Reforms on Migration in Greenland through Incentive Policies

Description

Since the OECD report published in 1999 the Greenland home-rule adopted policy

measures based on incentives to promote migration from settlements and smaller

towns to the four so called ‘competition towns' of Qaqortoq, Nuuk, Sisimiut and

Ilulissat. The unitary price system based on the principle of goods and services having

the same price wherever in Greenland goods and services were supplied functioned

until partial reforms of this system were implemented. The reforms meant an

approach to cost based pricing, and the principle was a gradual transition in sectors

based on cross subsidies taking one sector at the time. In essence goods and services

became more expensive in settlements and smaller towns, while it became less

expensive in the four towns. Especially the consequences of reformed energy pricing

could become serious for low income groups having their living conditions

deteriorated. Moreover, trying to promote an ‘exodus' to the four towns could be

problematic in terms of economic costs of migration to the Greenland Society.