Norwegian policies for developing sustainable small rural communities: A heart for the whole country or national policies for sparsely populated areas in Norway Prof. Jørgen Amdam Volda University College Nesna

Content What is happening in Norway – especially rural districts – and why Regional policy –The small regional policy –The big regional policy Policy for marginal areas – sustainable small rural communities Summing up

What is meant by rural areas? ”SUPER-RURAL”: PHERIPHERAL AREAS OUTSIDE URBAN INFLUENCE

Rural Norway: Sparsely populated Long distances Fjords and mountains Ferries Transport through Sweden and Denmark to Germany, France, Italy..

EU PERIPHERY INDEX: 100 % OF NORWAY ARE UNDER EU AVERAGE – MOST ARE VERY PERIPHERAL

Town and City structure Norway is almost “empty”

Population density 2000 NORWAY VERY LOW GDP PER CAPITA NORWAY VERY HIGH

Population change 1980 – Norway

Employment and type of regions – urban/rural , 1986=100 Urban Rural

Population and type of regions – urban/rural: , 1970=100 City Rural

THE RURAL COUNTY SOGN OG FJORDANE - EMPLOYMENT AGRICULTURE AND FISHING MANUFACTURING PUBLIC AND PRIVATE SERVICES SHOPPING AND TRANSPORT

THE URBAN COUNTY OF ROGALAND AGRICULTURE AND FISHING MANUFACTURING SHOPPING AND TRANSPORT PUBLIC AND PRIVATE SERVICES

Norway Average regions ØstfoldIndre Øst- land Sogn and Fjordane Møre and Romsdal Nam- dalen Finn- mark Nord- Troms GDP/ inh. NOK EURO: Public spending and transfers % * Commuting % Sum External income % * Public spending, economic support to business (agriculture), public insurance GDP per person in some rural regions

Urban change 1990 – 2003: Rural change POPULATION CHANGE IN LABOUR MARKET REGIONS Urban Population: VOLDA

35-YEARS OLD Over 4 year University BA-level College NotBackNew Basic 100%

“The small regional policy” The budget of the department for regional development in the Ministry of Local Government and Regional Development Support to private industries Differentiation of labor taxes Special programs - support to small communities International cooperation – Interreg ++

Sone/Type industries – investments support max. Big Medium Small Sone IV Sone III Total support 2006: 1500 mill NOK mill NOK as compensation for increased Labor taxes

Labor taxes for health insurance ++: General: 14,1% of salary According to the peripheral localization of private or public employer this is From 0 to 10,6% Total support 2004: app mill NOK

Support to small communities Support 2007: 50 mill NOK Pilot projects including local youth activities Support to shops in marginal societies Start up support to a “Centre for regional development”

The small regional policy in general The most important means are general and automatic support like reduced labor taxes Project support organized regionally: –Innovation Norway for business support –The County Municipality for other support – infrastructure etc Small national pilot projects Project support have been reduced a lot the last 20 years From project support to general support “tax systems”

The big regional policy The urban-rural profile in use of public money “The Welfare Commune” – the economy of Municipalities Infrastructure – roads etc. State spending – health, university … The Effect Group Ørbeck

State spendings per capita NOKTransfer to municipalities Salary to state employees Transfer to private industries Transfer to individuals State tax

State spendings 1978 – mill NOK Individual support Municipalities Salaries Production support

Municipal income per capita 2000 Other income (renovation..) Taxes on income etc. State support for specific tasks Basic state support

Total income per capita 2000 Income from capital, pensions.. Other income Income from public pention Agriculture s. Public salaries

Regional policy The profile of total state spending are a lot more important then regional development means –Municipal economy –“Folketrygda” – the public insurance system Both are dependent of where people are living – under 18 and over 60 From jobs create population to population create jobs?

Local development From the top – allocation and transfers – need someone that can use the system – instrumental From below – mobilization – participation.. - communicative

STAKEHOLDERS: RURAL CAPABILITY – CAPACITY BUILDING AND RESPONSE

Private industries

URBAN CONCEN- TRATIONS RURAL STRUCTURE MANUFAC- TURING (Focus on natural and economic capital) Big scale manufacturing regions “Traditional” rural areas - production based on land and nature – agriculture, fisheries, mining, mass tourism … KNOWLEDGE (Focus on social capital) Diversified metropolitan and urban regions “Flexible” rural areas – diversified, focus on life quality for inhabitants

National (Oslo) ”Landsdel” County ”Region” Commune State bureaucracy Levels Political structure Storting Government County Commune NORWAY

Local and regional political role: Government - reactive: Dependent position – strategies "Top down" Outside interests dominate National role models dominate Concerned mainly with implementation of national policy Sluggish response, static of low national priority Inflexible, “law and rules” Individual, separate sector programmes Governance – proactive: Leadership position, organise "Bottom up" Local interests dominate Local collaborative models dominate Concerned with leadership and local development – ”The good local society” Rapid response,change oriented if local agreement Flexible – challenges/needs Integrated programmes and projects, problem oriented

What stimulates and prevents regionally initiated development Entrepreneurs - collective and private key individuals Networks and arenas External threats High local mobility of relevant knowledge and information Local identity

Dialogue, trust and partnership ‑ strategies for the development of regional competence Knowledge Relational Mobilisation

Strategies: Production of knowledge that is related to the region itself, to the business and industrial situation in the area - increase knowledge capital The capture and sieving of external knowledge that can help to increase the capability to meet new challenges and to implement changes - increase relational capital The linking of internal knowledge production and the grasping of knowledge externally into joint learning processes which further the development of the region as a special area - mobilise

CONCLUSIONS Proactive work involves systematic differential treatment in order to reach concrete goals Political Legitimacy Knowledge Capacity Capital Trust and Self-confidence Planning for the Region/Commune Talk and Cooperation