THAT WAS THEN, THIS IS NOW: GLOBALISATION IN THE KLONDIKE GOLD RUSH OF 1898 AND THE RECENT 2009-2012 YUKON MINERAL EXPLORATION RUSH By SUZANNE ROY Integrated Studies Project Submitted to Dr. Carolyn Redl In partial fulfillment of the requirements for the degree of Master of Arts – Integrated Studies Athabasca, Alberta March, 2013 1 Abstract A comparative analysis of the economic and social situations of Yukon Territory between the Klondike Gold Rush of 1898 and the recent mineral exploration rush of 2009-2012 uncovers how Yukon has changed over the past 110 years as globalisation evolved. Economic factors, such as the value of the dollar, price of gold and mining’s contribution to Yukon’s economy, show that globalisation has affected basic economics in the Territory. An industrial economy of large scale based on speculation and foreign investment has developed. A side effect of this is a change in the nature of Yukon gold rushes. These rushes have morphed from placer mining rushes to hard rock exploration rushes. Government activity in promoting and regulating Yukon’s mining economy and regulation of it shows that, in order to remain competitive in a global environment, legislators now have to provide incentives for companies to set-up operations. Socially, globalization has drawn foreigners to Yukon. It has also produced a stratified society and has helped create an expensive environment in which to live. The evolution of crime in the Territory shows how the nature of crime has changed between the rushes. Globalisation’s impacts on First Nations and women demonstrate that although progress has been made for both groups, there are still challenges to overcome. Lastly, the effect of globalised social movements shows how environmental responsibility in the minerals industry has grown in significance. 2 Table of Contents Page 1. Introduction 3 2. Methodology 3 3. Globalisation Defined 4 4. Capitalism’s Influence on Globalisation 5 5. Simulation 5 6. Globalisation’s Roots 6 7. Technological Impact on Globalisation 6 8. Benefits and Detriments of Globalisation 7 9. Circumpolar North and Globalisation 8 10. Driving Forces of the Klondike Gold Rush and Recent Mineral Exploration Rush 9 11. Mining Techniques, Innovations and Finance 11 12. Economic Effects of Globalisation on Yukon Between the Rushes 13 12.1 Price of Gold and Contribution of Gold Mining to Yukon Economy 13 12.2 Rise of Industrial Economy 14 12.3 Mining and Investment 15 12.4 Changes in Legislation, Regulation and Funding 16 13. Social Effects of Globalisation on Yukon Between the Rushes 18 13.1 Demographics and Dawson Life 18 13.2 Crime and Prostitution 22 13.3 First Nations 24 13.4 Women 26 13.5 Environment 29 14. Conclusions 31 Works Cited 34 3 1. Introduction Yukon Territory is a mountainous area in the northwest corner of Canada that is nearly the size of Spain. The territory has a rich mining history, beginning with small-scale First Nations operations. (Laberge and Nordling 1). This history continues through various “boom-bust” cycles that have shaped it both economically and socially (Deloitte 3). Allen (11) states that the discovery of gold at Rabbit Creek, (later re-named Bonanza), August 17, 1896, sparked the Klondike Gold Rush of 1898-1900 and the beginning of industrial mining in the territory. This was the last true great gold rush, an event that occurred in an era of worldwide economic desperation caused in part by the market crash of 1893 (Huskey 62). Nearly 100,000 gold seekers from all walks of life and backgrounds set out for the Klondike; roughly 40,000 made it, of those 4,000 actually mined, and 300-400 people became what once could consider “rich.” Southcott has stated that, “[t]he Yukon and Alaska gold rushes at the end of the nineteenth century showed the world for the first time the region’s potential mineral wealth” (44). It was an event that changed the north irreversibly. Currently, the mining sector is the main driver of northern Canada’s economic activity (SCNR 8). The international demand for minerals, energy, metals, petrochemicals and diamonds is providing promising opportunities for northern Canada’s natural resource sector (1). Seventy miles from the Klondike gold fields of 1898, a mineral exploration rush was sparked in the White Gold district just over 110 years later, in 2009. Again the rush occurred in a time of economic crisis, this time in response to the stock market meltdown of 2008. As Little has stated that “at the beginning of the 21st century global resource industries are the main agents of change in the North,” (1) this affords a rare opportunity for comparison between two similar situations in close proximity, separated by just over a century, to study the effects of globalization. 2. Methodology The bulk of my study was developed largely by examining historical records, texts and statistics and comparing them to contemporary ones. Text and web-based research were the primary methods; however, archival research was also a component. As many sources pertaining to the Klondike Gold Rush do not lend themselves well to quantitative analysis due to incompleteness and a larger legacy of anecdotal evidence, (such as diaries and memoirs), qualitative analysis was used relying partly on critical discourse analysis. Critical Discourse Analysis (CDA), a method for deciphering relationships between language and the social institutions it operates in, is concerned with the study of discourse and has the ability to shed insights into the cultures and social structures it relates to. Language does not merely name or identify, but embedded within it are distinct social and cultural meanings. Tuen van Dijk’s theories on CDA are useful when examining race, ethnicity and gender discrimination in post-colonial studies, such as those that are found during the Klondike era and in modern times. Although his work focuses mostly on interviewing, his techniques can be applied to written accounts of the Gold Rush Era to uncover certain social practices, attitudes and structures of the era. His theories can also be applied to modern accounts to determine changes. Van Dijk advocates that CDA should be diverse and multidisciplinary, drawing from as many sources as possible (95). CDA not only focuses on the linguistic relationships within societies but "[i]t focuses on problems, especially on the role of discourse in the production and reproduction of power abuse or domination" (96) from the side of those being abused. As such, CDA is often attacked for its attacking, which are all part of the attempts to marginalize and problematize dissent. Van Dijk’s theories are especially beneficial for this study as they can help uncover the hidden meanings behind first hand accounts of the Klondike Gold Rush in order to decipher the true attitudes towards First Nations, women, and the environment and can help uncover modern attitudes to determine globalisation’s multi-faceted effect. 4 Theories of globalisation provide grounding for this study. Steger notes that “[m]arket globalization is without question the dominant ideology of our time” (101) and has been responsible for a number of economic and social changes. This paper, through a comparative analysis of the Klondike Gold Rush and the recent Yukon mineral exploration rush, will demonstrate how globalisation has affected the economic and social climate in Yukon Territory. This will be done by defining globalisation, identifying its evolution, and outlining its positive and negative benefits. The circumpolar north as a region and globalisation’s effects on it will then be presented in order to contextualize the location of Yukon. Drivers of both rushes will be compared, specifically the psychological ones of fear and hope in response to international economic turmoil and the appeal of gold as a solution. Economic factors, such as the value of the dollar, price of gold and mining’s contribution to Yukon’s economy, will show that globalisation has affected basic economics as an industrial economy of large scale based on speculation and foreign investment has moved into the Territory. A side effect of this is a change in the nature of Yukon gold rushes. The placer mining rush has morphed into a hard rock exploration rush. Government activity in promoting and regulating Yukon’s mining economy will be compared to show that, in order to remain competitive in a global environment, legislators now have to provide incentives for companies to operate in their territories. Socially, in Yukon, globalization has drawn foreigners to her land. It has also produced a stratified society and has helped create an expensive environment in which to live. The evolution of crime in the Territory will also be presented to show how the nature of crime has changed between the rushes. Globalisation’s impacts, both positive and negative, on First Nations and women will also be put forth to demonstrate that although progress has been made for both groups, there are still challenges to overcome. Lastly, the effect of globalised social movements demonstrate how environmental responsibility has grown in importance between the two rushes. 3. Globalisation Defined In order to understand these changes, globalisation itself must first be examined. Hoogvelt states that “[g]lobalization is the intensification of human interaction at all levels – financial, social, and cultural” (Collier). Kiely (2) mentions that globalisation is a buzzword that has emerged in the social sciences and in political and public discourses of global affairs starting in the 1990s and that there is lack of clarity over its meaning. Scholte continues with “some people have associated globalisation with progress, prosperity and peace. For others, however, the word has conjured up deprivation, disaster and doom. No one is indifferent. Most are confused” (14). Robinson (126) agrees that there is no hard and fast definition.