A Strategic Vision for the North Finland’S Prospects for Economic Growth in the Arctic Region
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Paavo Lipponen A Strategic Vision for the North Finland’s prospects for economic growth in the Arctic region Paavo Lipponen A Strategic Vision for the North Finland’s prospects for economic growth in the Arctic region Table of contents Summary ......................................................................................................................5 1. Introduction ..................................................................................................................6 2. Administrative and political decision-making in Finland ......................................................10 Government .......................................................................................................... 11 Prime Minister’s Office (PMO) ................................................................................. 11 Ministry for Foreign Affairs of Finland ....................................................................... 11 President of the Republic of Finland ......................................................................... 11 Cooperation between government and industry .......................................................... 11 3. Governmental and industrial partnerships .........................................................................13 International institutions ........................................................................................ 14 Arctic Council (AC) ........................................................................................... 14 Arctic Economic Council (AEC) ........................................................................... 14 Nordic Arctic Business Council (NABC) ............................................................... 14 Team Arctic .................................................................................................... 14 UN agencies: IMO and ILO ............................................................................... 14 European Union ...............................................................................................15 Nordic Council and Nordic Council of Ministers .....................................................15 Barents Euro-Arctic Council ...............................................................................15 Arctic policy in different countries .............................................................................17 Recommendations .................................................................................................21 4. Business opportunities in different sectors ...................................................................... 22 Construction industry .............................................................................................24 Mining industry ....................................................................................................24 Energy industry ....................................................................................................25 Technology industry ..............................................................................................25 Chemical industry .................................................................................................26 Tourism and catering industry .................................................................................28 Funding for northern projects ..................................................................................29 Recommendations ................................................................................................30 5. Infrastructure: networks on land, at sea and in the air ........................................................31 Road and rail network ........................................................................................... 32 Air transport ......................................................................................................... 35 Shipping .............................................................................................................. 35 Northeast Passage ................................................................................................36 Recommendations ................................................................................................ 37 6. Arctic training and research ...........................................................................................38 Academy of Finland ..............................................................................................39 Tekes ..................................................................................................................39 Arctic University as a goal ......................................................................................40 Finnish Institute of Occupational Health ...................................................................42 Recommendations ................................................................................................42 7. Information centre to serve businesses ............................................................................43 Recommendations. ...............................................................................................45 Summary This report on Finland’s prospects for economic growth in the Arctic and Northern regions was com- missioned from Finland’s former Prime Minister Paavo Lipponen by the Confederation of Finnish Industries EK, the Finnish Energy Industries, the Finnish Chemical Industry, the Finnish Hospitality Association MaRa, the Confederation of Finnish Construction Industries RT, and the Federation of Finnish Technology Industries, as well as the funding organisation TT Foundation. The Arctic region can develop into Europe’s largest area of investment. It is estimated that investments worth about EUR 140 billion are planned in the Barents region alone. Finland now has a window of opportunity to ensure that we will get our share of northern economic growth. Now that the ‘Arctic hype’ has evaporated, it is possible to assess business opportunities in northern regions more realistically, and the potential is substantial. Finland will have a wide range of oppor- tunities in the sectors of industry, energy, cleantech, logistics, infraconstruction, as well as tourism and other services. The Arctic growth opportunity may, however, slip through our fingers unless the state and the business sector can together determine the key goals of our northern policy. It is equally important to commit ourselves to the action plan that determines the responsible actors, contributors, and follow-up. Recommendations regarding Finland’s strategic vision for its Arctic and northern policy during the parliamentary term of 2015–2019: ➊ The Prime Minister’s leadership in decision-making concerning the policy for the Arctic and northern regions will be strengthened. Coordination and follow-up of northern matters within the administrative sector will be improved. ➋ Finland will aim to take on a leading role in the EU’s policy on the Arctic and northern regions. ➌ The role of enterprises in drafting the northern and Arctic policy will be strengthened. Companies from all regions in Finland must be engaged in this policy making. ➍ Finland will define a clear strategy for promoting infrastructure projects that are important to us within the EU. The accessibility of Northern Finland from the perspectives of industry and tourism will be improved. ➎ Finland will become a global hub for logistics, telecommunications and big data. ➏ Cooperation between the Nordic countries will be intensified in the field of energy under the leadership of the state authorities. The Nordic countries must strengthen their competitive position and actively influence the development of the EU energy market. ➐ Deterioration of the language skills of Finnish people must be prevented. In particular, learning of Swedish will be reformed so that the Nordic labour markets can be effectively utilised. ➑ A joint programme will be drafted at the prime ministerial level to remove cross- border barriers between the Nordic countries. ➒ Northern universities will be strengthened while developing cooperation between them. One Arctic university, capable of competing internationally, will be set as a goal. ➓ An information centre will be established to serve companies, tasked with producing information on projects and providing advice especially in the tendering and kick-off stages. 6 A stRatEGIC VISION FOR THE NORTH 1 Introduction A stRatEGIC VISION FOR THE NORTH 7 he Arctic region has become the centre of global change over for Arctic fish products will also reinforce its logistical position. In the past few decades. There are three primary reasons for transport and other logistics, development of the north-south connec- this: the significance of Arctic natural resources has grown, tion with EU support is essentially linked to utilising the opportunities Tawareness of the sensitivity of the Arctic environment is offered by the Arctic region as the key investment area in Europe. better than before, and the return of geopolitics also concerns the Arctic region. Some global trends have somewhat dampened Arctic expectations in the past few years. Projections concerning the Arctic region and the exploitation of its natural resources reached a fever pitch in the early 2000s. Great – The price of oil, as well as that of gas and minerals, has fal- opportunities were seen in offshore operations and especially in len significantly as the growth is slowing down