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• incomplete use of centralized water supply services, in some cases outdated infrastructure networks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