Economic Development and Policy in Norra Norrland

Economic Development and Policy in Norra Norrland

EECCOONNOOMMIIICC DDEEVVEELLOOPPMMEENNTT AANNDD PPOOLLIIICCYY IIINN NNOORRRRAA NNOORRRRLLAANNDD –– TTHHEE SSWWEEDDIIISSHH PPEERRIIIPPHHEERRYY Lars Olof Persson Nordregio (Nordic Centre for Spatial Development), Stockholm, and Department of Infrastructure, Royal Institute of Technology, Stockholm This report is largely based on DORA - DYNAMICS OF RURAL AREAS National Report – Sweden (unpublished manuscript June 2001) by Lars Olof Persson and Vânia A Ceccato Report prepared for the Peripheral Regions Workshop, Montreal, Canada October 11-13, 2001 TABLE OF CONTENTS List of figures and tables........................................................................................................................i Sweden’s Periphery in National and European context....................................................................1 Introduction....................................................................................................................................1 Local decision-making...................................................................................................................2 Welfare State country....................................................................................................................3 The sparsely populated and remote rural areas........................................................................5 Selected Study Areas .............................................................................................................................6 Cases of two study regions............................................................................................................6 Dynamics of Norra Norrland ..............................................................................................................12 Natural resources ........................................................................................................................12 Human resources.........................................................................................................................13 Infrastructure...............................................................................................................................23 Investments..................................................................................................................................32 Economic structure and organisation .......................................................................................39 Institutions ...................................................................................................................................43 Networks.......................................................................................................................................47 Culture ..........................................................................................................................................51 Outlook for Sweden´s Periphery.........................................................................................................55 A Typology of Regions..........................................................................................................................58 The Importance of Realistic Objectives.....................................................................................58 A Need for Flexibility ..................................................................................................................59 Towards a Framework for Policy........................................................................................................62 Measures for economic growth...................................................................................................62 Measures for improved living conditions..................................................................................63 References .............................................................................................................................................64 LIST OF FIGURES AND TABLES Figure 1 - Rural areas according to the national rural development agency..................................6 Figure 2 - The North Sweden region....................................................................................................8 Figure 3 - Total unemployment 1990-1999 (%) ............................................................................... 17 Figure 4 - Perception of how high school education is adapted to entrepreneurs’ needs according to entrepreneurs (a) and municipal politicians (b) ..................................... 21 Figure 5 - Infrastructure in the municipalities according to entrepreneurs (a) and municipal politicians (b). ................................................................................................. 25 Figure 6 - Spending on EU projects in North Sweden, Euro per capita....................................... 33 Figure 7 - Differences in national spending 1997-98 in areas of expenditures in North Sweden............................................................................................................................... 36 Figure 8 - Government grants and intra-municipal equalisation to North Sweden................... 37 Figure 9 - The net costs for municipal activities in North Sweden in 1999, Euro per capita.... 38 Figure 10 - The north Sweden economic structure, WPN and LWPN respectively - Employment 1998............................................................................................................. 42 Figure 11 - ‘Networks’ promoted for entrepreneurs in the municipality according to entrepreneurs (a) and municipal politicians (b), 1999................................................. 45 Figure 12 - The perceived municipal rules and bureaucracy according to entrepreneurs (a) and municipal politicians (b), 1999. ............................................................................... 46 Figure 13 - Density of local organisations, organisations/inhabitants 1997................................ 48 Figure 14 - Enterprises’ contact with universities in the region according to entrepreneurs (a) and municipal politicians (b), 1999........................................................................... 50 Figure 15 - General attitude towards entrepreneurship according to entrepreneurs (a) and municipal politicians (b), 1999........................................................................................ 53 Figure 16 - Municipal politicians attitude towards entrepreneurship according to (a) entrepreneurs and municipal politicians (b), 1999 ...................................................... 53 Figure 17 - Tentative characteristics of one Well and one Less Well Performing Depopulating Region in sparsely populated regions in Sweden................................. 61 Figure 18 - Tentative characteristics of one Well and one Less Well Performing area in more densely populated regions in Sweden .................................................................. 62 Table 1 - The North Sweden region: population, size and population density ...............................9 Table 2 - Area of different types of land at agricultural holdings with more than 2 hectares .. 13 Table 3 - Net migration (per cent)..................................................................................................... 14 Table 4 - Population change (annual rate) (per cent) ..................................................................... 14 Table 5 - Population by age classes – WPN and LWPN areas - 2000........................................... 14 Table 6 - Netto migration of youth (18-24) by gender 1995-1999 från/till övriga län................. 15 Table 7 - Employment change (annual rate) (per cent).................................................................. 15 Table 8 - Population projections for the Local Labour Market Areas (Thousand inhabitants) Alternatives B/D2 ....................................................................................... 16 Table 9 - Unemployment rate (per cent) 1990/1999........................................................................ 17 Table 10 - Supply of high schools and temporary university courses by study areas................. 19 Table 11 - Students starting university 1999-2000 in 1000 over 18-64 age population............. 19 Table 12 - Areas of expenditures of the Swedish national budget and expenditures towards labour market, labour force skills and education in 1998, Euro per capita.............. 20 Table 13 - Passenger per airport 2000.............................................................................................. 24 Table 14 - Good transport per destination 1999.............................................................................. 24 Table 15 - Number of stores by type (1990-1996) and the percentage of change between 1996 and 1999................................................................................................................... 27 Table 16 - Selected areas of expenditures of the Swedish national budget and expenditures towards North Sweden in 1998, Euro per capita ......................................................... 30 Table 17 - RGA Norrbotten, budget year 2000, Euro per capita................................................... 31 Table 18 - RGA Västerbotten, budget year 2000, Euro per capita................................................ 31 ii Table 19 - Areas of expenditures of the Swedish national budget and expenditures towards North Sweden in 1998, Euro

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