Intervention Check Against Delivery
Mr Eirik Sivertsen, Chair of SCPAR
Arctic Futures Symposium, Brussels 17-18 November 2015
Business Development in Arctic Communities
Madam Chair, distinguished guests, ladies and gentlemen,
Thank you for the invitation and the opportunity to speak on one of the key topics for the future of the Arctic.
My recipe for developing the business sector in the Arctic is as follows: We need new partnerships, new thinking and more cooperation.
We need new partnerships between business, governments and the local communities.
We need new thinking on how to use the huge natural resources to create more diversified Arctic economies and new technology.
And we need more cooperation, between states, between businesses, education and research institutions and the local people.
And finally - business, governments, universities and local representatives need to create joint arenas of cooperation.
This is how we shall create a way towards sound business development and striving Arctic communities. Please allow me to elaborate.
As Arctic parliamentarians we are committed to focusing on the people that actually live in the Arctic. People living in the Arctic must be fully involved in the new economic opportunities arising and the business development in the Arctic. The people living in the North must also be allowed to make use of the opportunities in their region –just as people elsewhere in the world. Harvesting of the natural resources, be it marine mammals, fisheries or mineral resources, are important for the local economies.
Furthermore we need to take into account that we have different kinds of Arctic. For instance are the climate conditions along the ice free coast of the North of Norway very different from Northern Canada at the same parallel.
Madam Chair,
I said we need new partnerships when developing business in Arctic communities. The social benefits and costs are potentially huge in many of the development projects, especially related to exploitation of the natural resources. The impact for small societies when new industry is opening up, with potentially thousands of workers, is dramatic. Developing our natural resources includes additional risks to the local environment and to the societies. For the local people to accept this risk as worthwhile, they need to see direct benefits from the activity. We cannot go into the North and simply take out the resources, without any gain for the population living there.
New and strong partnerships between Arctic communities, business and governments are crucial to address this challenge. I believe CSR – Corporate Social Responsibility – can work as frame for dealing with it.
But how to ensure the implementation of Corporate Social Responsibility – CSR - in the Arctic Region?
Internationally, the UN and other forums have focused on the interplay between business development and human rights, resulting in initiatives such as the UN Global Impact. Governments in the Arctic should use these existing international CSR guidelines and work on their implementation in the Arctic.
In my view, CSR is fundamentally linked to the concept of sustainable development: businesses must integrate the economic, social and environmental impact in their operations. It should be a platform for dialogue between the business sector, governments and local residents. In the Arctic, the indigenous peoples will need to be one of the partners in this process.
We also need new thinking. We need new thinking on how we can best prepare the ground for sustainable economic development in the Arctic that benefits the people in the region. I firmly believe that by addressing economic development and capacity building jointly, we are one step closer to the answer.
There is global attention on how the resources in the Arctic might be developed in a sustainable manner. Science, research and cooperation will be important in making this happen. Non-renewable natural resource development must be utilized to help build societies that last beyond the life of the resource.
I believe it is time to address Arctic innovation beyond the development of natural resources. What will the people living in the Arctic live off in addition to its rich resources? How do we stimulate innovation in the Arctic which addresses the needs of future Arctic societies? What can we learn from the sustainable lifestyles of the Arctic indigenous peoples?
First of all we must build on the knowledge and experiences of the people in the Arctic to shape a sustainable future for the people and the environment.
From the Arctic parliamentarians we have proposed to establish an Arctic innovation system which links the scientific community, the business sector, political society and local populations, for instance through an Arctic mentorship and mobility program for students. In looking for the answers on how to best do this, I welcome a broad and constructive dialogue on how we can improve Arctic innovation.
Madam Chair,
More cooperation is a key to success when developing business in the Arctic. Let me use infrastructure as an example. Good infrastructure is the basis for economic development. While the infrastructure in the Arctic is limited, the Arctic area is almost unlimited with its huge distances. Development of infrastructure has traditionally been seen as a domestic responsibility, but none of the countries in the North can afford to look at it this way. We need to look beyond our national borders when planning new roads, railways and other infrastructure in order to lay the best possible basis for cooperation.
Ladies and gentlemen,
I have spoken to you about new partnerships, new thinking and more cooperation. Let me end with; new opportunities.
The new economic opportunities and potential for business development in the Arctic are important reasons for increased interest in the Arctic. We have seen this domestically in the Arctic countries, and also from the wider international community. The latest drop in the price of oil has not changed the fundamental economic development in the North. Nor has the restrictive measures against Russia. Climate change is changing the Arctic with more shipping, fishing and resource development as some of the results.
I want to use the new opportunities to bridge the gap between North and South in our countries. The North is lagging behind the South when it comes to education, income and in human health statistics. If we manage to do this right, we can improve the standard of living and create new job opportunities in the High North. With more interesting jobs and improved education opportunities, we will get societies where the youth are no longer moving away. And then my friends – the Arctic will be home for generations of new skilled and prosperous Arctic residents.
Thank you for your attention.