Why America wants Greenland? A Strategic, Economic, and Geo-political Analysis.

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Photo Courtesy: npr.org

Summary in Points

1. Historical Background:
   • The discovery of Greenland and its eventual integration under Danish control.
   • Greenland’s evolving geopolitical significance over time.
2. Mineral Wealth:
   • Overview of Greenland’s rare and strategic mineral deposits, including rare earth elements and uranium.
   • Statistical insights into global demand and resource potential.
3. Shipping Routes:
   • Greenland’s centrality to emerging Arctic shipping lanes.
   • Implications of melting Arctic ice for global trade.
4. Strategic Importance for the U.S.:
   • Proximity to Europe, the Arctic, and its military and economic implications.
5. Options for U.S. Influence in Greenland:
   • Evaluating the feasibility of purchasing Greenland.
   • Exploring alternative strategies to secure U.S. interests in the region.
6. Donald Trump’s Personal and Political Motivations:
   • Understanding potential personal, political, and economic motivations behind his interest in Greenland.

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Historical Background of Greenland

Greenland, the world’s largest island, lies at the intersection of the Arctic and North Atlantic oceans. Its history stretches back over 4,500 years, with the earliest settlers being the Saqqaq and Dorset cultures, followed by the Norse in 982 AD. Norse explorer Erik the Red named the island “Greenland” to attract settlers, despite its icy landscape.

By the 18th century, Denmark-Norway had claimed sovereignty over Greenland, a status cemented in 1814 under the Treaty of Kiel. In the modern era, Greenland enjoys significant autonomy under the Danish Realm, achieving self-rule in 2009. Its population of approximately 56,000 primarily resides along ice-free coastal areas, with Nuuk as its capital.

Greenland’s Mineral Wealth

Greenland’s geological riches make it a potential powerhouse in the global resource market. Key resources include:

1. Rare Earth Elements (REEs):
   • The Kvanefjeld plateau in southern Greenland is estimated to hold one of the world’s largest deposits of rare earth oxides, with over 38.5 million tons.
   • Demand for REEs is expected to grow by 40% by 2030, driven by the global transition to renewable energy and electric vehicles (IEA, 2022).
2. Uranium:
   • Greenland’s reserves are pivotal for nuclear energy production, with potential to meet 10% of the world’s uranium demand by 2035.
3. Other Strategic Resources:
   • Greenland’s deposits include gold, zinc, platinum group metals, and untapped oil and gas reserves. Estimates suggest offshore reserves may hold up to 50 billion barrels of oil.

Greenland and Emerging Shipping Routes

The melting of Arctic ice due to climate change is opening new opportunities in global shipping. Greenland’s geographic position places it at the crossroads of these emerging routes:

1. Transatlantic Shipping:
   • Greenland sits between North America and Europe, making it integral to North Atlantic trade. The shortest air and sea routes between the continents pass near its territory.
2. Arctic Shipping Lanes:
   • The Northern Sea Route and Northwest Passage are expected to cut shipping distances between Asia, Europe, and North America by up to 40%. For example, a journey from Shanghai to Rotterdam via the Arctic could save 10-15 days compared to the Suez Canal route (Arctic Institute, 2023).
3. Strategic Maritime Security:
   • Greenland offers a vantage point to monitor and secure these shipping lanes, critical for global trade and military logistics.

Strategic Importance to the United States

Greenland’s location and resources present the U.S. with unparalleled strategic advantages:

1. Military and Defense:
   • The U.S. already operates the Thule Air Base in northern Greenland, which serves as a cornerstone for ballistic missile early warning systems and space surveillance. Expanding military infrastructure here would solidify U.S. dominance in the Arctic.
2. Economic and Resource Security:
   • By securing access to Greenland’s rare earth elements, the U.S. could reduce its dependence on China, which currently controls over 78% of global REE supply.
3. Geopolitical Leverage:
   • Controlling Greenland would bolster U.S. influence in Arctic governance, countering Russia’s military build-up and China’s economic investments in the region.

Options for U.S. Influence in Greenland

1. Purchase Greenland

The idea of buying Greenland was earlier proposed by Donald Trump in 2019, echoes historical acquisitions like Alaska. However, this proposal faces significant hurdles:

• Political Resistance: Denmark’s Prime Minister called the idea “absurd,” reflecting strong opposition from both the Danish government and Greenland’s autonomous leadership.
• Economic Valuation: Greenland’s estimated resource value exceeds $1 trillion, making a purchase financially complex.

Photo Courtesy: worldatlas.com

2. Enhanced Partnership

The U.S. could deepen its ties with Greenland through investments and collaboration:

• Economic Development: Funding infrastructure projects, such as airports, ports, and renewable energy initiatives, could strengthen relations.
• Defense Agreements: Expanding the scope of the Thule Air Base and conducting joint Arctic security exercises.

3. Soft Power and Diplomatic Engagement

Building cultural and educational exchanges, alongside economic aid, would help the U.S. foster goodwill and secure long-term influence.

Donald Trump’s Personal Motivations

Donald Trump’s interest in Greenland can be attributed to several factors:

1. Economic Legacy:
   • Securing Greenland’s resources aligns with Trump’s “America First” agenda, promoting energy independence and industrial growth.
2. Geopolitical Strategy:
   • Dominance in the Arctic could be a hallmark of Trump’s foreign policy legacy.
3. Personal Branding:
   • Trump, a real estate magnate, likely saw Greenland as a “deal of the century,” reinforcing his image as a bold negotiator.

Conclusion

Greenland’s strategic location, abundant resources, and role in Arctic geopolitics make it a focal point for global powers. While purchasing Greenland is unlikely, the U.S. has viable options to enhance its influence through partnerships, investments, and soft power strategies. Ensuring access to Greenland’s resources and securing its Arctic position will be pivotal for America’s long-term strategic interests.

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Endnotes

1. “Greenland’s Rare Earth Resources: Global Implications,” Arctic Institute, 2023.
2. “Climate Change and Arctic Shipping Lanes,” Journal of Polar Research, 2022.
3. “U.S. Strategic Interests in Greenland,” Congressional Research Service, 2021.
4. “The Thule Air Base and Arctic Surveillance,” Defense Studies Quarterly, 2020.
5. “Donald Trump’s Greenland Proposal: An Analysis,” Foreign Affairs, 2019.
6. “Arctic Geopolitics: Russia, China, and the U.S.,” RAND Corporation, 2021.