Arctic Progress

Arctic Progress was a short-lived project in 2012 to provide information and analysis about the Arctic region.

ARCS Of Progress – The Arctic World In 2050

Editorial note: This article was first published at Arctic Progress in February 2011. In the next few weeks I will be reposting the best material from there.

The Arctic to become a pole of global economic growth? Image credit – Scenic Reflections.

Behold! Far north along the shores of the Arctic a quiver of upspringing settlements fringes the coast. Boats swarm around canning factories, smoke flutters above smelters, herds of reindeer dot the prairies… And here or there, on every street-corner, glimmer out the lights of theaters where moving-pictures entertain white people through the sunless weeks of the midwinter dancing-time, the singing-time, the laughing-time of Eskimo Land.

– Northward ho!: An account of the far North and its people.

In 2003, Goldman Sachs economist Jim O’Neill wrote the now famous paper Dreaming with BRIC’s, predicting that Brazil, Russia, India and China would overtake the developed G8 nations within a few decades and make astounding returns for faithful investors. The BRIC’s concept entered the conventional wisdom, spawning a host of related acronyms (BASICBRICSA, etc) – and if anything, realizing its promise well ahead of schedule. Last year, China’s real GDP possibly overtook America’s, and Russia’s approached Germany’s.

Yet for all their successes, the BRIC’s may not fulfill their expected roles as the stars of the global economy in the 21st century. The level of education is horrid in Brazil and atrocious in India; without the requisite human capital, these two countries will find it difficult to rapidly “converge” to developed world standards. China is much better off in this respect, but its high growth trajectory may in turn be disturbed by energy shortages and environmental degradation. China produces half the world’s coal, which is patently unsustainable given its limited reserves. But since coal accounts for 75% of China’s primary energy consumption and fuels the factories that keep its workforce employed, there is little it can do to mitigate this dependence. Meanwhile, China’s overpopulation, pollution and climate change predicament is so well known as to not require elaboration. Many other countries flirting around the edges of BRIC status – Indonesia, South Africa, Vietnam, etc. – face serious challenges in the form of low human capital, uncertain energy and food supplies and a rising incidence of AGW-induced droughts, floods and heatwaves.

There is one global region that may hold the key to resolving these intertwined problems – and even to become a major pole of global growth in its own right. For the most part, it is now an empty wilderness, but climate change is opening it up as potential living space. Its exploitation has the potential to halve the length of global freight transport routes while increasing their security, uncover sizable to gigantic new sources of hydrocarbons and minerals, and stabilize global food prices through the expansion of arable land. Its experience of management and conflict resolution may inspire a global model of cooperation – or it may degenerate into an economic, legal, or even military battlefield over shipping routes and sub-sea resources.

This global region is the Arctic Rim, and its adjoining ARCS: Alaska, Russia, Canada, and Scandinavia. The ARCS of Progress in the 21st century.

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Translation: On Canada’s Arctic Militarization

This is a reprint of a post from Arctic Progress.

This is a TRANSLATION of an article by Jules Dufour published September 7th, 2010 at Mondialisation.ca (“Le Canada: un plan national pour la militarisation de l’Arctique et de ses ressources stratégiques“). In my opinion its a tad too alarmist over the scope of Canada’s military ambitions in the Arctic (IMO it’s mostly political grandstanding at this stage), but nonetheless it’s important to remember that Russia is hardly the only country militarizing the Arctic and saber-rattling in the High North. To be made available in PDF.

Canada’s National Plan For The Militarization Of The Arctic And Its Strategic Resources

The year 2010 was marked by a series of decisions by the Canadian government concerning rearmament. Predictably, as the defense plan “Canada First” was formally launched in 2008, involving the country in an unprecedented weapons acquisition and modernization program, such as the purchase of tanks, F-35 fighters, naval construction and F-18 fighter upgrades, pledged at the start of September. It was in July that most of these projects were unveiled, during the summer vacations when such news is far from the concerns of Canadians. Thus, tens of billions are committed to war or preparation for war, without it being possible to hold a parliamentary or public debate on the subject. At most, there have been some protests about the magnitude of the pledged sums and the concerns expressed here and on the regional economic fallout (Castonguay, A., 2010). A familiar scenario.

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Spooks, Mercs or Merchants over Iceland?

This is a reprint of a post from Arctic Progress.

KnAAPO-Su-35

Back when Iceland tipped over into financial collapse during 2008 and the UK seized Icelandic banks’ assets using anti-terrorist laws as fig cover, Icelandic President Olafur Ragnar stated that Russia could make use of the Keflavik air base in return for a $5bn loan to the insolvent country. However, fevered talk about Russia gaining a military foothold in the Atlantic, including gaining control over the crucial GIUK gap, didn’t end up amounting to anything concrete.

First, Iceland’s status as a NATO member precluded it from offering Russia a true air base in Keflavik; only something like a refuelling and maintenance depot would be allowed. Second, $5bn is not an insignificant amount of money in its own right, being equivalent to about 10% of Russia’s (official) military budget.

But if things couldn’t be worked out with Russia, a private mercenary company would do. Less Red Storm Rising, more Lord of War. TV station Russia Today mailed me a story by Robert Bridge on how Cash-strapped Iceland to host “private army” – and Russian jets. The company, which has a really slick website (and Twitter!), is seemingly flush with cash. They reportedly paid Iceland $160mn to gain rights to Keflavik airbase and plan to acquire 30 Su-27 fighters from Belarus for use in mock war games. If confirmed, this would make it the largest single order for military aircraft by a private investor.

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New Project: Arctic Progress

The Arctic is one of the most ignored regions in commentary about global trends. This is unsurprising. The vastnesses of Hyperborea, a semi-mythical world of curdled seas, boreal lights and eternal sunshine, have always been “outside” history. But the fast pace of global warming in recent years is kick-starting Arctic history, bringing with it the promise and peril of industrial civilization: first energy extraction and shipping, then military bases, and eventually farms and cities.

Identifying the opportunities and risks in these exciting new developments will be the main aim of my new blog project Arctic Progress* (which you can also follow on Facebook).

Don’t worry – I’ll continue posting at S/O on “Eurasia, geopolitics and peak oil” (if not as frequently as before). Furthermore, most of the Russian translations and analytical “core articles” on Arctic Progress will be reprinted here, the first one of which follows below.

Introduction – Why Arctic Progress?

1. The Arctic will become much more important in the near future as the melting of Arctic ice opens up circumpolar shipping routes. They are shorter than the constricted passages through Suez, Panama and Malacca, and far less vulnerable to bottlenecks, piracy and terrorism.

2. The Arctic is a once in a century investment opportunity. As the ice and permafrost retreat, the physical infrastructure of industrial civilization will begin to overspread the region: ports, roads, railways, pipelines, mines, oil rigs, housing, farms, schools, shops and military bases. The four major populated regions encircling the Arctic Ocean – Alaska, Russia, Canada, Scandinavia (ARCS) – are all set for massive economic expansion in the decades ahead.

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