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The Greenland Economy, Construction, Reforms and Entrepreneurship in the Greenland Housing Sector

The Greenland Economy, Construction, Reforms and Entrepreneurship in the Greenland Housing Sector. Gorm Winther Professor, Ph.D. Dept. of Environmental, social and Spatial Change University of Roskilde. One Can Always Need a Helping Hand. Greenland – a Dependent Economy.

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The Greenland Economy, Construction, Reforms and Entrepreneurship in the Greenland Housing Sector

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  1. The Greenland Economy, Construction, Reforms and Entrepreneurship in the Greenland Housing Sector Gorm Winther Professor, Ph.D. Dept. of Environmental, social and Spatial Change University of Roskilde. One Can Always Need a Helping Hand

  2. Greenland – a Dependent Economy • Economic Dependence – Block Grant from the Danish State and Ministerial Expenses on Greenland. • Dependence on Trans-national Corporations (Capital, technology, know how regarding regulations and tax systems) • Organizational Dependence (Danish customs on how to do things, how to organize, management philosophy) • Social Apathy and Alienated Positions • Low degree of entreneurship

  3. The Greenland Model

  4. Decreasing dependenceThe Ratio of the States expenditures regarding Greenland to the Disposable National Income in Greenland

  5. Etatism Etatism refers to a social formation where society is subordinated to the State, and where the State regulates all basic social relations ( Property relations, distribution of resources, and incomes, control over the supply of labor, control with cultural life, mass media and the educational system etc). The French expression Etatism (etat=State) is used instead of ‘Statism’. The concept has earlier been applied in research on the former USSR and Eastern Europe. Critique of the Soviet model characterized as an ‘Etatist’ mode of Production originates from the ‘Polish School’ (Oscar Lange, Wlodzimierz Brus and Edward Lipinski) and from proponents of the self-management model in former Yugoslavia (Edward Kardelj, The Praxis group, Branko Horvat and Eugen Pusic).

  6. Percentages of Collectivism Government Expenditures to Gross Domestic Product 1994 87,5 1998 81,8 2002 81.0 2006 78.0

  7. Companies: Part or Full Home Rule Ownership (2002) Holding: Subsidiaries: Royal Greenland Inc (100%) (Aalborg, Glyngøre, USA, Japan, Germany) KNI Inc. (100%) KNI Pilersuisoq Inc (100%) Pisiffik Inc. (32.2%) ’Sparkøb’ (100%) ’Super Byg’ (40%) Royal Arctic line (100%) Arctic Container oper. (80%) Aalborg Stevedore (100%) RAL Linie Agentur (100%) RAL Spedition (100%) RAL Bygdeservice (100%) Royal Arctic Tankers (50%) Air Greenland Inc. (37.5%) Arctic Hotel, Ilulissat (100%) Greenland Travel (100%) Tele Greenland Inc. (100%) Tele Gr. International (100%) ’Santa Claus’ (100%) Nuuk Imeq Inc. (25.7%) Nuna Minerals Inc. (91.1%) Moreover: Direct On the Greenland resources inc. (100%) Greenland Contractors (33%) Fiscal Budget (100%): Nuna oil Inc. (50%) Nukissiorfiit Nuka Inc. (100%) Sulisa Inc. (58%) Housing Corporation INI (100%) Amutsiviit Arctic Umiaq line (100%) Missueqqarrniit Nunatta Naqiterivia (100%) (Grønl. Forundersøgelser) Greenland Tourism (100%) Mittarfeqarfiit

  8. Stratification of the Greenland Elite (The New Class) The Greenland Technostructural Elite The Danish Technostructural Elite The Political Elite The Elite of Interest articulating Organizations The Private Capitalist Elite

  9. Contradictions within the ruling Class Development Strategies: ’Imported’ highly educated and skilled Danes and some politicians proponents of neo-liberalism (Rent- and power seeking). ’Conservative’ forces prefer to maintain at least elements of Greenland Etatism. (Defending Obtained Power) A minority of ’Third Way’ proponents (Participatory power)

  10. The Greenland Housing Sector I (G50) • The typical Settlement house of the fifties and sixties. • Heating based on Ship Stoves. • Water from tap houses. • The traditional Economy based on hunting and fishing and low tech. Manufacturing of products (drying or salting).

  11. Qullissat • A mining town established in 1924. • The mine was closed in 1972 (1000 inhabitants). • The store was closed • The inhabitants were forced to move. • In 2002 a giant tsunami washed many of the houses away.

  12. The Greenland Housing Sector II (G60) • The Concentration policies of the sixties. • Exodus from the Settlements to the larger towns. • Building in concrete and in floors. • Hunters and Fishermen were moved into the towns. • Wage earning in modern plants and Alienated dwellers. Block P in Nuuk (2% of the Greenland Population)

  13. Greenland Housing Sector III • The Construction after the sixties up until now. • Close-low buildings. • Wooden houses • Houses covered with wood or fiber cement boards.

  14. Greenland Housing Sector IV • The settlement houses today • But also in towns • ‘Illorput’ house • Favorable support from the Government • ‘Do it yourself housing’

  15. Back to the past (G10): Reforms • Back to tall buildings • Concentration of people in four towns • Abolishment of uniform price system • Reliance of markets • Privatizations, liberalization, franchizing and service contracts with private firms

  16. The Construction sector dominated by Greenland Companies Operated by Danes and by Danish and foreign companies • Very few Greenland Employers and entrepreneurs • Danish Craftsmen came to Greenland and often with the Help from the Greenland technical Organization they started their own business. • Building with Concrete Bricks Instead of wood? • The case of the Siku-block (Jakob Knudsen) • This man so seldom an occurrence that some would say he should be stuffed. • The Elite opposed him in the debate. • A lobby of Carpenter Employers against him

  17. The Nursing Home in Narsaq.

  18. One of the Few Entrepreneurs • Manufacturing of bricks in Greenland. • Another building technique than Bricks manufactured from clay. • A production based on a Block Machine • Multi-good Production.

  19. Comparing Building techniques • Wooden Skeleton outer wall covered with fiber cement boards • Sikublock Bricks (Concrete blocks) • Wooden Skeleton covered by wooden boards • Burned clay bricks • Cost-efficency, employment and Balance of trade analysis based on calculations on outer walls, concrete floor constructions and wall partitions. The remaining part of the building is the same

  20. Construction of Apartment block in Sisimiut as our case

  21. Socio-economic impact of the four building types. Fiber cement Sikublok- Wooden Clay bords Boards bricks 1 boligblok: Production value 876.651 1.070.187 908.176 1.093.580 Value added 294.160 356.308 313.915 329.600**** GDP Change* 464.773 562.967 495.986 520.767 Employmenteffect** 2,20 2,74 2,27 2,73 Importeffect*** 582.491 659.769 594.261 763.980 * Income multiplier is estimated to 1,58. ** Statistic Greenlands Employment multiplier (1990) for the direct and the indirect employment in construction. Other techniques than Siku-block is pure import. The measure is man years per invested million D.Kr. *** Calculations based on V&S data on building materials. **** The relative higher value added for clay bricks is explained by the high freight cost that involves more handling and yields a higher volume of logistics.

  22. Thank You

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