A report in The Economist magazine highlighted the possibility of a US purchase of Greenland, comparing it to similar historical deals such as the Louisiana Purchase from France in 1803, and Alaska from Russia in 1867, both of which are now seen as huge successes.
President-elect Donald Trump has hinted at his intention to use force or economic pressure to acquire Greenland, which the Economist report strongly criticizes, and believes that obtaining the region by force would harm the reputation of the United States on the global level.
Instead, the report calls for a diplomatic approach, negotiating directly with Greenlanders, as this respects their autonomy and is in line with a 2009 Danish law that gives the island the right to declare its independence by referendum.
Greenland price
The report estimates Greenland’s value at $50 billion, representing about 5% of annual US defense spending, and each resident could gain about $1 million from the deal.
Given Greenland’s vast resources and strategic importance, the United States could offer more and still achieve significant gains, according to the report.
Useful deal
The report suggests that such a deal could be beneficial to both parties, as although Greenland’s economic potential is enormous, the island’s small population of 57,000 people and its dependence on Denmark for funding may hinder its ability to revive its economy, and increase the risks of governance, corruption, and logistical difficulties resulting from the work. In the harsh environment of the region, matters are complicated.
Negotiation
Therefore, selling Greenland to the United States could alleviate these challenges by taking advantage of American administrative and security systems, and Greenlanders would also gain financial security and development opportunities.
The report explained Greenland’s attractiveness with its enormous natural resources and rare minerals, which include 43 of the 50 minerals that the United States considers very important, making the region a vital resource for the technology and green energy industries.
Oil reserves off its coast are estimated at about 52 billion barrels, or 3% of global reserves, and although the gross domestic product is only $3 billion, the great economic potential promises significant growth if the resources are exploited effectively.
However, the report noted that Greenland’s real importance to Trump lies in its strategic location between the United States and Russia, and this would enhance American military security, especially in monitoring submarine corridors.
To make these gains possible, the report believes that Trump will have to back down from threats and make a convincing voluntary sales offer.
The article concludes that a peaceful, negotiated purchase could be the “deal of the century,” enhancing prosperity and security for both Greenland and the United States.
