ABSTRACT
This chapter addresses the question: How does resource development and the associated increase in the cash economy affect social relationships and well-being in indigenous communities rooted in traditional relations of subsistence production? It reviews empirical findings regarding social impacts of development in Arctic Alaska. The chapter develops a theoretical framework for understanding types of social ties, changes in social ties and implications of changes in social ties. The transition from traditional relations in a subsistence hunting and gathering society to market relations in a cash economy has significant implications for social capital and well-being. The traditional economy is based on household production and kinship-based sharing networks that create strong social ties and cultivate trust. The regional centres are hubs for regional commerce, offering more jobs, employment, income and a wider range of goods and services. They are also more socially and ethnically diverse.
