1. Integrated Development and Increasing Prosperity of Southern Estonia
Kadri Uustal
Ministry of Finance of Estonia
Permanent Representation of Estonia to the EU

2. Estonia in Europe Figures (2006): Population: 1 344 684
Area: km²
Population density: 29 persons/km²
GDP
- 2004: 53.4% of EU25
- 2006: 65% of EU25
- GDP growth in 2006 – 11%

3. Southern Estonia Lower salaries Migration to the capital
30% higher salaries in the capital area (2005)
GDP per capita in the Southern Estonia EUR vs EUR in the capital area (2004)
Lower salaries
Migration to the capital
Higher share of primary sector
Production relatively inefficient
Lack of qualified labour
Fragmented regional public administration
Relative importance of production in GDP – capital area 56%, Southern Estonia 18% (2005)
Regional Policy Zoning
3 times more people live in the capital area than in the Southern Estonia (2005)

4. Funding Integrated Development
Structural Funds
Cohesion Fund
Other
Equal
Private Sector
Integrated development
Interreg
State
Municipal

5. Problems-opportunities
Low income level
Low GDP
Few enterprises and foreign financiers
High share of primary sector
Emigration to the capital
Inefficient production
Low added value in production chain
Low investments
Low competitiveness
Poor infrastructure
Unqualified labour
Human resource development
Development of agriculture and fisheries
Development of environmental conditions
Development of local living infrastructure
Tourism development
Development of the transport infrastructure
Development of educational and social infrastructure
Business start-up and development

6. Getting there…
Integration of unemployed and disabled people into the labour market
Unemployment rate in the southern region has dropped from 8.1% (2003) to 2% (2006)
The percentage of dependent people has decreased from 55.9% (2003) to 52.2% (2005)

7. Getting there… Start-up support for new businesses
The average income per household member has increased by 44 euros in southern Estonia ( )
Getting there…
Start-up support for new businesses
Training and competitiveness of enterprises
Tourism
The average monthly salary has increased by 25.4% in Southern Estonia ( )

8. Life expectancy has increased by 1. 1 years (men) and 1
Life expectancy has increased by 1.1 years (men) and 1.2 years (women) ( )
Getting there…
Local development, renovation of schools, kindergartens, health care institutions, improvement of leisure facilities
Development and preservation of local heritage and culture (villages, museums, playgrounds etc)
Leader pilot
The average birth rate has increased by 3.6% and death rate has decreased by 3.7% ( )

9. Getting there…
Building roads, renewal of water and sewage systems

10. Structural Funds added value
County development centers: to coordinate funding and consult enterprises
Every county has a strategy (regional development programmes)
Integrated system of funding: using different financial sources to gain synergy in development
Increased cooperation between enterprises, state, counties, municipalities, citizens, NGOs
Cooperation outweighs competition
Long-term perspective

11. We have done great but we can do better!
Better cooperation between different counterparts in planning but also in initiation and implementation of projects
Long-term perspective through the municipal and county development strategies/sectoral strategies
Combination of different financial mechanisms
Exchange of experience across borders – learning from successes and failures of others

12. Kadri Uustal kadri.uustal@eu.estemb.be
THANK YOU!
Kadri Uustal