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Networks and Flows: Perspectives from the Opposite Shores of the Baltic Sea BASAAR Project Baltic Sea - Asia Agenda for Regions in a Globalizing World Networks and Flows: Perspectives from the opposite shores of the Baltic Sea Viesturs Celmins, Emils Rode, Sandris Murins, Anna Kukoja Riga City Council, City Development Department Riga, 15 February 2010 BASAAR Perspectives from the opposite shores of the Baltic Sea Project Number CB3 Project Title Baltic Sea – Asia Agenda for Regions in a Globalising World Title of Deliverable WP4. Networks and Flows. Different starting positions on opposite Baltic Sea coasts Work-package contributing to the Deliverable WP2. Networks and Flows Author(s) Viesturs Celmins, Emils Rode, Sandris Murins, Anna Kukoja Abstract The research report conveys the results of analysis of Work Package 4 Networks and Flows – logistics, tourism and education in Central Baltic sea region, namely Sweden, Finland, Estonia and Latvia. Analysis of the data shows both the current state of affairs as well as maps differences among the countries as their economies face challenges. In depth analysis of and future trajectory of logistics, tourism and education in Riga region presents possibilities of growth as well as obstacles thereof. Widely discussed and publicly engaged drivers of change present four development scenario routes for Riga in 2030. They sketch out future landscape for Riga in these fields, as well as advantages and disadvantages for social groups related to this kind of growth. Keywords BASAAR, Logistics, Education, Tourism, Flows, Networks, Cooperation, Scenarios Viesturs Celmins, Emils Rode, ii 5.02.2010 Sandris Murins, Anna Kukoja BASAAR Perspectives from the opposite shores of the Baltic Sea Table of Contents Foreword .................................................................................................................... 1 Executive Summary ................................................................................................... 3 1. Introduction and Methodology ............................................................................. 4 2. Tendencies of Asian Development in the Global Context .................................... 34 3. Education, tourism and logistics flows: Central Baltic Sea Region and Asia ........ 40 3.1 Introduction: different starting positions on opposite Baltic Sea coasts ...... 40 3.2 Education: Sweden leads by the number of Asian students, with Finland close behind; Latvia has the smallest number even vs. Estonia .............................. 41 3.2.1 Education and economy ............................................................................ 41 3.2.2 Numbers of Asian students ........................................................................ 41 3.2.3 Fields of education ..................................................................................... 44 3.2.4 Summary: Different agendas for the future ................................................ 45 3.3 Tourism: Helsinki is a trans-Eurasian hub, Stockholm – a Scandinavian one; all can gain by Riga and Tallinn joining the Baltic Sea tourist circuit ........................ 46 3.3.1 Infrastructure .............................................................................................. 46 3.3.2 Positioning ................................................................................................. 48 3.3.3 Number of tourists ...................................................................................... 48 3.3.4 Increasing tourism from Asia: Build it, and they will come ......................... 49 3.3.5 Cooperation in tourism promotion to Asia is already on agenda ................ 49 3.3.6 Summary: Marketing the region together could be the solution ................. 50 3.4 Logistics: Competing in two different leagues ............................................ 51 3.4.1 Trade with China and India is still relatively small for CBSR ...................... 51 3.4.2 Sea is the main mode of transportation for CBSR trade with Asia ............. 52 5.02.2010 iii Viesturs Celmins, Emils Rode, Sandris Murins, Anna Kukoja BASAAR Perspectives from the opposite shores of the Baltic Sea 3.4.3 Different levels of logistics competence and performance ......................... 53 3.4.4 The emerging Trans-Eurasian route: Latvia as a competitor to Finland, perhaps, in 2030 ...................................................................................................... 54 3.4.5 Cooperation in planning transport flows in the Baltic Sea Region .............. 55 3.4.6 Summary: a competence gap that needs to be closed .............................. 56 4. General Conclusions and Findings on Latvian-Asian Cooperation ...................... 57 4.1 Logistics/Entrepreneurship ................................................................................. 59 4.2 Tourism .............................................................................................................. 61 4.3 Education ........................................................................................................... 63 5. Future Drivers ............................................................................................ 65 5.1 Openness or Reticence towards Asia ...................................................... 65 5.2 Competition and Cooperation between CBSR Cities ............................... 66 6. Four Development Scenarios: 2030 ........................................................... 69 6.1 The Periphery ............................................................................................ 70 7.2 Complementation ............................................................................................... 73 7.3 Specialization ..................................................................................................... 76 7.4 The Centre ......................................................................................................... 79 8. Impact of development scenarios ......................................................................... 82 References ............................................................................................................... 86 Attachment A: Case studies ..................................................................................... 89 Methodology: case study selection and write-up ...................................................... 89 Case Study 1: Central Euro Asian Gateway ............................................................. 91 Case Study 2: Sinology in Latvia .............................................................................. 94 Attachment B: Summary of Statistics ....................................................................... 97 Attachment C: Summary of Interviews (in Latvian) ................................................ 108 WP 4 Researcher profiles ...................................................................................... 140 Viesturs Celmins, Emils Rode, iv 5.02.2010 Sandris Murins, Anna Kukoja BASAAR Perspectives from the opposite shores of the Baltic Sea Foreword This report is one in a series produced by the project “Baltic Sea – Asia Agenda for Regions in a Globalising World” (hereinafter – BASAAR). The BASAAR project was co-funded by EU‟s Central Baltic INTERREG IV A Programme 2007- 2013 under the priority 2 “Economically Competitive and Innovative Region”. This priority focuses on enhancing the overall economic development and competitiveness of the programme area. It emphasises innovations and broad, qualitative co-operation. Moreover, the development of connections to facilitate cross-border co-operation and a better flow of goods and people is another focus, together with the utilisation of the labour force and the development of the tourism sector1. One of the main aims of the BASAAR project is to improve the capacity of the Central Baltic region to adjust to globalization, with special focus on how the developing Asian economies will affect the Central Baltic Sea region. The project was organised around three main themes: 1) Knowledge society, 2) Resource inventory and 3) Networks and flows. The findings related to the three themes were complemented by a scenario study presenting four long-term scenarios for the region and its relation to Asia. To get an independent view, Asian experts were invited to comment on the scenarios. The project results are presented in a set of three independent reports providing benchmark results, analysis and action recommendations related to each of the three project themes, an executive summary of all recommendations and the scenario report. Project reports are mainly intended to serve as background papers for planners involved in regional planning processes of the project partners and other organisations. All reports can be downloaded from the websites of the project partners. 1 Central Baltic INTERREG IV A Programme 2007-2013, p. 56; http://www.centralbaltic.eu/programme, accessed on 30.01.2010 5.02.2010 1 Viesturs Celmins, Emils Rode, Sandris Murins, Anna Kukoja BASAAR Perspectives from the opposite shores of the Baltic Sea The BASAAR project partners: City of Helsinki Urban facts, Finland City of Stockholm, Sweden City of Uppsala, Sweden Harju County Government, Estonia Office of Regional Planning, Stockholm County Council, Sweden Regional Council of Southwest Finland, Finland Riga City Council, Latvia Riga Planning Region, Latvia Tallinn City Office, Estonia Turku Science Park Ltd., Finland Uusimaa Regional Council, Finland (Lead Partner) Viesturs Celmins, Emils Rode, 2
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