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Thinking About Alaska’s Remote Economies

Thinking About Alaska’s Remote Economies. Prepared for Village Management Institute June 2003 Steve Colt Institute of Social and Economic Research University of Alaska Anchorage email steve_colt@uaa.alaska.edu. Our Fragile Alaska Economy: Real Income Growth Since 1990.

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Thinking About Alaska’s Remote Economies

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  1. Thinking About Alaska’sRemote Economies Prepared for Village Management Institute June 2003 Steve Colt Institute of Social and Economic Research University of Alaska Anchorage email steve_colt@uaa.alaska.edu

  2. Our Fragile Alaska Economy:Real Income Growth Since 1990

  3. Changes in “Basic” Jobs during 90s

  4. Key Features of the Economy of “Rural-Bush Alaska” (Marshall / Rogers 1999) • Alaska Natives in the majority • Lack of Agriculture • Mixed cash /non-cash economy • For these reasons, models from Lower 48 may not work….

  5. Other Key Elements of Alaska’s Remote Economies • Off the highway network • Off the utility grid • Difficult environmental conditions • (For some --) Far from ocean transport • (For some --) Not well connected to Internet

  6. Example: Fuel Cost per kWh: Anchorage vs. Remote Alaska

  7. Still Other Key Elements of Alaska’s Remote Economies • Part of the United States economy • Part of the global economy • Part of the United States

  8. Alaska looks more like US over time

  9. But, • Remote Alaska does not look more and more like Urban Alaska

  10. Change in W&S Employment during 1990s

  11. Remote Alaska vs. Entire Alaska Alaska Economic Trends October 2000

  12. Remote Alaska vs. Average Alaska Alaska Economic Trends October 2000

  13. Remote Alaska is Different

  14. There are Many remote economies! • Maritime Alaska • Interior Alaska • Southeast Alaska • North Slope Borough

  15. Wage and Salary Employment

  16. Maritime Alaska – A Fading Star? (Closed Ward Cove Cannery, Craig)

  17. Our Fragile Economy:Farmed salmon dominates world markets

  18. Value of Alaska salmon is down

  19. Shifting Exports in Southeast

  20. OK, So What? • How can village leadership respond to these challenges? • Will the future be like the past?

  21. Capitalizing on What’s Different • Local knowledge of wild places • Capitalizing on government • Matching people to jobs • Utility operators • Capitalizing on Infrastructure Needs • (?) Exporting human resources

  22. Why do People Visit Alaska Why do People Live in Alaska?

  23. Bristol Bay Wildlife Refuges:20,453 visits (1996)

  24. Bristol Bay Wildlife Refuges:$2.4 million visitor expenditure (1997)

  25. Visits Bristol Bay NWRs Expenditures

  26. Capturing the Value from Tourists • The Potential: • Average AK $ per person per trip? • $1,258 in 2001 • Of which, how much on gifts/souvenirs? • $119 • how much on Alaska Native arts/crafts? • $92 • How much on clothing? • $58

  27. Capitalizing on What’s Different • Stewards of wild places • Capitalizing on government • Matching people to jobs • Utility operators • Capitalizing on Infrastrcture Needs • (?) Exporting human resources

  28. Three Kinds of Infrastructure: • Physical – generators, wind turbines, roads, schools • Human Capital – people with the right skills in the right place at the right time • Social Capital – communities and utilities that work together to sustain the electric system • All three are worth investing in!

  29. A Critical Point about Physical Infrastructure: • Capital cost usually paid by others, • but, • O&M cost usually paid by local people • So, Key question: • Does this new infrastructure decrease or increase the O&M cost and/or general cost of living?

  30. Two Types of Infrastructure: Example • New Swimming Pool • Could cost $30,000 per yr to heat • New Wind Generators • Could reduce the cost of diesel fuel

  31. Rural Projects and Jobs • Much or most rural project money flows immediately to urban areas • Example (weatherization): • About 75% of weatherization project dollars flow to urban areas. (weatherization)

  32. Capitalizing on What’s Different • Local knowledge of wild places • Capitalizing on government • Matching people to jobs • Utility operators • Capitalizing on Infrastrcture Needs • (?) Exporting human resources

  33. Are you willing to export people? • This is a social question • However, • There is a tradeoff – projects that support a place may be different from investments that develop human skills and potential….. • This is a very tough question facing remote places today

  34. We’re all in this together. www.iser.uaa.alaska.edu

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