The Regional Development Strategy of Estonia 2014-2020 Estonian Ministry of the Interior.

The Regional Development Strategy of Estonia 2014-2020

Estonian Ministry of the Interior

The need for updating•Foreseen by the old strategy. However, old strategy would have needed a new action plan and also new structure due to changed legislation.

•Recently approved national spatial plan as a new basis for updating the strategy.

•New EU Territorial Agenda 2020 (determining common principles and priorities for EU and MS regional policies).

•A need to formulate the basis for EU CP 2014+ territorial measures. The scope and activites of the strategy are much wider, however.

Elaboration and consultations•Formulation of the „ToR“ at the end of 2011. Governmental approval in June 2012

•Consultations: formal Task Force, expert opinions, political parties in the Parliament, regional seminars, wider written consultation rounds, meeting with other ministries and county governments.

•Formal round of approval in summer 2013.

•Discussions in the parliamentary commission in December 2013

•Discussions on amendments with MoAgri in January 2014

•Governmental approval of the Strategy March 20, 2014

• The domestic regional socio-economic differences in Estonia are comparatively big, especially when considering the size of the country;

• The population and economic activities primarily concentrate in larger urban areas;

• The resources and developmental potential of functional regions outside the urban areas of Tallinn and Tartu play a limited role in economic growth;

• The changing developmental situation of sparsely populated rural areas requires new approaches to service delivery (increased mobility, structural changes in population and rural economy);

• There is unused potential in regional and local development activities;

• The implementation of national regional policy can also be improved, (i.e. MLG, „regionalisation of sectoral policies).

Baseline for regional development

The domestic regional socio-economic differences are wide

• In this context the investment capacity at regional and local level is modest, localities are more depending on national grants.

• National policy has comparatively larger role in balancing regional differences.

The population and economic activities primarily concentrate in larger urban areas

– Global process, difficult to be changed. Important to national competitiveness – urban areas as places of economic growth.

•Challenges in regional development – how to promote the competitiveness of urban areas in a way that does not harness other regions? How to develop sustainable environment and meet increasing demand of services in the conditions of urban sprawl?

Rahvaarvu muutus 2000-2011 rahva- ja eluruumide loenduse alusel

The resources and developmental potential of other functional regions play a limited role in economic growth

•GDP and productivity differences are big and growing.

•Working age population in these regions has less opportunities to contribute to regional/national economic growth and wellbeing.

•The share of decreasing economic sectors in high and shift towards service economies is slow in several regions.

•The influx of new labour force is different, differences in educational and skills background are not decreasing.

Other centres are weak regional motors for development

•Some smaller LMAs have been weakening, some have flown under the influence of Tallinn or Tartu.

•The reasons being scarcity of attractive jobs and services in smaller centres, or weak urban-rural linkages -> powering the county centres, increased added value or employment, smart specialisation...

The changing developmental situation of sparsely populated rural areas

•Decrease and ageing of population; •Increasing role of mobility (jobs, education) and urban areas (services) for rural population, also increase of seasonal commuting;=> Changes in demand for services and their delivery, also in the municipal revenues;•Changes in local employment and entrepreneurship structures;=> Need for diversification, increase of local cooperation, role of the community in job creation and service delivery, linkages with closest centre

Unused potential in regional and local development activities

•Uneven local development and investment capacity;

•Short-term and low-ambitious local development priorities;

•Low cooperation among municipalities in development and service delivery (also with businesses and NGOs). Shortages in vertical coordination (state-region-municipality);

•Weakness of development activities at the scale of LMA/county – insufficient consideration of regional plans in national budgeting and sectoral policy-making, scarcity of development funds at regional level, low level of municipal cooperation of regional scale.

•Insufficient seizing of opportunities related to cross-border and interregional cooperation networks (few strategic aims, narrow spreading of results and experiences).

The implementation of national regional policy can also be improved

•Compared to many other countries, the public financing of regional policy and its regional focus has been modest;

•Grants have been used too often for one-off and simple activities, complex long-term activities are scarce;

•Using regional aid schemes to promote entrepreneurship or create jobs is not common.

•Weak consideration of territoriality and regional priorities in sectoral policies (territorial blindness, centralisation, weak cross-sectorality).

Regional Development Strategy 2014-2020

Main messages

•Strategic choice on developing county centres and their functions related to their hinterland (jobs, services).

• Focus on regional entrepreneurship and employment instead of infrastructures related to public service delivery. Business development outside the centres is the task of Rural Development Plan 2014-2020.


Main messages (2)•Stronger territorial dimension. More attention to functional regions (LMA, urban areas) and their various characteristics and needs.

•Introduction of region-specific growth sectors and priorities (based on local resources or conditions, having comparative advantage).


Main messages (3)•Need to empower local and regional development capacity and community involvement in development activities.

•Clear need for sectoral policies to contribute to regional development aims, giving input and guiding interaction.


Vision and objectives


E 1. integrity and competitiveness of functional regions•Increased share of 13 regional GDPs, employment, business activity and incomes

•Activities 2014-2017:– MoI ca 95 meur for business infrastructure, regional mobility and urban spaces of

county centres, service delivery in sparsely populated areas and islands

– MoEc >62 meur business start-ups and other businesses services, transport infrastructure and public transportation, broadband

– MoEd ca 80 meur educational infrastructure, life-long learning

– MoSA ca 68 meur social infrastructure, active labour market measures

– MoA ca 15 meur diversification of rural businesses, broadband, non-agricultural start-ups in rural areas


E 2. International competitiveness and sustainability of larger urban areas•GDP per capita growth compared to EU average; share of population using sustainable urban transport

•Activities 2014-2017:– MoI ca 48 meur sustainable urban mobility (public transportation, light traffic

infrastructure) and attractive urban spaces (vitalising unused areas), childcare infrastructure, community involvement

– MoEc ca 34 meur energy saving in areas of valuable milieu, mobility

– MoI, MoC, MoSA, MoEd >10 meur attraction of foreign talents, investors etc.


E 3. More skilful utilisation of region-specific resources•Increase of employment and business activites in specific sectors

•Activities 2014-2017:– MoI ca 29 meur regional centres of competence, business clusters and networks,

promoting business based on local historical and cultural values, regional tourism infrastructure

– MoEc > 2 meur regional tourism services and joint marketing, small harbours etc

– MoC ca 3 meur maintenance of local cultural and historic heritage, regular events in regions

– MoA development of local products valuing traditional resources


E 4. Stronger regional linkages and development capacity•More frequent outside transportation links, increased cross-border cooperation, more efficient development activities

•Activities 2014-2017:– MoEc ca 186 meur transportation links between county centres and across borders,

municipal ICT infrastructure and e- services

– MoI ca 45 meur cross-border cooperation, capacity building of municipalities and regional authorities and NGOs providing services or representing communities, cooperation among municipalities, regional impact assessment of sectoral policies

– MoA ca 31 meur community involvement in rural areas

– MoI, MoC, MoEd, MoSA social integration of Ida-Virumaa with the rest of the country

Regional development programmes

Estonian Ministry of the Interior

• Domestic regional development programmes since 1995• EU pre-accession programmes before 2004• EU structural funds since 2004:– Different sectoral investments– Local and regional development– Cross-border cooperation

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Elukeskkonna arendamise

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Inimressursi arendamise

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SF operational programmes 2007-2013

1,46 billion euro 1,55 billion euro 0,39 billion euro

Delivery by beneficiaries

KOKKU

Majanduskeskkonnaarendamise

rakenduskava

Elukeskkonnaarendamise

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Inimressursiarendamise

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Types of activities by municipalitiesInfrastructure for public services 190 meur

Transport infrastructure 105 meur

Development of urban areas 55 meur

Tourism and business infrastructure 42 meur

Water and sewage infrastructure 42 meur

Nature protection 5 meur

Employment and education 5 meur

Other 4 meur

Total 447 meur

Regional development measures 2007-2013

Praeguseks toetust saanud 391 projekti, sh 272 KOV projekti

Urban areas

Tourism infrastructure

Business infrasctructure

Regional centres of competence

Broadband

NGO support structures

Local public services

Secondary schools

• Ca jobs 1000 jobs created in business and industrial areas

• Ca 1700 km boradband networks

Development of 6 regional centres of competence

60 kindergardens, 75 schools, 44 cultural facilities, 27 social infrasturctures

5 state secondary schools (according to the reform)

61 tourism infrastuctures, incl. museums, visitor centres, public facilities etc

Ca 100 km light traffic roads, upgrading of urban green spaces

New social facilities related to social inclusion, New child care infrastructure

Domestic programmes Programme 2014 fundsPublic services

Regional investments into educational and social infrastructure 12,7% HMMLight traffic roads 1 451 731Centres of services in rural areas 488 945Individual services in sparsely populated areas 1 500 000Public service delivery on small islands 640 000

Regional businessSeto region 256 000Peipsiveere region 256 000

OthersLocal initiative building 1 200 000Cross-border movement on Russian border 66 500

County development centre network 519 200

SF measures for municipalities 2014-2020

• Modernising district heating• Modernising street lightning• Water and sewage infrastructure• Connections related to railway• Secondary school network• Child care facilities• Primary health care infrastructure• Various social services for disabled people

In addition:• National transport connections (incl roads, regional ports and airport)• Railroad infrastructure• Energy saving measures in apartment buildings• Broadband development• Smart service infrastructure (eID, X-tee), e-services

SF regional development measures 2014-2020

Business and tourism environment, public urban spaces and mobility

Regional centres of competence

Regional employment initiatives

Tallinna, Tartu, Pärnu urban areas

Ida-Viru urban areas

Local and regional capacity building

The Regional Development Strategy of Estonia 2014-2020 Estonian Ministry of the Interior.

Documents

Transcript of The Regional Development Strategy of Estonia 2014-2020 Estonian Ministry of the Interior.