RESOURCES FOR THE FUTURE LIBRARY COLLECTION RESOURCES FOR THE FUTURE LIBRARY COLLECTION POLICY AND GOVERNANCE POLICY AND GOVERNANCE Economic Consequences of Statehood The Future of Alaska The Future of Alaska Economic Consequences of Statehood George W. Rogers Downloaded by [University of Defence] at 21:18 09 May 2016 )3". RFF Press strives to minimize its impact on the environment George W. Rogers Content Type: Black & White Paper Type: White Page Count: 346 File type: Internal Policy and Governance Vol 10.qxd 9/17/2010 2:29 PM Page i RESOURCES FOR THE FUTURE LIBRARY COLLECTION POLICY AND GOVERNANCE Volume 10 The Future of Alaska Economic Consequences of Statehood Downloaded by [University of Defence] at 21:18 09 May 2016 Policy and Governance Vol 10.qxd 9/17/2010 2:29 PM Page ii Full list of titles in the set POLICY AND GOVERNANCE Volume 1: NEPA in the Courts Volume 2: Representative Government and Environmental Management Volume 3: The Governance of Common Property Resources Volume 4: A Policy Approach to Political Representation Volume 5: Science & Resources Volume 6: Air Pollution and Human Health Volume 7: The Invisible Resource Volume 8: Rules in the Making Volume 9: Regional Conflict and National Policy Volume 10: The Future of Alaska Volume 11: Collective Decision Making Volume 12: Steel Production Volume 13: Enforcing Pollution Control Laws Volume 14: Compliance & Public Authority Downloaded by [University of Defence] at 21:18 09 May 2016 The Future of Alaska Economic Consequences of Statehood George W. Rogers Downloaded by [University of Defence] at 21:18 09 May 2016 ~RFFPRESS - RESOURCES FOR THE FUTURE New York • London First published in 1962 by The johns Hopkins University Press for Resources for the Future This edition first published in 2011 by RFF Press, an imprint of Earthscan First edition ©The johns Hopkins University Press 1962 This edition © Earthscan 1962, 2011 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, except as expressly permitted by law, without the prior, written permission of the publisher. 711 Third Avenue, New York, NY 10017 USA 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Earthscan publishes in association with the International Institute for Environment and Development ISBN: 978-1-61726-068-1 (Volume 10) ISBN: 978-1-61726-007-0 (Policy and Governance set) ISBN: 978-1-61726-000-1 (Resources for the Future Library Collection) A catalogue record for this book is available from the British Library Publisher's note The publisher has made every effort to ensure the quality of this reprint, but points out that some imperfections in the original copies may be apparent. At Earthscan we strive to minimize our environmental impacts and carbon footprint through reducing waste, recycling and offsetting our C02 emissions, including those created through publication of this book. Downloaded by [University of Defence] at 21:18 09 May 2016 THE FUTURE OF ALASKA Economic Consequences of Statehood Downloaded by [University of Defence] at 21:18 09 May 2016 Page Intentionally Left Blank Downloaded by [University of Defence] at 21:18 09 May 2016 THE FUTURE OF ALASI{A Economic Consequences of Statehood By George W. Rogers Downloaded by [University of Defence] at 21:18 09 May 2016 A study sponsored by the Arctic Institute of North America and Resources for the Future, Inc. PUBLISHED FOR Resources for the Future, Inc. BY The Johns Hopkins Press, BALTIMORE AND LONDON Copyright© 19G2 bv The Johns Hopkins Pn·" .\II rights reserved Manufactured in the l'nitcd States of .\mcrica The Johns Hopkins Press, Baltimore, :\fa ryland 21218 The Johns Hopkins Press Ltd., London Standard Book :\'umber 801R-O'i61-9 Originally Jmblishnl, 1962 Second printing, 1'l/0 RESOURCES FOR THE FUTURE, INC. 1755 Massachusetts Avenue, N .\V., Washington D. C. 20036 lioarrl of Directors: Erwin D. Canham, Chain11rt11, Robert 0. Anderson. Harrison Brown, Edward J. Cleary, Joseph L. Fisher, Luther H. Foster, F. Kenneth Hare. Charles J. Hitch, Charles F. Lucc, Frank Pace, Jr., WilliamS. Paley, Emanuel R. Piore, Stanley II. Ruttenberg, Lauren K. Soth, P. F. \Vatzck, Gilbert F. \\'hite. Ho11ornn· Directors: Horace M. Albright, Reuben G. Gustavson, Hugh L. Kccnleysidc, Edward S. Mason, Leslie .\. Miller, Laurance S. Rockefeller, John \V. Vanderwilt. Preside11t: Joseph L. Fisher Vice President: Michael F. Brewer Secretary- Treasurer: John E. Herbert Resources for the Future is a nonprofit corporation for research and education in Downloaded by [University of Defence] at 21:18 09 May 2016 the development, consen·ation, and usc of natural resources and the improvement of the quality of the environment. It was established in 1952 with the cooperation of the Ford Foundation. Part of the work of Resources for the Future is carried out by its resident staff; part is supported b\' grants to uni\ersities and other non­ profit organi1ations. Unless otherwise stated. interpretations and conclusions in Rl'F publications arc those of the authors; the organi7ation takes responsibility for the selection of significant subjects for study, the competence of the researchers, and their freedom of inquiry. RFF staff editors: Henry Jarrett, Vera \\'. Dodds, :\ora E. Roots, Tadd Fisher. PREFACE THIS IS THE second volume to be based upon a long­ range study of Alaska as a region, or group of regions, in process of basic economic and political change. The first volume, Alaska in Transition: The Southeast Region, selected a homogeneous part of the whole of Alaska for special examination, a region which is currently undergoing economic expansion in one major natural resource sector and decline in another. In dealing with economic growth and decline, the author turned to the problems of human adaptation to cultural and physical environmental change, and to the problems of public policy and management in natural resources -both of which he regarded as strategic to an understanding of the nature of the essentially economic phenomena. The present volume, dealing with the entire State, continues the same kind of inquiry, but, taking as its focus the granting of statehood, is to a large degree concerned with the implications of this essentially political event for economic growth based upon natural resources utilization. There are several different audiences, therefore, to which this Downloaded by [University of Defence] at 21:18 09 May 2016 book is addressed. Most specifically, it is a study of Alaska's shift from limited to more complete self-rule and some economic con­ sequences of this political advance. Hence, it should be of imme­ diate practical interest and value in stimulating discussion on the key decisions faced by Alaskans during this transition. It also can be read as a case study in political transition dealing with the gen­ eral type of public finance and policy problems commonly associated with such institutional changes and shifts in power, v vi PREFACE including those taking place in newly independent countries that formerly were part of a colonial system. Finally, seen as a study of regional development, it contributes to an understanding of the phenomena of economic growth and decline by illuminating cer­ tain non-economic factors which condition them. George W. Rogers writes from a background of some seventeen years of intimate association with his subject, a period embracing the final thirteen years of the Territory of Alaska and the first four years in the life of the State of Alaska. Among other positions, he served as economic adviser to two territorial governors, as chair­ man of the Department of the Interior's Alaska Field Committee, and as a technical consultant to the Alaska State Constitutional Convention and several agencies of the new State. More recently he was Carnegie Visiting Professor of Economics at the University of Alaska, where he assisted in the establishment of an Institute for Business, Economic, and Government Research, and, between October 1961 and March 1962, served as a consultant to the State Division of Planning. The research upon which this and his previous book are based was jointly sponsored by Resources for the Future, Inc. and the Arctic Institute of North America. Joseph L. Fisher Resources for the Future, Inc. John C. Reed Arctic Institute of North America May, 1962 Downloaded by [University of Defence] at 21:18 09 May 2016 ACKNOWLEDGMENTS THE PROCESS by which this book was produced was neither continuous nor smooth. In making my general acknowl­ edgments, therefore, it seems natural to do so in chronological order. The original version of the manuscript was completed dur­ ing the summer of 1960, by means of a grant from Resources for the Future, Inc. to the Arctic Institute of North America. The In­ stitute also rendered further assistance. It was no less made pos­ sible through the inspiration and guidance provided at every turn by Josph L. Fish~r, president, and Harvey S. Perloff, director of regional studies in the former institution, and John C. Reed, executive director of the latter. During the 1960-1961 academic year I had the pleasure of serv­ ing as Carnegie Visiting Professor of Economics at the University of Alaska. In addition to my obvious institutional debts to the Carnegie Corporation of New York and the University of Alaska, this interlude added further names to my growing list of apprecia­ tion. The members of my seminar on economic development, who were exposed to many of the ideas and much of the material Downloaded by [University of Defence] at 21:18 09 May 2016 in the original manuscript, were most helpful in their reactions and discussions. Hans E. Jensen, Dean of the College of Business, Economics, and Government, provided the stimulation and en­ couragement I needed to critically reconsider the cold manuscript, and influenced me in the making of certain beneficial and basic changes in organization and content.