University of Oulu ABSTRACT REDEC Kajaani Pentti Malinen

Regional Depopulation as Challenge for Structural Policies: Case of Kainuu, Finland

The aim of this presentation is to analyse the regional policy measures balancing depopulation trends in Finland, to evaluate the results of past programmes and projects, and finally to draw conclusions to the evolution of EU structural policies.

The region of Kainuu is one of the most sparsely populated areas of the EU with its 89000 inhabitants and population density of 4 inh./km2. In Finland Kainuu is one of lagging-behind regions having the highest unemployment rate and the most negative migration balance in Finland. The case of Kainuu gives a valid information also on the situation of the whole Northern Periphery.

The most powerful national and EU regional policy measures were implemented in Kainuu region in 1995-99. These included the Objective 6, Karelian Interreg II, 2 LEADER LAGs and national rural policy and some projects of national urban policy and one Centre for xpertise. Each policy is based on slightly different principles behind their implementation, but all programmes share a general aim to strengthen the local economy.

As a result from the programmes we can observe a negative migration balance to continue. The results of evaluation studies underline the following reasons for this development: operating environment of the programmes was not as good as expected during the programming period all fields of policies did not support regional policy measures, lack of called “broad regional policy” the implementation of regional programmes was fragmented, integrated development principle was not achieved

From the current development (and discussion) of Finnish rural and regional policies I can recognise two elements that are growing in importance when dealing with regional development on regions like Kainuu. These are: Policy for centres of expertise (and network of regional centres) Need for new instruments of so-called broad regional policy

Conclusions with a vies to the evolution of EU structural policies include; that: the most fragile (sparse populated) areas need strong cohesion-oriented regional development policy on EU level supported by national integrated policy approach (i.e. broad regional policy) the most peripheral and lagging regions need capacity building; policy measures that aim at developing these regions as base for their own expertise