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Surviving the Arctic Struggles: Poverty in Greenland

Poverty in GreenlandGreenland, the world’s largest island, is known for its breathtaking landscapes and extreme climate, but beneath its icy beauty lies a pressing issue – poverty. Despite being part of the Kingdom of Denmark, Greenland faces economic hardship that disproportionately affects Indigenous communities.

Causes of Poverty

  1. Economic Dependence and Limited Industry. Greenland’s economy is heavily reliant on the fishing industry, which accounts for more than 90% of its exports. This makes the economy highly vulnerable to market fluctuations and limits job opportunities. The Danish government provides substantial financial support, with an annual block grant of about $585 million, making up more than 50% of government revenues and about 20% of Greenland’s gross domestic product (GDP).
  2. Geographical Isolation and High Cost of Living. While Greenland is a stunning country, its isolation in the far North makes it susceptible to high import costs for goods and services, driving up the cost of living. Necessities such as food and fuel are significantly more expensive than in mainland Denmark. For example, a family of four has estimated monthly expenses of about $5,726 without rent. These high costs make daily life unaffordable for many residents, contributing to growing economic stress and inequality.
  3. Social Challenges and Vulnerable Populations. Social issues such as alcoholism and mental health problems are deeply intertwined with poverty. The Indigenous Inuit communities are disproportionately affected, with high rates of substance abuse exacerbating economic hardship. Studies show a dramatic increase in alcohol consumption in Greenland, leading to severe health and social problems. These challenges often contribute to family breakdowns, unemployment, and domestic violence, creating a cycle of vulnerability. Limited access to health care and support services further worsens the situation, leaving many without essential help.

Tackling Poverty in Greenland

The Danish government’s financial support helps maintain Greenland’s public services, including health care and education. However, there is a growing movement to strengthen Greenland’s economy beyond this aid by investing in local industries such as mining and tourism.

Similarly, other organizations strive to help alleviate poverty, such as The Greenland Social Foundation, which provides food, shelter and educational programs to struggling families. The Red Cross Greenland also plays a crucial role in providing social welfare programs and mental health support.

Furthermore, institutions like Ilisimatusarfik University provide scholarships, with more than $21,000 awarded in April 2024, to help Greenlanders pursue higher education and secure stable employment. Community-driven initiatives are also promoting traditional practices like fishing and craftsmanship to create self-sustaining economic opportunities.

Ultimately, Greenland’s poverty crisis is driven by economic dependency on unstable income, high costs of living and social issues that disproportionately affect Indigenous communities. However, through a combination of government support, local initiatives and education programs, there is hope for a more resilient and self-sufficient future for Greenland’s people.

– Emina Bolic

Emina is based in Birmingham, UK and focuses on Good News for The Borgen Project.

Photo: Pexels

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Addressing Poverty in Greenland 

Poverty in GreenlandGreenland is an autonomous country under Denmark’s rule. Half of the country’s public revenue comes solely from Danish aid and contributions and yet many citizens live below the poverty line. While other members of the Danish Kingdom flourish, including the considerably smaller Faroe Islands, the number of people living in poverty throughout Greenland is at a staggeringly high 17.4%. This is what the reality of Greenlandic poverty looks like.

The People of Greenland

The vast majority of Greenland’s population identify as Inuit and consider themselves to be ethnically Greenlandic, while the remaining are nearly entirely Danish. The impacts of Norse colonialism and rapid modernization throughout history have impacted the Inuit people’s livelihoods and ways of living have been threatened by the impact of Norse colonialism and rapid modernization throughout history, a threat which has not dispersed despite decades of being recognized as an autonomous territory.

Tourism Vs. Tradition

For many, traditional industries such as fishing and hunting were a means of survival as well as income, though the forced displacement of families and the Inuit people has meant that many have lost access or ease of access to the trades they once relied heavily upon. These industries have long been a staple within the communities, but are gradually being replaced with modern institutions, including mining and tourism.

From 1774 to 1908, the Royal Greenland Trading Department (KGH) were responsible for managing the Greenland government and trade, and throughout this period, they actively fought the urbanization of the native land. However, by the 1960s, the Danish government had introduced a modernization program. While the Danish government introduced it to help Greenlandic workers, particularly the fishermen, into work at modern fisheries, the program merely contributed to the collapse of existing fishers and thus the vital trades of many citizens, as well as prolonged unemployment. This was only one example of colonization contributing to a growing crisis of poverty in Greenland.

The Modernization Shortfall 

Despite being the world’s largest island, the country is home to only 57,000 citizens, making for a sparse population along the coastline and masses of uninhabited land. As a result of this dispersion, there is a lack of key infrastructure that would enable various areas of the economy to grow, such as mining or tourism. As of 2025, there are still less than 100 miles of paved roads across the island, making transportation difficult for workers, and thus limiting job opportunities and access to key sectors and services. For those who rely upon fishing, hunting and gathering to survive non-existent or difficult roads can lead to both job and food insecurity.

These rural areas are where poverty thrives; according to Project World, many Greenlanders have inadequate access to sanitation, food and clean water within their own homes. This is particularly prevalent within predominantly Inuit villages, where a lack of a national grid means that people cannot easily access the services they rely on. Where Danish modernization programs and projects largely failed, many native Greenlanders fell behind and, as a result, beneath the poverty line.

Rising Temperatures 

Like the majority of Arctic countries, rising temperatures is impacting Greenland. As the ice sheet began to retreat in 2023, the island became known for its untapped resources, the earth rich with minerals. However, the aforementioned lack of infrastructure makes it more difficult to access these resources and, therefore, create jobs within the sector.

While the discovery of these minerals has been widely deemed a good thing, the impact of the rescinding ice sheet is already disrupting the lives of many Greenlanders. Melting ice and global warming can make one of the island’s key exports – fishing – an even more unreliable source of income, as the changing weather conditions impact marine life. Climate-induced erosion is also hitting the already limited road structures, making journeys necessary for food, work or transportation more dangerous, more difficult and more insecure. This impacts poverty in Greenland.

The Future

While Greenland’s autonomy and ownership have become a recent political issue, there should be a greater focus on alleviating poverty in Greenland without the island and the people’s independence and autonomy being used as a price tag. In particular, the Salvation Army is recognized as one of the major charitable organizations in Greenland that is making a large everyday impact on the citizens, helping to end homelessness and improve the quality of life for those most vulnerable across the country. From 2012, the charity has been providing warm spaces, meals and drinks and support to those in need, including via the 2024 Self Denial Appeal, which aimed to improve lives across the country.

With eyes across the globe turned to the island, hopefully, there will be a greater focus on improving the lives of Greenlanders by fighting poverty.

– Macy Hall

Macy is based in Dover, Kent, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Pixabay