Indra Ciuksa

The Ministry of Environmental Protection and Regional Development

04.12.2014.

Role and potential small and medium-sized urban

areasLatvia’s case

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

IndicatorRepublican

cities

Municipalities containing

regional centres

Other municipalities (without Riga

agglomeration)

Unemployment level (%)

7,27% 10,35% 9,60%

Income tax per one inhabitant in

municipalities budget (EUR)

503,38 381,16 358,08

Number of enterprises per 1000 of inhabitants

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• incomplete use of centralized water supply services, in some cases outdated infrastructure networks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 perspectiveSettlement 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!