Distrusting the Dragon

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Distrusting the Dragon Distrusting the Dragon An Ethnographic Study of Distrust and Marginality in the Eastern Fjords of Iceland Pernille Ihme Master’s Thesis Department of Social Anthropology University of Oslo June 2016 ii Distrusting the Dragon An Ethnographic Study of Distrust and Marginality in the Eastern Fjords of Iceland Pernille Ihme University of Oslo 2016 iii © Pernille Ihme 2016 Distrusting the Dragon: An Ethnographic Study of Distrust and Marginality in the Eastern Fjords of Iceland http://www.duo.uio.no Print: MailBoxes Ect. Oslo iv Abstract This thesis aims to explore the manifestation of distrust and the feeling marginality in the community of Orkuvík, situated in the eastern fjords of Iceland. More particularly, it investigates the correlation between the financial crisis in 2008, the startup of an oil industry in the “Dragon Area”, and the relationship between a peripheral community, the urban center and global processes. Orkuvík is peripheral and semi-isolated, but at the same time interconnected with global processes and large-scale systems. The community is connected to the largest hydropower plant in Iceland, the Kárahnjúkar dam, which provides power for the largest aluminum smelter in Iceland, Fjardaál. Simountanously, Orkuvík inhabits the largest fishing company in Iceland, Fiskur. This thesis provides a comparative analysis of these two different industries, and creates an understanding of how the indifference expressed towards the oil industry is not due to the lack of experience with industrial endeavors, but is rather based on a feeling of distrust. Building on the ethnographic descriptions throughout this thesis, I suggest that there are multiple reasons for the cynicism towards the opening of an oil field in the Dragon Area. However, they all emerge from the same feeling of distrust and marginality. The reason for indifference towards the oil industry was not only based on a feeling of distrust in the aftermath of the financial crisis. The financial crisis served as a catalyst for change and simountanously revealed larger issues concerning marginality, the feeling of not being heard and an understanding of disconnect from the greater Reykjavík area. As the fieldwork unfolded, different strategies for maneuvering in this reality became overt. Rather than staying dependent on global processes that provides industry, or nation-state decisions that suggests further industrial development, Orkuvíkians started to engage in how to frame their own future, and take back control. Keywords: Iceland, Oil, Distrust, Neoliberalism, Crisis, Scale, Industry, Disillusionment, Marginality. v vi Acknowledgements First, my deepest gratitude goes out to the people of Orkuvík who allowed me to take part of and learn about their lives. I am grateful for the friends I made, who opened up their homes, hearts and minds to me. Takk fyrir. You will always have a special place in my heart and I will forever be grateful for this opportunity. To my Icelandic family in Kópavogur, Bryndís, Egill, María, Hrefna and Pétur, thank you for always having your door open. I am forever grateful for your friendship and support. I want to thank my excellent supervisor Lena Gross for exceptional, supportive, responsive and inspiring guidance during this process. You have been able to balance perfectly between challenging and supporting guidance. Thank you. I am also sincerely thankful for inspiring and challenging feedback from my supervisor, Thomas Hylland Eriksen. You have navigated me through some complexities I would not be able to solve on my own. To my fellow students; this has been great! Thank you all for fun and engaging talks during our years together, you have made me better, smarter and helped me through this exciting and frustrating process. The same goes to the Overheating research group, my research would not have been the same without your influence and suggestions given before, during and after my fieldwork. There are a few people I would like to mention specifically; Tone Høgblad, Camilla Mevik, Mats Thorsen, Tiffany Utvær Gasser, Mikkel Vindegg, Ola Gunhildrud Berta and Stina Worren. Last but not least, Irene Svarteng, for always keeping the spirits high. I am grateful to the Department of Social Anthropology in Oslo (SAI) and the European Research Council for funding. I would also like to give a shout out to my family. Thanks to my parents for all the support and for being my biggest cheerleaders. To my brother Henrik for guidance and stimulating discussions, to my brother Henning for always being just a phone call away. To Þorbjörn, who has supported me through this entire process, I could not have done this without you. vii viii Trevor Nickolls: Warmun Mandala (c) Trevor Nickolls/BONO The research leading to these results has received funding from the European Research Council under the European Union’s Seventh Framework Programme (FP7/2007-2013) / ERC Grant Agreement n. [295843]. ix x Table of Contents Abstract ............................................................................................................................................................... v Acknowledgements ...................................................................................................................................... vii List of Figures ................................................................................................................................................. xii Chapter 1: Introduction ............................................................................................................................... 1 Orkuvík: Clarification of Field Site ................................................................................................................................. 2 What is it About Orkuvík? .................................................................................................................................................. 3 How My Fieldwork Started Out ....................................................................................................................................... 4 Unexpected Data- Change of Research Question .................................................................................................... 6 Theoretical Approaches: Introducing Key Words .................................................................................................. 7 Doing Fieldwork in Orkuvík: Methods and Data Material ...............................................................................11 On Doing Research in Familiar Surroundings ........................................................................................................14 Ethical Considerations: During and After Fieldwork ..........................................................................................16 Short Introduction of Informants .................................................................................................................................16 Outline of Thesis ...................................................................................................................................................................18 Chapter 2: The Rise and Fall of the Icelandic Economy .................................................................. 20 Understanding History: A New Social Order ...........................................................................................................22 Fishing as Trade and International Relations ........................................................................................................24 Vikings, Nostalgia and Nationalism ............................................................................................................................25 Liberalization Processes and Crony Capitalism ....................................................................................................26 Neoliberalization and Increased Privatization .....................................................................................................29 Banking Sector Prior to Privatization .......................................................................................................................32 Heating Up ..............................................................................................................................................................................33 Melting Down.........................................................................................................................................................................34 End of Chapter Remarks ...................................................................................................................................................35 Chapter 3: In the Urban Periphery: Orkuvík and Attitudes Towards Industry ...................... 38 Out of the Core - Into the Urban Periphery ..............................................................................................................39 “They only tell us what we want to hear” .................................................................................................................45 The Disputed Dam and Fjardaál ...................................................................................................................................47 Neoliberal Policies Depicted in Nature ......................................................................................................................48 Entrepreneurs and Quota kings- How the Privatization Processes
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