DEREGULATION OF THE GREENLANDIC ECONOMY

Greenland needs a structural adjustment, as the country has a stalled socialist economy. The socialism is a result of economic mechanism, an d hence difficult to reform. To make reforms work without large social costs, it is necessary to start building normal business in the non-t radables sector: Here most firms ave typical ''dinosaurs'' protected b y complex regulations. It is argued that the first step should be to a bolish these regulations to create Greenlandic business. Then privatiz ation should be carried out. Finally, perhaps after a decade, the big subsidy from Denmark should be gradually reduced.