Role and potential small and medium-sized urban areas Latvia’s case Indra Ciuksa The Ministry of Environmental Protection and Regional Development 04.12.2014.
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Role and potential small and medium-sized urban areas Latvia’s case Indra Ciuksa The Ministry of Environmental Protection and Regional Development 04.12.2014. Definition of SMUAs • No common definition at EU level - multiple definitions are in use: – New OECD-EC definition is 50-100 thousand inhabitants for small cities, 100-250 thousand - for medium sized cities; – ESPON TOWN project – below 50 thousand inhabitants for small and medium sized urban areas • Different situation in Member States – depends from size, administrative division, historical and cultural context Urban areas in Latvia • 77 cities and towns, including: • 9 republican cities – more than 20 thousand inhabitants • 5 cities – more than 50 thousand inhabitants • 21 regional centres – 5 to 20 thousand inhabitants • Largest city – Riga more than 640 thousand inhabitants • Smallest town – Durbe 527 inhabitants • Urban areas cover 11% of all the country • Degree of urbanisation – 68 % Monocentric development tendencies Income tax per inhabitant in local municipalities budget Balanced network of centres – potential for polycentric development Remarkable regional development disparities 5th largest regional disparities in EU-28 (dispersion of regional GDP per inhabitant in NUTS 3 regions) BUT One of the fastest growing economies in EU Since 2000 Latvia has a highest GDP growth rate (5,6%) Republican cities demonstrates higher growth potential Indicator Unemployment level (%) Income tax per one inhabitant in municipalities budget (EUR) Number of enterprises per 1000 of inhabitants Other Municipalities municipalities Republican containing (without Riga cities regional centres agglomeration) 7,27% 10,35% 9,60% 503,38 381,16 358,08 29,82 20,04 16,21 Challenges of Latvia’s development centres • Economical and social: • high unemployment, increasing poverty rate • insufficient business environment and infrastructure, need for new jobs • lack of skilled labour that could meet the labour market needs • Demographic: • population decline, including children and young people, brain drain • ageing population, need to review the service network of local governments, etc. • Environmental and climate: • deprived and contaminated territories in former industrial areas, • low energy efficiency of buildings, poor condition of heating networks that causes high heat losses • incomplete use of centralized water supply services, in some cases outdated infrastructure networks Regional policy in Latvia • Development planning and policy documents: – Sustainable Development Strategy 2030 – National Development plan 2014 - 2020 – Regional Policy Guidelines 2013- 2020 • Oriented on unlocking the potential of different areas • Urban development issues – part of national regional policy • Proposes polycentric development as a precondition for sustainable and balanced development National spatial development perspective Settlement structure Development directions: • enhancement of the potential and competitiveness of the development centres • mutual co-operation and interaction of urban and rural areas • establishing of functional networks of development centres Spaces of national interest Development directions: • Rural development space • Baltic Sea coastal area • Riga metropolis area • Eastern border (EU external border) • Outstanding areas of nature, landscape and cultural history Role and potential of urban areas (I) • International development centre (1) – Capital Riga, largest city among the Baltic states – scientific and entrepreneurial potential – significant business, science, culture and tourism centre of Northern Europe with a global development perspective • National development centres (8) – largest cities with developed industry, transport, public services and social infrastructure – centres of economic growth and knowledge creation, the driving forces of economic development – in co-operation and interaction with the nearest urban and rural areas can create the critical mass for growth Role and potential of urban areas (II) • Regional development centres (21) – significant production and/ or culture centres with developed social infrastructure and various services – the potential considerably exceeding the potential of the rest of small towns – should continue specialization, developing mutually supplementing co-operation, thus achieving the attraction of human resources and economic activity equal to development centres of national significance Role and potential of urban areas (III) • Local centres – small towns, in some cases larger rural centres, identified by planning regions – provide basic public services and working places, also for surrounding areas – ensure attractive living environment Policy approach in strengthening urban areas • Investment concentration in development centres within the regional development support measures • Integrated local development strategies - basis for allocation of investments • Place based and integrated solutions • «Basket» of services for each level of development centres - one of the criteria for allocation of investments (entrepreneurship, education, health, culture, social care, sport) • Thematic focus of investments: business infrastructure, quality and availability of public services, mobility, administrative capacity Thank you!