SUMMARY - Greenland, the world’s largest island, is a cold and remote terrain covered by ice with a population of just 56,000 inhabitants.
At a first glance, it may seem a country holding no strategic or economic significance, where no foreign powers would be interested in establishing a presence. To some degree this was true until now, but the situation is changing and for proof one needs look no further than the parliamentary elections of April 24. As a matter of fact, a combination of climatic and political factors is pushing Greenland to diversify its political and economic partners, thus attracting the attentions of external powers that are seeking to exploit its resources and establish a foothold on the island.
This
process has just recently begun; it will only accelerate in the future,
ultimately generating new competition among great powers (notably China, the
United States, and Russia) over this vast territory. And while this struggle
will remain economic and diplomatic in the immediate future, over the long term
it could also take a military dimension.
BACKGROUND
The
first thing to consider in order to understand Greenland’s shifting political
orientation is the country’s history. The Island hosted Scandinavian
settlements since the Middle Ages, and it officially became a Danish territory
in 1814. It still remains formally part of the Kingdom of Denmark, but it
enjoys considerable autonomy after being granted home rule in 1979 and then
self-government in 2009, following a vote the previous year. Currently,
Greenland has its own executive that has power over virtually all domestic
affairs, but its foreign and defense policies still depend on Denmark.
Moreover, Greenland is also financially dependent on Denmark, whose subsidies
(around 500-600 million USD per year) represent around 60% of the island’s
annual budget. Still, Greenlanders often
debate the merits of full independence from Denmark, and this has been a
central theme in the latest elections. In general, everybody agrees that
independence should be achieved; but there is less of a consensus on the
timing, and especially on how to ensure the island’s financial self-sufficiency
so as to make it sustainable.
The
electoral results are significant in this sense. Siumut, the main party in the
previous government coalition, emerged as the preeminent political force with
27% of votes. The second-largest party is Inuit Ataqatigiit (IA), its ally,
which obtained a 25.5% share. Finally, in third place is Demokraatit, the
preference of roughly 20% of the electorate.
All of
these parties are generally in favor of independence and plan to attract
foreign investment in order to make the move more financially viable,
particularly in the country’s promising mining sector. The melting of the ice
cap due to global warming is opening some very profitable investment
opportunities for mineral extraction. Greenland holds vast ore deposits of
uranium, zinc, and much-needed rare earth minerals, which are essential in the
high-tech industry and have multiple applications in various fields like
telecommunications, green energy, and even military hardware. But apart from
the economic sphere, a greater foreign presence in Greenland would also have
notable geopolitical consequences.
IMPACT
The
electoral results are good news for foreign investors, in particular for China
and its mining firms. Kim Kielsen, head of the Siumut party and incumbent prime
minister of Greenland, has promoted closer economic ties with the PRC, even
leading a delegation to China in November 2017. For its part, Beijing has
multiple reasons to be interested in Greenland. The most obvious is that it
needs new sources of minerals to supply its domestic industries. In a
neo-mercantilist logic, Beijing also wants to secure access to the island’s
rare earth mines to preserve its quasi-monopoly on their production. Finally,
Greenland is located in a very interesting geographic position. China is
showing more and more interest in the Arctic, both as a source of natural
resources and as a maritime passage. As climate change continues to melt ice in
the Arctic, the Northern Sea Route (NSR) becomes a more and more viable option
for trade between Asia and Europe/North America. At present, navigating the NSR
remains too dangerous, but the situation will change in the coming decades, and
China is aware of it. Consequently, Beijing is working to boost its presence
around the North Pole: it released its first official Arctic policy paper in
January, where it openly states its plans for creating a “Polar Silk Road”;
moreover it qualifies itself as a “near-Arctic state” and is increasing its activities in the area. Taking this all
into consideration, it is clear that Greenland holds strategic relevance for
China, since it’s located mid-way between the Atlantic Ocean and the Arctic,
and close to the American continent. Establishing a strong presence on the
island is therefore a major interest of Beijing, as Greenland can be a source
of precious ores, a trading outpost proximate to the rich North American
market, and a logistics base for supporting its various interests in the
Arctic. This will take time, but the Chinese are already involved in various
projects, especially in mining and infrastructure development (like airports).
They are also building a scientific research facility and a satellite station
in Greenland.
China’s
presence in Greenland also raises security concerns. As often happens when the
PRC is involved, some worry that economic engagement will ultimately lead to
the establishment of military or dual-use facilities. In this context, it is
notable that in 2016, the Danish government blocked the acquisition of an
abandoned US naval base in Greenland by a Chinese firm. The establishment of
Chinese military bases on the island remains a remote possibility for now, but
it will become more and more likely in the future as the PRC increases its
presence in the Arctic and takes a more assertive international stance. This is
something that would have considerable geopolitical consequences, particularly
for the United States. The spectre of a hostile power controlling Greenland and
using it as a base to attack the mainland American territory dates back to WWII
(with Nazi Germany) and remained throughout the Cold War with the USSR. It is
now reappearing with China in the role of primary antagonist.
The
possibility that Beijing will leverage its growing influence over the island in
the military realm remains a long-term issue at present. However, there is also
a shorter-term security issue at stake in Greenland, and it concerns Russia.
It’s no secret that relations between Moscow and Washington have deteriorated
in recent years. In the context of renewed US-Russia tensions, which includes
direct military provocations, the North Atlantic once again becomes a highly
strategic theatre for both powers. This is even more true when one considers
Russia’s efforts to modernize its navy, notably its submarine fleet. Russian
subs have performed forays in the Atlantic to a level unseen since the end of
the Cold War, and this means that the GIUK gap is once again becoming a
strategic chokepoint.
The maritime
passage delimited by Greenland, Iceland and the United Kingdom (hence its name)
is essential for both Russian (and potentially Chinese) naval units entering
the Atlantic, and for NATO to monitor their movements, especially those of
SSBNs (missile-launching submarines carrying nuclear warheads). Consequently,
Greenland is also becoming a strategic territory, as controlling it facilitates
crossing the GIUK gap. Therefore, if competing powers like China or Russia
extended their influence over the island, US national security would be
significantly impacted, even more so in our current era of high-tech weaponry
like stealth aircraft and hypersonic missiles, whose deployment in Greenland
would put North America’s territory under immediate and direct threat. Of
course, this remains a hypothetical scenario, but if current trends of mounting
great power rivalry continues, and considering that climate change will make
the Arctic more crowded, this cannot be ruled out in the long term.
FORECAST
Considering
the electoral result in Greenland and China’s willingness to establish a
greater presence on the island for economic and strategic reasons, it is likely
that the PRC will be increasing its presence there and in the wider Arctic in
the near future. For Greenland, Chinese engagement would be beneficial in a
general economic sense: Chinese investment would allow the country to develop
and diversify its economy so as to obtain the means to afford independence from
Denmark. However, there are also concerns on the island, notably over excessive
indebtedness, possible impacts on the country’s delicate ecosystem, and the
preservation of the local identity and lifestyle (particularly in the optic of
an inflow of Chinese workers). Still,
these problems can be managed, and most importantly there are few other options
if independence is to be achieved. As such, it is likely that China and
Greenland will grow closer in the coming years, potentially paving the way for
the latter’s complete secession from Denmark. It is difficult to assess the
likelihood of this event given unknowable interim economic factors, but it is
definitely a realistic scenario over the intermediate term (10-15 years).
An
independent Greenland where China maintains a strong presence is certainly not
a scenario that everyone welcomes. First of all, Denmark would lose any formal
power over its colony, and would have to rely on historical and cultural ties
to maintain its influence and pursue its interests in the region. As a matter
of fact, Copenhagen would lose its most important Arctic territory, and this
would be a terrible blow for its ability to have a voice in the region’s
affairs. The Faeroe Islands are also organizing a constitutional referendum
(initially set for April 25, then postponed) that could pave the way to full
independence. As a result, Denmark’s role around the North Pole and in regional
institutions (especially the Arctic Council) could be reduced to zero in a
decade or two, just when the area is becoming more economically viable and
strategically important due to the effects of climate change. It is true that
Denmark could still exploit indirect means and gain observer status in the
Arctic Council, but nevertheless its ability to shape regional politics and
pursue its interests will be severely undermined. The same logic applies to the
EU, as the present influence in Arctic affairs that the bloc exerts through
Denmark would also collapse.
Whether
Greenland gains formal independence or not, its coastal waters are warming up,
literally and figuratively, with potentially serious geopolitical consequences
over the long-term.
**This
article was originally published in May 2018.