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Socio-Economic Situation and Trends in the Operational Environment of the Green Belt of Fennoscandia

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Socio-Economic Situation and Trends in the Operational Environment of the Green Belt of Fennoscandia Socio-economic situation and trends in the operational environment of the Green Belt of Fennoscandia Matti Fritsch Dmitry Zimin Petri Kahila Table of Contents Background ........................................................................................................................................................ 2 Spatial Structure ................................................................................................................................................ 6 Transport and Infrastructure ............................................................................................................................. 9 Demographic Development ............................................................................................................................ 12 Economic Performance and Structure ............................................................................................................ 18 Cross-border interaction ................................................................................................................................. 25 Tourism ............................................................................................................................................................ 27 Cross-border co-operation (CBC) .................................................................................................................... 29 Conclusions ...................................................................................................................................................... 32 Bibliography ..................................................................................................................................................... 33 Appendix 1 ....................................................................................................................................................... 34 Appendix 2 ....................................................................................................................................................... 35 1 Background This report has been commissioned by the Finnish Ministry of the Environment in order to provide a background report on the operational environment for strategic co-operation under the Green Belt of Fennoscandia Initiative, which is slated to be intensified during the coming years. Indeed, trilateral co- operation between Finland, Russia and Norway operation as regards the Green Belt has reached a new stage through the signing of a joint Memorandum of Understanding (2010) that prepares the ground for the wider environmental and socio-economic development within the Green Belt area. Ultimately, the goal of co-operation is to make the Green Belt of Fennoscandia a well-known model for transnational environmental co-operation. Generally, a Green Belt refers to a land use designation or, more broadly, to land use policy to preserve areas that are mostly underdeveloped and in a natural state around urban areas. This definition has been extended to consider also border regions between the states. A Green Belt can be understood as a network of protected nature areas across the border between two or several countries. As protected areas are often separated by borders, functional cross-border connections may provide opportunities for the sustainable use of natural potentials and resources. These ecological connections can offer an instrument for sustaining the maintenance, reestablishment and development of functional connections across the border. The Green Belt concept provides a framework for developing and strengthening structures for co-operation between the neighbouring countries. In order to support the collaborative processes between the three countries of Norway, Finland and Russia, this report has been commissioned by the Finnish Ministry for the Environment in order to provide a broad knowledge base on a number of socio-economic trends and current state of affairs within the ‘Green Belt area’, which straddles the Finnish-Russian (approximately 1300-km long and an external border of the European Union) and Norwegian-Russian borders (approximately 200-km long) and includes a number of existing and planned protection areas (see Figure 1). The report presents the specific socio-economic features and highlights common features as well as disparities in the geographic area within which the Green Belt of Fennoscandia is located. The Greenbelt of Fennoscandia also represents the northern stretch of the ‘European Greenbelt’. This Greenbelt is 12 500 kilometres in length and straddles the former Iron Curtain from the Barents Sea in the north to the Black Sea in the south. For the task at hand (and for analytical and statistical purposes), the operational environment for the Green Belt area has been delineated at two different geographical scales, i.e. a ‘wider’ and a ‘narrow’ scale. The wider delineation includes the following NUTS 31 (Norway and Finland) and SNUTS2 regions (Russian Federation), three regional groupings: ’the northernmost areas’ a. Region of Lappi (Finland) b. Murmansk region c. Finnmark (Norway) 2. ’Karelia region’ a. Regions of Pohjois-Pohjanmaa, Kainuu, Pohjois-Karjala (Finland) b. Republic of Karelia (Russia) 1 NUTS refers to the Nomenclature of Territorial Units of Statistics, i.e. regions defined for statistical purpose. SNUTS refers to ‘similar to NUTS’, which have been defined for countries outside the Nomenclature. 2 3. ’southeast Finland – Russia’ a. St. Petersburg and Leningrad region b. Regions of Kymenlaakso and Etelä-Karjala The total land area of this ‘wider’ delineation is 658 389 km2, which is more than twice the entire United Kingdom. The population is, however, only approximately 9.1 million, with half of them in fact living in the City of St. Petersburg. Excluding St. Petersburg, the population of this wider delineation, as defined above, is approximately 4.3 million. Basic statistics for the regions included in the Green Belt area are presented in Table 1. Figure 1 Existing and planned protection areas of the Green Belt of Fennoscandia (source: Metsähallitus)2 2 The map does not illustrate the official delineation of the Green Belt of Fennoscandia. 3 Table 1 Basic indicators for the Finnish and Russia Green Belt regions (2011/12) Area, km2 GDP/capita Population Population (indexed to EU27) density, inhabitants per km2 FINLAND 303 891 122 5 401 000 17.8 Lappi 92 660 94 183 300 2.0 Pohjois-Pohjanmaa 35 508 97 397 900 11.2 Kainuu 21 500 81 81 300 3.8 Pohjois-Karjala 17 762 83 166 000 9.3 Etelä-Savo 14 260 85 153 700 11.0 Etelä-Karjala 5 329 103 133 300 23.8 Kymenlaakso 5 148 94 181 800 35.3 RUSSIA 17 098 000 - 143 000 000 8.4 Murmansk region: 144 900 71 795 000 5.5 Republic of Karelia: 172 400 48 643 548 3.7 Leningrad region: 84 500 70 1 716 868 20.3 NORWAY 385 178 186 5 136 700 15.5 Finnmark 48 600 119 75 000 1.55 The area included in the ‘wider’ delineation, extending from the Gulf of Finland to the Arctic Sea and including regions from Finland, Norway and Russia, generally is a vast and thinly populated area characterized by boreal forests, mires, fells and often extreme climatic conditions. The three ‘regional groupings’ presented above differ to some extent from each other in terms of their socio-economic and spatial structure. Simplistically speaking, the southernmost region is one of relatively high population densities and benefits from its geo-economic position between Helsinki (and northwestern Europe) and the St. Petersburg metropolitan area, which has a higher population number than the entire country of Finland. Consequently, there are high levels of passenger and goods cross-border flows passing through the region’s E18 corridor (extending from Helsinki to St. Petersburg and beyond). This corridor is also the only transport corridor of European importance within the Green Belt area and is as such also assigned the status of a Pan-European corridor. The central ‘Karelian’ region is characterised by vast uninhabited forest on the Russian side, sprinkled with some smaller to medium-sized urban settlements. The Finnish side is more evenly populated and is location to regional urban centres such as Oulu, Kajaani and Joensuu. The northernmost, arctic areas are characterised by extremely sparse population and little infrastructure endowment. However, the region also boasts some larger urban centres such as Murmansk and Rovaniemi. In addition, the Arctic regions have attracted immense geopolitical and geo-economic interest due to the oil and gas deposits, mining opportunities as well as the potential opening of the northern sea route. Finnish Lapland has also been rather successful in developing its (seasonally varying) tourism sector. For the narrow delineation, those Russian raions (districts) that are directly located on the Finnish and Norwegian borders have been included. From Norway and Finland, those municipalities that have easternmost points located within 50 kilometres of the Finnish-Russian or Norwegian-Russian border have 4 been included. This incorporates 41 Finnish municipalities, 13 Russian districts (raions) and 4 Norwegian municipalities (see Appendix 1 for a list of municipalities/raions). This delineation includes the vast majority of the existing and planned nature protection sites with the area of influence of the Green Belt. The total population of this area is approximately 1.1 million (570 000 in Finland, 19 000 in Norway and 545 000 in Russia). Please see Figure 2 for a visualization of the wider and
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