Discover Greenland : Current issues

Motherland for the Inuit peoples and the Vikings in the Middle Ages, a land coveted by Danish colonizers, Greenland still bases most of its economy on its abundant natural resources. Fishing alone is expected to account for over 90% of exports in 2024. While Greenland's socio-economic situation is in good shape, attracting a large number of visitors, all is not well on the icy island. The question of the country's future economic direction as it seeks to emancipate itself from Denmark is dividing the population more than ever, and raising tensions. Should we opt for total exploitation, even if it means endangering the environment, or should we try, on the contrary, to continue working towards a "white" economy based on tourism, fishing, hunting and agriculture (or even water)? A vast debate, against a backdrop of global warming.

State structure: reinforced autonomy

Greenland is headed by Margrethe II, Queen of Denmark, enthroned in 1972. Her power is represented locally by a high commissioner. Two deputies represent Greenland in the 179-member Danish Parliament(folketing, single chamber). The Greenland Parliament(inatsisartut) has 31 members, elected for 4-year terms. The local government(naalakkersuisut) is responsible for central administration (education, health, fisheries, environment, etc.) under the leadership of a Prime Minister. Certain areas fall under Danish authority: justice and police, defense and national security, financial and monetary matters, civil law (family and inheritance) and foreign affairs. However, Greenland may be represented in certain countries or institutions with a commercial interest in the island. Representation was established with the European Union in 1992, and Greenland maintains close ties with the Nordic and Arctic countries.

In 2008, Greenlanders approved a plan for greater autonomy, which was validated by the Danish government in June 2009. This new political status is commonly referred to as "self-rule". Elections held the same month resulted in a victory for the left-wing Inuit party, Ataqatigiit, after more than 30 years of Siumut party rule. But the 2013 elections saw the return of the same party at the head of a coalition government. Aleqa Hammond became the first female Prime Minister, but was suspended on November 28, 2014 due to a financial scandal. In the early elections that followed, the outgoing government (Siumut) won a majority of the vote, but being almost tied with the Inuit Ataqatigiit party, had to form a coalition with the Demokraatit and Atassut parties. It is led by Kim Kielsen (Siumut). In April 2021, the Inuit Ataqatigiit party, led by Múte Bourup Egede, won the last general election.

The different political parties

There are six in all.

Siumut Party. The oldest party, founded in 1977, Siumut (forward) was Greenland's main party after territorial autonomy came into effect in 1979, and led Greenland for over 30 years under successive prime ministers Jonathan Motzfeldt, Lars Emil Johansen and Hans Enoksen. In general, the party advocates strong autonomy in the present and independence in the long term. In 2021, they won 10 seats with Erik Jensen as party leader.

Inuit Ataqatigiit Party (IA). Inuit Ataqatigiit (literally "Inuit community") is an originally socialist, independence-oriented party. The party was born in the 1970s, mainly as a result of the radicalization of Greenlandic youth in search of recognition of Inuit particularities. Its aim is to turn Greenland into an independent state, based on closer cooperation with the federation of circumpolar peoples. In the Greenland parliamentary elections of November 15, 2005, he won 7 of the 31 seats in the local parliament. From 2005 to 2009, he governed Greenland alongside the social-democrat Siumut party. In the early elections held on June 1, 2009, Inuit Ataqatigiit won 14 of the 31 seats in Parliament for the duration of the legislature, becoming the island's leading political party. Its leader, Kuupik Kleist, became Prime Minister on June 21, 2009. In 2018, they win 8 seats with Sara Olsvig as party leader. In 2021, they win 12, with its leader Múte Bourup Egede, and form a coalition government with the Naleraq party.

Demokraatit Party. Demokraatit (literally "the democrats"), or Democratic Party, is a social-liberal party founded in 2002, which won 5 seats in Greenland's parliamentary elections the same year, and 7 in the 2005 elections, before slipping back in subsequent elections. During the 2014 early parliamentary elections, the Democrats came third and won 4 seats in the Greenland Parliament. In 2018, they won 6 seats, and in 2021, 3.

Atassut Party. The Atassut Party (literally "connection") is a liberal political party in the current government coalition. This conservative party with a strong attachment to Denmark draws its membership from civil servants, craftsmen, shopkeepers and entrepreneurs. In 2018, they won 2 seats, as they will in 2021.

Naleraq Party. Last party to be founded in 2014 by former Siumiut Prime Minister Hans Enoksen. They are the most radical independentists on the Greenlandic political scene. The party declares itself in defense of fishing and hunting. It claims to defend a policy that would "give equal opportunities" to the entire population and in all regions in terms of economic development and social services. In 2014, the party won three seats in parliament thanks to its 11.6% share.

In 2018, they won 4 seats, as they will in 2021.

Inuit Party. Left-wing, pro-independence party founded in 2013 by former IA (Inuit Ataqatigiit) members disappointed with their party's policies. They won 2 deputies in parliament when they were founded and then lost them in the 2014 elections.

The thorny issue of economic emancipation from Denmark

Greenland's GDP is just over $3.2 billion. The growth rate is 1.3% and the unemployment rate was 3.2% in 2021. It is also estimated that 9% of the population lives below the poverty line. In addition, the economic situation is far from flourishing, as evidenced by the fact that exports cover only half the amount of imports, the difference being made up by aid from Denmark (subsidies from the Danish government, the EU and the USA account for more than half of the state budget). Greenland thus finds itself in a situation of strong economic dependence on Denmark. While this entails a considerable financial investment for the Crown, it is perhaps important to qualify these remarks by recalling Greenland's geostrategic importance on the world stage, its principal economic partnership with Denmark, and the richness of its soil. It's not a question of philanthropy, but of long-term political and (indirect) economic strategy.

Fishing: the country's leading economic activity

Greenland's economy is heavily dependent on fishing, which was only intensively developed in the 1970s, as the Inuit had previously been primarily marine mammal hunters for hundreds of years. Industrial fishing is managed by several private companies, notably the state-owned Royal Greenland A/S, particularly for shrimp production, which is the island's main export resource. As for fish, Greenland halibut is tending to supplant cod, which was overfished in the past. Greenland has some 1,755 small boats and 288 small and large trawlers, as well as 268 dog sleds and 637 snowmobiles. The positive effects of global warming on this sector should also be noted, as it has led to an increase in the number of fish species in the seas.

The abundance of natural resources

It is estimated that the Arctic holds a quarter of the planet's oil and gas resources (as yet undiscovered), more than a third of which is located in Greenland, favored by the melting of the ice sheets as a result of global warming. As the ice sheet retreats, new exploitable land emerges. In the past, many mines exploited various metals (cryolite in Ivittuut; coal in Qullissat; marble, zinc, lead and silver in Maarmorilik; zinc, molybdenum and lead in Mesters Vig Bay), but began to gradually close in the 1990s, causing a deficit in Greenland's balance of trade. Since 2009, successive Greenland governments have been counting on further accelerated development of the mining industry. In the space of several years, the number of concessions granted has risen considerably, with multinationals - often American, Norwegian, Canadian and Australian - benefiting. Some projects have already begun, such as the Aappaluttoq ruby and sapphire mining project in the south-west of the island, the iron ore project north-east of the capital and, more worryingly from an ecological point of view, the uranium project in the south of the country in the Narsaq region (debate on the Kuannersuit mining project). Greenland could become one of the world's biggest uranium exporters. All the main political parties are in favor of developing the mining industry, but the Inuit Ataqatigiit party is opposed to uranium mining on environmental grounds and wants a referendum on the exploitation of this resource. According to opinion polls, the majority of Greenland's population is opposed to uranium mining, but in favor of economic development. In the same uranium mine, there is also a particularly large deposit of rare earths (a material that has become indispensable to new technologies, notably cell phones); the island is said to contain 12 to 25% of the world's reserves!

The oil industry

Despite global warming and melting ice, most of Greenland's oil resources remain inaccessible. Although some geologists believe that the country holds significant oil and gas resources, no off-shore drilling has yet produced satisfactory results. To everyone's surprise, and to the delight of environmental activists, three oil industry giants - GDF Suez (France), Statoil (Norway) and DONG (Denmark) - abandoned prospecting in West Greenland in January 2015, despite the Greenland government's tempting offer to extend exploration licenses free of charge.

There are several reasons for this historic decision: major climate change, the high costs of production in polar conditions, the collapse in oil prices, the uncertainty of being able to drill more safely, and also the growing interest of the rest of the world in preserving the environment. Indeed, NGOs such as WWF and Greenpeace are pushing for a total halt to exploration, which is endangering fragile marine fauna and fjords. If oil prices do not rise again soon, it will certainly be several decades before Greenland can count on hypothetical oil revenues.

In Greenland: the agriculture sector

Surprising as it may seem, this predominantly ice-covered island is also a land of agriculture. For some decades now, South Greenland has been undergoing agricultural development (as in the Viking period). Sheep and cows are raised here, but in addition to fodder for the animals, fruit and vegetables (potatoes, turnips, tomatoes, rhubarb, broccoli, strawberries, raspberries...) are also grown for local consumption. An agricultural school has also opened not far from Qaqortoq to train future generations! Greenland thus hopes to take the first step towards eventual food self-sufficiency. However, the region's farmers are complaining about climatic instability, which prevents them from producing on a stable and regular basis, as well as the threat of the opening of a uranium mine in Narsaq (currently abandoned following the election of the Inuit Ataqatigiit party, opposed to the project).

A popular tourist destination

Tourism is a booming sector in Greenland, despite its high costs and short summer season. Greenland is now visited by around 85,000 tourists a year, including a record 96,300 tourists in 2023. The icy island is attracting more and more visitors because of its unique character, and its national tourist board, Visit Greenland, is doing all it can to promote the country's exceptional assets (sled dogs, icebergs, northern lights, animals, Inuit culture and its modernity, the midnight sun, kayaking...). Having opted for the "harp strategy" aimed at diversifying sources of revenue, the government is steadily increasing its budgets in the tourism sector, with the construction or expansion of airports and the creation of a splendid new visitor center in Ilulissat (designed by the famous Swiss architect Peter Zumthor).

Current issues

The large-scale rare earth and uranium extraction project at the Kvanefjeld mine has gone so far as to create international tensions, with Donald Trump's much-publicized intervention in 2021, indicating his wish to buy Greenland. His reaction was not insignificant: the American president, aware of the exceptional wealth of Greenland's soil and its geopolitical strength, also wished to block the Chinese, holders of almost all the world's rare earth reserves and also of a share in the Australian company GME, responsible for operating the mine.

Furthermore, Denmark, which has a zero-tolerance policy towards uranium within its own country, finds itself in a convoluted position: having allowed Greenland greater autonomy in 2009 in certain areas, including domestic policy, Greenland can now decide for itself what it wishes to do with its soil. The icy island even passed a law in 2013 authorizing the lifting of suspensions on uranium mining, which had previously been banned. Since then, a virulent debate has divided the country into two distinctly antagonistic groups: supporters of a "black Greenland" policy, in favor of oil and mining, and supporters of a "white Greenland" policy, in favor of tourism, agriculture, fishing and hunting.

While some Greenlanders want to achieve economic independence from Denmark at all costs, another part of the population, aware of its economic inadequacy to free itself from Danish aid, wants to take its time and, above all, not achieve this emancipation at any price. "We have to work with nature, not against it In the long term, however, a desire for total independence is emerging..

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