Hannu Vesa

Regional Council of South Savo

Berlin 5.4.2006

Finland:unitary democratic state with strong and well resourced municipalities (whose rights are stipulated in the constitution)

state regional organsunder several ministries

joint municipal authoritiesbeing responsible separately forservice production (health care,schooling etc.)

Regional councils as a special case

Only ”virtual” regional layer:

Responsibility for regional development in FinlandLaw on regional development 11 / 1993

In co-operation State and MunicipalitiesRegional Council (joint municipal authority) as Regional Development Authority

Main tasks:

� Regional development� Regional (over all) physical planning� General promotion of the regional interests

vis-à-vis: State and EU � Interregional international co-operation

including cross border contacts

Two faces of Regional Development

Planning and Programming

� Regional Development Strategy Year T of the Council term

up 25 years ahead

� Development ProgramYear T2 of the Council term

4/5 years ahead (loose links to Government Medium TermFinancial Plan)

� Yearly Implementation Programs with tight links to Government Budget planning

� EU-structural funds programs (main stream and community initiatives) for financial terms (1995-1999, 2000-2006, 2007-2013)General programs for NUTS II macroregions, in practice and for implementation on NUTS III level by the Regional Councils and State Regional organs in co-operation with the Councils

In parallel:

Vision South Savo 2025

Widely and naturally built South Savo is a service, industrial and

culture region closely linked to two North European metropolies: Helsinki and St. Petersburg.

Its success is based on strong regional identity, multiculturalism, nature values and superior competence on selected

fields of production.

Strategic focus

South Savo actively builds internal and external networks, co-operates and seeks international partnerships

PeopleWell beingServices

KnowledgeInnovationsTechnology

Businessesand enterprisingProductionWorkinglife

Infrastructure

GRP, South Savo

Finland

South Savo

Unemployment rate

Population of South Savo

- trend calculated by Statistical Central Office- trajectory by the Regional Government

Consultative co-operation group / Regional Management Committee

StateRegionalOrgans

BusinessCommunity

andSocial Partners

RegionalGovernmentAnd Municipalities

Nominated by theRegionalGovernment

Tasks:

1) 2nd opinionon project selection

2) Strategic discussions on program and project preparations

8 8

8

P

Two faces of Regional Development

Networking, Institution building (consolidation), project Promotion

� Networking: inter-communal/subregional networks in service production and business promotion, rural development alliances, cluster buildingbetveen businesses and educational/research institutions

� Institution building: strengthening of educational institutions, creation of research units, design and creation of ”innovation infrastructure”(incubators, equity funding for risk enterprises, arrangements for technology transfer, the question of science parks)

� Can one push with a rope: creation of sufficient and qualified project mass for realisation of the goals for structural fund programs

METHODOLOGICAL APROACH:

Medicalisation

Overt and general subsidation - investment subsidies (standard rate)- transport subsidies- subsidies for training of personel and consultation- support for export promotion- special case: arctic agriculture

or

Surgery in combination with enhancement of existing development factors

- consolidation of the knowledge base of the enterprises through applied research and product development

- R & D linked to cluster building- 3 sharp technology edges in South Savo:

* fiber technology / life cycle of processing industries* railway cargo transportation technology and logistics* material technology: composites and coatings

Entrepreneurship

Subsistance economy

Small scale farming under hard rationalisation preasure: loss of jobs

Small service and small scale production enterprises unwilling to grow, life with narrow margins

A means to self employment for unemployed

The challenge of generation change

Wonder Medicine?

Medium size and big family enterprises profitable and often growth oriented- but normally 2nd or 3rd generation latest 4rth generation out sold

- what about co-operation?

Cultural differences

- the case of South Ostrobothnia contrasted to- the case of South Savo

or

Employment in agriculture, South Savo

Dairy Farming South Savo

Cows

Farms

The Northern Periphery Syndrome of Disadvantage