Browsing Articles by Subject "Alaska"
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The Determinants of Small Business Success in Alaska: A Focus on the Creative ClassAlthough the contribution of small businesses and entrepreneurship to regional communities and the economy at large is widely supported in the literature, there does not seem to be a universally accepted definition for small businesses and entrepreneurship. Without an agreed upon definition, it is challenging for governments and policy makers to address the needs, concerns, and issues of these firms. It also makes it difficult to understand the link between small businesses and economic growth.
Mining and Sustainable Communities: A Case Study of the Red Dog MinePoliticians and planners work to attract economic development because of the desire to provide jobs and income for residents, and to find tax revenue to fund government services. Their focus is usually statewide: jobs, income, and taxes for Alaskans. This article is about the impact of one remote development project on nearby, Native communities. It is about the community effects of the Red Dog Lead and Zinc Mine in northwest Alaska. 2014 was the 25th anniversary for the mine, which began operation in 1989. This case study evaluates the mine’s effects on the communities after 25 years of operation. It begins with an overview of the communities and the mine. It evaluates the mine’s effects on these communities in four ways: 1) jobs and income, 2) governance, 3) education, and 4) subsistence. This case study provides lessons for development in other rural communities
Resource rents, universal basic income, and poverty among Alaska’s Indigenous peoplesThe Alaska Permanent Fund Dividend (PFD) program provides universal basic income (UBI) to all residents from investment earnings of a state sovereign wealth fund created from oil rents. This paper evaluates the effect of the PFD to mitigate poverty among the state’s rural Indigenous (Alaska Native) peoples: a population with historically high poverty rates living in a region with limited economic opportunities. Errors in recording PFD income in data used to calculate official poverty statistics cause them to misrepresent poverty in Alaska and understate the effect of the PFD. Estimating poverty rates with and without PFD income therefore requires reconstruction of family incomes from household-level data. Estimated poverty rates from reconstructed income show that the PFD has had a substantial, although diminishing mitigating effect on poverty for rural Indigenous families. The PFD has had a larger effect on poverty among children and elders than for the rural Alaska Native population as a whole. Alaska Native seniors, who receive additional sources of UBI derived primarily from resource rents besides the PFD, have seen a decline in poverty rates, while poverty rates for children have increased. Evidence has not appeared for commonly hypothesized potential adverse social and economic consequences of UBI.
Resource Revenues and Fiscal Sustainability: Lessons of the Alaska DisconnectIn 1968, the Prudhoe Bay oil field was discovered on Alaska’s North Slope – the largest oil field ever discovered in North America. That discovery led to an economic and fiscal transformation of the young state of Alaska. A 1969 sale of Prudhoe Bay leases brought the state $900 million in one day ($4.9 billion in 2014 dollars) – six times the state’s budget that year of $115 million (Ragsdale, 2008). After the completion of the Trans-Alaska pipeline, oil began flowing from the North Slope – bringing the state very large annual oil revenues. Cumulatively, between 1978 and 2014 the state earned $111 billion in unrestricted general fund oil revenues ($164 billion expressed in 2014 dollars). 1, 2 (See Table 1.) It has not been a smooth ride. Annual state oil revenues have varied widely since North Slope production began, particularly because of changes in oil prices, but also because of changes in oil production, costs of production, and oil tax laws (Figure 1). Soaring oil revenues in the early 1980s were followed by 20 years of decline, including a very sharp drop in 1987 which contributed to a severe recession in Alaska. Rising prices brought soaring revenues again from 2005 to 2012 – followed by another very sharp drop since 2012, with drastically lower oil revenues projected for FY 2015 and FY 2016.