Economy
Even before non-aboriginal people came to the region, the Kootenay River valley was an important path of trade and transport between the tribes of the Canadian Rockies and the Idaho Panhandle, mostly between the Ktunaxa (who practiced agriculture and aquaculture) and the Salish, Blackfeet and Pend d'Oreilles of the south and east, and with the Shuswap in the north. The physiographic continuation of the Kootenai Valley southwards from present-day Bonners Ferry, Idaho into the Pend Oreille basin via the Purcell Trench formed a natural corridor through which natives of the area could interact. The barrier formed by the Rocky Mountains to the east, however, meant that tribes of the area, especially the Ktunaxa, were economically and linguistically isolated from the Great Plains tribes (with the exception of the Shoshone, whose territory spanned both sides of the Rockies).
Logging began in the 19th century as a result of white emigration to the Kootenay region, and remains one of the primary industries of the area. In fact, much of the economy of the Pacific Northwest and Columbia Basin has historically, and even today, is dependent on the lumber industry. Lumber was required for the construction of buildings, forts, railroad tracks, and boats, and today is exported from the region in great amounts providing jobs and income for inhabitants of the area. Even in relatively uninhabited regions of the watershed, logging roads criss-cross the hills and mountainsides. Over 90 percent of the Kootenay basin is forested, but only about 10 percent of the area is not affected by some kind of lumber-industry development, now defined as about twenty "roadless areas" or "blocks", with 18 in the US.
To a limited extent, the Kootenay River has also been used for navigation. Commercial navigation began with steamboats in the 19th century to transport ores, lumber, passengers and other imported and exported products between the Kootenay River valley and the Canadian Pacific Railway station at Golden, British Columbia. Boat travel on the upper river ceased when a rail line was built along the Kootenay upstream of the big bend. Steamboats also operated briefly on the lower river and Kootenay Lake to service silver mines in the nearby mountains. In modern times, boats continue to ply Kootenay Lake and limited reaches of the Kootenay River.
Mining is also an important economic support of the Kootenay River area. Although originally valuable minerals such as gold and silver were unearthed, today coal is the primary resource extracted from underground. Conventional coal deposits underlie much of the East Kootenay, especially in the Elk River valley which is home to the Elk Valley Coalfield, and the Crowsnest Coalfield in the Purcell Mountains. The East Kootenay is the most important coal-producing area of British Columbia, has since 1898 produced over 500 million tons, and about 25 percent of the world's steel-making coal comes from the region. Most of the coal from the East Kootenay coalfields is exported to Japan and Korea.
Lead, zinc, copper and silver are still mined at some places in the Kootenay River basin, notably at the giant Sullivan Mine near Kimberley, British Columbia, which is the largest in the Kootenay watershed. Agriculture, however, is a much less important industry, and many of the fertile riverside lands have been flooded by the construction of dams (most notably Libby Dam in Montana, which backs water into Canada). Only about two percent of the entire Kootenay basin (1,005 square kilometres (388 sq mi) is used for agriculture, and much of that is for pasture and foraging. Crops such as oats, barley and wheat account for 62 percent of the agricultural output of the region, much of which is used locally or exported by rail. The primary agricultural region is the Kootenai Valley of northern Idaho just south of Kootenay Lake.
The West Kootenay, however, is transitioning from a coal-mining to a tourism-based economy, and the rest of the Kootenay region is also starting to do so. The economy of southeastern British Columbia is becoming increasingly reliant on tourism, and several Canadian national and state parks have already been established, and several national forests in the U.S.
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