A controversy

Remember that time a Chinese investment proposal toppled a Western government? Neither do I.

It really happened though — in 2013:

Talks to bring in Chinese capital to a large iron ore project weren’t even ripe for a deal when the outcry over a law facilitating the use of foreign labour led to fresh elections and a new cabinet that promises to revise that legislation.

Introduced by then PM Kuupik Kleist’s Siumut party and passed last December by the Greenlandic parliament, the so-called ‘large scale law’ (storskalalov) allows for foreign workers to be paid less than the local minimum wage of $14 per hour during the construction phase of large scale projects. Greenland’s untapped mineral resources, proponents argued, could help the country achieve economic self-sufficiency and eventually independence from Denmark, but cannot be developed without a workforce not to be found among the 58 thousand local inhabitants.

A large-scale fiasco

The law raised opposition both at home and in Denmark. Kleist’s government was accused of laying the ground for an invasion of thousands of Chinese workers that would amount to “social dumping”. Such large mining projects, some argued, would bring less benefits to the local population than traditional industries like fishing, which now accounts for 90% of the country’s exports. MP Nikku Olsen called the government’s policy towards foreign investment “very shallow and not thought through”, and led a breakaway faction of the ruling Inuit Ataqatigiit party to call for a referendum on the law. This triggered fresh elections that brought back to power the social democrats from Siumut, the dominant party since the first parlamentary elections in 1979, in a coalition with Olsen’s Parti Inuit and the centre-right Atassut. New PM Aleqa Hammond’s cabinet has stressed support for developing mining into the country’s main industry, vowing at the same time to revise the ‘large-scale law’ before next year.

Greenland (population 56,186) increasingly seems like a place to watch.

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