Abstract
The purpose of this chapter is to describe the state-of-the-art in commercial activity and raise stakeholders’ awareness of challenges and opportunities for business development in the Arctic using comprehensive, comparable and regular socio-economic information. This information comes from the ongoing project Business Index North (BIN). Based on the BIN project reports, the chapter outlines several paradoxes and dilemmas that may affect the future development of business in the Arctic. These paradoxes and dilemmas, in general put as Paradox of Governance, are associated with two contradicting trends: steady economic growth and depopulation—especially the loss of young people. In particular, there is economic growth in traditional industries and industries based on natural resources. Paradoxically this goes hand in hand with a decline in the number of jobs in these industries. As a way forward, the chapter provides some recommendations for strengthening institutes of governance based on cross-border cooperation, dialogue and involvement of key players in the Arctic, such as the business sector, academia and regional authorities in the decision-making processes. This kind of governance dealing with the regional driving forces, solutions and consequences of circumpolar business development makes it possible to operationalize investments in human and social capital, transport and ICT infrastructure that can fuel sustainable economic growth and a good quality of life for the people working and living in the Arctic.
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Notes
- 1.
The High North Center for Business and Governance, established in 2007 and located at Nord University, is a national center for research, education and policy development. The center develops and communicates knowledge to contribute to innovation, business creation and societal development in the Arctic or High North as we call this geographical area. The High North Center for Business and Governance focuses on assisting companies, organizations and public institutions to increase both awareness of and commitment to the opportunities in the High North.
- 2.
This difference looks much smaller if income figures are considered in terms of purchasing power parities for the respective national currencies.
- 3.
Companies providing headquarter services, for example, oil and gas companies, banks, and subsidiaries in BIN regions were not included in the current study.
- 4.
The Finnish Ministry of Transport and Communications has announced that a railway route to the Arctic Ocean via Oulu, Rovaniemi and Kirkenes is the one that will be examined further (Press release dated 09.03.2018, https://www.lvm.fi/-/study-on-the-arctic-rail-line-completed-kirkenes-routing-to-be-examined-further-968073).
- 5.
The North-West Federal District of Russia is used as a reference comparison for the Russian BIN regions.
- 6.
An example of successful international co-operation in this respect is the MARPART project network (Maritime Preparedness and International Partnership in the High North) led by High North Center for Business and Governance. The MARPART Consortium consists of 13 universities and research institutes that focus on emergency management and crisis preparedness in the Arctic.
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Mineev, A., Dybtsyna, E., Mellemvik, F. (2020). Circumpolar Business Development: The Paradox of Governance?. In: Coates, K.S., Holroyd, C. (eds) The Palgrave Handbook of Arctic Policy and Politics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-20557-7_10
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