US Interest in Acquiring Greenland
In 2019, Donald Trump proposed the idea of the US purchasing Greenland, a self-governing territory of Denmark, citing 'national security purposes'. Historically, this was not a novel idea as previous US presidents had shown interest in acquiring Greenland.
Historical Attempts
- In 1867, after purchasing Alaska from Russia for $7.2 million, US Secretary of State William Seward attempted to acquire both Greenland and Iceland for $5.5 million.
- Post-World War II, in 1946, President Harry Truman offered $100 million in gold to buy Greenland, which Denmark rejected.
Valuing Greenland
Assessing Greenland’s value is complex. GDP alone doesn't reflect the territory’s true worth, which includes human capital, infrastructure, quality of life, natural resources, and strategic position.
- The Financial Times suggested a valuation of $1.1 trillion based on its mineral resources.
- David Barker, a former economist, estimated its value between $12.5 billion and $77 billion, adjusting historical land purchase prices for modern economic growth.
- Using Iceland as a proxy, another estimation placed Greenland’s value just shy of $2.8 trillion.
Historical Land Purchases
- The US has acquired jurisdiction over 40% of its territory through purchases like the Louisiana Purchase and the acquisition of other lands from countries like Spain and Mexico.
- Other nations, including Mexico, Japan, and Russia, have also engaged in land acquisitions.
Sovereignty and Modern Economics
A 2008 US memo likened sovereignty to a commodity influenced by market forces, yet current valuations often omit this aspect. Nobel laureate Daniel Kahneman has shown that intangible concepts like 'happiness' can be given economic value, suggesting that sovereignty might also be priced similarly.
Political Climate in Greenland
- The recent Greenland election saw independence from Denmark becoming a major discussion point, despite not being an official referendum issue.
- The centre-right Demokraatit Party, advocating for independence, gained significant voter support.
Modern Implications
While large-scale sovereignty sales are rare today, transactions like establishing military bases or commercial routes illustrate modern sovereignty leasing. The concept of bidding for territory remains speculative, with humorous exchanges between national leaders hinting at potential future possibilities.
In summary, if Greenland were to consider a sale, it would not automatically default to the US but would go to the highest bidder. The ethical and economic implications of such a sale, including who benefits from it, remain contentious.