ABSTRACT

This chapter provides an alternative perspective on the potential development of rural Alaska. It argues that the type of economic development inherent in Alaska's growth is that which polarizes regions into areas of development and underdevelopment. The chapter describes the way that inherent economic processes divert scarce resources from hinterlands within the state to areas where short-run returns can be maximized. It introduces the perspective of economic dependency in analysis of Alaska development. Specific application of economic theory emphasizes historical conditions which were set in motion during the formal colonial periods and the rise of the state as a prominent supplier of natural resources within the world economy. Increasing migration into the state is an important public policy consideration especially when the impact range of newcomers and the continuation of pro-growth policies encroach on the lifestyles of older residents of the state.