Project

in
Economics

AudreyLim
BSA 101
Mrs. Shiela Orozco

Alaska (/lsk/) is a U.S. state situated in the northwest extremity of

the North American continent. Bordering the state to the east is
the Canadian territory of Yukon and the Canadian province of British Columbia,
the Arctic Ocean to the north, and the Pacific Ocean to the west and south,
with Russia (specifically, Chukotka Autonomous Okrug and Kamchatka Krai) farther
west across the Bering Strait. Alaska is the largest state in the United States by
area, the 4th least populous and the least densely populated of the 50 United
States. Approximately half of Alaska's 735,132 residents live within the Anchorage
metropolitan area. Alaska's economy is dominated by the oil, natural gas,
and fishing industries, resources which it has in abundance. Tourism is also a
significant part of the economy.
Although it had been occupied for thousands of years by indigenous peoples, from
the 18th century onward, European powers considered the territory of Alaska ripe
for exploitation and trade. The United States purchased Alaska from the Russian
Empire on March 30, 1867, for 7.2 million U.S. dollars at approximately two cents
per acre ($4.74/km2). The area went through several administrative changes before
becoming organized as a territory on May 11, 1912. It was admitted as the 49th
state of the U.S. on January 3, 1959.

Short Historical background of ALASKA

The history of Alaska dates back to the Upper Paleolithic period (around
14,000 BC), whenSiberian groups crossed the Bering land bridge into what is now
western Alaska. At the time of European contact by the Russian explorers, the area
was populated by Alaska Native groups. The name "Alaska" derives from
the Aleut word Alaxsxaq (also spelled Alyeska), meaning "mainland" (literally, "the
object toward which the action of the sea is directed"). [1]
In the 1890s, gold rushes in Alaska and the nearby Yukon Territory brought
thousands of miners and settlers to Alaska. Alaska was granted territorial status in
1912.
In 1942, two of the outer Aleutian IslandsAttu and Kiskawere occupied by the
Japanese and their recovery for the U.S. became a matter of national pride. The
construction of military basescontributed to the population growth of some Alaskan
cities.
Alaska was granted statehood on January 3, 1959.
In 1964, the massive "Good Friday earthquake" killed 131 people and leveled
several villages.
The 1968 discovery of oil at Prudhoe Bay and the 1977 completion of the TransAlaska Pipeline led to an oil boom. In 1989, the Exxon Valdez hit a reef in Prince
William Sound, spilling between 11 and 34 million US gallons (42,000 and 130,000
m) of crude oil over 1,100 miles (1,600 km) of coastline. Today, the battle between
philosophies of development and conservation is seen in the contentious debate
over oil drilling in the Arctic National Wildlife Refuge.

Prehistory of Alaska
Main article: Prehistory of Alaska
Paleolithic families moved into northwestern North America sometime between
16,000 and 10,000 BC across the Bering land bridgein Alaska.[2] Alaska became
populated by the Inuit and a variety of Native American groups. Today, early
Alaskans are divided into several main groups: the Southeastern Coastal Indians
(the Tlingit, Haida, and Tsimshian), the Athabascans, the Aleut, and the two groups
of Eskimos, the Inupiat and the Yup'ik.[3]
The coastal migrants from Asia were probably the first wave of humans to cross
the Bering Land Bridge in western Alaska, and many of them initially settled in the
interior of what is now Canada. The Tlingit were the most numerous of this group,
claiming most of the coastal Panhandle by the time of European contact and are the
northernmost of the group of advanced cultures of the Pacific Northwest
Coast renowned for its complex art and political systems and the ceremonial and
legal system known as the potlatch. The southern portion of Prince of Wales
Island was settled by the Haidas fleeing persecution by other Haidas from
the Queen Charlotte Islands (now part of British Columbia). The Aleuts settled the
islands of the Aleutian chain approximately 10,000 years ago.

Cultural and subsistence practices varied widely among native groups, who were
spread across vast geographical distances.
Economy
The 2007 gross state product was $44.9 billion, 45th in the nation. Its per capita
personal income for 2007 was $40,042, ranking 15th in the nation. According to a
2013 study by Phoenix Marketing International, Alaska had the fifth-largest number
of millionaires per capita in the United States, with a ratio of 6.75 percent. [60] The oil
and gas industry dominates the Alaskan economy, with more than 80% of the
state's revenues derived from petroleum extraction. Alaska's main export product
(excluding oil and natural gas) is seafood, primarily salmon, cod, Pollock and crab.
Agriculture represents a very small fraction of the Alaskan economy. Agricultural
production is primarily for consumption within the state and includes nursery stock,
dairy products, vegetables, and livestock. Manufacturing is limited, with most
foodstuffs and general goods imported from elsewhere.
Employment is primarily in government and industries such as natural resource
extraction, shipping, and transportation. Military bases are a significant component
of the economy in both Fairbanks and Anchorage. Federal subsidies are also an
important part of the economy, allowing the state to keep taxes low. Its industrial
outputs are crude petroleum, natural gas, coal, gold, precious metals, zinc and
other mining, seafood processing, timber and wood products. There is also a
growing service and tourism sector. Tourists have contributed to the economy by
supporting local lodging.

Popular Industries
Alaskas economy is driven by
the following industries:

Oil

Tourism

Fishing

Other important industries

are:

Timber

Mining

Agriculture

The oil and gas industry is the largest component of Alaskas economy.
Nearly 85 percent of the state budget is supplied by oil revenues. The
fortunes of Alaskas oil industry, and therefore many sectors of the
economy, are dependent upon world oil prices.
Oil was discovered in Prudhoe Bay, on the arctic coast, in 1968. Pipeline
construction began in 1974 and was completed in 1977. The 800 mile pipeline is the

largest privately financed construction project in history. The pipe is 48 inches in

diameter and oil moves at about 5.5 miles per hour, requiring just under six days to
travel from Prudhoe Bay to Valdez.
Tourism is also a major sector of Alaskas economy attracting over 1.1 million
visitors annually. The tourism industry is Alaskas second largest primary employer.
The rich fishing waters off Alaskas coast make it one of the worlds finest sources
for wild seafood. Each year nearly 6 billion pounds of seafood are harvested. Alaska
is the number one producer of wild salmon in the world and has the only salmon
industry certified as "sustainable" by the Marine Stewardship Council.
Forests add to Alaskas beauty and provide a renewable economic resource. With 28
million acres of commercial forest, Alaskas timber industry supplies world markets
with logs, lumber, pulp, and other forest products. Much of Southeast Alaska is part
of the Tongass National Forest, a 16.8 million acre rainforest. The Chugach is the
nation's second largest national forest with 4.8 million acres.
Alaska contains half the nations coal reserves, and its largest silver and zinc mines.
Glittering gold in Alaskas streams and mountains still lure miners to work private
claims.
About 15 million acres of soil in Alaska are suitable for farming, with 1 million acres
currently in production. The long daylight hours of summer produce vegetables of
extraordinary size. Farmers in the Matanuska Valley grow cabbages weighing more
than 90 pounds.

Government of Alaska
Like all other U.S. states, Alaska is governed as a republic, with three branches of
government: an executive branchconsisting of the Governor of Alaska and the other
independently elected constitutional officers; a legislative branchconsisting of
the Alaska House of Representatives and Alaska Senate; and a judicial
branch consisting of the Alaska Supreme Court and lower courts.
The state of Alaska employs approximately 16,000 people statewide. [86]
The Alaska Legislature consists of a 40-member House of Representatives and a 20member Senate. Senators serve four-year terms and House members two.
The Governor of Alaska serves four-year terms. The lieutenant governor runs
separately from the governor in the primaries, but during the general election, the
nominee for governor and nominee for lieutenant governor run together on the
same ticket.
Alaska's court system has four levels: the Alaska Supreme Court, the Alaska Court of
Appeals, the superior courts and the district courts. [87] The superior and district

courts are trial courts. Superior courts are courts of general jurisdiction, while
district courts only hear certain types of cases, including misdemeanor criminal
cases and civil cases valued up to $100,000. [87]
The Supreme Court and the Court of Appeals are appellate courts. The Court of
Appeals is required to hear appeals from certain lower-court decisions, including
those regarding criminal prosecutions, juvenile delinquency, and habeas corpus.
[87]
The Supreme Court hears civil appeals and may in its discretion hear criminal
appeals.[87]

Abundant Natural Resources

Alaska has abundant natural resources in its land, waters, fish and game, and
renewable and non-renewable assets. The Alaska Department of Law helps to
ensure that the state's natural resources are managed and allocated by state
agencies in a manner that is consistent with the law, and that persons who illegally
take or damage our natural resources are prosecuted and, if possible, required to
make reparation. Cases involving natural resources and the environment are
handled by the Environmental, Natural Resources, and Oil, Gas, and Mining sections
of the Civil Division, and by the Office of Special Prosecutions and Appeals and
District Attorney's Offices around the state in the Criminal Division.
The department defends against legal challenges to actions taken by the state's
natural resource agencies, and pursues legal actions both civil and criminal
against persons who are illegally using, damaging, or destroying Alaska's lands,
waters, or renewable natural resources. It helps protect our environment by
pursuing persons who illegally release hazardous substances and requiring them to
clean up the damage. It protects Alaskans' interests by making sure that the state
receives the oil, gas, and mineral royalty and tax revenues to which it is entitled for
current and past production, defending against challenges to state oil and gas lease
sale programs, and protecting the state's title to resource-rich lands.