Regional Organization of Large Scale Projects

ShortShort andand longlong termterm laborlabor marketmarket implicationsimplications ofof largelarge scalescale projectsprojects inin thethe NorthNorth

RasmusRasmus OleOle RasmussenRasmussen NORS - North Atlantic Regional Studies Roskilde University NORDREGIO - Stockholm ConclusionsConclusions

•• InIn orderorder toto makemake properproper useuse ofof regionalregional planningplanning inin GreenlandGreenland youyou needneed toto realizerealize thatthat::

–– ””OneOne sizesize doesdoes notnot fitfit all!all!””

–– ItIt isis necessarynecessary toto planplan forfor thethe nonnon planableplanable!!

–– BewareBeware ofof WomenWomen asas aa decisivedecisive factorfactor inin thethe futurefuture developmentdevelopment StructureStructure ofof presentationpresentation

•• UsefulUseful conceptsconcepts inin relationrelation toto modelsmodels ofof regionalregional organizationorganization ofof largelarge scalescale projectsprojects • Positive, negative and unexpected consequences of planning – examples from the Circumpolar North • General characteristics regarding labor market development • Useful models in understanding community and labor market response to changes • Planning the unplanned? • Greenland perspectives RegionalRegional organizationorganization ofof largelarge scalescale projectsprojects

•• CommunityCommunity basedbased relationsrelations

•• CommunityCommunity AdjacentAdjacent relationsrelations

•• EnclaveEnclave characteristicscharacteristics StructureStructure ofof presentationpresentation

• Useful concepts in relation to models of regional organization of large scale projects • Positive, negative and unexpected consequences of planning – examples from the Circumpolar North • General characteristics regarding labor market development • Useful models in understanding community and labor market response to changes • Planning the unplanned? • Greenland perspectives TheThe ““BlackBlack AngelAngel””

•• InIn 19501950--5151 profitableprofitable leadlead andand zinczinc oreore werewere foundfound closeclose toto MaarmorilikMaarmorilik •• InIn 19641964 thethe companycompany GreenexGreenex waswas established,established, andand togethertogether withwith ComincoCominco fromfrom CanadaCanada establishingestablishing ofof productionproduction facilitiesfacilities startedstarted inin 19711971 TheThe ““BlackBlack AngelAngel””

•• ProductionProduction startedstarted inin 19731973 afterafter twotwo yearsyears ofof constructingconstructing thethe infrastructureinfrastructure andand productionproduction equipment.equipment. •• TheThe processingprocessing equipmentequipment werewere transferredtransferred fromfrom USAUSA TheThe ““BlackBlack AngelAngel”” •• TheThe constructionsconstructions andand maintenancemaintenance waswas takentaken carecare ofof byby ““DanishDanish ArcticArctic ContractorsContractors”” •• InIn thethe constructionconstruction phasephase aroundaround 400400 DACDAC workersworkers werewere involved.involved. TheThe ““BlackBlack AngelAngel””

•• TheThe startingstarting upup requiredrequired skilledskilled workforceworkforce fromfrom CanadaCanada •• AdditionalAdditional workforceworkforce mainlymainly fromfrom Denmark,Denmark, Sweden,Sweden, NorwayNorway •• OnlyOnly fewfew personspersons fromfrom GreenlandGreenland werewere involvedinvolved EmploymentEmployment duringduring productionproduction

Personer bosat i Maarmorilik 400

350

300

250

200

150

100

0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Født i Grønland Født udenfor Grønland TheThe ““BlackBlack AngelAngel””

•• ProductionProduction stoppedstopped onon JulyJuly 25,25, 19901990 –– changeschanges inin worldworld marketmarket pricesprices –– limitedlimited sizesize ofof resourceresource •• TheThe closingclosing hadhad somesome -- butbut notnot fatalfatal -- consequencesconsequences forfor thethe communitycommunity •• OnlyOnly 11 ofof thethe formerformer foreignforeign workersworkers hashas settledsettled inin GreenlandGreenland WorkforceWorkforce mobilitymobility

Origin, % Destination, % Change Nanortalik 2 - (2) Qaqortoq 3 2 (2) Narsaq 3 1 (2) Paamiut 9 2 (7) Nuuk 6 15 8 Maniitsoq 3 4 0 Sisimiut 3 3 0 Aasiaat 12 7 (5) Qeqertarsuaq 3 4 0 Qasigiannguit 1 - (1) Ilulissat 7 5 (2) Uummannaq 41 46 5 Avanersuaq 1 - (1) Tasiilaq 2 1 (1) Ittoqqortoormiit 1 - (1) Unknown 5 13 8 LocalLocal consequencesconsequences

•• NetNet inin--migrationmigration

•• FundingFunding forfor developmentdevelopment ofof fisheriesfisheries TheThe QullissatQullissat coalcoal minemine

•• ProductionProduction startedstarted inin 19241924 •• FromFrom 19241924 toto 19391939 aa totaltotal ofof 64.00064.000 tonstons ofof coalcoal waswas producedproduced •• InIn thethe startstart aroundaround 2020 personspersons werewere involvedinvolved TheThe QullissatQullissat coalcoal minemine

•• InIn 19391939 aroundaround 566566 personspersons werewere livingliving inin QullissatQullissat •• AA veryvery distinctdistinct cultureculture developed,developed, withwith itsits ownown musicmusic andand otherother culturalcultural characteristicscharacteristics TheThe QullissatQullissat coalcoal minemine

•• WhenWhen thethe minemine waswas closedclosed inin 19721972 aa totaltotal ofof 1.4001.400 peoplepeople werewere livingliving inin QullissatQullissat •• MoreMore thanthan 90%90% werewere GreenlandersGreenlanders •• ItIt waswas decideddecided toto closeclose thethe towntown duedue toto limitedlimited profitabilityprofitability •• TheThe populationpopulation protested,protested, butbut allall personspersons werewere relocatedrelocated toto otherother placesplaces inin Greenland!Greenland! TheThe QullissatQullissat coalcoal minemine

Qullissat - befolkning og beskæftigede i minen

1400 1200

1000 800

600 400

200 0 1924 1927 1930 1933 1936 1939 1942 1945 1948 1951 1954 1957 1960 1963 1966 1969 1972 1975 1978

Samlet befolkning Beskæftigede DisplacementsDisplacements afterafter minemine closureclosure

Tabe l 2 : Familieflytninger i forbindelse med nedlæggelsen af Qullissat. Efter Haagen (1977).

Nuværende navn Dansk navn Antal familier Nuuk Godthåb 39 Paamiut Frederikshåb 33 Sisimiut Holsteinsborg 33 Ilulissat Jakobshavn 31 Qeqertarsuaq Godhavn 13 Qasiannguit Christianshåb 12 Narsaq Narssaq 10 Aasiaat Egedesminde 9 Maniitsoq Sukkertoppen 7 Ukusissaq Uvkugsigssat 2 Upernavik Upernavik 1 Ikerasak 1 FERMONTFERMONT FermontFermont,, NorthernNorthern QuebecQuebec

•• IronIron oreore miningmining •• ProductionProduction startedstarted inin 19741974 •• WasWas supposedsupposed toto finishfinish byby 20002000 •• TotalTotal directdirect employmentemployment atat peakpeak -- 860860 personspersons FermontFermont,, NorthernNorthern QuebecQuebec

•• ““TheThe WallWall”” waswas createdcreated asas centercenter forfor thethe staffstaff •• WithinWithin thethe sheltershelter ofof thisthis buildingbuilding everythingeverything shouldshould bebe possiblepossible forfor thethe 3.5003.500 inhabitantsinhabitants

TheThe wall!wall!

•• WhenWhen productionproduction endedended thethe placeplace waswas supposedsupposed toto bebe abandonedabandoned…… •• ButBut thethe populationpopulation havehave refusedrefused toto leave!leave! •• SoSo thethe QuebecQuebec governmentgovernment hashas gotgot aa problem!!problem!! Hibernia,Hibernia, TerraTerra Nova,Nova, SableSable IslandIsland HiberniaHibernia •• DevelopmentDevelopment startedstarted inin thethe 1980s1980s •• MaximumMaximum numbernumber ofof jobs:jobs: 6.5006.500 (in(in 1995)1995) •• AA totaltotal ofof 26.00026.000 personperson yearsyears •• 59%59% ofof workersworkers fromfrom NewfoundlandNewfoundland •• 15%15% fromfrom otherother partsparts ofof CanadaCanada •• BullBull ArmArm -- aa totaltotal ofof 4.0004.000 jobsjobs forfor 22 yearsyears •• PermanentPermanent jobs:jobs: 900900--10001000 HiberniaHibernia TerraTerra NovaNova

•• FirstFirst explorationexploration 19841984 •• DevelopmentDevelopment duringduring thethe latelate 19901990’’ss andand 20002000’’ss •• 3.5003.500--5.0005.000 jobsjobs perper yearyear duringduring developmentdevelopment •• PermanentPermanent employmentemployment aroundaround 900900-- 1.5001.500 personspersons •• UsingUsing thethe facilitiesfacilities atat BullBull Arm,Arm, butbut vesselvessel constructedconstructed inin KoreaKorea SableSable IslandIsland

•• NovaNova ScotiaScotia mademade useuse ofof thethe experiencesexperiences fromfrom NewfoundlandNewfoundland •• HighHigh degreedegree ofof locallocal involvementinvolvement •• ExtensiveExtensive hearingshearings andand communitycommunity consultancyconsultancy •• DistributedDistributed systemsystem ofof productionproduction,, makingmaking useuse ofof communitycommunity collegescolleges asas trainingtraining facilitiesfacilities ProjectProject developmentdevelopment asas aa learninglearning processprocess

•• ShiftShift ofof focusfocus duringduring thethe threethree projectsprojects::

–– FromFrom enclaveenclave characteristicscharacteristics towardstowards communitycommunity ajacentajacent andand communitycommunity integratedintegrated activitiesactivities

–– FromFrom centralizedcentralized toto moremore distributeddistributed activitiesactivities ““RedRed DogDog””,, KotzebueKotzebue,, AlaskaAlaska TheThe RedRed DogDog minemine inin AlaskaAlaska RedRed Dog,Dog, AlaskaAlaska

!! ZincZinc--LeadLead productionproduction !! NorthwestNorthwest Alaska,Alaska, aboutabout 145145 kilometreskilometres northnorth ofof KotzebueKotzebue.. !! OwnedOwned byby thethe NANANANA RegionalRegional CorporationCorporation !! LeasedLeased toto ComincoCominco AlaskaAlaska Incorporated.Incorporated. ANCSAANCSA RedRed Dog,Dog, AlaskaAlaska

!! NANANANA isis aa corporationcorporation organizedorganized underunder thethe provisionsprovisions ofof thethe AlaskaAlaska NativeNative ClaimsClaims SettlementSettlement Act.Act. !! UnderUnder thethe leaselease agreement,agreement, ComincoCominco AlaskaAlaska ownsowns andand operatesoperates thethe facilitiesfacilities andand NANANANA receivesreceives anan annualannual royaltyroyalty payment.payment. RedRed Dog,Dog, AlaskaAlaska

!! EmployingEmploying approximatelyapproximately 300300 personspersons !! MainlyMainly employingemploying indigenousindigenous peoplespeoples fromfrom NWNW AlaskaAlaska !! SupposedSupposed toto contributecontribute toto locallocal economieseconomies !! LaborLabor forceforce movesmoves toto Anchorage!Anchorage! PrudhoePrudhoe BayBay PrudhoePrudhoe BayBay

•• DiscoveryDiscovery inin 19681968 ofof thethe PrudhoePrudhoe BayBay oiloil field,field, thethe largestlargest inin NorthNorth America,America, withwith originaloriginal reservesreserves ofof 9.69.6 billionbillion barrels.barrels. •• Production,Production, however,however, waswas delayeddelayed untiluntil concernsconcerns regardingregarding NativeNative landland claimsclaims andand thethe potentialpotential environmentalenvironmental impactsimpacts ofof thethe proposedproposed TransTrans--AlaskaAlaska PipelinePipeline couldcould bebe resolvedresolved PrudhoePrudhoe BayBay

•• InIn 19921992 therethere werewere approximatelyapproximately 8.0008.000 workingworking atat PrudhoePrudhoe BayBay andand KuparukKuparuk •• InIn 19981998 thisthis numbernumber waswas reducedreduced toto 3.9823.982 •• MoreMore thanthan 60%60% areare livingliving outsideoutside AlaskaAlaska •• LessLess thanthan 1%1% fromfrom thethe locallocal laborlabor marketmarket •• OutOut ofof thisthis numbernumber onlyonly 5151 werewere nativesnatives fromfrom NorthNorth SlopeSlope Borough...Borough... •• ThereThere areare moremore employedemployed comingcoming fromfrom Florida!Florida! TheThe TransTrans--AlaskanAlaskan PipelinePipeline

•• ConstructedConstructed 19741974 toto 19771977 •• AtAt oneone pointpoint ofof timetime thethe totaltotal numbernumber ofof personspersons employedemployed werewere 17.00017.000 •• AlmostAlmost everyoneeveryone werewere fromfrom outsideoutside AlaskaAlaska SharingSharing ofof revenuesrevenues

50%50% ofof interestsinterests areare rere--investedinvested •• 50%50% ofof interestsinterests areare rere--investedinvested •• 50%50% distributeddistributed toto populationpopulation – Royalty to State of Alaska makes the state tax-free – Major part to the Regional Development Corporations – A yearly revenue (pt. Approximately 2.000$) paid to every citizen in Alaska

NikelNikel NikelNikel NikelNikel MonchegorskMonchegorsk

StructureStructure ofof presentationpresentation

• Useful concepts in relation to models of regional organization of large scale projects • Positive, negative and unexpected consequences of planning – examples from the Circumpolar North •• GeneralGeneral characteristicscharacteristics regardingregarding laborlabor marketmarket developmentdevelopment • Useful models in understanding community and labor market response to changes • Planning the unplanned? • Greenland perspectives CommunityCommunity relationsrelations

•• CommunityCommunity basedbased relationsrelations –– QullissatQullissat,, TerraTerra Nova,Nova, SableSable Islands,Islands, [[FermontFermont],], ApatityApatity •• CommunityCommunity AdjacentAdjacent relationsrelations –– BlackBlack Angel,Angel, [Hibernia],[Hibernia], MonchegorskMonchegorsk •• EnclaveEnclave characteristicscharacteristics –– [[FermontFermont],], [[Hibernia],RedHibernia],Red Dog,Dog, PrudhoePrudhoe Bay,Bay, NikelNikel LaborLabor marketmarket connectionsconnections

•• DisconnectedDisconnected –– PrudhoePrudhoe Bay,Bay, [[FermontFermont]] •• ConnectedConnected –– BlackBlack Angel,Angel, RedRed Dog,Dog, Hibernia,Hibernia, ((NikelNikel,, ZapolyarnieZapolyarnie)) •• IntegratedIntegrated –– QullissatQullissat,, TerraTerra Nova,Nova, SableSable Island,Island, [[FermontFermont],], MonchegorskMonchegorsk,, ApatityApatity EmploymentEmployment effectseffects

•• InvolvementInvolvement –– DirectDirect –– IndirectIndirect •• EffectsEffects –– PositivePositive • Labor force multiplicator effects • Human resource development –– NegativeNegative • Parasite effects • Wage distortion (Dutch Disease) StructureStructure ofof presentationpresentation

• Useful concepts in relation to models of regional organization of large scale projects • Positive, negative and unexpected consequences of planning – examples from the Circumpolar North • General characteristics regarding labor market development •• UsefulUseful modelsmodels inin understandingunderstanding communitycommunity andand laborlabor marketmarket responseresponse toto changeschanges • Planning the unplanned? • Greenland perspectives LocalLocal dynamicsdynamics

•• AA selfself--sustainingsustaining dynamicdynamic isis defineddefined asas aa developmentdevelopment processprocess ableable toto reactreact toto changes,changes, whetherwhether theythey areare duedue toto naturalnatural fluctuationsfluctuations oror humanhuman induced.induced. ItIt includesincludes thethe necessarynecessary humanhuman resourcesresources andand socialsocial capitalcapital toto bebe innovativeinnovative andand adaptive.adaptive. LocalLocal dynamicsdynamics

•• AA dependentdependent developmentdevelopment dynamicsdynamics isis defineddefined asas aa developmentdevelopment processprocess wherewhere thethe dynamicsdynamics areare defineddefined outsideoutside thethe communitycommunity itself,itself, andand thereforetherefore dependingdepending onon outsideoutside decisions,decisions, initiatives,initiatives, andand actions.actions. LocalLocal dynamicsdynamics

•• AA detacheddetached dynamicdynamic isis defineddefined asas aa developmentdevelopment processprocess wherewhere therethere isis nono clearclear connectionconnection betweenbetween thethe developmentdevelopment thatthat takestakes placeplace inin thethe communitycommunity andand thethe surroundingsurrounding society.society. Community response

•• MultiplicatorMultiplicator effectseffects totallytotally dependenddependend onon thethe communitycommunity responseresponse •• NecessityNecessity ofof involvementinvolvement atat aa veryvery earlyearly stagestage inin orderorder toto respondrespond toto thethe challengeschallenges,, andand toto becomebecome activeactive inin thethe processprocess •• AA learninglearning processprocess –– needneed ofof lookinglooking atat experiencesexperiences fromfrom previousprevious activitiesactivities StructureStructure ofof presentationpresentation

• Useful concepts in relation to models of regional organization of large scale projects • Positive, negative and unexpected consequences of planning – examples from the Circumpolar North • General characteristics regarding labor market development • Useful models in understanding community and labor market response to changes •• PlanningPlanning thethe unplanned?unplanned? • Greenland perspectives FemaleFemale flightflight

Female/Male ratio Canadian Provinces and Territories

1,04 1,02 1,00 0,98 0,96 0,94 0,92 Yukon Alberta New Ontario Canada Quebec British Nunavut Territory Manitoba Columbia Northwest Territories Brunswick Prince Nova Scotia and Labrador and Edward Island Saskatchewan Newfoundland FemaleFemale flightflight

Female/Male ratio Alaska Boroughs and Census Ars Areas2000

1,20

1,10 1,00

0,90 0,80 0,70

0,60

Number of females per male per of females Number 0,50 1.000 10.000 100.000 1.000.000

MigrationMigration

•• TheseThese patternspatterns cancan bebe seenseen relatedrelated toto aa numbernumber ofof gendergender relatedrelated differencesdifferences inin aspirationsaspirations andand approachesapproaches toto changeschanges •• FirstFirst ofof allall inin relationrelation toto thethe questionquestion ofof workwork andand workwork relatedrelated activitiesactivities •• TheThe perceptionperception ofof customarycustomary malemale activitiesactivities relatedrelated toto renewablerenewable andand nonnon--renewablerenewable resourceresource exploitationexploitation seemsseems toto bebe ““stickysticky”” •• FemalesFemales tendtend toto bebe muchmuch moremore openopen toto changeschanges •• MalesMales areare pathpath--dependent,dependent, tendtend toto havehave difficultiesdifficulties inin acceptingaccepting otherother pathspaths EducationEducation

Persons finished education

350

300

250

200

150 Persons

100 Females 50 Males

- 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 ConsequencesConsequences

•• TheThe migrationmigration trendstrends havehave aa lotlot ofof implicationsimplications forfor communitycommunity life,life, influencinginfluencing – The opportunities to marriages – Maintaining family life – Family structures – Cultural continuity – A key income sources necessary for the upholding of renewable resource activities disappears, as wives wage income often seems to be such a source needed for investments in hunting and fishing activities •• HasHas aa numbernumber ofof indirectindirect consequencesconsequences inin relationrelation toto villagevillage socialsocial andand healthhealth problemsproblems associatedassociated withwith unmarriedunmarried youngyoung men.men. StructureStructure ofof presentationpresentation

•• InIn orderorder toto havehave regionalregional planningplanning inin GreenlandGreenland youyou needneed toto realizerealize thatthat:: –– ””OneOne sizesize doesdoes notnot fitfit all!all!”” –– ItIt isis necessarynecessary toto planplan forfor thethe nonnon planableplanable!! –– BewareBeware ofof WomenWomen asas aa decisivedecisive factorfactor inin thethe futurefuture developmentdevelopment ThankThank youyou forfor youryour attentionattention