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journal of nordregio No. 1 April • Volume 2 – 2002 Bendt Bendtsen: – The Government´s Ambition is to Conduct a Far More Coherent and Co-Ordinated Policy s. 13 The Geographical Focus of Regional Policy s. 4 New Regional Plan to Be Adopted in Iceland s. 7 3 Editorial No. 1 April News Norden 4 The Geographical Focus of Regional Policy journal of nordregio No. 1 April • Volume 2 – 2002 4 Danish Ministry of Regional Affairs Identified 7 Practical Handbook to Municipal Income Jungles Bendt Bendtsen: – The Government´s Ambition is to Conduct 7 New Regional Plan to Be Adopted in Iceland a Far More Coherent and Co-Ordinated Policy s. 13 Europe The Geographical Focus of Regional Policy s. 4 New Regional Plan 98 Swedish Small Business and the EU to Be Adopted in Iceland s. 7 10 New Electronic Gateway to Russia, Poland and the Baltic Countries Right now 11 Markku Sotarauta: In Search of Lost Qualities Feature The Minister and His Critics. This issue: Denmark 13 Bendt Bendtsen: –The government’s ambition is to conduct a far more coherent and co-ordinated policy 16 Ole M. Nielsen: – Regional Policy in Denmark is Primarily Concerned with Undertaking Cross-Party Initiatives 17 Knud Andersen: – The Prospect of a Return to Nationalism is More Worrying than that Posed by an Increase in Regionalism 18 Ulf Wiberg: Urban Design in Sparse Regions 21 Hans Nyström: Is an Equalisation Scheme Needed for the Øresund Municipalities? Books 23 “Theories of Endogenous Regional Growth” Börje Johansson, Charlie Karlsson and Roger R. Stough (Eds.). JOURNAL OF NORDREGIO Journal of Nordregio is owned and distributed by the Nordic Centre for Spatial Development (NORDREGIO). The journal appears quarterly and is distributed free of HALLGEIR AALBU Director charge. All articles express the views of their authors. Subscription: [email protected] JON P. KNUDSEN Editor Copyright © Journal of Nordregio CHRIS SMITH Language Editor ISSN 1650–5891 GEORGE LEESON Book reviews editor Adresses NORDREGIO Jon P. Knudsen George Leeson Box 1658 Espevik Nordregio SE-111 86 Stockholm NO-4780 Brekkestø Box 1658 OSIGRAF.NO 3177 Sweden Norway SE-111 86 Stockholm Tel. +46 8 463 54 00 Tel. +47 37 27 56 90 Sweden Fax +46 8 463 54 01 E-mail [email protected] Tel. +46 8 463 54 00 www.nordregio.se Fax +46 8 463 54 01 Nordic Council Nordregio is a centre for research, education and documentation on of Ministers spatial development, established by the Nordic Council of Ministers. editorial Stellae Polaris THE NEW ICELANDIC regional poli- Undoubtedly the genesis of this of the government and parlia- cy plan for the period 2002 – idea can be found in earlier works ment to allow for the investments 2005, unveiled in January of this developed for Tromsø in Norway, in the area to be sufficiently con- year, marks a bold attempt to Rovaniemi and Oulo in Finland, centrated and plentiful to take the EDITORIAL counterbalance the very real pos- or Umeå in Sweden. The stallae town over the threshold. sibility of a country in danger of polaris of the north has thus being reduced to having a thri- become successful ventures in all In the midst of such processes ving capital area at the same time these countries not least because there likely will be a significant as it faces the ongoing depopula- these regional centres were given amount of national turmoil over tion of its hinterland. crucial roles to play in the cross- such decisions and allocations. sectoral coordination of regional This is only natural as every com- Being the most sparsely popu- development. munity and every region in every lated country in Europe with only country wants a fair share of 3 inhabitants per square kilome- Interestingly enough, the thin- attention and resources. One of tre and a total population of little king behind the upgrading of the bright spots in this regard is more than 280.000, it is certainly Akureyri takes as its point of that rapid population growth in a challenge in its own respect to departure the position of the town Iceland at least harbours the pro- create some kind of balance when as the country’s second university spect of a bigger cake to be sha- there is so little actual population location. This means that the red out in future. This may also to distribute in absolute terms. logic of development runs in be true economically speaking, as The process of urbanization and much the same way here as it the country’s power resources are the concomitant concentration of does in Tromsø, Oulu and Umeå. far from being fully exploited. economic activity therefore threa- Other sectors are however to be tens to leave substantial parts of drawn upon as well, notably that Several decades of experience the country uninhabited. of communications, which will be with regional planning in the up-graded in order to facilitate Nordic context have clearly shown With few if any alternatives to Akureyri’s simply accepting the situation integration where Reykjavik and its immedia- with the “The stallae polaris of the north te surroundings becomes the only rest of the growth area in the country, the country. has thus become successful government has proposed a plan that lists numerous projects for From a ventures in all these countries …” implementation, but also one that more theo- more interestingly points to three retical additional growth poles beyond point of view, the inspiration that a country wanting to develop the capital area. Ísafjör∂ur in the behind the new regional plan in its periphery should not be shy northwest, Akureyri in the north Iceland does not seem to differ about concentrating its efforts in and Egilssta∂ir in the east are substantially from the growth a few selected places. The nor- thus all to be supported in an pole inspired doctrines that reig- thern capitals of Norway, Sweden effort to consolidate them as regi- ned in the field of regional policy and Finland clearly prove the onal strongholds. throughout the 1960s. Though case. And even more so, Iceland the basic elements of the econo- has no alternative but to create a Among these three, Akureyri my have changed dramatically, handful of regional growth cen- will be in a central position. with manufacturing having lost tres to counteract the dominance Viewed as the regional centre for much of its importance to know- of Reykjavik. the Eyafjör∂ur area with around ledge-led services, themselves 20.000 inhabitants, Iceland’s now viewed as the primary means If successful, Iceland will – by second city is planned to reach of re-vitalizing regions, the need means of its new regional plan – some 40–50.000 inhabitants in to coordinate massive investment pave the way for an historical the foreseeable future, perfor- in infrastructure in order to crea- about-turn in the country’s settle- ming the role as the only strong te useful synergies seems howe- ment pattern, as well as helping alternative to Reykjavik, and ser- ver to be as crucial as ever. to put in place a more bifocal ving as an advanced centre for institutional set-up. National com- goods and services across all of The test for Akureyri in its pos- petition is thus, according to any North and East Iceland. sible ascent to the ranks of the number of historical observati- polar stars of regional develop- ons, mainly for the good. π ment will be found in the ability JOURNAL OF NORDREGIO 3 norden The Geographical Focus of Regional Policy All Nordic countries are members of the European Union or of the European Economic Area, and are therefore subject to EU/EEA competition rules. According to these rules, direct public support to individual businesses is in principle prohibited. However, there are exceptions to the rules for regions lagging behind economically. Within these limits, aid cei- These areas include 23,7% of Hallgeir Aalbu by lings may differ between the the total population in the Nordic countries depending on national countries, as compared to 46,7% In Nordic regions that are consi- priorities and negotiations within of the population in EU15. There dered weak from a European per- the framework of the EU/EEA are significant variations between spective (as defined in Article 87 competition rules. The geographi- the Nordic countries: the highest (3)(a) of the EU Treaty, and in cal definitions of support areas population coverage is found in Article 61 (3)(a) of the EEA and the aid ceilings have to be Finland and Iceland with about Agreement) or have a very low notified to the European 40%, while Sweden is the EU population density, a maximum of Commission (for Denmark, country with the lowest coverage 30-35% net investment support is Finland and Sweden) or to the with 15.9% of its population allowed for small and medium- EEA Surveillance Authority (for living in national support zones sized businesses. For regions that Iceland and Norway). The coun- (Table 2.1). We should also note are considered weak from a natio- tries can then develop their natio- with interest the limited numbers nal perspective (as defined in nal policies within the agreed of people living in regions where Article 87 (3)(c) of the EU Treaty, limitations. Investment aid is of high aid levels are allowed, as and in Article 61 (3)(c) of the EEA course not given as a right to well as the differences between Agreement) a maximum of 20- individual companies, as the countries regarding maximum 25% net investment support is allo- countries themselves decide on aid levels: despite common legis- wed.