Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR

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Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
REGIONAL POLICY SECTOR

Nordic Co-operation Programme
for Regional Development and
Planning 2017–2020
Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
Nordic Co-operation Programme for
Regional Development and Planning 2017–2020

ISBN 978-92-893-4932-1 (PRINT)
ISBN 978-92-893-4933-8 (PDF)
ISBN 978-92-893-4934-5 (EPUB)
http://dx.doi.org/10.6027/ANP2017-723

ANP 2017:723

© Nordic Council of Ministers 2017
Layout: Mette Agger Tang
Cover Photo: Unsplash.com

Print: Rosendahls
Printed in Denmark

Nordic co-operation

Nordic co-operation is one of the world’s most extensive forms of
regional collaboration, involving Denmark, Finland, Iceland, Norway,
Sweden, the Faroe Islands, Greenland, and Åland.

Nordic co-operation has firm traditions in politics, the economy,
and culture. It plays an important role in European and international
collaboration, and aims at creating a strong Nordic community in
a strong Europe.

Nordic co-operation seeks to safeguard Nordic and regional interests
and principles in the global community. Shared Nordic values help the
region solidify its position as one of the world’s most innovative and
competitive.

Nordic Council of Ministers
Ved Stranden 18
DK-1061 Copenhagen K
www.norden.org

Download other Nordic publications at www.norden.org/nordpub

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Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
REGIONAL POLICY SECTOR

Nordic Co-operation Programme
for Regional Development and
Planning 2017–2020
Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
PHOTO: UNSPLASH.COM

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Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
CONTENTS

7    Summary

9    Introduction
     About the co-operation programme within the Nordic Council of Ministers
     About the regional sector’s co-operation programme

12   Strategic focus areas and objectives for a cohesive
     Nordic Region

15   Focus area 1: Sustainable rural development

19   Focus area 2: Innovative and resilient regions

23   Focus area 3: Sustainable cities and urban development

27   Horizontal perspectives

28   Implementation of the co-operation programme
     Regional policy thematic groups

31   Organisation of the sector
     The Nordic Council of Ministers for Business, Energy,
     and Regional Policy (MR-NER)
     Nordic Committee of Senior Officials for Regional Policy (EK-R)
     Secretariat to the Nordic Council of Ministers
     Nordregio – a Nordic knowledge hub on regional development
     Cross-border co-operation
     West Nordic Fund
     A developed sectoral co-ordination of Nordic co-operation

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Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
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    PHOTO: NORDFORSK
Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
Summary

The Nordic ministers for regional affairs       The choice of focus areas based on a
hereby present a joint Nordic co-operation      broad consultative process are:
programme that aims to lay the foun-
dation for the evolved exchange of know-        1.   Sustainable rural development
ledge, to provide examples of successful        2.   Innovative and resilient regions
initiatives within priority policy areas, and   3.   Sustainable cities and urban
to strengthen joint efforts relating to              development
regional policy in the Nordic Region.
                                                The co-operation programme shall help to
Nordic co-operation on regional policy has      initiate and implement activities that add
a long history of creating good oppor-          value through their implementation at a
tunities for learning, understanding, and       Nordic rather than a national level. This
joint action. This co-operation is based on     includes the implementation of projects
the insight that joint learning and solu-       and studies that contribute to the ex-
tions are key to achieving results together     change of knowledge and experience,
that contribute to the sustainable              as well as to policy development. In
development of the individual regions           this way, the programme shall help to
within the Nordic Region as a whole.            improve national and regional policy
                                                strategies and initiatives in the field
The starting point of this co-operation         of regional policy. In addition, the co-
programme is to address the regional            operation programme shall contribute
policy challenges currently faced by the        to the strengthening of co-operation
Nordic Region that it is also likely to face    between the sectors and institutions of
going forwards. An additional starting          the Nordic Council of Ministers.
point of the co-operation programme is
the principles of sustainable development       The Nordic Co-operation Programme for
and gender equality and the perspectives        Regional Policy for 2017–2020 is to be im-
and rights of children and young people.        plemented primarily within the context of
The Nordic Co-operation Programme               three thematic groups that are each – on
for Regional Development and Planning           behalf of the Nordic Committee of Senior
2017–2020 identifies the topics that            Officials for Regional Policy and in close
the Nordic countries, the Faroe Islands,        co-operation with Nordregio – respon-
Greenland, and Åland deem to be the             sible for the implementation of the focus
most relevant focus areas. A number of          areas. In addition, the Nordic institutions
priorities within the context of these          within regional policy co-operation assist
focus areas are described in more detail        in the realisation of the programme.
in this co-operation programme.

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Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
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    PHOTO: SCANPIX.DK
Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
Introduction

About the co-operation programme                and new solutions within priority policy
within the Nordic Council of Ministers          areas and to strengthen joint efforts
The Nordic Council of Ministers’ co-            relating to regional policy. The co-
operation programme describes the               operation programme shall contribute
regional policy sector’s policy priorities      to the strengthening of co-operation
for the period 2017 to 2020.                    between the sectors and institutions of
The co-operation programme governs              the Nordic Council of Ministers.
the sector’s activities, but it shall also be
seen in the context of other governing          The Nordic countries have a long history
documents in the Nordic Council of              of co-operation on regional policy. This
Ministers as illustrated in the table           co-operation is based on the insight
below.                                          that joint learning and solutions are
                                                key to achieving results together
About the regional sector’s                     that contribute to the sustainable
co-operation programme                          development of the individual regions
The Nordic ministers for regional               within the Nordic Region as a whole.
affairs hereby present a joint Nordic           Nordic co-operation relating to regional
co-operation programme that aims to             development and planning is unique and
provide examples of successful initiatives      creates extraordinary opportunities for

   GOVERNING DOCUMENTS IN THE NORDIC COUNCIL OF MINISTERS

   Vision statement of the ministers for Nordic co-operation
   Target group: Nordic Council of Ministers / Time frame: No end date

   Cross-sectoral strategies
   Target group: Nordic Council of Ministers / Time frame: Up to six years

   Co-operation programmes
   Target group: Sector-specific / Time frame: Four years

   Presidency programme
   Target group: Nordic Council of Ministers / Time frame: One year

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Nordic Co-operation Programme for Regional Development and Planning 2017-2020 - REGIONAL POLICY SECTOR
learning, understanding, and joint efforts      for regional development. Historically,
in the field of regional policy. At the basis   it has been important to promote
of Nordic co-operation – the Nordic             social sustainability within Nordic co-
advantage and Nordic added value – are          operation. Today, the social dimension
the wide-ranging similarities between           of regional development is accentuated
the Nordic countries that create the            by refugee flows and the role of the
conditions for exchanging knowledge             regions in receiving and integrating their
and experience and for learning in the          newly arrived residents. The UN is in the
face of similar challenges or problems.         process of drafting Agenda 2030, which
Yet there are also differences, such as in      will be a key strategy and set important
planning systems, regional and municipal        objectives for the regional sector to
structures, and the instruments used            relate and contribute to.
for regional development, etc., all of
which make co-operation dynamic and             Nordic co-operation on regional policy
evolutionary. Nordic co-operation is also       has promoted the exchange of know-
a good complement to and platform               ledge and experience between the
for national and regional collaboration         Nordic countries, the Faroe Islands,
within Interreg, the Baltic Sea Strategy,       Greenland, and Åland by, for instance,
VASAB, the Arctic Council, and other            conducting projects and exchanging
international co-operative bodies.              experience within the context of
                                                thematic working groups, and by
The Nordic Region faces opportunities           establishing joint statistical databases
and challenges in all areas related to          as a basis for comparative analyses in
sustainable development. In recent              the Nordic Region and in relation to the
years, economic development has                 rest of Europe. In addition, joint research
been characterised by economic highs            has long been conducted (within the
and lows as well as the effects of              Nordregio research institute) to increase
demographic change by way of rapid              knowledge about the conditions for
urbanisation, an ageing population,             regional development and planning and
and increased refugee immigration.              about the effects of policy measures in
Environmentally, the focus is on                the Nordic regions. The Nordic countries
achieving global climate goals from 2015        have also increased their knowledge
by reducing CO2 emissions and through           base relative to measures within the
the transition to a greener economy.            EU’s cohesion policy, not least through
Most of the Nordic countries are                active participation in national, regional,
developing or implementing strategies           border-region, and transnational
for the transition to green growth and a        programmes, as well as through the EU
bioeconomy, which in turn is important          Strategy for the Baltic Sea Region.

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Co-operation between border regions        currently faced by the Nordic Region
has been important for Nordic              that it is also likely to face going for-
co-operation as a whole. The basis for     wards. All the Nordic countries have the
co-operation between border regions        overall national objective of achieving
has been that these regions are often      sustainable regional growth or develop-
peripheral in their respective countries   ment by maximising the potential of all
and therefore have much to gain by         parts of the country, from cities to rural
working together across national           areas. Nordic co-operation on regional
borders, while the borders themselves      policy and regional planning is based on
present barriers to the freedom of         these overall national objectives and has
movement of businesses and workers.        identified three broad focus areas that
Many solutions for services, commuting,    the countries together deem to be most
business development, and reduced          important for achieving these long-term
barriers to freedom of movement            objectives (see page 12).
across border regions have been
developed within the context of Nordic     The Nordic Council of Ministers for
co-operation, such as through Nordic       Business, Energy, and Regional Policy
cross-border co-operation committees       (MR-NER) adopted the co-operation
and with the support of programmes         programme in the autumn of 2016.
such as the Nordic Arctic Co-operation     The programme will run until 2020.
Programme, the Nordic Demography           Knowledge and experience from the
Programme, and the EU Interreg             implementation of the previous
programmes.                                co-operation programme have been
                                           drawn on in the development of the
The starting point of the Nordic co-       co-operation programme for 2017 to
operation programme for regional policy    2020.
is to address some of the challenges

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Strategic focus areas and objectives
for a cohesive Nordic Region

The strategic focus areas described in         resilient regions, and sustainable cities
this programme build on the previous           and urban development.
areas for Nordic regional policy collabo-
ration, knowledge-building, exchange of        In developing projects, the horizontal
experience, and policy development, as         perspectives and cross-sectoral colla-
well as on co-operation between border         boration presented below must be taken
regions in the Nordic countries, the Faroe     into account (see pages 27 and 34).
Islands, Greenland, and Åland.                 A thematic group will be established
                                               for each focus area (see page 28).
The challenges to regional policy that         Each thematic group is tasked with
the Nordic countries consider most             drawing up a work programme for each
relevant to the co-operation programme         focus area, establishing the objectives,
for 2017–2020 can be summarised in             activities, schedule, and budget for the
three focus areas. The choice of focus         implementation of the focus area.
areas is based on a review of the Nordic
countries’ priorities for regional policy to   Strategic objectives and expected
2020 as well as on a broad consultative        impact of the co-operation programme
process in all the Nordic countries, the       The Nordic co-operation programme
Faroe Islands, Greenland, and Åland.           for regional development and planning
These are:                                     shall help to initiate and implement
                                               activities that add value through their
1.   Sustainable rural development             implementation at a Nordic rather
2.   Innovative and resilient regions          than a national level. This includes the
3.   Sustainable cities and urban              implementation of projects and studies
     development                               that contribute to the development
                                               of knowledge and policies and thus
As part of the Nordic co-operation pro-        contribute to the improvement of
gramme for regional development and            national and regional policy strategies
planning 2017-2020, projects and activ-        and instruments, including cross-
ities are prioritised that aim to identify,    sectoral areas (see page 27). This
analyse, compare, and develop Nordic           programme accentuates the regional
examples of and solutions to regional          dimension and a desire to implement
and local challenges related to sustain-       more of the co-operation programme
able rural development, innovative and         in collaboration with the regions,

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regional co-operative bodies, and                                the sectors and institutions of the
national authorities in regional policy,                         Nordic Council of Ministers. A strate-
as well as between sectors that have                             gic objective for the implementation
an influence on regional development.                            of the programme is the improvement
In this way, a strategic objective of                            of interaction between other Nordic
the programme is to strengthen co-                               programmes and strategies (e.g. the
operation between the national and                               transfer of knowledge from the Arctic
regional levels in all the Nordic countries,                     Co-operation Programme). The pro-
the Faroe Islands, Greenland, and                                gramme shall also make a concrete and
Åland to create synergies in regional                            relevant contribution to the work of
development efforts and to contribute                            the Nordic countries and regions within
to the development of regional                                   the context of European programmes,
strategies.                                                      strategies, and funds.

In addition, the co-operation pro-
gramme shall contribute to the
strengthening of co-operation between
                                           PHOTO: UNSPLASH.COM

                                                                                                      PHOTO: DSB.DK

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                         PHOTO: NORDEN.ORG, BENJAMIN SUOMELA

     PHOTO: SCANPIX.DK
Focus area 1:
Sustainable rural development
Rural development is an important            or negative population growth is a
theme in all the Nordic countries, the       growing labour shortage as there are
Faroe Islands, Greenland, and Åland. All     fewer people of working age to support a
geographic areas are affected by a num-      growing number of elderly people. Rural
ber of challenges such as demographics,      development capabilities also vary widely
services, infrastructure, digitalisation,    depending on population sparsity and
industry, housing, attractiveness, edu-      distance to major cities and markets.
cation and employment, nature, and the
environment. The development of rural,       PRIORITIES WITHIN THE CONTEXT OF
sparsely-populated, and peripheral areas     THE CO-OPERATION PROGRAMME
is important for the cohesive develop-
ment of the Nordic Region as a whole.        Ageing populations challenge welfare
This is to take advantage of the potential   systems – demographic challenge
of the Nordic regions and thereby help to    The whole of the Nordic Region is facing
counter the growing regional imbalance       a huge increase in the number of people
in terms of economic growth, population      aged 65 and over. Over the next 30 years
growth, access to services, gender           the Nordic Region will experience an
equality, and education.                     increase in this age group of between
                                             50 and 100 per cent. The ageing popu-
The different conditions for regional        lation and urbanisation pose especially
development described above are based        great challenges to many of the Nordic
on a number of trends affecting all the      Region’s peripheral and sparsely popu-
Nordic countries – primarily globalisation   lated regions. This is also clear from the
and urbanisation, or the centralisation      demographic vulnerability index created
of populations from the periphery and        by Nordregio within the context of the
sparsely-populated areas to regional         Nordic co-operation programme for the
centres and metropolitan regions. The        regional sector for 2009–2012. The
State of the Nordic Region report states     combination of a declining share of
that the 30 biggest urban regions in the     the population of working age and
Nordic Region have absorbed more than        an increasing share of the population
97 per cent of its population growth in      in need of care poses both economic
the last 20 years. International migration   and personnel challenges in terms of
accounts for two-thirds of the total         providing services and welfare. There
population increase. The consequence for     is a need to develop structural solutions
the other regions that have little           in relation to how the labour market

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operates, e.g. to encourage more men          joint learning and development at the
to work in the welfare sector, and to         national and regional levels.
encourage more people to work longer
by raising the age of retirement and          The supply of skills is a growing
through work environment initiatives          challenge for the Nordic regions, a
etc. However, there is also a need for        challenge which is also addressed in
innovative service solutions and models       focus area 2. Demographic changes
to address demographic challenges             mean that this challenge is especially
based on the differing conditions of          prominent in rural regions. Increasing
regions and communities.                      immigration to the Nordic Region does,
                                              however, have a more positive effect
Social innovation and social                  on population growth even in the more
entrepreneurship – new ways                   peripheral regions. The key to sustain-
to deliver services                           able population growth in these regions
Against this background, the potential        is stimulating inward migration and
for social innovation and social entre-       encouraging people to remain by offering
preneurship (i.e. new ways of delivering      good conditions for the inclusion of new
welfare services) has been the subject        residents in local labour markets. There is
of increasing political attention in recent   scope for the exchange of experience and
years. Social entrepreneurship and social     the development of new initiatives for
innovation mean developing new service        the validation of skills, adult education,
solutions while creating new social           language training, entrepreneurship, etc.
relations in order to strengthen the
local community and social capital. The       Peripheral regions will be strengthened
wealth generated from and sustainability      through co-operation between border
of social innovation depend on a number       regions and by increasing accessibility
of factors, such as procurement rules and     In the most peripheral and sparsely
funding opportunities, as well as the         populated Nordic regions the biggest
existence of institutions responsible for     challenges generally relate to demo-
promoting innovation (funds, govern-          graphics, services, infrastructure,
ment agencies, intermediary institutions,     and the labour market. Co-operation
etc.). Areas where there are already          between border regions can help to solve
examples of how social innovation             these challenges. Nordic co-operation
contributes to the development of local       in these areas is also touched upon in
communities in the Nordic countries           focus area 2 below. Another important
include health, education, the labour         prerequisite for sustainable regional
market, and social care. Within these         development is increased accessibility,
areas there are further opportunities for     both physical and digital.

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GOALS/OBJECTIVES OF ACTIVITIES IN FOCUS AREA 1

The goals for this focus area are to contribute to the development of
policies and new solutions to the challenges that the countries face with
regard to sustainable rural development. Projects and activities must:

– Contribute to the continued development of knowledge by identifying
specific examples, statistics, and policy-relevant conclusions.

– Identify organisational and structural aspects of the implementation
of regional policy and contribute to an understanding of how multi-level
governance affects the implementation of policies and initiatives in the
focus area.

The expected results are that the initiatives and activities that seek to fulfil
the objectives will be implemented within each priority area; i.e.: demographic
challenges, social innovation and entrepreneurship in services, skills supply,
and co-operation between border regions. These initiatives and activities
shall demonstrate concrete results and lessons that Nordic stakeholders
can leverage in their policy development. The focus of these initiatives and
activities and their specific objectives shall be developed and clarified within
the context of the thematic group’s programme.

Target groups are national, regional, and local authorities, as well as
stakeholders and organisations involved in regional policy and rural
development in the Nordic countries. The effective transfer of knowledge
shall be ensured by way of a clear formulation of the target group in the
thematic group’s work programme, a clear communication plan, and regular
dialogue between the thematic group and the target groups.

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     PHOTO: UNSPLASH.COM
Focus area 2:
Innovative and resilient regions
The economic growth of the Nordic Region      commodities and resources, it is extremely
is created regionally and locally through     important to understand the local and
innovation and entrepreneurship. It is im-    global relationships, such as within the
portant that regional policy supports and     bioeconomy and bio-based products. It
stimulates regional innovation environ-       is also important to analyse successful
ments and business promotion measures         examples and opportunities to further
so that the regions can take advantage of     develop innovative regional environments
their development potential for smart and     (clusters, centres of excellence, etc.) not
sustainable development. This involves        just in major cities but also in the more
establishing and developing strategic         peripheral regions such as in the Arctic.
partnerships between research bodies,
public authorities, and businesses in urban   PRIORITIES WITHIN THE CONTEXT OF
and rural areas with a view to achieving      THE CO-OPERATION PROGRAMME
sustainable development. Cluster develop-
ment and regional innovation processes        Green growth, blue growth, bioeconomy,
are interesting topics to expand on, as       smart energy systems
are understanding and building on the         An overarching goal of European and
opportunities and challenges presented        Nordic co-operation is the transition to
by globalisation.                             smart, sustainable, green growth that
                                              takes into account both social and
The analysis of innovation and research       environmental challenges, including the
environments in the Nordic Region is today    climate and global warming. Investments
closely linked to the concept of smart        and innovations that contribute to
specialisation, which is widely applied       sustainable development should be
throughout Europe. The Nordic regions         supported and encouraged. Of particu-
should use this mindset to create their       lar concern in the Nordic Region is the
own innovation strategies and to develop      promotion of green industries and circular
innovative regional environments based        business models, the blue bioeconomy, and
on their existing strengths by combining      sustainable energy production in smart
resources in new ways that involve new        energy systems. The Nordic Council of
stakeholders in their efforts.                Ministers has taken a long-term approach
                                              to these issues over a long time period, not
For Nordic regions that are part of open      least as a horizontal action leader for the
global economies but also base much           bioeconomy within the context of the EU
of their sustainable growth on local          Strategy for the Baltic Sea Region.

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Several of the Nordic countries have          The matching and integration of immi-
national strategies for regional develop-     grants in the labour market is also impor-
ment that include clear components of         tant, as are flexible systems for lifelong
green growth and the bioeconomy, linked       learning.
to green business development and inno-
vation. Several of the countries have also    Regional educational institutions are an
promoted green growth and the bio-            important source of development for
economy/blue bioeconomy in their most         local/regional innovation environments. But
recent Nordic presidency programmes,          even if there are successful and innovative
such as Iceland (with NordBio), and           ideas, access to venture capital is often a
Denmark and Finland (blue bioeconomy).        limiting factor, especially in sparsely popu-
The Arctic has also been a focus here, not    lated regions. Consequently, a key regional
least in the context of NordBio and the       challenge is to create the conditions needed
Arctic bioeconomy programme.                  for increased growth by increasing co-
                                              operation between research and innovation
The conditions for green growth and for       environments, private and public enter-
achieving environmental and climate goals     prises, and venture capital companies.
vary widely between the different regions.
The regional sector will therefore seek to    Regional strategies
identify the potential for green growth       for sustainable growth
in the various regions, as well as how the    More efficient links between national and
regions can help the Nordic Region to         regional strategies and the local level have
achieve global climate and environmental      been discussed extensively as part of
goals. The continued development of the       regional policy in the Nordic countries.
Nordic countries’ regional strategies and     A regional development strategy aims
innovation environments will play a key       to develop the region based on compara-
role in promoting and leveraging the          tive advantages/strengths. An important
potential for green growth, including         dimension is, as mentioned earlier, the con-
growth of the bioeconomy.                     cept of smart specialisation as promoted
                                              by the EU. There is currently no overview of
Supply of skills and capital                  how the Nordic regions adapt to and apply
With regard to local and regional labour      this kind of concept to their strategies nor
markets, the supply of skills is one of the   how they are monitored and evaluated.
most important issues for the develop-        Consequently, there is huge potential for
ment of the Nordic regions. This is impor-    joint Nordic learning and comparisons in
tant both for maintaining and developing      this area.
existing businesses, and for establishing
new businesses in areas such as digital-      One ambition is to focus in particular on
isation and green growth.                     our Arctic regions in order to link with

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previous initiatives for developing local     related to sustainable regional develop-
strategies for smart specialisation in some   ment in the Arctic that were developed
Arctic communities, and to link with the      within the context of the previous regional
forecasts for opportunities and challenges    policy co-operation programme.

    GOALS/OBJECTIVES OF ACTIVITIES IN FOCUS AREA 2

    The goals for this focus area are to contribute to the development of policies
    and new solutions to the challenges that the countries face in relation to
    innovative and resilient regions. Projects and activities must:

    – Provide concrete lessons, examples, statistics, and policy-relevant conclusions
    to stimulate and develop innovative regional economies at all policy levels, not
    least in the areas of the green and blue economy.

    – Support and stimulate regional stakeholders so that they can leverage their
    innovation and development potential.

    – Promote and analyse the challenges and obstacles that the Nordic countries
    and regions face in relation to promoting innovative and resilient regions,
    green growth, and smart specialisation, and provide examples of strategies or
    solutions to the greatest extent possible.

    The expected results are that initiatives will be implemented in each priority area
    on the basis of the above objectives; i.e.: green growth, blue growth, bioeconomy,
    smart energy systems, supply of skills and capital, and regional strategies for
    sustainable growth. These initiatives and activities shall demonstrate concrete
    results and lessons that Nordic stakeholders can leverage in their policy develop-
    ment. The focus of these initiatives and their specific objectives shall be developed
    and clarified within the context of the thematic group’s programme.

    Target groups are national, regional, and local authorities, as well as stake-
    holders and organisations involved in regional policy, innovation, and business
    development in the Nordic countries. The effective transfer of knowledge shall
    be ensured by way of a clear formulation of the target group in the thematic
    group’s work programme, a clear communication plan, and regular dialogue
    between the thematic group and the target groups.

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                                         PHOTO: NORDEN.ORG, BENJAMIN SUOMELA

     PHOTO: NORDEN.ORG, MATS HOLMSTRÖM

        PHOTO: SCANPIX.DK
Focus area 3:
Sustainable cities and urban development
Making cities less vulnerable and switch-     construction, architecture, and urban
ing to environmentally friendly transport     development and so is relevant to this
systems and local energy solutions are        focus area, not least in terms of the
key development issues for all Nordic         ex-port of ideas and concepts that can
regions and for the sustainable develop-      be further developed in the context of
ment of major cities. In this regional        planning and sustainable urban develop-
policy focus area, issues related to          ment.
housing, transport, and energy systems/
climate adaptation are of the highest         PRIORITIES WITHIN THE CONTEXT OF
priority. The Nordic countries, the Faroe     THE CO-OPERATION PROGRAMME
Islands, Greenland, and Åland largely
share the challenges posed by the effect      Social sustainability and gender equality
of urbanisation and centralisation on         Social sustainability and migration are two
cities, whether large metropolises or         of the foremost challenges to creating
small or medium-sized towns. The              attractive and sustainable cities in the
challenges relate to smart growth and         Nordic Region. Social cohesion and the
not creating cities that have a large         social contract are strong international
environmental burden, to countering           competitive advantages for the Nordic
segregation, creating attractive and          Region, but they are currently being
inclusive environments, leveraging the        challenged by increased segregation and
potential of digitalisation in the develop-   major socioeconomic disparities, not least
ment of smart cities, and overcoming          in the urban areas. The consequences of
the divisions between cities and the          migration to cities in terms of segregation,
surrounding countryside. It is important      housing, and localisation are important
that Nordic cities are attractive, function   issues in the study and development of
effectively, and are safe for everyone.       action plans and measures linked to such
Historically, the Nordic countries have       aspects as quality of life, public health, and
had a similar pattern of urban develop-       rights to the city and public space. In
ment and have similarities in their           particular, the concepts of social sustain-
planning and management. Yet there            ability and gender equality should be
are also sufficient key differences both      investigated as part of urban planning
between and within the countries for les-     and in issues related to new forms of
sons to be learned with regard to urban       participation in the planning and design
regional development. The “Nordic Built       of cities, not least in the context of a
Cities” initiative focuses on sustainable     more multi-cultural Nordic Region.

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Spatial planning                             we can work with urban policy to develop
The tension between legitimacy and           attractive urban environments in small
effectiveness, and between democratic-       and medium-sized towns. Compact
ally well-anchored planning processes and    urban environments enable the develop-
economically rational processes poses a      ment of environmentally friendly trans-
major challenge to all of the Nordic         port systems and local energy solutions,
regions. Many areas have housing short-      which are an interesting topic for further
ages and face major environmental            investigation in this focus area. The
challenges, while planning issues are        urban-rural relationship, as well as the
often widespread. In other places, the       relationship between sparsely populated
challenge is how to plan within sparse       and densely populated areas, is changing
structures and address issues such as        by way of urbanisation. Technological
empty buildings. An interesting question     developments coupled with cultural and
in a Nordic context is the importance        economic globalisation also make these
of technology for development, such as       relationships increasingly complex. In this
the potential linked to the digitalisation   context we also need to ask fundamental
of planning processes, the use of social     questions about how urban and rural
media and “big data” in spatial planning,    environments relate to each other in
and the challenges these may pose.           different types of functional urban
Relations between regionally strategic       regions, and how places interact and
development efforts and municipal com-       influence each other in order to be able
prehensive planning is another related       to build smart and enjoy effective
issue that is of particular importance in    co-operation going forwards.
this context, not least in relation to the
horizontal perspectives mentioned in         The growth and development of
“Horizontal Perspectives”, which looks at    Arctic cities and towns
ongoing municipal and regional reforms.      A key focus area for further work on
                                             urban sustainability is the growing towns
Urban qualities in small and                 of the Arctic regions. Many cities and
medium-sized towns, and the                  towns in the Arctic are undergoing huge
urban-rural relationship                     transformation and represent good
The prevailing ideal of compact urban        examples of urban transformation and
environments with urban qualities is not     interesting processes in urban develop-
limited to the major cities but forms the    ment.
basis for small and medium-sized towns
as well. Interesting practical as well as
knowledge-based challenges include how

24
GOALS/OBJECTIVES OF ACTIVITIES IN FOCUS AREA 3

The goals for this focus area are to contribute to the development of policies
and propose new solutions to the challenges that the countries face with regard
to sustainable urban development. Projects and activities must:

– Provide concrete lessons and solutions to the problems that the countries face
in their urban development and in the interaction between cities and other parts
of metropolitan areas, regions, and countries.

– Help to clarify and streamline the relationships between regional strategic
development and municipal comprehensive plans.

– Stimulate exchanges and learning between the Nordic regions and cities in
terms of concrete actions and policies for sustainable urban development to
address segregation and housing, the climate, environment and energy systems,
improved quality of life and public health, right to the city and public space, as
well as participation in planning.

The expected results are that initiatives will be implemented in each priority
area on the basis of the above objectives; i.e.: social sustainability and gender
equality, spatial planning, urban qualities in small and medium-sized towns, and
the growth and development of Arctic towns. These initiatives shall demon-
strate concrete results and lessons that Nordic stakeholders can leverage in
their planning and policy development. The focus of these initiatives and their
specific objectives shall be developed and clarified within the context of the
thematic group’s programme.

Target groups are central, regional, and local authorities, as well as stakeholders
and organisations involved in regional policy and sustainable urban development
in the Nordic countries. The effective transfer of knowledge shall be ensured by
way of a clear formulation of the target group in the thematic group’s work
programme, a clear communication plan, and regular dialogue between the
thematic group and the target groups.

                                                                                 25
26
     PHOTO: NORDEN.ORG/ METTE MJÖBERG TEGNANDER
Horizontal perspectives

Gender equality, sustainable develop-        regions’ “smart” strategies and skills
ment, and the inclusion and participa-       supply, and urban growth and planning
tion of children and young people are        conditions. These too should be taken
key aspects of the Nordic brand, and the     into account the Nordic cross-sectoral
Nordic Region often positions itself as      initiatives developed to promote
a pioneer in these areas. In its strategic   developed integration.
documents such as A good life in a
sustainable Nordic Region and Children       Regions in the Nordic Arctic often have
and young people – a cross-sectoral          special conditions and challenges in the
strategy for the Nordic Council of           focus areas covered by this co-operation
Ministers 2016–2022, the Nordic              programme. The thematic issues are
Council of Ministers promotes two            often the same as for other regions in
cross-sectoral topics that must also         the Nordic Region, but they are affected
be considered in this co-operation           and accentuated by the climate, sparsely
programme. These are the conditions          populated areas, distance, culture, and
and opportunities for children and           land conflicts that characterise the
young people, and economic, social, and      Arctic. It is important that all focus
environmental sustainability (here the       areas include and relate to the Arctic
Nordic GRO portal serves as a process        regions and their development in the
tool for projects in the co-operation pro-   projects and activities undertaken.
gramme). The gender equality perspec-
tive must be integrated in all activities.   Municipal and regional reforms, mergers,
Specifically this means that all of these    new forms of governance and organ-
aspects are included in the implement-       isation, divisions of responsibility, city-
ation of this co-operation programme.        regional co-operation, etc. are enduringly
                                             relevant issues in the Nordic countries.
Integration and demographic develop-         Municipal and regional reforms are not
ment are now fundamental conditions          unproblematic to implement, and there
for the Nordic Region’s regional develop-    is much to gain from the exchange of
ment and should be considered in all         experience between the Nordic countries
three focus areas. Demographic               and regions that are in different stages
challenges have an effect on the             of the reform process.
prospects for rural development, the

                                                                                     27
PHOTO: UNSPLASH.COM
Implementation of the
co-operation programme

The Nordic Co-operation Programme            Regional policy thematic groups
for Regional Policy for 2017–2020 is to      The main purpose of the thematic
be implemented primarily within the          groups is to contribute to the exchange
context of three thematic groups that        of knowledge and experience between
are each – on behalf of the Nordic           regional policy stakeholders in the
Committee of Senior Officials for            Nordic countries, the Faroe Islands,
Regional Policy and in close co-operation    Greenland, and Åland. They will also
with Nordregio – responsible for the         work to promote the Nordic perspectives
implementation of the focus areas. In        in the area of policy, and the importance
addition, the Nordic institutions within     of regional policy issues for sustainable
regional policy co-operation assist in the   development and growth in the Nordic
realisation of the programme.                Region. The thematic groups formed to

28
implement the co-operation programme           work of the thematic group in colla-
are linked to the focus areas presented.       boration with other participating
Knowledge and experience of previous           countries and stakeholders. Experience
working groups within Nordic co-               from the previous co-operation pro-
operation on regional policy shall be          gramme shows that it is essential that
leveraged in the work of the thematic          all the Nordic countries participate in
groups. Thematic groups are established        all the thematic groups. In light of the
within the following focus areas:              ambition for the thematic groups’ activ-
                                               ities to provide a Nordic advantage and
1.   Sustainable rural development             added value and to reflect policy-relevant
2.   Innovative and resilient regions          regional policy issues, there should be
3.   Sustainable cities and urban              the ambition that the focus areas and
     development                               thematic groups generate an interest
                                               from all countries.
The purpose of the thematic groups is to
bring together relevant and interested         Based on the experience of the previous
stakeholders at the national and regional      co-operation programme, it is essential
level in the Nordic countries within each      that regional stakeholders are clearly
focus area. An important prerequisite          involved in the implementation of the
for the thematic groups is that their          co-operation programme at an early
activities are established and prioritised     stage.
in all the Nordic countries where their
activities are being implemented. This is      In addition to directly affected repre-
primarily a responsibility of the repre-       sentatives for the Nordic countries and
sentatives of the Nordic ministries.           regions, other relevant stakeholders
The composition and direction of the           should be involved in the activities of
thematic groups may depend on the              the thematic groups in order to provide
focus areas being different for each           knowledge, networks, and analyses.
of the thematic groups. Co-operation           These include research institutes and
between the Nordic countries and various       other academic environments, consult-
stakeholders may vary between the              ants, and/or other knowledge-supporting
thematic groups. Furthermore, it is im-        organisations in the Nordic Region.
portant that initiatives implemented are
for the benefit of all the Nordic countries,   Other stakeholders who should be in-
the Faroe Islands, Greenland, and Åland        volved, not least to disseminate know-
                                               ledge and experience that can contribute
The thematic groups are led by repre-          to learning, are Nordic national autho-
sentatives of the Nordic countries, who        rities with responsibilities in each area.
undertake to lead and co-ordinate the          This would also help to disseminate

                                                                                       29
knowledge and awareness of the               Nordic ministers for regional affairs, and
activities at a Nordic level within the      propose at least one area which can be
field of regional policy. This may be        discussed in greater detail at a minister-
achieved through the use of reference        ial meeting. Such a discussion shall in
groups on various initiatives, or by         turn be based on documents prepared
involving these stakeholders in policy       within the context of the thematic
analysis or policy recommendations.          group’s activities.

In order to create opportunities for         Nordregio plays a central role in sup-
following up and evaluating the thematic     porting the thematic groups’ work
groups’ activities and to help to im-        during the programme period by way
plement the focus areas and Nordic           of established secretariat support and
regional policy objectives for 2017–2020,    targeted strategic knowledge support.
initially a work programme for each          This is in turn based on a clear anchor-
thematic group and focus area will be        ing and division of responsibilities in the
drawn up. The work programme shall           organisation, as well as on the assurance
specify the objectives for the focus areas   that co-operation between the thematic
and thus contribute to a clearer priori-     groups is ongoing. In close co-operation
tisation of initiatives and activities       with the relevant ministries and regional
within the context of each focus area.       stakeholders, Nordregio also has primary
                                             responsibility for the communication and
The work programme shall include a           the dissemination of knowledge and re-
budget, schedule, and activities on a        sults developed by the thematic groups.
year-by-year basis for the thematic
group’s activities. The work programme       In order to enable the co-operation
should also clarify and describe how         programme to contribute to the Nordic
co-operation with e.g. NORA, the             countries’ work as part of EU co-
cross-border co-operation committees,        operation, a working group for EU co-
other regional stakeholders, and national    ordination is also established. This
authorities shall be developed. The work     working group should build on the EU
programme shall be drawn up under            network that was active during the
the supervision of the thematic group’s      previous co-operation programme. The
chairperson when the thematic group’s        task of this working group is to promote
work starts. It shall be anchored in         learning and the exchange of knowledge
and adopted by EK-R following its            on EU issues, and to promote Nordic
presentation and discussion at a meeting     participation in European programmes,
of the committee of senior officials. The    strategies, and funds, such as the EU
chairperson of the thematic group shall      Strategy for the Baltic Sea Region,
submit an annual report describing the       Interreg, EU structural funds, etc.
progress of the group’s efforts to the

30
Organisation of the sector

Nordic co-operation on regional policy         content-based and administrative respon-
is composed of the Nordic Council of           sibility for the activities of the regional
Ministers for Business, Energy, and Region-    sector in close co-operation with the
al Policy (MR-NER), the Nordic Committee       secretariat to the Nordic Council of
of Senior Officials for Regional Policy (EK-   Ministers. The chairmanship of EK-R
R), the secretariat to the Nordic Council      rotates between the countries each year.
of Ministers, Nordregio, as well as            The chairmanship is responsible for leading
cross-border co-operation through the          the work of the committee of senior
cross-border co-operation committees,          officials. The committee of senior officials
NORA, and the West Nordic Fund.                is a forum for exchanging knowledge and
                                               experience and for collegial discussions
The Nordic Council of Ministers for            that help to create opportunities for policy
Business, Energy, and Regional Policy          development in the individual countries.
(MR-NER)                                       EK-R monitors the implementation of the
The Nordic Council of Ministers for Busi-      co-operation programme and is the recip-
ness, Energy, and Regional Policy (MR-         ient of the results of the activities carried
NER) is the highest decision-making body       out within the context of the programme.
within Nordic co-operation on regional
policy. The Nordic ministers for regional      Secretariat to the Nordic Council
affairs are part of a council of ministers     of Ministers
together with the Nordic ministers for         The secretariat to the Nordic Council of
energy and business. Ministerial meetings      Ministers is tasked with supporting the
are held once or twice a year.                 Nordic countries’ participation in co-
                                               operation on regional policy, primarily by
The council of ministers decides on the        providing administrative support to the
strategic direction for co-operation on        chairmanship of co-operation on regional
regional policy in the Nordic Region. The      policy. In addition, the secretariat plays a
meeting between the Nordic ministers for       special role in promoting cross-sectoral
regional affairs allows for interesting po-    co-operation between the sectors of the
litical discussions and serves as an arena     Nordic Council of Ministers.
for exchanging experience and developing
new co-operations.                             Nordregio – a Nordic knowledge hub
                                               on regional development
Nordic Committee of Senior Officials           Nordregio shall provide a basis for the
for Regional Policy (EK-R)                     co-operation on regional policy of the
The Nordic Committee of Senior                 Nordic Council of Ministers by supporting
Officials for Regional Policy (EK-R) has       the Nordic Committee of Senior Officials

                                                                                        31
for Regional Policy (EK-R) and the Nordic      programme and shall, in co-operation with
Council of Ministers for Business, Energy,     EK-R and the thematic groups established
and Regional Policy (MR-NER).                  for each focus area, plan and implement
                                               the activities required to realise the pro-
Nordregio will conduct research, offer         gramme. Nordregio shall pass on know-
advice, and communicate in the field of        ledge and results from the implementation
regional development, planning, and            of the co-operation programme to relevant
policy, thus contributing to the balanced      target groups through its information
and sustainable development of the             channels, as well as by way of participation
Nordic Region, including the Arctic.           in relevant national and regional networks
Nordregio shall maintain and develop           and forums.
its role as a leading research institute in
Europe in the field of regional studies, and Cross-border co-operation
shall continue to actively participate in    Co-operation between border regions and
European research programmes such as         barriers to freedom of movement have long
ESPON, Horizon 2020, and relevant            been a focus of Nordic co-operation. The
Interreg programmes. Nordregio will          Nordic countries have extensive experience
provide data and perform territorial         of collaboration between nations and have
analyses at a pan-European level and         worked actively to break down barriers to
conduct evaluations of the various nation-   freedom of movement. In particular it is
al and European support programmes.          the far-reaching historical experience of
                                             co-operation in all border regions of the
Nordregio shall serve as a Nordic research, Nordic Region that has laid the foundation
advisory, and analysis institute with a      for looking at the Nordic Region as a
focus on strategic, policy-relevant research pioneer in terms of cross-border co-
for the relevant sectors of the NCM. In      operation in Europe. The Nordic countries’
its role as advisor, knowledge broker,       successful implementation of the Nordic
and Nordic knowledge bank for region-        Interreg programmes is a concrete
al policy issues, Nordregio shall provide    example of this. The goal of the Nordic
professional and effective support to the    Council of Ministers’ involvement in co-
NCM and to national, local, and regional     operation between border regions is to:
authorities. Nordregio shall maintain and
further develop its statistical database     •    Seize opportunities and overcome the
with associated map descriptions, as well         barriers that national borders pose for
as the interactive map tool NordMap for           functionally cohesive border regions.
analysing regional development in the        •    Promote development, innovation, and
Nordic Region.                                    growth in the Nordic border regions.

Nordregio is a key stakeholder in the          Co-operation between border regions in
implementation of the co-operation             the Nordic Region can be said to consist of

32
two different elements that each           The Nordic cross-border co-operation
contribute to the overall objectives:      committees are, together with NORA, a
                                           vital part of Nordic co-operation between
•   The cross-border co-operation com-     border regions, and the Nordic Council of
    mittees that work in border regions    Ministers for Business, Energy, and Regional
    between Denmark, Finland, Norway,      Policy intends to continue its contribution to
    and Sweden.                            Nordic cross-border co-operation. In order to
•   The Nordic institution NORA (Nordic    set in stone the objectives established by the
    Atlantic Co-operation) that works in   Nordic Council of Ministers for co-operation
    the Faroe Islands, Greenland,          between border regions, a Nordic border
    Iceland, Northern Norway, and          region strategy shall be drawn up within
    Western Norway.                        the context of the 2017–2020 co-operation
                                           programme. The strategy shall contribute
NORA and the cross-border co-operation     to the development of the Nordic Council of
committees work primarily to promote       Ministers’ efforts in the border regions and
the competitiveness of business in the     clarify the cross-border co-operation com-
border regions, to identify and remove     mittees’ contribution to Nordic co-operation
barriers to freedom of movement, to        and the implementation of the co-operation
develop sustainable and climate-friendly   programme. In light of the funding that
energy and environment solutions, and      the Nordic Council of Ministers for Busi-
to develop infrastructure and communi-     ness, Energy, and Regional Policy provides
cations relevant to the border regions.    to the cross-border co-operation commit-
                                           tees, an annual report on the cross-border
The Cross-border co-operation committees   co-operation committees’ activities shall
are membership organisations that pool     be submitted to the Nordic Committee of
local and regional stakeholders working    Senior Officials for Regional Policy. A clearer
to promote the development of Nordic       link between the cross-border co-operation
border regions. The local and regional     committees’ contribution to the sector’s
anchoring of co-operation is crucial and   activities and the implementation of the
has helped to make the committees          co-operation programme can be developed
viable and to develop them further. The    and ensured within the context of a Nordic
Nordic Council of Ministers is one of      border region strategy. Within the context of
many sponsors of co-operation between      this strategy, the forms of co-operation with
border regions and the cross-border        the Nordic Committee of Senior Officials for
co-operation committees. The Nordic        Regional Policy should be clarified and en-
funds that currently help to finance the   sured, along with follow-ups and reporting.
cross-border co-operation committees
create an important platform for the       NORA is funded by the Nordic Council
activities.                                of Ministers and by a grant from the Nordic
                                           countries involved – the Faroe Islands,

                                                                                     33
Greenland, Iceland, and Norway. NORA is          Ministers will continue to follow the activities
active in the North Atlantic and the Arctic.     of the West Nordic Fund, focusing on how the
NORA is guided by a strategic programme          fund can support the development of the
that has been in place from 2012 to 2016. Its    Faroe Islands and Greenland.
activities develop North Atlantic and Arctic
networks and projects within areas strategic     A developed sectoral co-ordination of
to the region.                                   Nordic co-operation
                                                 The challenges now faced by the Nordic
Within the context of the co-operation pro-      Region require not only co-ordinated solutions
gramme, a strategy for NORA will be drawn        and co-operation between the different
up. The strategy for the forthcoming period,     levels of governance, but also sectoral co-
2017–2020, shall be based on the co-             ordination between policy areas that are
operation programme for regional policy          of importance for regional development. If
and will clarify and specify NORA’s role and     Nordic co-operation in the regional sector is
contribution to its implementation. This         to contribute to a Nordic advantage and reach
subsequently reinforces the link between the     the goals set out in the regional co-operation
direction of Nordic co-operation on regional     programme, expanded collaboration with other
policy and NORA. Within the context of this      sectors with related assignments in Nordic
strategy, the forms of co-operation with the     co-operation is required.
Nordic Committee of Senior Officials for
Regional Policy should be clarified and          The Nordic Committee of Senior Officials
developed, along with follow-ups, and            for Regional Policy, together with the secre-
reporting.                                       tariat to the Nordic Council of Ministers, is
                                                 responsible for identifying and implement-
In addition, the Nordic Council of Ministers     ing cross-sectoral co-operation within the
sees a need to continue to promote the           context of the co-operation programme. A
systematic and continuous exchange of            couple of specific areas should be prioritised
knowledge and experience between the             based on the focus areas of the co-operation
Nordic cross-border co-operation com-            programme, within which specific collabora-
mittees, NORA, and Nordregio. The Nordic         tion can be trialled and deepened. Examples
Committee of Senior Officials for Regional       include co-operation with the Nordic-Arctic
Policy and the secretariat to the Nordic         co-operation programme, or expanded co-
Council of Ministers are expected to help        operation with the Nordic Committee of
make this possible.                              Senior Officials for Business in the area of
                                                 green growth, and the Nordic Committee of
West Nordic Fund                                 Senior Officials for Fisheries and Aquaculture.
Within the context of the co-operation pro-      Within the context of efforts relating to the
gramme for regional policy 2013–2016, the        supply of skills, co-operation with the Nordic
Nordic Council of Ministers has implemented      Committee of Senior Officials for Labour
a review of the activities and organisation of   may also be relevant.
the West Nordic Fund. The Nordic Council of

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