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Arctic Council Case Study

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Section 2- Why was the Arctic Council created?
Masters (par. 7) emphasizes that the unknown fascinates people, and adds that new cultures and undiscovered land allures adventurers. Unknown to the world, the Arctic remained remote, away from the interest of scientific explorers and politics. However, the end of World War II saw brought technical advancements that made the region a favorite spot for exploring. The need for resources also turned the world’s eye to the region (“Arctic Council Thrives” par. 14). Not all the interested parties desired to make the region a playground for advancing the world’s ecology; instead, the Arctic states militarized the region until 1989 when Russia emerged. The Arctic engaged members and observers in meetings …show more content…
The Arctic is difficult to navigate and has seasonal constraints that may influence its use (Greaves 16). Additionally, the costs of insurance are higher because there are several liabilities that ships crossing the route may face, which insurance firms have not reached a consensus about. Furthermore, given the weak infrastructure in the NSR route, firms are yet to realize the full economic benefits of the trip using the NSR. The melting Arctic ice is creating economic concerns among the nations that vie for greater influence in the region. Increased shipping, infrastructure, and processing will create economic and strategic competition among involved stakeholders in the region’s operations (Greaves 16). The NSR route will link Europe with Asia, and as a result, will decrease trade using the Northwest Passage. The NSR will connect the Pacific with the Atlantic Ocean, because of possible navigable nature. Thus, Arctic shipping routes will reduce transport costs to and from Europe and Asia. The Arctic is more advantageous because it cuts some distances travelled by over two-thirds. In addition, most global transportation markets will shift to this trade route during periods of limited ice. The NSR route is an important alternative to evading the piracy issues associated with the Indian and Pacific Oceans (Greaves 16). Developing the Arctic trade will create an economic power balance for …show more content…
Despite varying predictions, the mineral and energy production industry have substantial potential that increases the stakes for countries with interests in the region. A 2008 survey of the Circum-Arctic Resource Appraisal reveals that the continental shelves of the Arctic may form the largest prospect of the remaining Earth’s petroleum deposits (“Statement on Canada’s Arctic Foreign Policy” par. 38). The 2008 survey also shows that thirty percent of natural gas lies within the region, creating potential benefits of the gas industry. Twenty percent of liquefied natural gas also lies within the region. Even without data on conventional resources such as oil shale, the mineral production industry will have potential benefits for the Arctic region.
The commerce industry
Another key player in the Arctic Council is the commerce industry. The commerce industry will grow from the energy related investments based on various factors (“Statement on Canada’s Arctic Foreign Policy” par. 38). These factors include global commodity prices, growing infrastructural developments and technological advancements. Investments from energy and mining industries are significant additions to global investments in the commerce industry. In fact, the current and projected investments in the oil and gas industry will affect economic growth and the world’s energy dynamics.
The mining

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