Donald Trump, the real estate tycoon, loved to buy stuff: brownfield lots; skyscrapers; casinos. Donald Trump, the US president, apparently loves to buy countries.
Wall Street stated last Friday that "Mr. Trump has, with varying degrees of seriousness, repeatedly expressed interest in buying the ice-covered autonomous Danish territory between the North Atlantic and Arctic oceans". According to people familiar with the issue, he has asked his White House counsel to look into the idea. But why?
Greenland, the World's whitest island
Greenland is located between the Arctic and Atlantic oceans, just east of Canada. Physiographically, it's part of the continent of North America, however politically it's considered to be part of Europe, as its close ties to Scandinavia and more specifically Denmark, with which it forms the Kingdom of Denmark. With its 2.166.086 km2 (836.330 sq mi), it's the world's largest island. With only 55.877 Greenlanders, it's also the least populated country in the world.
All those people live in small settlements along the coast, as 81% of the country is covered with ice. Without any roads, the only possibility to travel in between the villages is by helicopter, plane or, in summer, by boat.
Global warming in Greenland
The island has lately been a hot topic in the global media. Literally, because Greenland is melting. The extremely hot months of June and July this year just followed the trend of increasing winter and summer temperatures allover the world. Just as glaciers in the Alps are getting shorter every year, Greenland is losing enormous amounts of ice. Last week, the glacier-covered island lost 12.5 billion tons of ice in just one day, which would cover all of Denmark with half a litre of water.
Not only is the melting ice a thread for all coastal areas worldwide (as it rises the sea level), it's also dramatic for all the animals and inhabitants on the island. A picture of scientists who were looking for a weather station went viral last June as the line between sledding and sailing became worryingly thin.
A strategic position with Diamond, Uranium and Oil
For Trump however are these global warming effects very beneficial. In fact, it's one of the biggest reasons to buy the landmass, which consists for now mainly of an unreachable and unminable ice cap. As ice is melting, valuable resources such as diamond, uranium (and probably oil) can be dug up from the soil. On top of that, it's remote position suddenly becomes very strategic...
NASA images show that the ice on the Arctic Ocean has been melting rapidly in the last 35 years. Because of this, shipping routes are opening up on the Arctic and soon resources such as oil and gas will be mineable from the ocean's soil. Geologists think that the region holds 30% of the undiscovered natural gas on earth and 13% of its oil.
It's time to draw borders on the Arctic Ocean
The borders in this region are pretty complex and are actually open for discussion negotiation. Currently every country gets their default maritime border that are 200 nautical miles off their coasts. Everything outside these 'exclusive economic zones (EEZ)' are international waters, up for grabs for everyone who can prove that it belongs to them.
That's where the continental shelves come in. It's part of a countries landmass, but covered with ocean. Most of the Nordic countries are now sending submarines to the ocean's surface to look whether their continental shelf stretches further under the ocean. With the data they collect, they go to a UN committee of scientists that decide whether or not the country's claims are valid. However both Greenland and Russia claim a huge part of the North Pole.
Up until now, Russia has clearly been the biggest and most aggressive player in the Battle of the Arctic. It has reinforced its military presence in the region by building bases on many of its islands in the Arctic Ocean. It even has a mining town on Svalbard, the island which theoretical belongs to no country, but practically relies on Norway. The island is special in its kind as it's open for every country to start economic businesses. However, the Russian town of Barentsburg on the island, inhabited by real Russians mostly working in its mine, is set up purely for having influence in the region. The mine is not profitable, but if there would ever be oil found offshore, Russia can claim it.
The United States could rule the Arctic Ocean
The United States could drastically change this situation and become the ruler in the area if it would buy Greenland, especially if their claims will be approved by the UN. In that case, it would there border Russia, which makes it not only a huge win for future economic activities and sea routes (which allow ships to sail in between the Americas, Europe and Asia much faster), but also for military purposes. It would be a better deal for the US than Alaska, which it bought for peanuts from Russia back in 1867.
Greenland's and Denmark's reaction
However, in order to buy Greenland, someone has to be willing to sell it of course. Greenland's Ministry of Foreign Affairs tweeted clearly that "they're open for business, not for sale". However it would be the Danish government, who rules Denmark, the Faroe Islands and Greenland, that would negotiate with the US for such purchase.
Many Danish politicians have already reacted on social media, saying that Denmark would never accept such a purchase. Foreign affairs spokesman for the Danish People’s Party, Soren Espersen, told that "the thought of Denmark selling 50,000 citizens to the United States is completely ridiculous” and that "If Trump is truly contemplating this, then it is final proof that he has gone mad".
Mette Frederiksen, prime minister of Denmark, however has not yet commented. She's this weekend in Greenland, where a strong independence movement wants to break with Denmark, even though it gets an annual subsidy of about $500 million from Denmark.
"If Trump is truly contemplating this, then this is final proof, that he has gone mad. The thought of Denmark selling 50,000 citizens to the United States is completely ridiculous”
Problems with the Inuit
At this moment, the economic activity in Greenland is fairly low, especially outside the capital Nuuk. The local Inuit people have difficulties preserving their authentic self-serving fishing culture in a capitalistic world that's all about globalisation and activists (which forbid seal fishing, ...). The sudden exposition to alcohol, internet and other stuff, caused an immense percentage of alcoholism among the marginalised local residents as well as rising suicides.
Recently, China joined the scramble for territory by bidding for two airport construction jobs in Greenland. Last year, Denmark opted for joint funding with Greenland to prevent China getting any control.
Trump is due to visit Copenhagen in September and the Arctic will be on the agenda during meetings with the prime ministers of Denmark and Greenland.
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