Up until now, this state has done a commendable job of maintaining a diverse economy, balancing the needs of its various economic engines and nimbly avoiding a common economic trap known as the “resource curse.”
The resource curse is a phenomenon where the extraction of an area’s natural resources, such as oil, gas and minerals, results in economic decline rather than increased prosperity.
This curse comes in various forms and has been documented all over the world. Here in the United States, West Virginia is a prime example, which Business Insider recently ranked as having the nation’s worst economy.
Alaska has largely avoided the curse because much of its resource extraction activity has not been in direct conflict with other key economic engines, such as commercial fishing and tourism. This has helped the state maintain the sector diversity needed to sustain a healthy economy.
Unfortunately, the state is flirting with projects that threaten to upset that balance and permanently damage Alaska’s economy: the infamous proposed Pebble gold mine in the Bristol Bay watershed and the lesser-known Johnson Tract mine in Lake Clark National Park.
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