1. Regionala utvecklingsstrategier Teorier, framgångsfaktorer och konkreta exempel 18-19 juni i Kramfors Alexandre Dubois Senior Research Fellow

2. Established in 1997 by the Nordic Council of Ministers Providing knowledge that enhances Nordic cooperation and strengthens the Nordic countries while acting in a global context Development of policy-relevant and evidence-based knowledge concerning territorial development Photos: Karin Beate Nøsterud/norden.org, VisitDenmark, Nicolai Perjesi

3. Nordiska Ministerrådet

4. Structure of the presentation The GEOSPECS project in context: Cohesion Policy Key Territorial Dynamics in the SPA Nexus model: new approach to challenges and opportunities

5. EU Cohesion Policy: a fast-changing context for regional policy

6. Why is sparsity a challenge for regional policy? A clear objective: Territorial Cohesion people should be able to live wherever they want “securing better living conditions and quality of life with equal opportunities irrespective of where people live” A new motto: Territorial Diversity “competitiveness and prosperity depend on the capacity of the people and businesses located there to make the best use of all of territorial assets.” Green Paper on Territorial Cohesion (2008)

7. Development opportunities and challenges in specific types of territories: Mountain areas, Islands, Sparsely populated areas, Outermost regions, Border regions, Coastal areas, Inner peripheries. GEOSPECS categories

8. EU policy debate on SPA Mention of GEOSPECS areas in EU Treaty (Article 174) “particular attention shall be paid to […] regions which suffer from severe and permanent natural or demographic handicaps” EU-Parliament Intergroup Green Paper on Territorial Cohesion DG REGIO Working paper on areas with geographic specificities (Philippe Monfort, 2009) Regional policy focusing on growth and sustainable development rather than on compensation for handicaps

9. A bit of EU history Mid 90s EU-nations negotiations Mid 2000s: Turn towards a growth-oriented rather redistributive regional policy instruments Mid 2010s? Back to nation-region dialogue… and even between region and localities

10. A spatial and demographic phenomenon Relates to the perception of relative isolation of individual communities Scarced and thinly distribution of the population over space Expected to have negative economic externalities Dynamic concept: population distribution changes over time Becomes an issue for regional policy when widespread

11. Sparsely Populated Areas in Europe Local population potential: population reachable within 45- minutes Sparsely populated areas = low population potential Sparsely populated areas cover 17.2% of the land area in ESPON space, but only about 1- 2% of the ESPON population lives there Most significant overlaps with mountain and border specificities

12. What about the NSPA?!? Sheer size in terms of land coverage VERY low population potential LONG distance to metropolitan areas

13. More than a specific geographic context Policy context Traditional focus of national Regional Policies in the Nordic countries Territorial dimension for Nordic policy cooperation and coordination: innovation, growth, Nordic Welfare Model, Northern Dimension Socio-economic context Cradle for Industrialization and Modernization of Nordic States → lead to urbanization process Access to underground resources feeding industrial production chainRenewable energy potential Cultural context The term ‘sparsity’ anchored in Nordic languages Shared Nordic identity → trapped between modern image and traditional identity Protection of Sami lifestyles

14. Key Territorial Dynamics

15. Demographic change = policy shift ? Growing regional centres on the coast + Declining settlements in the hinterland = NSPA are becoming simultaneously more urbanized and more sparse

16. A new exodus?

17. Mobility flow imbalances

18. Negative net migration in NSPA is the result of relatively small imbalances in considerably larger in and out flows. Political action focusing on these flows may lead to a positive net migration.

19. Transitional Labour Market

20. Spatial shift of industrial activities SMEs in the inland are still competitive Centre of gravity of the production from manufacturing SMEs shifting from hinterland to coastal areas

21. Is sparsity the future of Europe? What can the EU land other member states learn from the Nordic experience? SPA are likely to be more numerous and widespread in the future In Europe, shrinking regions or localities are not the exception, but the norm: concentration of population benefits few large metropolises Sparsely populated areas are gaining ground

22. Stakeholder Consultation, Fall 2011 Three main challenges identified by stakeholders for all areas with geographic specificity Remoteness from / difficulty to access larger agglomerations Small-size of the local and regional economies and labour- markets; lack of diversification. Unfavorable demographic patterns Basis for future development opportunities High social capital Abundant natural and energetic resources Tourism potential

23. Nexus Model What strategies for the future

24. Local implications of the demographic thinning-out Already small LM are getting smaller -> reduced critical mass inducing a diversified labour-market (falling back on a mono-dimensional LM) -> reduced critical mass for providing essential services to population and businesses (becomes more costly per head) Smart shrinking: “smaller than before but more entrepreneurial and dynamic” (Nuur and Laestadius, 2010, p302).

26. Promoting ICT investments Local society has no GPS-coordinates but an IP-address (Hending, Gränsbrytning, 2012) Ovecome the disadvantage of their position in terms of knowledge formation Fits well with the traditional openness of Swedish Economy → reach out to distant business partners Also promote greater organizational capacity in the region Role of Structural Funds in the past: investments in line with national ICT strategies Sweden: ”Broadband for the far north” (Objective 1 2000-06)93% of regional population have access to broadband Future investments need to adapt to technological progress and evolutions

28. Supporting small firm networks Closely-knit local communities, high social capital, but lack of organizational capacities in remote places Directly related to SME Competitiveness: fostering regional collaboration, innovative behaviour and international trade Overcome the lack of critical mass and thus the absence of agglomeration economies; In small national economies (like Norden’s): internationalization Beyond cluster-like networking policy initiatives: temporary, open groupings of small firms seeking mutual benefits → creating meeting places for entrepreneurs → key role of semi-public intermediaries in facilitating the process → remote firms are keenest in participating in such brokered networks → but distance makes it time and resource consuming Examples: Nordic Business Link, Kvarken Global Business, Design Västerbotten, GLOBAC...

30. Territorial Cooperation Both among and within sparsely populated areas Higher leverage effect for local developemnt strategies Based on functional territories: better synergy effects between regional and local development strategies across different regions Take advantage of the long-standing cross-border cooperation Finland-Norway-Sweden Better able to handle new Cohesion Policy tools such as Community-Led Local Development initiatives

31. Create more attractive local living environments Improving the access to private and public services, Focusing on the social qualities of local communities, Developing some key functions that may strengthen the ties to the local environment, Internal and external branding of the environmental qualities of these areas.

32. Sparsity: an issue of territorial governance Overcome the institutional fragmentation of SPA Dual regional development strategies need to better integrate the urban and sparsely populated components Mainstream inter-municipal initiatives beyond regional and national administrative borders -> regional enlargement from the inside-out, not from the outside-in

33. Thank you! alexandre.dubois@nordregio.se