Columbia International Affairs Online: Working Papers

CIAO DATE: 08/2013

Arctic Economics in the 21st Century: The Benefits and Costs of Cold

Heather A. Conley

July 2013

Center for Strategic and International Studies

Abstract

Arctic Economics in the 21st Century: The Benefits and Costs of Cold explores the key economic dynamics at play in the rapidly changing Arctic region. This report evaluates both the economic benefits of an increasingly open Arctic region and the costs of exploring the riches of the American Arctic. It frames an economic strategy built upon six critical economic components: mineral resources, oil and gas development, shipping, fisheries, tourism, and finally, the regional infrastructure required to support and sustain the first five components. The report analyzes the increasingly prominent role of the private sector in Arctic development and its interplay with the potentially diminished traditional role of governments in the region.