Chapter 16 - The Economics of Reindeer Herding: Saami Entrepreneurship between Cyclical Sustainability and the Powers of State and Oligopolies

Summary

This chapter attempts to explain the drastic fall in income experienced by Saami reindeer herders in Northern Norway between 1976 and 2000, in spite of increasing government subsidies. Saami herders maintain a legal monopoly as suppliers of reindeer meat, a traditional luxury product in Norway.

Introduction

The Saami are one of more than 20 indigenous groups across the Northern Eurasian continent that have traditionally made reindeer herding one of the bases of their livelihood. As an ethnic group, they live throughout the Northern parts of Norway, Finland, Sweden and Russia, a territory known traditionally as Lapponia or Sápmi. Their exact number varies from source to source, depending among other things on national criteria used to determine ethnicity, but official sources place the total population of Saami in the area somewhere between 30,000 and 70,000, with about 2,000 Saami living in Russia. In Finland, Norway and Sweden “Saami parliaments” have created parallel indigenous political structures that function as advisory bodies to their respective national governments. Only a minority of the Saami practice reindeer herding, and conflicts of interest over land rights, access to natural resources and political rights often create tensions between the reindeer herders and other Saami groups. Reindeer herders are thus a minority within the Saami minority, and many herders have chosen neither to register in the Saami census nor take an active part in Saami political life.

The purpose of this chapter is to outline the economics and the structural conditions for entrepreneurship of indigenous Saami reindeer herding in Norway today, as well as the historical and political forces that have shaped the present situation. Saami reindeer herders possess a legal monopoly on the production of reindeer meat, traditionally considered a culinary luxury in Norway. As monopoly providers of a highly priced commodity, the Saami reindeer herders have a unique economic position among the indigenous peoples of the Arctic. Nevertheless, despite this monopoly position, at the end of the millennium the reindeer herding communities of Northern Norway found themselves in a devastating economic crisis and had to be saved through emergency subsidies by the Norwegian government.