Nunavut

Nunavut represents Indigenous self-governance at territorial scale, created in 1999 when it separated from Northwest Territories to recognize Inuit land claims. The territory spans 2 million km²—larger than Western Europe—with population of 40,000, predominantly Inuit. Iqaluit serves as capital and largest community; scattered hamlets dot the Arctic coast and islands, connected by air rather than roads.

The economy defies conventional analysis. Subsistence hunting and fishing remain central to food security and cultural identity, though cash economy participation increases. Government employment dominates formal sector; mining provides boom-bust additions when deposits enter production. The Mary River iron mine (Baffinland) exemplifies extractive potential and Indigenous consent challenges—expansion proposals require community approval that environmental concerns complicate.

Cost of living vastly exceeds southern Canada. Food prices in remote communities reach multiples of southern equivalents; housing shortages create crowding that correlates with health and social problems; infrastructure costs in permafrost environments strain budgets. Whether Nunavut can develop economic base beyond government transfers—while preserving Inuit culture and environmental integrity—poses challenges without obvious solutions.