Transcript Integrated development Interreg Private Sector Structural Funds

Integrated Development and
Increasing Prosperity of Southern
Estonia
Kadri Uustal
Ministry of Finance of Estonia
Permanent Representation of Estonia to the EU
Estonia in Europe
Figures (2006):
•Population: 1 344 684
•Area: 45 227 km²
•Population density: 29 persons/km²
•GDP
- 2004: 53.4% of EU25
- 2006: 65% of EU25
- GDP growth in 2006 – 11%
Southern Estonia
30% higher
salaries in the
capital area (2005)
• Lower salaries
• Migration to the capital
• Higher share of primary
Relative importance
sector
of production in GDP
• Production relatively – capital area 56%,
Southern Estonia
inefficient
18% (2005)
• Lack of qualified labour
• Fragmented regional
public administration
3 times more people live
in the capital area than
in the Southern Estonia
(2005)
GDP per capita in the
Southern Estonia 4 018
EUR vs 10 864 EUR in
the capital area (2004)
Regional Policy Zoning
Funding Integrated Development
Structural Funds
Cohesion Fund
Other
Equal
Integrated development
Private Sector
Interreg
State
Municipal
Problems-opportunities
Development
of agriculture
and fisheries
Low income level
Low GDP
Few enterprises and foreign financiers
High share of primary sector
Emigration to the capital
Development
of local living
Inefficient production
infrastructure Low added value in production chain
Low investments
Low competitiveness
Tourism
Poor infrastructure
development
Unqualified labour
Business
start-up and
development
Development of
educational and
social
infrastructure
Human
resource
development
Development
of
environmental
conditions
Development
of the
transport
infrastructure
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)
The average income
per household
member has increased
by 44 euros in
southern Estonia
(2003-2005)
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 (2003-2005)
Life expectancy has
increased by 1.1 years
(men) and 1.2 years
(women) (2003-2005)
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)
The average birth rate
has increased by
• Leader pilot
3.6% and death rate
has decreased by
3.7% (2003-2005)
Getting there…
• Building roads, renewal of water and
sewage systems
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
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
THANK YOU!
Kadri Uustal
[email protected]