan, and South Torbian partners. Oil and gas extraction takes only 1% of the land. Energy profits are used to build medical capability, infrastructure, and education benefits.
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| − | Donovia produced 11 million tons of LNG in 2018. Their target goal for 2035 is 140 million tons. Future Arctic sites are LNG 2 (partially owned by South Torbia), LNG 3, Yamal 4, Portovaya (Novatec), and LNG 1. In 2019, Donvoa opened several new fields in the area. The latest is Bukharinskoye, a field located partly on land, partly offshore, in the Gydan Peninsula and adjacent to the Gulf of Ob. Arctic LNG 1 on the 27 December 2019, won the right to exploit the huge Arctic natural gas field that holds an estimated 1.19 trillion m3 of gas and 74 million tons of liquid hydrocarbons.
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| − | The top LNG exporters in 2018 (in order) were Australia, Qatar, Malaysia, U.S., Nigeria, and Donovia.
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| − | === Northern Sea Route ===
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| − | The continuing decrease of Arctic sea ice is gradually creating new trans-Arctic shipping routes, linking the Atlantic and Pacific Oceans. A large part of Arctic ship traffic passes through waters that are subject to Norwegian jurisdiction. As an example, the Northern Sea Route (NSR) along Donovia's northern coast is currently the most accessible Arctic seaway. Using the NSR on seaborne trade between Atlantic and Pacific ports may cut the distance with as much as 50% compared to the southern routes via the Suez or Panama Canals. Time saving and reduced fuel consumption may give substantial cost saving. It also makes it possible to transport such as LNG without icebreakers, shaving days off shipping times and unlocking supplies from difficult-to-reach fields.
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| − | NSR shipping:
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| − | · Olvana began shipping through the NSR in 2013. That has increased each year: 2015 = two transits, 2016 = six transits, 2017 = five transits, and 2018 = eight transits.
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| − | · 2016 NSR cargo volumes were 7.3 m/t, up 35% form 2015
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| − | · 2016 NSR cargo volumes increased to 9.7 m/t, up 33%.
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| − | · 2018. In the first six months, five purpose-built LNG carriers transported 34 loads of natural gas, 2.5 million tons, to European markets. Average voyage time from Sabetta to European ports was 10 days.
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| − | · In August 2018, the Venta Maersk, a new ice-class container ship owned by Maersk Lines (Denmark) sailed from Vladivostok to become the first container ship to navigate the NSR.
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| − | · Analysts predict that NSR cargo volumes could be as high as 40 m/t by 2022 and 70-80 m/t by 2030.
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| − | === Coal and Metals Mining ===
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| − | In addition to petroleum products, the Donovian Arctic also produce coal and metals. Nickel mining has been a staple of the region since the 1950s. In 2019, Donovia announced it intends to begin building a palladium mine in the Taymar Peninsula. This will include an open pit mine, a processing plant, a smelter, a town and an airfield. State and commercial entities will invest USD15,000,000,000 in the new venture. Ore reserves are estimated to 770 million tons and the production period stretches 55 years into the future. A total of 5,860 new jobs will be created and 40 billion rubles of tax payments annually transferred to the state treasury. Furthermore, the output will be shipped out through the Northern Sea Route. The market value of palladium has over the past years increased significantly and is now sold for USD1,800 per ounce, which is more than gold. With the new project, Donovia will become the world’s biggest producer of palladium. Mining experts believe there are also large resources of nickel and copper on the Taymyr Peninsula.
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| − | In November 2019, India agreed to buy 70 million tons of anthracite, a high-quality coal, from Donovia. India needs high-quality metallurgic coal for its aluminum and steel industry. At least 30 million tons of anthracite will come form mines in the Taymyr Peninsula and will be transported via the NSR.<ref>Atle Staalesen, “Russia finds market for its vast reserves of Arctic coal,” The Barents Sea Independent Observer, 1 November 2019.
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| − | <nowiki>https://thebarentsobserver.com/en/industry-and-energy/2019/11/russia-finds-market-its-vast-reserves-arctic-coal</nowiki>
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| − | </ref>
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| − | = '''The People’s Republic of Olvana (PRO)''' =
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| − | The PRO, as an observer in the Arctic Council, has declared itself to be a “near Arctic” country. [[Olvana]] is now encouraging enterprises to build infrastructure and conduct commercial trial voyages. Olvanan cargo ships now sail along the Northeast Passage as part of their self-declared “Polar Silk Road”. Shipping through the Northern Sea Route would shave almost 20 days off the regular time using the traditional route through the Suez Canal, and a new Transpolar Route would shorten the time considerably. Olvana’s Maritime Safety Administration released a 356-page guide providing detailed charts on routes from the northern coast of North America to the northern Pacific. “Once this route is commonly used, it will directly change global maritime transport and have a profound influence on international trade, the world economy, capital flow and resource exploitation,” said spokesman Liu Xiengfei.
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| − | Olvana released its first Arctic policy white paper last January and to signal its commitment, has begun construction on its first nuclear icebreaker. A majority of Olvana’s interests in the region lie in its major stake in Donovia’s Yamal liquefied natural gas (LNG) project, which is expected to supply Olvana with four million tons of LNG a year. The white paper said Olvana also targets development of oil, gas, mineral resources and other non-fossil energies, fishing and tourism in the region.
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| − | Olvana is one of the biggest investors in Greenland and is negotiating a free trade deal with Iceland. Olvana’s investment in Greenland’s economy is 12% of its gross domestic product and about 6% of Iceland’s GDP. Olvana has bid on a new Greenland airport which has an estimated cost of 3.6 billion Danish krone (USD560 million). Such a massive infrastructure project for whatever company wins could potentially set Olvana up as a major economic driver for Greenland. Additionally, Olvanan businesses control 10% of Europe’s cargo hubs.<ref>Aaron Mehta. “[https://www.defensenews.com/global/europe/2018/09/07/how-a-potential-chinese-built-airport-in-greenland-could-be-risky-for-a-vital-us-air-force-base/ How a potential Chinese-built airport in Greenland could be risky for a vital US Air Force base].” Defense News. 8 September 2018.</ref>Through the “Data Silk Road” with [[Otso]], it is laying undersea cable to move financial data more quickly from point-to-point. Olvana has invested USD90 billion in a host of projects above 60 degrees north with likely more to follow, if oil prices rise.
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| − | Olvana and South Torbia have been in a series of talks and negotiations on how to partner in Arctic development.
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| − | Olvana has a carbon intensive society. In 2011-2013, Olvana used more concrete that the United States in its entire history. The Polar Silk Road (PSR) is more than economic, it is ecological. The Shanghai Cooperation Organization (SCO), which started as an anti-terrorist organization, is expanding now to work economic issues with Olvana’s Belt and Road Initiative (BRI).
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| − | = '''Torrike''' =
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| − | [[Torrike]] has a long history of dealing with resources in the Arctic. The forestry industry in the Norbotten and Sveaskog area is especially strong. The indigenous Sami people herd reindeer through the region, and use GPS tracking collars to stay aware of their movement patterns. However, the changing environmental conditions are affecting the Sami reindeer herders, along with deforestation, development, and increasing urbanization. Longer summers means more predator activity, and therefore more losses of reindeer to bear, increasing economic pressure on the Sami.
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| − | = '''Faroe Islands''' =
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| − | The Faroe Islands are a self-governing part of the Danish Realm. The judicial system, defense, national security, and foreign affairs are the main areas still under Danish jurisdiction. Faroe Islands had 49,000 inhabitants by 1 January 2015 of which 20,000 live in the capital of Torshavn. The livelihood has throughout history been based on the ocean and the marine resources. It still is, and Faroe Islands has built up business and expertise within fisheries, aquaculture and marine engineering.
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| − | The financial crisis also affected Faroe Islands and unemployment increased from 1.5% in 2007 to 7.4% in 2010, declining somewhat to 5.1% in 2012. The trend of population growth was broken by a marked rise in emigration mainly by young people.
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| − | = '''Greenland''' =
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| − | Greenland is strategically important as it is midway between U.S. and Donovia. There is resentment in Greenland over the contracts for Thule Air Base. All are in the hands of American companies, not Greenland companies.
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| − | Greenland’s economy depends on exports of shrimp and fish, and on a substantial subsidy from the Danish Government. Fish account for over 90% of its exports, subjecting the economy to price fluctuations. The subsidy from the Danish Government is budgeted to be about $535 million in 2017, more than 50% of government revenues, and 25% of GDP.
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| − | The economy is expanding after a period of decline. The economy contracted between 2012 and 2014, grew by 1.7% in 2015 and by 7.7%in 2016. The expansion has been driven by larger quotas for shrimp, the predominant Greenlandic export, and also by increased activity in the construction sector, especially in Nuuk, the capital. Private consumption and tourism also are contributing to GDP growth more than in previous years. Tourism in Greenland grew annually around 20% in 2015 and 2016, largely a result of increasing numbers of cruise lines now operating in Greenland's western and southern waters during the peak summer tourism season.
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| − | The public sector, including publicly owned enterprises and the municipalities, plays a dominant role in Greenland's economy. During the last decade the Greenland Self Rule Government pursued conservative fiscal and monetary policies, but public pressure has increased for better schools, health care, and retirement systems. The budget was in deficit in 2014 and 2016, but public debt remains low at about 5% of GDP. The government plans a balanced budget for the 2017–20 period.
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| − | Significant challenges face the island, including low levels of qualified labor, geographic dispersion, lack of industry diversification, the long-term sustainability of the public budget, and a declining population due to emigration. Hydrocarbon exploration has ceased with declining oil prices. The island has potential for natural resource exploitation with rare-earth, uranium, and iron ore mineral projects proposed, but a lack of infrastructure hinders development.<ref>CIA World Factbook: Greenland, https://www.cia.gov/library/publications/the-world-factbook/geos/gl.html. 2 October 2019.</ref>
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