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Home » News » World

Monday, June 22, 2009

Danish island fueled for independence

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Control of oil reserves could build up economy

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  • AGENCE FRANCE-PRESSE/GETTY IMAGES
Denmark's Queen Margrethe II, wearing a traditional Greenlandic costume, and her husband, Prince Henrik, celebrate a new era of self-rule for Greenland, Sunday in the island's capital, Nuuk.
  • NARAYAN MAHON/SPECIAL TO THE WASHINGTON TIMES
A procession carrying Greenlandic flags makes its way to the colonial harbor as part of the ceremony in Nuuk.

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By Joshua Kucera THE WASHINGTON TIMES

NUUK, Greenland -- The world's largest island, Greenland, took a step toward becoming an independent country on Sunday by formally taking over responsibility for its internal affairs -- including control over what are thought to be substantial oil reserves -- from Denmark, which colonized it nearly 300 years ago.

At a ceremony in Greenland's capital, Nuuk, Queen Margrethe II of Denmark, wearing the traditional Greenlandic costume of a multicolored, beaded top over sealskin pants and boots, handed over the Act on Greenland Self Government to the head of Greenland's Parliament, Jozef Motzfeldt.

Greenland already has exercised some autonomy, beginning in 1979, when it first gained "home rule" from Denmark. But some key government responsibilities, including the justice system and control over the country's mineral and petroleum resources, remained under Danish control or influence. Greenland now takes over those rights.

In addition, Greenlandic (closely related to the language spoken by Inuit in Canada) will be the sole official language.

Self-government is "a symbol of the dreams of the Greenlandic people," Mr. Motzfeldt said at the ceremony. "We have achieved the right of control of our subsoil, and we expect in the years to come that this will be a supplement to lay the foundation for an economically independent Greenland."

Serious oil exploration has only recently begun off Greenland's coast, aided in part by the melting of the sea ice due to global warming. Oil has not been found, but estimates, including those of the U.S. Geological Survey, suggest that Greenland could have about 50 billion barrels of oil.

Greenland's population is 56,000, so if the oil estimates prove correct, the island would control nearly 1 million barrels of oil per person. It would be a staggering leap for a people who, until World War II, were subsisting almost entirely as seal hunters and fishermen.

Today, Greenland has limited economic options, and commercial shrimping accounts for the bulk of its exports.

Denmark currently provides a large subsidy to Greenland's government -- about $700 million this year or more than $10,000 for every person in Greenland. The subsidy makes up about 60 percent of the government budget.

But when and if oil revenues start to come in, Denmark will reduce the subsidy accordingly. When the subsidy is fully paid off, Greenland officials say, they will begin to seriously discuss the possibility of becoming an independent country.

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Copyright 2009 The Washington Times, LLC

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