Download 1 PROGRAMME AREA ANALYSIS Drafted for the public

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PROGRAMME AREA ANALYSIS
Drafted for the public consultation September - October 2013
Background
The Area Analysis constitutes a point of departure for the programming process.
The analysis has been continuously discusses and developed by the drafting
teem and the Programme Planning Group (PPG) during the process. The
ambition is that the Area Analysis shall give an evidence based background for
the Northern Periphery Programme’s strategy and prioritised themes and
interventions.
List of content
1.0 Introduction
2.0 Profile
3.0 Thematic analyses
3.1 Demography
3.2 Gender
3.3 Economic performance
3.4 Unemployment
3.5 Dominant branch of employment
3.6 SMEs
3.7 Innovation
3.8 Education
3.9 Natural heritage
3.10 Cultural heritage
3.11 Environment and climate change
4.0 SWOT
4.1 Consolidated SWOT
4.2 Conclusions
Annexes
1.0 Introduction
The analysis presents a summary of the Programme area or “a state of the
region”. The analysis focuses on a range of issues, including the Programme’s
geography, population, economic and social conditions, environmental and
cultural context. In particular, the analysis highlights key development
challenges and opportunities that can be addressed transnationally within the
framework of the Northern Periphery and Arctic Programme.
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Particular attention is given to, first, issues that are specific to the programme
area compared to other cooperation programmes. Second, aspects where there
are significant disparities between different parts of the Programme area are
also highlighted, as these can form a potential source of innovation and
knowledge transfer between the Programme partner regions. The analysis
reviews in general the development of the programme area since the last
programme period 2007-2013.
The analysis is based on available international data, mainly Eurostat,
supplemented with national data for relatively few overall indicators. This
quantitative data is supplemented by qualitative data from other analyses,
typically OECD reviews, evaluations by EPRC, national and regional strategies as
well as research results from for example the ESPON Programme and Nordregio,
The Nordic Centre for Spatial Development. It is important to note that wherever
possible, the analysis uses comparative sources that cover the whole Programme
area. However, the Programme area is extensive and covers a large number of
non-Member States. As a result, comparative sources such as EUROSTAT, ESPON
and Nordregio do not necessarily cover the whole programme area. Where
possible, data gaps were filled using country/region specific data or secondary
sources.
The programme analysis falls into two parts; an overall profile of the Northern
Periphery and Arctic area identifying the overall characteristics and common
denominators for the area and a more detailed theme wise section where the
ambition is to provide a main input for the SWOT analysis. The chapter
concludes with an aggregated overview of the programme area’s Strengths,
Weaknesses, Opportunities and Threats (SWOT).
2. Profile of the Programme area
The Northern Periphery and Arctic Programme area comprises the
northernmost part of Europe including parts of the North Atlantic territories.
In the EU member states the programme area covers Northern and Eastern
Finland, Western Ireland, Northern Ireland excluding the larger Belfast region,
Northern Sweden, and Highlands & Islands and Dumfries & Galloway regions in
Scotland. Of the Non-EU member states Faroe Islands, Greenland, Iceland,
Northern and Western Norway and Svalbard belong to the programme area.
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Figure 1: Northern Periphery and Arctic Programme Area 2014-2020
The proximity of the big oceans, the fragmented coastal zones, the many big and
small islands and mountainous regions dominate the territory.
Sparse settlement patterns and the physical barriers between the communities
together with extreme climate conditions create significant difficulties in terms
of communications and accessibility.
A considerable part of the Programme area is located north of the Arctic Circle
while other parts belongs to the subarctic region.
The geopolitical attention for the Arctic1 has changed during the latest decades
from mainly concerns about sovereignty and defence to also include a
considerable focus on resource development, shipping routes and environmental
protection. In fact, the Arctic contains abundant natural resources; minerals, oil
and gas. In 2008, it was estimated that 5-13% of the world’s oil reserves and
about 20-30% of the natural gas reserves are located in the Arctic2. Besides the
oil and gas reserves, considerable mineral reserves can be found in Greenland,
northern Finland, Sweden and Norway.
1
There is no common overall definition of the Arctic region. The Arctic can be defined by natural
science characteristics e.g. the area north of the Arctic Circle or the area north of the
northernmost tree line. A geographical broader definition is based on social and political
characteristics e.g. the northern territories of the eight Arctic states (members of the Arctic
Council). The Programme uses the latter definition.
2 US Geological Survey 2008
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Figure 2: Population density in the European NUTS3 regions, Russian regions (i.e. oblast) and in Canadian
counties in 2012
The fact that the Northern Periphery and Arctic Programme includes a
considerable part of the Arctic region gives the programme a specific status
within the EU-cohesion policy.
Towards the West, the Programme area is neighbouring Canada and towards the
East, it is neighbouring North Western Russia. The Programme’s territory has
many commonalities with these neighbouring regions, such as climate,
landscape, population density and the dependency on natural resources.
Peripheral and sparsely populated areas – second to none in an
European context
Taken as a region, the average population density in the ice-free part of the NPP
land area is 6 inhabitants per km² - compared to the European Union average of
117 inhabitants per km². The EU Green Paper on Territorial Cohesion defines the
threshold for sparsely populated areas as areas with fewer than 12, 5 inhabitants
per square kilometre measured at NUTS 3 level. Only smaller sparsely populated
areas exist in other places in Europe (see figure 2). In that sense the Programme
area is unique in a European context.
Besides low population density, the Programme area in general has an unevenly
distributed and increasingly concentrated population. That means that a small
number of bigger cities and towns on the one hand will have a still more
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dominant position; while on the other hand, peripheral areas suffer from outmigration, brain drain and above average levels of ageing.
Low accessibility and poor connectivity, high dependence on air and
maritime transport
Extreme low population density implies long distances between small and
scattered settlements and low accessibility to large conurbations. Even here, the
Programme’s reality differs from other places in Europe. While sparsely
populated areas in Central Spain and France are within 2-3 hours of
metropolitan areas, many parts of Northern Scotland and the Nordic countries
are located further than a 5 hour-drive from large regional centres3.
The long distances, both internally between towns and settlements, and
internationally mean that many communities are dependent on air transport.
However many areas suffer from poor connectivity, - understood in that way
that air routes often only connect peripheral areas with capital regions and few
other bigger cities. Direct air connections between cities and towns within the
NPA only exist in few cases, and the Atlantic part of the region depends primarily
on maritime transport for “local” purposes.
Lack of connectivity reduces market access and is an obstacle to achieve critical
mass.
In addition, the Faroe Islands, Greenland and Iceland face the specific challenges
of islands economies with long sea distances separating them from their
neighbouring countries.
Furthermore, these sparse territories often extend over several administrative
regions, counties or provinces; hence, a certain degree of institutional
fragmentation also exists4.
New infrastructure investments are needed if the accessibility of the NPA area
shall be enhanced in the future. Here it is not only a question about better access
to national and international centres but also a better internal accessibility and
not at least the connectivity between the different parts of the Northern
Periphery and Arctic Programme area. However, because of the size of the
needed investments and because the decisions concerning these often are taken
at national level, the regions and local communities within the NPA-area have
little influence on decisions and therefore are very dependent on national
decisions.
The NPP-territories are resource-based economies
3
Nordregio Working Paper 2012:15Dubois, Alexandre & Roto, Johanna (2012). Making the best
of Europe’s Sparsely Populated Areas. On making geographic specificity a driver for territorial
development in Europe.
4
See foot note 3
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Seen in a historical perspective most of the NPP territory always has been
dependent on natural resources and the exploitation of these, fish, wood and
energy play key roles for many of the local economies. Mining has a growing role
together with nature-oriented tourism. Sectors where the global competition is
high and where climate change combined with e.g. declining fish stocks raise
serious challenges for resource-based economies.
In addition, the public sector plays a crucial role as a major employer in many
areas, and often the public sector is the only opportunity locally for higherskilled workers.
The rising interest for international investments in e.g. new mega size mining
projects results in tensions between economic, social and environmental
interests.
Extreme climatic conditions and high impact of climate change.
The climate varies considerably across the NPP-territories from an arctic climate
in Greenland, northern part of Iceland and the other Nordic countries to oceanic
climate in Faroe Islands, coastal Norway, Scotland, Northern Ireland and Ireland.
However, projection of the climate change (IPCC) temperatures will rise higher
and earlier particularly in the Arctic region and adjacent areas than in rest of the
world. In addition to the rise in temperature, it is expected that levels of the
precipitation will rise. Altogether, the climate change will affect a broad range of
human activities and welfare in different ways and to different extents.
According to the OECD (2011) a distinctive characteristic of the effects of climate
change is that they probably will be mixed; both negative but at the same time
opening up new potentials for the regional economies. Furthermore, OECD states
that the long-term economic development will depend on timely adaptation and
reasonable management of the region’s environment and natural resources5.
The Northern Periphery and Arctic Programme area seen in relation to
other programmes in the North of Europe
Compared with other transnational programmes, the Baltic Sea Programme and
the North Sea Programme, there are both considerable differences and
similarities seen from a Northern Periphery and Arctic perspective.
First of all the number of inhabitants in the three programme areas differs with
85 million inhabitants in the BSR and 62 in the North Sea Region compared with
9,8 million inhabitants in the Northern Periphery and Arctic Programme area.
5
OECD Territorial Reviews, NORA Region 2011
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Another distinct difference is that both the North Sea and the Baltic Sea regions
contain important metropolitan regions, which are among the highest
performing innovation hubs in Europe.
On the other hand, both the North Sea and the Baltic Sea regions have peripheral
and low dense populated areas partly overlapping the Northern Periphery and
Arctic Programme area. These areas can suffer even harder from negative effects
from neighbouring and high performing metropolitan regions compared to the
Northern Periphery and Artic conditions.
Other similarities are concerning the dominant branch of employment where the
peripheral parts of both the Baltic Sea and the North Sea regions have a
relatively high representation of the primary sector and a similar historical given
dependence of natural resources as the Northern Periphery and Arctic area.
Finally, it should be mentioned that the economic disparity (measured as
GDP/cap) between east and west in the Baltic Sea Region to some extent can be
compared with the economic disparities within the Northern Periphery and
Arctic Programme area.
Macro-economic outlook
The NPA 2014 – 2020 Programme will start its implementation in the aftermath
of the worst recession of the last fifty years. The EU entered the recession in
2008, which lasted until 20106. Since the recession, overall growth in terms of
GDP has been sluggish. The EU’s GDP contracted partly again in 2011 and 2012.
In addition to the declines in GDP lower investments and reductions in demand
resulted in rising unemployment. The overall impact of the crisis on GDP and
employment between 2007 and 2011 has within the Programme area been
worst in Ireland and Iceland while Norway and Sweden have been least
impacted.
A consequence of the financial crisis and the contraction of the economies has
been a growing government debt throughout Europe because of shrinking tax
receipts and rising public expenses, and in addition, in some countries the
support to the bank sector had severe influence on the public finances as well.
Within the Programme area, the public debt is highest in Ireland and Iceland. In
UK the government debt is slightly above the EU27 average, while it in Finland is
below and in Sweden and Norway far below the EU 27 average. In Greenland and
the Faroe Islands, the public finances are under severe pressure as well.
The pressure on public finances colours the national political discussions which
is important to keep in mind in relation to selection the future thematic
objectives and investment priorities; the future match funding to projects from
6 Report from the Commission to the European Parliament and the Council; eight progress report
on economic, social and territorial cohesion. Brussels 26.6.2013
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public sources has to compete with many other and often more urgent needs for
funding. Thus, the selected priorities have to be highly relevant and needed seen
in a national perspective as well as from the local and regional stakeholder’s
point of view.
The response to the economic crisis within the Programme area has generally
been through national and/or sectoral measures7. The policy response has had
two main goals: to stabilise the banking sector, to rebuild business and consumer
confidence and to stimulate consumption and investment.
At regional level, the economic crisis impacted the NPA-regions very
heterogeneously and it is not possible in short to give a full picture of the entire
Programme area. In general, regions dependent on export oriented production
was very early hit by the shrinking demand at the international markets.
However, some of these regions recovered relatively early when the demand at
internal markets cached up again while other production-dominated regions
entered a long-lasting transition process. In other cases, regions economically
dominated by a big public sector and this is often the most peripheral regions
where in the first hand only impacted very little by the crises. The pressure on
the public economy and cuts in public budgets however, will influence the
situation for these regions in a longer-term perspective. In peripheral regions
where the regional economy is dominated by fishery e.g. salmon production have
since 2008 experienced periods with very high prices at the world marked and
latest in 2013 seen a leap to all-time high prices8. A parallel situation can be
found in regions with a big mining sector even the timing has been different.
In this perspective, the NPA has to operate in a much more varied regional economic “landscape” compared to the 2007 situation.
Seen in relation to the expected development at short term the global economic
prospects have improved during the latest year but the road to recovery in the
advanced economies is foreseen to remain bumpy9. The activity is expected to
gradually accelerate, starting in the second half of 2013. Private demand appears
increasingly robust in the United States but still slow and with big national
differences in the euro area.
Seen in relation to China the key numbers for 2013 have been disappointing10.
The development in India has, in parallel with the situation in China cooled down
during the latest years. The economic development in China and India is an
important indicator for the future demand for raw materials and different kinds
of minerals. The demand in developing economies as China and India will
influence the interest for making investments in new mineral exploitations
within the Programme area.
7
Ex ante evaluation of the Northern Periphery and Arctic Programme 2014 – 2020, Strategic
Overview, (August 2013)
8 FAO Globefish Quarterly Update, August 2013
9 International Monetary Fund; World Economic Outlook, April 2013
10 Danske Bank; Nordisk Økonomi, juni 2013
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3.0 Thematic analyses
The thematic analyses examine a number of socio-economic indicators with the
aim to identify overall characteristics of the programme area as well as the
territorial variation within the programme area.
3.1 Demography
During the period 2002-2012 the population in the programme area grew
modestly by approximately 0.63% per annum or a total of 476 000 persons. This
was more than the average in the European Union, which saw a 0.39% growth
rate during the same period. This population increase was due to both high birth
rates and immigration.
Iceland and Ireland were among the fastest growing countries in Europe during
the last ten years. In the mid-2000s the population increased rapidly over 2%
per annum. However, because of the recent economic crisis the total population
decreased in Iceland between 2009 and 2010 and since 2010 in Ireland. In
Northern Ireland and in coastal Norway the population increase was around the
NPA average. The coastal Norway includes both the fastest growing European
regions of Hordaland (Bergen) and Rogaland (Stavanger) and stagnating regions
in northernmost Norway.
At the national level Finland, Scotland and Sweden each saw a total population
increase around average EU rates but with remarkable regional variations. In the
NPA regions of Finland and Sweden the polarisation between regional centres on
the one hand and other areas on the other is striking; only the largest regional
centres had population increase whereas the more rural regions had population
decline. In the Faroe Islands and Greenland the population change over the last
ten years has been rather stable
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Figure 3: Population change in the European NUTS3 regions, Russian oblasts and in Canadian counties in
2002-2012
Decreasing fertility rates, combined with increased life expectancy, have resulted
in demographic ageing across the EU population. The share the older
generations is increasing, while the share of other age categories is decreasing.
Even if these demographic megatrends are valid in the NPA regions, there are,
however, some differences between the European Union and the NPA age
structures.
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Figure 4 New map: Old Age Dependency Ratio: Number of persons aged 65 and over per
100 persons in age group 15 – 64 years in 2012
Taken as a region, the share of children aged 0-14 years is higher in the
programme area than in EU on average whereas the share of elderly population
aged 65 years or over is lower. Within the programme area, a clear east-west
divide exists. In the west Nordic region11 and Ireland the population is much
younger than in other parts of programme area or EU, parallel with the adjacent
areas in Canada. The percentage of children is in many regions are above 20% of
the total population whereas the share of elderly population is still relatively
low, although rapidly increasing. In Finnish, Scottish and Swedish programme
area regions the situation is opposite. A high percentage of children can be found
in Finnish Ostrobothnian regions. Otherwise eastern Finland, Lapland, northern
Sweden and Scotland are characterized with low share of children and generally
old population, like in the adjacent areas in Russia.
Although the share of children is higher in the programme area than in the EU on
average that doesn´t necessary mean that relatively large age cohorts are entering
to programme area’s labour markets. Even if the programme area as such has a
high qualified labour force and number of regional higher education institutions,
the education possibilities and accessibility to more attractive city regions are
limited. A remarkable share of regions within the programme area suffer from
outmigration of young population and especially young females.
11
Greenland, Iceland, Faroe Islands and Coastal Norway
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Figure 5: Population aged 0-14 years in 2012
Considerable changes in the programme area’s population development trends
occurred in 2009 due in the main to the economic crisis and to resultant changes
in mobility. The effects of this on the various countries clearly have not been
uniform in nature.
Iceland and Ireland were heavily hit by the crisis. Even though natural
population change remained positive in both countries, a negative net migration
resulted in an overall population decrease. Although a remarkable share of the
emigrants were foreign citizens who had been working in Iceland and Ireland
during the ‘economic boom’ years, the population change map of countries was
nevertheless turned upside down. The previous growth regions lost population
and the few positive signs were mostly seen in the sparsest populated regions.
For example in Ireland the net migration from Northern Periphery and Arctic
regions was less negative than from the other Irish regions.
In Norway, Scotland and Sweden the net-migration in 2008-2012 was positive in
all the regions within the programme area excluding Norrbotten (SE). The main
reason was immigration that in some regions was large enough to compensate
domestic out-migration. In Finland the regions within the programme area also
gained on immigration but due to domestic out-migration the overall net
migration was negative. Emigration mostly to Denmark is the main reason for
negative net migration in the Faroe Islands and Greenland. The adjacent regions
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Figure 6: Net Migration in 2008-2012 in NPP
in Canada have experienced outmigration since the 1980s12 while no
comprehensive data on migration has been found for NW Russia.
3.2 Gender imbalance
At EU level, the number of females and males is almost in balance. However,
when looking at the gender balance on regional level, a clear urban - rural divide
is identified. City regions tend to be more attractive for females, whereas males
dominate many rural and sparsely populated regions.
This general pattern can be found in the NPA area as well, however due to the
relative few cities and regional centres most regions in the NPA suffer from a
deficit of women, exceptions here are parts of Scotland and Northern Ireland. A
parallel situation with deficit of females can be found in the adjacent regions in
Canada while the situation in the adjacent regions in NW Russia (except in
Murmansk) is opposite.
The main reason why most parts of the NPA suffers from a gender imbalance is
related to the migration pattern of young persons, where young women in
general is having a higher migration frequency compared to young men and
where the young women move away in a younger age.
12
Statistics Canada
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Figure 7: Females and males in 2012, numbers of females per 100 male in the age group
15 – 64 years. The map will be transferred to the NPA format.
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In NW Russia the situation is different, one of the explanations is that the
mortality among men, also young men, is much higher compared to women in
NW Russia.
A driving force behind the gender inequality is the difference in preferences for
(higher) education. Young women educate to higher extend than young men do.
The limited job possibilities in the NPA for young well-educated women push in
the same direction.
The labour market in the NPA is, in specific outside the regional centres, gendersegregated with male dominated jobs within traditional activities as fishery,
forestry and mining and woman-dominated jobs within the public sector as
health and social services.
The gender imbalance is a challenge for the future development of the NPA both
seen from a demographic as well as an economic development perspective.
3.3 Economic performance
The countries within the programme area are small in economic terms but
prosperous. Measured as gross domestic product (GDP) in Euros, excluding the
offshore industries, the programme area produced only 1.8% of EU27+213’s GDP
or 8.7% of the programme area countries GDP including whole Denmark and UK.
Looking at the GDP figures in each programme area country, the relative
importance of the regions varies. In Northern Ireland and Norway the regions
within the programme area produced a remarkable share of national GDP
whereas in Scotland and Sweden the regions produced less than 10% of the
national GDP. Compared to the Danish GDP, both the Faroe Islands and
Greenland produced each only 0.7% of the overall GDP.
Economic performance, measured as GDP per capita in purchasing power
standards (PPS; adjustment to local price differences), shows that on the
national level all the countries with regions within the programme area score
better than EU on average. Although GDP per capita in PPS is lower in the
Northern Periphery and Arctic regions than in the other regions in all respective
countries.
Across the programme area a broad span existed in terms of GDP per inhabitant
expressed in PPS in 2010. The regional level varied from 66% to 346% of the
EU27 average between the regions. Svalbard and coastal Norway were at the
high end whereas lowest values could be identified in Northern Ireland.
13
EU member states including Iceland and Norway
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Figure 6: GDP in Purchasing Power Standards (PPS) per Capita in 2010
3.4 Challenge of unemployment
Unemployment levels are strongly influenced by the economic situation. During
2011 the European Union´s unemployment rate was 9.7%. For the whole
programme area the unemployment rate was 9.0% and all the national rates
excluding Ireland remained below the EU27 average, which indicates a modest
level.
Nevertheless, significant changes occurred between and within countries as a
consequence of the crisis. Among the countries within the programme area,
Iceland and Ireland have suffered the most dramatic change in unemployment
over the last five years. Before the crisis, these countries had the lowest
unemployment rates in Europe. Due to the crisis the unemployment rate in
Iceland and Ireland rapidly tripled but while the unemployment rate in Iceland
remained all the time below the EU average rate and is now going down, the Irish
rate is among the highest in EU and keeps increasing.
The impact of crisis in Norway and Scotland were limited and unemployment
rates in these countries and in the regions within the programme area especially
are low. In the Faroe Islands, Greenland and in programme area regions of
Finland and Sweden the unemployment rates are higher than in their respective
countries but remain below the EU average rate.
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Figure 7: Harmonized (LFS) annual unemployment rates in 2011
The unemployment within the adjacent regions in NW Russia (North-West
Federal District) was also impacted by the economic crisis. However, only for a
relatively short period (2009 – 2010)14. In 2012, the annual average was far
below the level in the beginning of the 2000s and the employment situation in
NW Russia in general seems to be good.
In Canadian adjacent regions, the economic crisis’ impact on unemployment
rates was also modest in contrast to the Canadian average15. However, the
unemployment levels in the adjacent regions in general was and still are very
high compared to the Canadian average.
3.5 Dominant branch of employment
When looking at the employment structure in the programme area over the
three main sectors, the manufacturing sector is underrepresented compared to
the EU average whereas the role of service sector is higher (partly because of the
big public sector). The share of primary production (agriculture, fishing, forestry
and mining),in the programme area is lower than in EU on average but when
looking at the share of primary production in the programme area compared to
each respective country, the importance of primarily production, and especially
fishing, forestry and mining can be highlighted.
14
15
Federal State Statistics Service
Statistics Canada
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Figure 8: Dominant branch of employment in 2009
Dominant branch of employment refers to the relationship between the jobs in
three main sectors of primary production, secondary (manufacturing and
construction) and services (tertiary). The triangle map shows the balance
between these sectors. Along the lower axis the primary sectors of agriculture,
forestry, fishing and mining are showing values in percentages from 0 to 15 %.
The axis to the right shows secondary sector including processing, production
and construction. The employment in secondary sector varies between 10 and
50 %. Axis to the left shows the tertiary sector including various types of services
and the share of employment in this sector varies between 58 and 90%.
As such the regions with highest share of primary production can be found in
Svalbard, Greenland and in Icelandic countryside and lowest ones in Reykjavík
and in Irish city counties (i.e. Cork). The secondary sector is rather high in
Finland, Sweden and South-West Norway and low in Greenland and Ireland. The
service sector is generally speaking highest in city regions (Cork, Reykjavík) and
lowest in rural regions (Svalbard, Icelandic countryside, Eastern Finland).
In specific, the economy of Arctic part of the Programme area is very dependent
on exploitation of natural resources even the picture is heterogeneous. These
differences become even more visible if the adjacent regions in Canada, USA and
Russia are included into a circumpolar comparison from where the following
economic clusters can be identified16:
16
This comparison is based on The Economy of the North 2008, Solveig Glomsrød and Iulie
Aslaksen, Statistics Norway 2009
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A: Arctic Russia, Alaska and Northern Canada are the main producers within
petroleum and other mineral mining. In Arctic Russia, the primary production of
mainly petroleum and minerals totally dominate the income generation.
B: Greenland and Faroe Islands are most dependent on natural resource
extraction (fish, fish processing, and agriculture). In Arctic Sweden and in
particular in Arctic Finland, the secondary industries or manufacture of goods
have the strongest position even exploitation of natural resources compared to
national levels are relatively high in these regions.
C: Iceland and Arctic Norway have higher shares of value added from private and
public services than all other (Arctic) regions, even especially fish and energy
play an important role in these regions’ economy as well.
3.6 The role of SMEs
Small and medium-sized enterprises have a high priority within EU and national
policy. SMEs are considered to be Europe’s job engine17. About 85% of net new
jobs in the EU’s private sector are created by SMEs.
There are 21 million SMEs in the EU, and they represent 99% of all businesses,
and are perceived as key driver for economic growth, innovation, employment
and social integration.
According to Eurostat18 SMEs can be divided by size in three categories:
•
•
•
Micro enterprises: 1 to 9 persons employed
Small enterprises: 10 to 49 persons employed
Medium-sized enterprises: 50 to 249 persons employed
It is not possible to give a detailed picture concerning the SMEs in the NPA
Programme area because of lack of comparable data at regional level. The
following information therefore mainly will refer to the national level and only
cover manufacturing, construction and different kinds of services.
The relative importance of SMEs varies between the countries concerning
number of enterprises, distribution on the three SME size categories,
employment and value added.
17
Commission of the European Communities. Communication 25. 6. 2008. Think Small First, a
Small Business Act for Europe.
18 Eurostat, European Business, Facts and figures, 2009
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Micro
Small
Medium
SMEs
in total
Large
enterprises
Finland
91,7
6,9
1,1
99,7
0,3
Iceland
90,5
7,7
1,4
99,7
0,3
Ireland
88,9
9,1
1,7
99,7
0,3
Norway
91,6
7,2
1,0
99,8
0,2
Sweden
93,4
5,5
0,9
99,8
0,2
UK
89,5
8,6
1,5
99,6
0,4
EU27
92,2
6,5
1,1
99,8
0,2
Table 1: Share of enterprises in % distributed on the three categories of SMEs and large
enterprises (with 250 or more employees), based on SBA Fact Sheets 201219
The share of SMEs are in all the partner countries very close to the EU27 average
on 99,8%, - meaning that 99,8% of all enterprises (outside the agriculture, the
fishery and the financial sectors) are SMEs. However, if we look at the share of
large enterprises the national differences are more visible: UK has double so
many large enterprises (with 250 or more employees) as the EU27 average,
Finland, Iceland and Ireland are 50% above the average while Norway and
Sweden are on the average.
If we look at the share of micro or small enterprises, the national differences also
are visible. For example, Sweden, Norway and Finland have a relatively high
share of micro enterprises while UK and Ireland have a relatively lower share.
Concerning the share of employed or the share of value added in SMEs the
national differences are bigger. For example are the Irish SMEs employing 69%
of the employed persons while the SMEs in UK only employ 54% of the employed
persons, compared to the EU27 average on 67, 4%. If we compare the value
added the SMEs in Norway provide 70% of the total value added while the SMEs
in UK only provide 49, 5% compared to the EU27 average on 58, 1 %. See tables
below.
The role of micro enterprises has a specific interest for the NPA because micro
enterprises in specific are present in the most peripheral areas. According to
employment in micro enterprises the countries varies from 20,3% of all
employed persons in UK to 26% of all employed persons in Norway. While the
micro enterprises in the other NPA partner countries have a share between 20,3
and 26%.
19
EU, DG Enterprise, SBA Fact Sheet 2012 for Finland, Iceland, Ireland, Norway, Sweden and UK
Programme Area Analysis 4th draft
21
Micro
Small
Medium
SMEs
in total
Large
enterprises
Finland
24,5
20,3
16,7
61,7
38,3
Iceland
NA
NA
NA
NA
NA
Ireland
23,5
24,2
21,3
69,0
31,0
Norway
26,0
25,4
17,3
68,8
31,2
Sweden
25,2
21,3
17,8
64,3
35,7
UK
20,3
18,7
15,2
54,3
45,7
EU27
29,6
20,6
17,2
67,4
32,6
Table 2: Share in % of employed in SMEs and large enterprises based on SBA Fact Sheets
2012
Micro
Small
Medium
SMEs
in total
Large
enterprises
Finland
21,2
18,3
17,6
57,0
43
Iceland
NA
NA
NA
NA
NA
Ireland
16,3
14,8
20,4
51,5
48,5
Norway
40,1
15,3
14,9
70,3
29,7
Sweden
21,0
18,8
18,7
58,4
46,6
UK
18,5
14,8
16,3
49,5
50,5
EU27
21,2
18,5
18,4
58,1
41,9
Table 3: Share in % of value added in SMEs and large enterprises based on SBA Fact
Sheets 2012
The share of value added for micro enterprises varies between 18,5% in UK and
40,1% in Norway, while micro enterprises in Sweden and Finland have a share
near the EU27 average on 21,2%.
There is no available data concerning the value added or employment in micro
firms in Faroe Islands, Iceland and Greenland. However, it can be assumed that
in specific Greenland and Faroe Islands have more similarities with Norway than
with the other NPA partner countries concerning the role of micro enterprises.
Based on the above mentioned it can be concluded that SMEs in general play a
crucial role in all parts of the NPA Programme area whenever we look at
Programme Area Analysis 4th draft
22
employment or economic importance. Micro enterprises are in general very
important as employers and in specific seen from an economic point of view in
Norway and probably also in Faroe Island, Greenland and to some extent in
Iceland. Furthermore, it can be assumed that micro firms play a parallel role in
the most peripheral parts of the other Programme partner countries.
According to the annual SME Performance Review produced DG Enterprise there
are visible national differences concerning entrepreneurship and innovation in
relation to SMEs.
Concerning entrepreneurship20 in specific Finland and Iceland have a very high
score, Sweden and Norway are above the EU27 average while Ireland and UK are
very close to the EU27 average.
Concerning innovation there are bigger differences. Measured on the indicators
“SMEs introducing product or process innovation” and “Innovative SMEs
collaborating with others”;
•
•
•
•
Finland and Sweden have a high score above the EU27 average
concerning both indicators,
Iceland is also doing well concerning introducing innovation,
Norway are below the EU 27 average concerning introducing innovation
but above concerning collaboration,
Ireland and UK are below the EU27 average concerning both indicators.
Given that, these national differences also are representative for the NPA regions
there is a huge potential for transnational learning and exchange of experiences
concerning entrepreneurship and innovation in relation to the SMEs.
Seen in a regional perspective the SME Performance Review does not give any
indications concerning differences between peripheral regions and more
urbanised regions. However, we know form e.g. Swedish analysis21 that
innovation and entrepreneurship in general is at a lower level in peripheral
regions compared to metropolitan and other urban agglomeration regions or
regions with important regional centres.
Based on this and seen in relation to that Sweden according to the OECD has a
very well developed regional oriented innovation policy it can be assumed that
also peripheral regions within the NPA Programme area tend to be below
national levels concerning entrepreneurship and innovation.
Seen in a NPA perspective, there is a considerable potential concerning
development of entrepreneurship and innovation in relation to SMEs in general
and micro enterprises in specific. Furthermore, the most peripheral parts of the
Programme area should have a high attention.
20
21
Same as foot note 16
See e.g. OECDs Territorial Review for Sweden 2010
Programme Area Analysis 4th draft
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3.7 Innovation
The Espon KIT-project (Knowledge, Innovation, Territory)22 provides a nuanced
picture of the European regions and their innovation capacity.
Figure 9: Innovation typologies in Europe, Source Espon KIT
22
ESPON, KIT, Knowledge, Innovation, Territory. Final Report Version 13/11/2012.
www.espon.eu
Programme Area Analysis 4th draft
24
Based on the KIT-project the following regional innovation typologies can be
identified within the NPA area:
The Applied science area (Northern Sweden and Finland, parts of Ireland and
parts of Scotland) is made of strong knowledge producing regions characterised
by applied science, with a degree of knowledge coming from regions with a
similar knowledge base. R&D activity is high in these cluster regions.
The Smart technology application area (Western Ireland and Mid-Sweden)
shows a high product innovation rate, a limited degree of local applied science,
and high creativity which allows to translate external basic and applied science
into innovation. R&D endowment is high.
The Smart and creative diversification area (Eastern Finland, Western
Norway, Northern Ireland and parts of Scotland) characterised by a low degree
of local applied knowledge, some initial innovation capacity, high degree of local
competences, which suggest that the not negligible innovation activities carried
out in the area mainly rely upon tacit knowledge embedded into human capital.
Moreover, regions in this area are strongly endowed with characteristics such as
creativity and attractiveness that help to absorb knowledge and to adapt it to
local innovation needs.
The imitative innovation areas (e.g. Mid- and Northern Norway and Iceland)
has low knowledge and innovation intensity, but relatively high
entrepreneurship, creativity, attractiveness and innovation potentials.
The Espon KIT-project
The focus of the KIT-project is the knowledge economy. Knowledge economy
regions can be identified as regions specialised either in high-tech sectors, or in
scientific functions or as regions capable to obtain knowledge from other
economies through cooperation and networking.
An interesting conclusion is that the geography of innovation is much more
complex than a simple core-periphery model, because the capacity to turn
knowledge and innovation into regional growth is different among regions.
Therefore, the identification of regional specificities in patterns of innovation is
essential to build targeted strategies and policies.
An important aspect is that knowledge diffuses within and between regions in
different ways, and here in specific, it is important to notice that the ability of
regions to exploit external knowledge depends on that the region has a certain
amount of initial knowledge.
Different modes of performing innovation exist. A region can innovate by
exploiting the knowledge that it produces; it can innovate by using knowledge
coming from outside the region; it can innovate by imitating innovation that is
produced elsewhere. A region adopts one (or more) of these modes of innovation
according to its context conditions.
Programme Area Analysis 4th draft
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It is important to underline that the high performance of certain sparsely
populated regions may be dominated by the influence of relative big and high
performing regional centres e.g. in Northern Sweden and Finland. The more
peripheral and rural dominated areas in these regions have probably a quite
different performance compared to the regional centres.
The policy implication of the KIT-results is that it is important to be aware of the
considerable differences between individual regions within the NPA Programme
area concerning innovation. Some regions e.g. northern Sweden and Finland are
in the European high end concerning R&D driven innovation, while other regions
mainly have to rely on other kinds of innovation related to technology and
knowledge transfer and the embedded human capital within the region.
Furthermore, it is important that regional innovation policy utilizes an efficient
combination of both R&D and human capital dependent on the specific regional
profile. It can be concluded that investment in R&D not always is the most
efficient way to foster regional innovation. In regions with an initial low R&D
performance, it may be a better strategy to utilize and invest in the existing
human capital in a broader sense. Here local firms, local entrepreneurs, and
potential entrepreneurs play an important role. Many regions within the
Programme area already have a relatively high level of entrepreneurship and a
strong base of SMEs, see above.
Important activities will be networking and cooperation with external more
globalised firms, with R&D-centres (within and outside the programme area)
and with other regions. Along with the networking and cooperation, creative
adaptation of already existing innovation and knowledge can be the key to new
development.
For the existing relatively few regional centres in the programme area with a
high performance in R&D and for big firms within highly specialised and
international competitive clusters the situation is of course different. First, it is
important to be aware of that these centres play a crucial role for the
development of the programme area in general. They have a potential as
international gateways for the rest of the programme area and as facilitators in
the adaptation of existing innovations and R&D from outside.
Secondly, they may have excellence within fields linked to the future exploitation
of raw material, energy and natural resources such as mining and fishing.
Furthermore, they may play an important role in the future economic
diversification of the NPA-area.
The OECD territorial review of the NORA Region (Faroe Islands, Greenland,
Iceland and coastal Norway)23 acknowledges in line with KIT-project that
23
OECD Territorial Reviews, NORA Region 2011
Programme Area Analysis 4th draft
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innovation in resource-based economies is based on knowledge absorption
capacity, at least as much as on knowledge creation capacity.
The review further indicates a number of possibilities for innovation and
economic diversification in these resource based economies.
Innovation could improve the efficiency, safety and sustainability of the fishing
sector: innovation is needed to continue the development of productivity in
fishing, fish processing and fish farming so the leading edge can be maintained.
Innovation is also needed to address problems relating to overexploitation and
climate change.
The energy and mining sectors also need technological advances to ensure their
sustainability. Here small-scale renewable energy may offer opportunities for
remote locations.
OECD points to the creation of new niches alongside the development of the
more traditional raw-material-based sectors. For example value-added food and
non-food products from the marine sector e.g. new nutrients, bio-medicines and
pharmaceutical products. Exploitation of natural Arctic products, food and nonfood products could be further developed. The possibilities within the tourist
sector and related to the ICT-sector and creative industries are mentioned as
well.
Finally, the possibilities in connection with the development of new maritime
routes in the Arctic can be mentioned as target for innovation initiatives e.g. new
services in connection with safety at the sea and different other services
addressing maritime transport.
Programme Area Analysis 4th draft
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3.8 Education
Figure 10: Working aged population with tertiary level education in 2012, %
An important asset for the NPA innovation potential is the highly skilled labour
force. Most of the NPA regions have higher share of tertiary educated persons
than in EU on average, referring to persons with semi-long (bachelor level) and
long (master’s and PhD-level) higher education. On average 32 % of the working
aged NPA population has a tertiary level education.
At the regional level the highest rates are associated with densest populated NPP
regions and/or regions with good education opportunities as universities and
university colleges. The highest rates can be found in Sør-Trøndelag
(Trondheim), Pohjois-Pohjanmaa (Oulu), Hordaland (Bergen), Highlands and
Island (Aberdeen, Inverness) and in Reykjavík regions. These regions are seen
from a higher education perspective on level with the highest ranked
metropolitan regions in Europe. The lowest rates can be found in regions with
limited education possibilities, like Greenland, Faroe Islands and some Irish
regions.
3.9 Natural heritage
The NPA Programme area contains vast uninhibited or very low densely
populated areas: Mountain massifs, coastal zones, rivers and lakes, forests,
heathlands and moors and for the Arctic part of the Programme area tundra and
ice shields.
Programme Area Analysis 4th draft
28
Figure 11: Wilderness Quality Index. Source: EEA’s data and map base
Compared to more southern or central European conditions the NPA nature
areas are extremely little impacted by human activity, e.g. by acidification or
urban influenced landscapes. Seen in a broader context the nature areas and
landscapes of the NPA provide an important ecological backbone for the entire
Europe, ecosystems of very high value together with extended unspoilt
landscapes (see the map below from the European Environment Agency).
Seen in a global context the Arctic and subarctic nature plays an important role.
For example, millions of migratory birds breed in the Arctic and then fly to every
continent on Earth, contributing to global biodiversity and ecological health24. In
addition the Arctic and subarctic is home for iconic species such as polar bear,
muskox, bowhead whale, walrus etc. all highly adapted for the specific cold
climate and Arctic conditions.
In addition to the ecological and environmental value, the natural resources
plays an important role in an economic context. As mentioned above the Arctic
gas reserves constitutes a considerable part of the world’s total known reserves
and the Arctic known oil reserves are also important in a global context.
24
Arctic Biodiversity Assessment, Report for Policy Makers, CAFF and Arctic Council, 2013.
Programme Area Analysis 4th draft
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In addition, in European context, important mineral resources can be found in
Greenland, Northern Finland, Sweden and Norway. These minerals consist of
many different kinds of so-called non-fuel mineral materials: Iron, gold, silver,
copper, nickel, chrome, manganic, the so-called rare earth minerals and others.
Since the early 20th century, the consumption of minerals has increased with
about 5% per year in average and closely linked to the economic development25
in the same period. Minerals are a precondition for development of the
industrial and post industrial economy. The fast development in Asia and South
America puts an extra pressure on the mineral resources, prices rise and the
interest for investment in exploration of minerals and opening of new mines is
growing, e.g. in Northern Sweden and Finland and in Greenland.
Seen in relation to the future economic development of the world the US
Geological Survey identifies some of the minerals e.g. the rare earths minerals as
being the most critical. If not new reserves are found a shortage of these
minerals can be foreseen within a relatively short timespan.
Seen in a European context the NPA has a specific status not at least because of
the minerals. Europe as such is the only continent that currently not is able to
supply itself with the strategic most important minerals. The NPA resources are
the absolute largest and most important in Europe and could cover the European
needs. The NPA area therefore plays a crucial role seen in a future, European
development perspective.
Besides the European importance global actors as multi-national companies
dealing with mining and mineral production during the latest decade have had a
high interest of the mineral potentials within the NPA. Latest the Chinese owned
company, London Mining, has showed a considerable interest for investments in
Greenland.
Besides oil, gas and minerals, rich renewable resources as renewable energy and
bio-resources as wood and fish can be “harvested” from the NPA nature. For
example, a considerable part of the world fish production (more than 10%) are
cached in the Arctic region. The demand for fish is expected to increase even
more in future because of a growing middleclass with appetite for high quality
fish in China and other fast developing economies26.
3.10 Cultural heritage
The NPA represents an important and very varied cultural heritage. Cultural
heritage includes tangible culture (such as buildings, monuments, landscapes,
books, works of art, and artifacts), intangible culture (such as folklore, traditions,
language, and knowledge), and is closely interlinked with natural heritage
(including culturally significant landscapes, and biodiversity). The cultural
25
26
Based on material from US Geological Survey
The Financial Times, 18 June 2013
Programme Area Analysis 4th draft
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Figure 42: UNESCO World Heritage Sites
heritage is so to speak inherited from past generations, maintained in the
present and a benefit and asset for future generations
The sites in the NPA area that are included to the UNESCOs list of World Heritage
Sites can be viewed as an indicator for the rich cultural heritage. In total there
are 19 sites in the NPA at UNESCOs list. Twelve of the sites are included due to
their cultural value, 5 due to natural value and two due to both cultural and
natural value. The cultural sites are mostly included due to their archaeological
or religious values whereas the natural sites highlight different specialities of the
Northern and Arctic environment.
An important part of the cultural heritage is linked to the way people are living,
their traditions, their languages and everyday life adapted to the specific climate
and nature. The NPA represents so to speak a population with a valuable
traditional ecological knowledge. A knowledge that is important for
understanding and protecting the rich but fragile biodiversity. In this connection
the indigenous peoples, the different groups of Inuit and the Sami people shall be
mentioned in specific.
Indigenous peoples are peoples defined in international or national legislation as
having a set of specific rights and often self-government based on their historical
ties to a particular territory.
The Sámi people, traditionally populating an area in Northern parts of Norway,
Sweden and Finland and in Kola Peninsula, can be seen as the only group of
Programme Area Analysis 4th draft
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Figure 11: Indigenous population as share of the total population in the Arctic. Source
Nordregio 2013
indigenous people in the European Union. The estimates of the number of Sámi
people vary between 60 000 – 100 000 persons.
The population of Greenland is predominantly Inuit, a people bearing an affinity
and solidarity with the Inuits of Canada, Alaska and Siberia. After Statistics
Greenland, the statistical division between Greenlanders (Inuit) and nonGreenlanders (all other) is defined after the place of birth. If a person is born in
Greenland, he or she is statistically counted as Greenlander. After this definition
89% of Greenland’s population is Greenlanders.
Programme Area Analysis 4th draft
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3.11 Environment and climate change
Even the NPA area in general is very little influenced by human activities
environmental problems can be identified at local level. For example in
connection with the handling of wastewater and waste. In addition, the energy
consumption at household level is very high because of the harsh climate and for
some often very remote areas an inefficient supply with energy. Furthermore,
the energy consumption for transport due to the longs distances is relatively
high.
In a larger perspective the climate change and in addition with that, new future
mega size mining projects, higher intensity of maritime transport in the Arctic
and the global environmental, remote, impact on e.g. the biodiversity will in
combination challenge the environment and the living conditions within the NPA
area.
The Arctic Council has in cooperation with CAFF recently conducted an
assessment of the Arctic biodiversity27. Seen from a biodiversity point of view
the climate change is by far the most serious threat and exacerbates all
other threats. Furthermore, it is concluded;
•
•
•
That many Arctic migratory species are threatened by overharvest and
habitat alteration outside the Arctic
That disturbance and habitat degradation form exploitation of oil and
mineral can diminish the biodiversity and the benefits of the ecosystem
services
That pollution from both long-range transport and local sources
threatens the health of species and ecosystems
In connection with the increasing maritime transport, a growing risk of major oil
spills is a serious threat for marine ecosystems, particularly those associated
with sea-ice, because response can be difficult and spilled oil is likely to persist
for a long time.
4. SWOT-analyses
4.1 Consolidated SWOT
The SWOT below provides an overview of the identified Strengths, Weaknesses,
Opportunities and Threats of the programme area. The SWOT is based on input
from the Regional Contact points. These inputs have been consolidated and
partly ranked based on the programme area analysis and a number of national
and regional policy documents (see Annex 3). The SWOT is representative for
27
Arctic Biodiversity Assessment, CAFF and Arctic Council, 2013, Report for Policy Makers
Programme Area Analysis 4th draft
33
the areas as a whole and there are for some of the themes considerable
differences. Where this is the case, it is indicated that this or that phenomena
only is representative for some regions.
The listed weaknesses and threats below are to some extent ranked in a
hierarchical order so the most important challenges are mentioned first,
however it is still a brutto-list that can be further narrowed down and
prioritised.
Programme Area Analysis 4th draft
34
Strengths
Weaknesses
Abundance of natural resources
Peripherality
o
Unspoilt environment and nature
o
Important part of global potentials of
o
o
markets
energy- and mineral resources
o
Long internal distances
Huge potential for renewable energy
o
Lack of internal and external
connectivity
production
o
Low access to international key
Rich bio-resources, maritime, forest
o
High costs of transport and
vulnerable transport connections
etc.
o
High cost of service delivery and
operating business
Versatile business sector
o
High number of SMEs
o
Innovative clusters, in particular
o
Dependency on public and primary
sector employment
knowledge-based industries
o
Vulnerable industrial regions
o
Arctic expertise
o
Restricted capacity for R&D,
o
Good triple helix experience in some
regions
o
Fragile local economies
innovation and entrepreneurship
o
regions research capacity
Ability to attract foreign investments in
specific regions and sectors
Limited ability to make use of the
o
Low rate of new firm formation and
few home-grown large or export
firms
o
Low value added of goods and
services
o
Programme Area Analysis 4th draft
Lack of customer base
35
Strong regional centres
o
Shrinking rural areas
With international links and
o
Increasing centralisation
networks in public policy, academia
o
Growing urban-rural dichotomy
and industry
o
Strong well integrated universities in
some regions
Demographic drivers
o
o
Demographic challenges
Positive in-migration from abroad in
o
Sparse population
many regions
o
Youth out-migration
Some regions with a young
o
Ageing (most regions)
population
Labourmarketassets
o
o
Labour market challenges
Goodandexpandingjob
o
Gender segregation
opportunitiesforspecificskills
o
Structural unemployment
Welleducatedwomenmainlyinthe
o
Insular labour markets
publicsector
o
Lack of study and career
opportunities ; brain drain
o
Shortage of labour with appropriate
skills
Governancestrengths
Governance challenges
Lack of capacity e.g. to integrate big
o
Smallandefficientpublicauthorities
o
Inprinciplehighlevelofregionaland
scale investments into regional local
localindependence
economy
o
o
Programme Area Analysis 4th draft
Centralised strategic decision making
36
at national level
Opportunities
Threats
Development of local- and regional
Globalisation and increased competition
economies
o
Promotion of internationalisation,
o
domestic markets
attract large firms
o
Reinforcing triple helix cooperation,
o
o
o
o
Lack of access to finance for small
businesses
Promoting innovation in relevant
business sectors new and more
Underdeveloped capacity of SMEs for
competition and internationalisation
in particular capacity of innovation
and access to R&D for SMEs
Small, open economies and small
o
Decline in employment in traditional
traditional as well as social
sectors, leading to increased social
innovations
exclusion and skill waste
Further development of areas of
o
Lackofabilitytointegrateimmigrant
workers
excellence and current business
clusters
The Green Economy & capitalising on the
Environment & climate change
opportunities from climate change
o
New employment opportunities by
o
in a sustainable way
investments in renewable energy and
environmental technology
o
Eco-tourism
o
Green products and service
Programme Area Analysis 4th draft
Failure to exploit natural resources
o
Manmade disasters in connection
with extreme weather
o
Extreme costs for adaptation to
37
climate change
development including public goods
o
New agricultural opportunities
o
Loss of bio-resource base
o
New sea routes
o
Natural disasters implied by climate
change
Sparcity & demography
o
Natural and cultural assets as basis
Demography
o
Increased Youth out-migration
for quality of life, recreation and
traditional tourism
o
New concepts for tourism
o
Growinginternationalin-migration
o
Returnofyoungandwelleducated
outmigrators
Governance
o
International cooperation with
Governance
o
reductions
neighbours (incl. Russia and Canada)
and further engagement in
o
Access
Access
Realising the opportunities of high
speed broadband
o
Development of new transport
corridors
o
Shrinking understanding of the
challenges in the periphery
international networks
o
Centralisation of services and budget
New and more efficient modes of
transport, new sea ports
Programme Area Analysis 4th draft
o
Risingpricesfortraditionalmodesof
transport
38
4.1 Conclusion
All together the Programme area is in many respects diverse. A considerable part
of the Programme area is located north of the Arctic Circle while other areas
belong to the subarctic or the northern temperate zone. The area has an
extensive coastline, numerous islands and a high proportion of mountainous
regions.
The primary characteristics that draw the area together are peripherality and
low population density, as compared to EU averages. Other related and shared
features include sparse and imbalanced settlement structures, the long distances
and physical barriers between the communities, difficulties for communications
and accessibility, and extreme climates. Furthermore, the Programme area
suffers from a relatively low economic diversity.
Besides these common challenging characteristics, the Programme area is
characterised by common potentials as abundance of natural resources, high
quality of the bio-physical environment across the area and a versatile business
sector.
All these challenges and potentials are to a great extent interrelated meaning
that they cannot be treated as individually or independent problems or
possibilities. Besides that, they reach beyond local, regional and national
borders, making them particularly relevant to transnational territorial
cooperation.
The peripheral location of the Programme area, relative to the EU’s economic
core, influences the NPA region’s local economies, rural development,
demography, labour markets and governance.
Looking to the future, the globalisation processes and the climate change will
also influence these overall challenges, - both positively and negatively.
The character of these – existing and new – challenges is that they are large-scale
and goes far beyond local, regional, and often national borders. The individual
actor, local or regional, will in general not have the capacity or competences to
cope with these in a sufficient way. In addition, because of the peripherallity the
individual actor will not have the opportunity to find local or regional or even
national partners to cooperate with.
The abundance of natural resources and quality of the physical environment
across the Programme area is one of the key strengths and an important reason
why the programme area is attracting growing international attention. In
particular, developments in the Arctic mean that economic utilisation of natural
resources is likely to dramatically change the social, economic and
environmental conditions in the Programme area and for the Arctic and subArctic regions in particular.
Programme Area Analysis 4th draft
39
The character of these opportunities is in parallel with the challenges going
beyond local, regional and to some extent national borders. In addition, lack of
local and regional capacity urge cooperation across borders and the NPA is well
placed to foster this cooperation.
Climate change and international agreements on climate change mitigation
intensifies the need for promoting the green economy and low carbon solutions.
In this context, the NPA area’s considerable potential for renewable energy and
sustainable utilisation of natural resources are important elements. Alongside
this, climate change could lead to major new opportunities for new transport and
communication routes, linked to changes in Arctic sea ice.
Programme Area Analysis 4th draft
40
ANNEX 1, TABELS
Net Migration per 1 000 inhabitants in 2008-2012
NPP
Other
Country total
Tendency (in country on average)
Norway
Scotland
Sweden
9.0
2.9
0.7
12.2
6.3
7.5
10.8
4.3
6.8
Finland
-0.2
3.9
2.7
NPP decline - Other growth
N. Ireland
1.4
-0.3
0.7
NPP growth - Other decline
Faroe Islands
Greenland
Iceland
Ireland*
-5.3
-6.6
-5.7
-4.9
-5.6
-5.3
-6.6
-5.7
-5.3
NPP total
0.7
3.8
3.5
Overall growth
Overall decline
* Ireland and UK 2008-2011
Whole NUTS3 regions for Ireland
Gender Balance in 2012 - Number of Females per 100 Males
NPP
Finland
Ireland
N. Ireland
Scotland
Other
Country total
Tendency (in country on average)
101
101
102
104
105
103
105
107
104
102
103
106
Norway
98
101
100
Lack of females in NPP, stable on
national level
Sweden
99
101
101
Lack of females in NPP, surplus on
national level
Faroe Islands
Greenland
Iceland
93
89
99
NPP total
Programme Area Analysis 4th draft
100
Surplus of females on NPP and on
national level but relatively less
females in NPP
Lack of females
103
102
41
Gross Domestic product (PPS) in 2010
NPP as %
share of
GDP per Capita PPS
national GDP
NPP
Other
Relation to EU average of 24 500
Finland
N. Ireland
Scotland
23.6
52.7
9.1
22 400
17 400
20 900
30 000
27 200
26 900
NPP regions below EU average
Ireland*
Norway
Sweden
38.8
42.0
9.3
27 800
30 400
30 100
34 000
33 400
30 200
NPP regions above EU average
0.7 *
0.7 *
100.0
26 300
21 600
27 300
8.7
25 800
Faroe Islands
Greenland
Iceland
NPP total
*Who le NUTS3 regio ns fo r Ireland
Unemployment Rates in 2011 (LFS series) - Annual average in %
NPP
Finland
Sweden
Ireland
N. Ireland
Norway
Scotland
Other
Country total
Tendency
9.6
7.9
7.1
7.5
7.8
7.5
Unemployment higher in NPP
regions
14.3
7.2
3.0
6.9
14.4
7.4
3.4
8.0
14.4
7.2
3.2
7.9
Unemployment lower in NPP
regions
Faroe Islands
Greenland*
Iceland
6.8
9.4
7.0
NPP total
9.0
6.8
9.4
7.0
7.8
8.8
* Unemplo yment in Greenlandic to wns o nly
Employment in main sectors in 2009, %
primarily
In NPP regions
manufacturing
services
Finland
Iceland
Ireland
N. Ireland
Norway
Scotland
Sweden
8.3
5.4
3.7
40.0
19.5
16.9
67.1
75.1
79.4
3.7
5.1
3.4
33.0
29.8
33.1
73.5
73.5
74.9
NPP
EU27
4.8
29.2
74.0
* Regio nal data fo r Northern Ireland not available
Programme Area Analysis 4th draft
In countries on average
primarily
manufacturing
services
4.9
40.5
70.5
5.0
3.2
2.7
1.9
2.1
33.2
33.2
30.3
28.6
35.6
73.5
75.0
77.0
78.2
76.2
5.4
38.6
70.8
42
UNESCO World Heritage sites in Northern Periphery and Arctic Programme Area
The World Heritage List includes 981 properties forming part of the cultural and natural heritage which the
World Heritage Committee considers as having outstanding universal value.
These include 759 cultural , 193 natural and 29 mixed properties in 160 States Parties.
As of September 2012, 190 States Parties have ratified the World Heritage Convention.
Source: http://whc.unesco.org/en/list
Name
Type
Finland
Petäjävesi Old Church
High Coast / Kvarken Archipelago *
cultural
natural
Greenland
Ilulissat Icefjord
natural
Iceland
Surtsey
Þingvellir National Park
natural
cultural
Ireland
Sceilg Mhichíl
cultural
Northern Ireland
Giant's Causeway and Causeway Coast
natural
Norway
Bryggen
Rock Art of Alta
Røros Mining Town
Urnes Stave Church
Vegaøyan -- The Vega Archipelago
West Norwegian Fjords – Geirangerfjord and Nærøyfjord
cultural
cultural
cultural
cultural
cultural
natural
Scotland
Frontiers of the Roman Empire*
Heart of Neolithic Orkney
St Kilda
cultural
cultural
mixed
Sweden
Church Village of Gammelstad, Luleå
Kvarken Archipelago / High Coast*
Laponian Area
cultural
natural
mixed
Struve Geodetic Arc *
cultural
International
* Frontiers of the Roman Empire - several buildings and w alls. Part of these ‘Roman Limes’ border the programme region
* Kvarken Archipelago / High Coast os located on the both sides of the Gulf of Bothnia.
Only the Sw edish coast is included to programme area
*The Struve Arc is a chain of survey triangulations stretching from Hammerfest in Norw ay to the Black Sea,
through 10 countries and over 2820 km.
Programme Area Analysis 4th draft
43
Annex 2, sources used for the area analyses
Arctic Biodiversity Assessment, CAFF and Arctic Council, 2013, Report for Policy
Makers
Commission of the European Communities. Communication 25. 6. 2008. Think
Small First, a Small Business Act for Europe
Report from the Commission to the European Parliament and the Council; eight
progress report on economic, social and territorial cohesion. Brussels 26.6.2013
Danske Bank; Nordisk Økonomi, juni 2013
The Economy of the North 2008, Solveig Glomsrød and Iulie Aslaksen, Statistics
Norway 2009
ESPON, KIT, Knowledge, Innovation, Territory. Final Report Version
13/11/2012. www.espon.eu
Eurostat, European Business, Facts and figures, 2009
Ex ante evaluation of the Northern Periphery and Arctic Programme 2014 –
2020, Strategic Overview
FAO Globefish Quarterly Update, August 2013
The Financial Times, 18 June 2013
International Monetary Fund; World Economic Outlook, April 2013
Megatrends (2011). Danish Ministry of Foreign Affairs in collaboration with the
Nordic Council of Ministers. TemaNord 2011:527.
OECD Territorial Reviews, NORA Region 2011
OECDs Territorial Review for Sweden 2010
Nordregio Working Paper 2012:13. Roto, Johanna (2012). Demographic trends
in the Nordic local labour markets.
Nordregio Working Paper 2012:14. Lisa Hörnström et al. (2012). Added value of
cross border and transnational cooperation in the Nordic Region.
Nordregio Working Paper 2012:15Dubois, Alexandre & Roto, Johanna (2012).
Making the best of Europe’s Sparsely Populated Areas. On making geographic
specificity a driver for territorial development in Europe.
Nordregio, Regional Development and Trends in NPP, Johanna Rota, 2013
Programme Area Analysis 4th draft
44
Data:
Eurostat. http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home
DG Enterprise: SBA Fact Sheets 2012
US Geological Survey, 2011 Minerals Yearbook
NSIs - National statistical institutes:
Central Statistics Office (Ireland). http://www.cso.ie/en/index.html
Danmarks Statistik (Statistics Denmark). http://www.dst.dk/
Federal State Statistics Service (Russia).
http://www.gks.ru/bgd/regl/b11_14p/Main.htm
Hagstova Føroya (Statistics Faroe Islands).
http://www.hagstova.fo/
Hagstofa Íslands (Statistics Iceland). http://www.hagstofa.is/
Kalaallit Nunaanni Naatsorsueqqissaartarfik (Statistics Greenland).
http://www.stat.gl/
Scottish Neighbourhood Statistics. http://www.sns.gov.uk/
Statistics Canada. http://www.statcan.gc.ca/
Statistiska centralbyrån (Statistics Sweden). http://www.scb.se/
Statistisk sentralbyrå (Statistics Norway). http://www.ssb.no/
Tilastokeskus (Statistics Finland).
http://pxweb2.stat.fi/database/StatFin/databasetree_fi.asp
Programme Area Analysis 4th draft
45
Annex 3, Background material for the NPP-SWOT
Finland
Leverage for Northern Finland from the EU Structural Fund period 2007 – 2013
Leverage for Eastern Finland from the EU Structural Fund period 2007 – 2013
Katse pohjoiseen, Toimenpide-endotukset, TEM rapetteja 2/2013
Faroe Island, Greenland and Iceland
NORA REGION, OECD Territorial Reviews 2011
Ireland
Border, Midland and Western Regional Operational Programme. Supporting and
Enabling Dynamic Regions. EU Regional Policy 2007 – 2013, September 2009
Border, Midland and Western Regional Operational Programme. Annual
Implementation Report 2010, March 2011
Norway
Regionale utviklingstrekk 2011, Kommunal- og Regionaldepartementet 2011
Ta heile Noreg i bruk, Distrikts- og regionalpolitikken. Meld.St. 13, Kommunal- og
Regionaldepartementet 2013
Northern Ireland
Socio-economic Profile of Northern Ireland. European Social Fund and European
Regional Development Fund operational programmes 2014 – 2020, January
2013 (unpublished material)
Scotland
Highlands & Islands Scotland, European Regional Development Fund 2007 –
2013, Structural Funds Operational Programme
Highlands & Islands Scotland, European Regional Development Fund 2007 –
2013 Programme, 2011 Annual Implementation Report
Lowlands & Uplands Scotland. European Regional Development Fund 2007 –
2013, Structural Funds Operational Programme.
Lowlands & Uplands Scotland. European Regional Development Fund 2007 –
2013, Structural Funds Operational Programme. Annual Implementation Report
2011.
Sweden
Regionalt Strukturfondsprogram för regional konkurenskraft och sysselsättning
i Mellersta Norrland 2007 – 2013. Ändringsbeslut 2011-10-05
Regionalt Strukturfondsprogram för regional konkurenskraft och sysselsättning
i Övre Norrland 2007 – 2013. Ändringsbeslut 2011-06-30
Analysen – final draft. Input to structural funds programme. February 2013.
(unpublished material)
Programme Area Analysis 4th draft