Transcript Overwiew of Regional Development and Regional Policy of Estonia

Regional development in
Estonia
Conference on the Norwegian/EEA
Financial Mechanisms,
Tallinn 17.11.04
Tendencies “on the ground”
Spatial concentration of the population, increasing
“social burden” and urban problems
 Spatial concentration of jobs
 Loss of jobs, quality of labour force as an obstacle
to business development -> risk for social
marginalisation
 the best perspective for the development of
knowledge-based economy in urban areas
 the mobility of population is increasing, however
several limitations will stay
 the importance of urban areas is growing (jobs,
competitiveness, population)
 deepening imbalance between urban and peripheral
regions
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Vision
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other urban areas are functioning as a balancing force to
the capital area
local development potential and resources are utilised in a
maximum and skilful manner, innovative potential in
regions is increased
basic need of the population are met regardless of the
location
population and economic activity has concentrated on the
county level leading to widened functional urban areas,
capital area is experiencing qualitative (and not
quantitative) economic growth
rural areas are vital, in the conditions of sparse settlement
the local resource potential is effectively in use
urban centres are interconnected with their hinterland
the functional network of urban centres is operational
Objectives
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Sustainable development of all regions ->
moderate concentration of population and
economic activities to the capital region:
– spatial accessibility for meeting the basic
human needs ensured
– sustainable competitiveness of all regions
– spatial connections to the rest of Europe
strengthened
Policy measures (1)

Meeting basic human needs:
– improvement of the quality of living environment in
urban areas outside the capital region
– better connections between the places of jobs and
residence
– stimulating the creation of new jobs outside the urban
areas
– increasing the social involvement and activeness outside
the urban areas
– ensuring the accessibility of public services outside the
urban areas
– integrated development of urban areas in order to
prevent specific urban problems
Policy measures (2)

Increased competitiveness of regions:
– increase in international competitiveness of the capital
region and Tartu urban region (innovativeness, R&D
etc.)
– creation of attractive operating environment for
businesses in other urban areas (infrastructure,
networking etc.)
– functional specialisation (“endogenous uniqueness”)
and networking of all regions
– human resource development
– increase in institutional co-operation and capacity
– enforcement of local development planning
Policy measures (3)

Improved connections to the rest of Europe:
– stimulation of cross-border co-operation of regions and
their institutions
– improved spatial communications (infrastructure)