The Municipal Administration and Municipality Economics in Greenland

Abstract

The public sector in Greenland has three parts, viz. the Danish State, the Greenland Home Rule and the municipalities. Home Rule was introduced in 1979 when the authority in relation to internal Greenlandic affairs was gradually transferred from the Danish State to the Greenlandic Landsting (parliament) — with the exception of certain important areas which would remain under Danish authority. These areas were national defence, the judicial system, currency, health services, administration of mineral resources, foreign affairs and national security. Together with the authority economic resources were also transferred from the Danish State to Greenland for the administration of these areas — the so-called block grant. In 1992 the administration of the health services was transferred to Greenland with an accompanying increase in the block grant. Mineral resources are controlled by a joint council in which both parties (Denmark and Greenland) may veto any new projects proposed.