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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