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Norwegian policies for
developing sustainable small
rural communities: A heart for
the whole country or national
policies for sparsely populated
areas in Norway
Prof. Jørgen Amdam
Volda University College
Nesna 23.07.07
Content
• What is happening in Norway – especially
rural districts – and why
• Regional policy
– The small regional policy
– The big regional policy
• Policy for marginal areas – sustainable
small rural communities
• Summing up
What is meant by rural areas?
URBAN - METROPOL
URBAN – RURAL
”RURBAN” – COMMUNTING AREA
RURAL – OUTSIDE COMMUTING
AREAL, BUT HIGH URBAN
INFLUENCE
”SUPER-RURAL”:
PHERIPHERAL
AREAS OUTSIDE
URBAN INFLUENCE
Rural Norway:
Sparsely populated
Long distances
Fjords and mountains
Ferries
Transport through Sweden
and Denmark to Germany,
France, Italy ..
EU PERIPHERY INDEX:
100 % OF NORWAY ARE UNDER
EU AVERAGE – MOST ARE
VERY PERIPHERAL
Town and
City structure
Norway is
almost “empty”
Population density 2000
NORWAY VERY LOW
GDP PER CAPITA
NORWAY VERY HIGH
1,20
Gjennomsnittleg årleg endring i prosent
Befolkningsutvikling 1980-90
Befolkningsutvikling 1990-2000
1,00
Befolkningsutvikling 2001-2005
0,80
0,60
0,40
0,20
0,00
-0,20
-0,40
Storby
50000
Småby
Stor bygdeby
Liten bygdeby
15000
5000
1000
Population change 1980 – 2005.
Rural
Vestlandet
Landet
Norway
Employment and type of regions –
urban/rural 1986-2001, 1986=100
120
Urban
115
110
105
100
Rural
95
90
Storbyer
Bygdebyer
Landsbygd
85
Byer
Små bygdebyer
Totalt
80
1986
1989
1992
1995
1998
2001
Population and type of regions –
urban/rural: 1970-2002, 1970=100
140
130
City
Indeks
120
110
100
90
Rural
80
Storbyer
Byer
Bygdebyer
1975
1980
Små bygdebyer
Landsbygd
Landet
70
1970
1985
1990
1995
2000
Sysselsetting Sogn og Fjordane
45000
40000
35000
PUBLIC AND PRIVATE
SERVICES
Off og priv tjeneste
30000
Handel og transport
SHOPPING AND
TRANSPORT
25000
20000
Sekundær
15000
10000
AGRICULTURE AND FISHING
Primær
5000
0
1946
MANUFACTURING
1950
1960
Primær
Sekundær
1970
Handel og transport
1980
1990
Off og priv tjeneste
THE RURAL COUNTY SOGN OG FJORDANE - EMPLOYMENT
2001
Sysselsetting Rogaland
160000
140000
120000
100000
PUBLIC AND PRIVATE
Off og priv tjenesteSERVICES
80000
Handel og transport
60000
SHOPPING AND
TRANSPORT
40000
Sekundær
MANUFACTURING
20000
AGRICULTURE AND FISHING
0
1946
1950
Primær
1960
Primær
1970
Sekundær
1980
Handel og transport
THE URBAN COUNTY OF ROGALAND
1990
Off og priv tjeneste
2001
GDP per person in some rural regions
Norway
Average
regions
GDP/ inh.
NOK
EURO:
Public
spending and
transfers %
*
Commuting
%
Sum
External
income %
Østfold
Indre
Østland
Sogn and NamFjordane dalen
Møre and
Romsdal
Finnmark
NordTroms
184070
23.000
170329
21.000
157920
20.000
172592 151106
22.000 19.000
156726
20.000
38
40
49
39
53
55
1
9
9
5
6
7
39
49
58
44
59
62
* Public spending, economic support to business (agriculture), public insurance
POPULATION CHANGE IN LABOUR MARKET REGIONS 1990 - 2003
VOLDA
Urban change
1990 – 2003:
Rural change
1990 - 2002
Urban
Population:
35-YEARS OLD
Migration balance related to education - Ytre S øre
100%
Over 4 year University
Hø g are ut d anning meir enn 4 år
BA-level
Hø g are ut d anning til o g med 4 år
College
To -t re år i vid areg åand e
Not
Back
New
Basic
Innt il eit t år i vid areg åand e
0
0 ,2
0 ,4
Bufaste
0 ,6
0 ,8
T ilbakeflyttarar
1
Nykomarar
Volda Unive rsity C olle ge re gion - Ørsta/Volda
Hø g a r e u t d a n n i n g me i r e n n 4 å r
Hø g a r e u t d a n n i n g t i l o g me d 4 å r
T o -t r e å r i v i d a r e g å a n d e
In n t i l e i t t å r i v i d a r e g å a n d e
0
B uf a s te
0, 1
0, 2
0, 3
0, 4
T ilba ke f lytta r a r
0, 5
0, 6
0, 7
0, 8
Ny k o ma r a r
0, 9
1
1,2
“The small regional policy”
The budget of the department for regional
development in the Ministry of Local
Government and Regional Development
• Support to private industries
• Differentiation of labor taxes
• Special programs - support to small
communities
• International cooperation – Interreg ++
Sone/Type industries – investments support max.
Big
Medium
Small
Sone IV
Sone III
15
10
25
20
35
30
Total support 2006: 1500 mill NOK
+ 1100 mill NOK as compensation for increased
Labor taxes
Labor taxes for health insurance ++:
General: 14,1% of salary
According to the peripheral localization
of private or public employer this is
From 0 to 10,6%
Total support 2004: app. 8000 mill NOK
Support to small communities
• Support 2007: 50 mill NOK
• Pilot projects including local youth
activities
• Support to shops in marginal societies
• Start up support to a “Centre for regional
development”
The small regional policy in general
• The most important means are general and
automatic support like reduced labor taxes
• Project support organized regionally:
– Innovation Norway for business support
– The County Municipality for other support –
infrastructure etc
• Small national pilot projects
• Project support have been reduced a lot the last
20 years
• From project support to general support “tax
systems”
The big regional policy
The urban-rural profile in use of public
money
• “The Welfare Commune” – the economy of
Municipalities
• Infrastructure – roads etc.
• State spending – health, university …
• The Effect Group 2004 - Ørbeck
State spendings per capita NOK
Transfer to municipalities
Salary to state employees
Transfer to private industries
Transfer to individuals
State tax
Individual support
Municipalities
Salaries
Production support
State spendings 1978 – 2001 1000 mill NOK
Other income (renovation ..)
Taxes on income etc.
State support for specific tasks
Basic state support
Municipal income per capita 2000
Total income per capita 2000
Income from
capital, pensions
Other income
Income from
public pention
Agriculture s.
Public salaries
Regional policy
• The profile of total state spending are a lot
more important then regional development
means
– Municipal economy
– “Folketrygda” – the public insurance system
• Both are dependent of where people are
living – under 18 and over 60
• From jobs create population to population
create jobs?
Local development
• From the top – allocation and transfers –
need someone that can use the system –
instrumental
• From below – mobilization – participation ..
- communicative
STAKEHOLDERS: RURAL CAPABILITY – CAPACITY BUILDING AND
RESPONSE
Public
activity
Challenges
CONTEXT
SITUATION
Response and
results:
Substance
Process:
Visions
Rural
Strategies
capacity
Collaboration
Private
Mobilization
industries
Partnerships
Projects
The civil Learning …
society
Public activity
Regions dominated
by use of nature low local dependency
Private
industries
Rural
Capacity
Robust regions flexible, diversified,
high local dependency
The sivic
society
Response
and
Results
URBAN CONCENTRATIONS
RURAL
STRUCTURE
MANUFACBig scale
TURING
manufacturing
(Focus on natural and regions
economic capital)
“Traditional” rural
areas - production
based on land and
nature – agriculture,
fisheries, mining,
mass tourism …
KNOWLEDGE
(Focus on social
capital)
“Flexible” rural
areas – diversified,
focus on life quality
for inhabitants
Diversified
metropolitan and
urban regions
State bureaucracy
Levels
National
(Oslo)
Political structure
Storting
Government
”Landsdel”
County
Commune
County
”Region”
Commune
NORWAY
Commune
PUBLIC ADMINISTRATION AND ALLOCATION
COMMUNE
Inhabitants
Voters
Users
Clients
Activists
Owners
....
User participation
COMMUNE
MONOPOLY ORGANISATION
PUBLIC PRODUCTION OF SERVICES ETC. Politicians
Administrators
PUBLIC - PRIVATE
Producers
COMPETITION
....
"THE GOOD SOCIETY”
PUBLIC AND PRIVATE COOPERATION IN
DEVELOPMENT OF THE SOCIETY
Ja26.1996
THE PROBLEM OF CO-ORDINATION IN
REGIONAL DEVELOPMENT AND PLANNING
POLITICAL LEVELS
Heal t h
International
I ndus t r i es
State
Agr i cul t ur e
County
Commune
Household
Civil s.
Corp ec
PRIVATE State adm
Political com
DOMAINSPUBLIC
Labor mar ket
Educat i on
Regi onal devel opment
Local andr egi onal pl anni ng
SEGMENTS
Local and regional political role:
Government - reactive:
Governance – proactive:
Dependent position –
strategies "Top down"
Outside interests dominate
National role models
dominate
Concerned mainly with
implementation of national
policy
Sluggish response, static of
low national priority
Leadership position,
organise "Bottom up"
Local interests dominate
Local collaborative models
dominate
Concerned with leadership
and local development –
”The good local society”
Rapid response,change
oriented if local
agreement
Flexible – challenges/needs
Integrated programmes and
projects, problem oriented
Inflexible, “law and rules”
Individual, separate sector
programmes
What stimulates and prevents
regionally initiated development
• Entrepreneurs - collective and private key
individuals
• Networks and arenas
• External threats
• High local mobility of relevant knowledge
and information
• Local identity
Dialogue, trust and
partnership - strategies for the
development of regional competence
Knowledge
Relational
Mobilisation
Strategies:
• Production of knowledge that is related to the region
itself, to the business and industrial situation in the area increase knowledge capital
• The capture and sieving of external knowledge that can
help to increase the capability to meet new challenges
and to implement changes - increase relational capital
• The linking of internal knowledge production and the
grasping of knowledge externally into joint learning
processes which further the development of the region
as a special area - mobilise
CONCLUSIONS
Proactive work involves systematic differential
treatment in order to reach concrete goals
• Political Legitimacy
• Knowledge
• Capacity
• Capital
• Trust and Self-confidence
• Planning for the Region/Commune
• Talk and Cooperation