The Socio-economic Character of Alaska

European interest in Alaska began in 1741 with the inclusion of the State within the new Russian territories. The primary activity within the region related to fur trading and hunting. From 1800 to 1867, numerous settlements were established all of which dealt with trading or ship building activities. Alaska was sold to the Americans in 1867 and from then on the principal activities related to fur trading, fishing and then gold mining. World War II saw a change in economic activity that was dominated by military operations. From the end of the Second World War until 1964, development mainly occurred within the interior and north of Alaska in association with mineral and oil exploration.

By 1964 the total population of Alaska was just 250,000. The largest settlement was Anchorage with a population of 100,000. The population of coastal southern Alaska was sparse, the communities were small and most settlements were located on the north shores of embayments and fjords to provide protection from storms and tsunamis. By far, the most significant economic activity related to fishing and seafood processing. Additionally, Homer, Seaward, Valdez and Whittier were all year round ice free harbours and as such, provided important transport network points with connections to the railroad and highway transportation systems. In 1964, the Gross State Product (GSP) was just over US$1 billion. Approximately 30% of the GSP was deprived from the fishing and seafood processing industries and nearly 35% of the population was employed in this sector.