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Norwegian Ministry of Local Government and Regional Development

Engelsk mal: Startside

Norwegian Regional Policy

Kristin Nakken, Deputy Director GeneralNorwegian Ministry of Local Government and Regional Development

Riga, 2. december 2011


Engelsk mal:Tekst med kulepunkter

The Ministry of Local Government and Regional Development

The Ministry of Local Government and Regional Development was established in 1948. The Ministry is currently responsible for housing and building policy, regional policy, local government, local government finances and elections.

Minister Liv Signe Navarsete


Norway in Europe - Distances

North to south in Norway = South of Norway to Italy

Significant variations in climate and topography produce specific challenges


Norway:4,98 mill inhabitants

Capital city Oslo – 600 000 inhabitants

19 counties 430 (429) municipalities

Municipalities: 216 (Utsira) – 600 000 (Oslo) inhabitants



Finnmark

48615 km²

Finnmark

48615 km²

Vestfold county

2224 km²(¼ of Kautokeino

municipality)

Vestfold county

2224 km²(¼ of Kautokeino

municipality)



Urban structure: cities with more than 10,000 inhabitants


Population development - type of region

-10,

0 %

-5,0

%

0,0

%

5,0

%

10,0

%

15,0

%

20,0

%

Large city regions

Small city regions outside oftarget area

Small city regions withintarget area

Small center regions

Sparsely populated areas

Whole country

1998-2008

2008-2018



Aims of the regional policy

• Sustain the main features of the settlement pattern

• Accessible services and economic growth in all parts of the country

• Freedom of choice as to where to live


Regional policy - challenges

• Extensive mountain areas, insular and coastal regions, arctic and sub-arctic climate

• Sparsely populated, weak urban structure, long distances to main markets

• Migration from peripheral to core areas – polarisation of the settlement structure

At the same time: • only limited differences in education level,

employment, income, housing, services....



Regional perspectives in most sectors

• Funding of the municipalities• Transport and infrastructure• Higher education and research• Agriculture and fisheries• Business development• Defence

Total annual spending: 36 bill NOK (6 bill USD)



Particular attention - Sparsely populated areas.

• Core challenges

– Reaching sufficient number of people within daily commuting range to run public and private services cost-efficiently.

– Establishing a well-functioning labour market.

Norwegian Ministry of Local Government and Regional Development12

Annual domestic migration 2006–2011. BA-landsdelar

In

Out

Net

Migration – two ways to look at it



The specific regional policy

• Business funding – grants and loans• Start-up grants for entrepreneurs• Incubators and business “gardens”• Support for clusters and for innovation• Local community developmentAnnual spending: 2.8 bill. NOK (0.5 bill. USD)

• Geographically differentiated labour taxAnnual costs: ca. 12 bill. NOK (ca. 2 bill. USD)


Regionally differenciated social security contributions


Regional aid map



Implementers

• The county authorities• The municipalities• Innovation Norway • The State Industrial Development

Corporation (SIVA)• Norwegian Research Council



Main measures

• Investment aid or grants• Loans• Start-up grants• Restructuring local communities• Infrastructural programmes• Business environment support.• Special programmes for women and youth.• Cross-border cooperation• Regionally differentiated social security contribution.



Policy for rural and regional business development

• Enhance targeted incentives via IN, SIVA, RCA and county and local authorities

• Support the establishment of more Norwegian Centre of Expertise (NCE)

• Entrepreneural education and support• Developing culture-related business• Promote higher education and R&D in all

parts of the country



Some instruments

• NCE – Norwegian centres of expertise• The VRI programme• Incubators, business gardens• Business network• The ARENA Programme• Regional research funds• Young gründers (and mentoring)• Action zone for Finnmark and Nord-Troms


Municipalities with positive development - characteristics

• Strong local enthusiasm og culture for business start-ups

• Strong cooperation between local enthusiasts and the municipalities

• Belief in the future, orientated towards change and development of new knowledge

• Mobilization from the inhabitants, third sector is a strong power

• The living conditions must be evaluated as attractive

• A larger labour market is a benefit

• Municipal finances must be under control

Landskonferanse MERKUR



Action Zone - North

• No social security tax• Reduced income tax • Remission from bank-payment of loan for

education• Higher child benefit• Reduced electricity charges• Reduced investment tax for construction

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LUK – New Emphasis in Capacity and Competence Building – Strengthening Municipalities’ Work on Community Development in Norway

• How the cooperation between different levels (national, regional, local) can be enhanced in order to generate and implement common policy goals?

• How top down and bottom up strategies can be combined.

• How local capacity is utilized and supported in the rural development work?

• The five year program is just in the beginning.


• Secure the deliverance of groceries in rural areas

• Provide good service, both public and private, through the grocery store

• Attractive local communities

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MERKUR(program for building competence in small grocery stores in

rural areas)



Facilitating local economic development and entrepreneurship in Møre og Romsdal county




Science parksKnowledge parksBusiness gardensBusiness incubatorsIndustry-incubatorsSeed/Venture Funds

SIVAs dynamic ownership- a network of innovation

25 science parks 44 business gardens 18 business incubators 11 industry-incubators 44 industrial parks 12 seed/venture funds 8 R&D - companies 1 000 co-owners 1 500 companies 200 new companies every year



Interreg in Norway

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International cooperation

• Regional development is not part of the EEA-agreement but we participate actively in the Interreg programmes

• Through the EEA-financial mechanism we make substantial contribution towards promoting economic and social cohesion



• http://www.regjeringen.no/en/dep/krd/Subjects/rural-and-regional-policy.html?id=1238

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The municipalities’ responsibilities

• Primary and lower secondary school

• Nurseries/kindergartens

• Care for the elderly and disabled, social services (social assistance, child welfare, drug/alcohol)

• Local planning (land use), agricultural issues, environmental issues, local roads, harbours



The county administration’s responsibilities

• Upper secondary school

• Regional development – Roads and public transport– Regional planning– Business development– Culture (museums, libraries, sport)– Innovation and researc development