1. Reykjavík – Iceland The Little-Big City By Stefán Ólafsson

2. My topics Reykjavík in the World – General Background Development and Population –Size, composition and migration –Prospects for the regions –New problems The changed global environment –New role for cities and regions: Competitiveness –New Strategies –New Visions for Reykjavík

3. Reykjavík in the World Reykjavík is... Half-Way to America –geographically and socially Individualistic – Against Authority Work oriented – Innovative Fast Developer Affluent New Rich: Materialistic – Consumerist Modern and Globalized Sustainable Secure and Civilized But catching up – with modern problems

5. Reykjavík amongst the Nordic Cities Population

6. Densely populated in City, Towns, Villages and Farms This is how we like to think of Iceland:

7. Reykjavík area This is how the population is distributed Population of the Major Regions, %

8. Growing Share of Reykjavik Population Reykjavík Area as a % of total population Development

9. Close to 70% live in the Faxaflói Bay-Area

10. Satisfaction with Living Conditions in Regions 57 45 38 48 54 43 50 51 % of population satisfied with 24 components of Living Conditioons in their region. SÓ, Survey data from 1997.

11. Satisfaction in the Regions People in Reykjavík are more satisfied with... Employment opportunities and pay Housing conditions Culture, leisure and life styles amenities Communications Commerce and private services People in the Provinces are more satisfied with... Environmental conditions Weather Public services (health care, schools, etc.)

12. Prospects for the Regions If satisfaction with living conditions of the home region is a good predictor of migration tends in the future, as it has been in the past, then the prospects for some of the smaller provincial communities are not good. Larger towns have a better chance, especially Akureyri and a few others Net migration to the Reykjavík area will continue at a high level.

13. Changes: Growth of Multi-Culturalism

14. Relatively young population Age Distribution 1998, %

15. Spacious Housing (rooms %, 1998)

16. High Educational Level City regions

17. Reykjavík is a Car-Dominated City

18. Future Prospects for Reykjavík Globalization New Economy Some strategies Competitiveness Quality of life

19. New Global Environment Increasing flow of capital, firms, labour, goods and services, information and tourists >>>Increased contacts, proximity, and speed >>> New ways of doing, living and organizing Marketization + ICT Increasing role of competitiveness Nations, Cities and Regions must be competitive Cities and Regions are becoming prime actors

20. New Global Environment New industries grow in importance (Cf. Castelles and Sassen) –Knowledge industries and ICT –Finance, Insurance –Business services Global Cities are enhanced (the major centers of global corporations, the network nodes of the Global Economy)-NY, London, Paris, Tokyo, LA... Medium size cities and regions must build some strength to compete in the global environment>>>What strategies for Reykjavík?

21. Strategies and Visions for Reykjavík Some examples: Improve what we already do well-use ICT more in old industries, upgrade skills and improve marketing and networking, tourism... Invest more abroad (in fishing etc...) Create an Export Processing Zone (EPZ) Create a Tax Heaven/Offshore Financial Center in Reykjavik Build a Cluster of Knowledge Industries

22. I. Export Processing Zones-Strategy Low taxes; Low pay; Special freedom for Foreign firms

23. I. Export Processing Zones-Strategy Iceland has used this strategy for utilizing its rich energy resources (hydro-electric power and geothermal power) by building its... Energy-Intensive Industry Aluminium Ferro-Silicon Presently there are plans for expansion and a new plant

24. II. Tax Heaven / Offshore Financial Center-Strategy Corporation Taxes down to 18% in 2001 Further steps? Anguilla, Antigua, Madeira, Aruba, Malta, Bahamas, Mauritius, Barbados, Monaco, Belize, Montserrat, Bermuda, Netherlands Antilles, British Virgin, Panama, Cyprus Puerto Rico, Cayman Islands, St Kitts And Nevis, Cook Islands, St.Vincent, Dublin, Switzerland, Gibraltar, The Isle Of Man, Guernsey, Turks And Caicos, Hong kong, Uruguay, Jersey, Vanuatu, Labuan, Western Samoa, Liechtenstein, Luxembourg AnguillaAntiguaMadeiraArubaMalta BahamasMauritiusBarbadosMonacoBelize MontserratBermudaNetherlands Antilles British VirginPanamaCyprusPuerto Rico Cayman IslandsSt Kitts And NevisCook IslandsSt.VincentDublinSwitzerlandGibraltar The Isle Of ManGuernseyTurks And Caicos Hong kongUruguayJerseyVanuatuLabuan Western SamoaLiechtensteinLuxembourg

25. Ypres Nice Grenoble Prague Province of Carinthia Ludwigshafen Heidelburg Frankfurt Oulu Helsinki Teulouse Strasbourg Sophia Antipolis Paris/Evry Kista/Stockholm Amsterdam Dublin Limerick Cork Manheim Glasgow Cambridge Edinburgh Valais Barcelona Newport/Gwent/South Wales M4 Corridor, West of London Baden-Württemberg Copenhagen/Malmö Saxony Bavaria/Munich Flanders Thames Valley Dresden/Elbe River Valley Trondheim Ypres Nice Grenoble Prague Province of Carinthia Ludwigshafen Heidelburg Frankfurt Helsinki Teulouse Strasbourg Sophia Antipolis Paris/Evry Kista/Stockholm Amsterdam Dublin Limerick Cork Manheim Glasgow Cambridge Edinburgh Valais Barcelona Newport/Gwent/South Wales M4 Corridor, West of London III. Main High-Tech Clusters in Europe Baden-Württemberg Copenhagen/Malmö Saxony Bavaria/Munich Flanders Thames Valley Dresden/Elbe River Valley Trondheim About 10% of all the Science Parks in Europe 2000

26. Knowledge Industry Cluster Iceland lags behind in New Economy Industries

27. III. Knowledge Industry Cluster-Strategy The University of Iceland is organizing a Science Park on the campus site, in the center of Reykjavík A total of 14 buildings, 58.000m 2, will be built, adjacent to Decode Genetics Inc. Buldings will be let out to knowledge firms and institutions, including foreign ones An Incubation Center will be located in the park

29. University of Iceland Science Park

31. Some Strengths of Reykjavík Human resources –Educated –Work oriented; Entrepreneurial culture; Flexible Favourable business environment –Taxes low; Office rents low; Easy start-ups –Regulations light; EU access good –Flexible labour market Strong ICT infrastructure –Computer and Internet use very high+cheap

32. Some Weaknesses of Reykjavík Small home market Remote location Too much reliance on fishing sector Economic fluctuations Weak national currency

33. Life Satisfaction is High in Iceland

34. Little-Big City Sum Reykjavík is a Small-Medium Sized City Has a Big Role in Iceland - as a Capital City Is Quite Modern and Advanced Has Some Strengths – Some Weaknesses Feels Big and Satisfied with Life

35. Will we succeed in the new century?