Results and Conclusions from Programme Period I

NetEffect Ltd was responsible for programme evaluation in 2001–2003. As of the beginning of 2004 evaluation has been carried out by the University of Jyväskylä School of Business and Economics in cooperation with Kaupunkitutkimus TA Oy. The results of the evaluation of the first programme period will be reported in autumn 2006.

More Balanced Regional Development
Government objectives regarding the balanced development of jobs and migration are being met relatively well. During the implementation of the programme a shift in the migration trend has been witnessed: centralisation is now taking place more widely than in a few selected areas. In addition, development differences between urban regions have narrowed. The growth of large urban regions that witnessed strong growth in the late 1990s has slowed down – they have been joined by medium-scale provincial centres, smaller urban regions near large urban regions and rural regions. Of the 34 programme regions, 19 witnessed positive migration figures in 2005.

The regionalisation of urban regions has accelerated again as migration is directed at municipalities surrounding urban regions. The dividing line in regional development lies on the one hand between large and small peripheral urban regions, and on the other hand between rural areas close to towns and sparsely populated rural areas.

Growth in the number of jobs in regional centres has in recent years been more positive than growth nation-wide. The number of jobs has increased particularly in larger regional centres. Although most new jobs are created in hub towns, approximately 40% of new jobs have been created in municipalities surrounding urban regions. The relative differences in growth between regions have narrowed as of 2002. Unemployment continues to exhibit substantial regional traits as Eastern and Northern Finland remain regions of high unemployment rates.

The highest regional GDP is produced in traditionally industrialised regions and particularly in regions with information and communications technology and private service production. In recent years medium-scale regions resting on the public sector and small regional centres have also witnessed strong percentual growth. However, high regional economy figures do not necessarily correlate to the number of jobs or migration, but they do provide a basis for sustainable regional economy. Retaining expertise-intensive and high processing degree jobs in Finland will provide the basis for economic growth also during the future programme period.

Programme Measure Evaluation Results
Based on national evaluation, the positive results hitherto of the Regional Centre Programme can be summarized as follows:

  • urban region actors' increased awareness of the broad-ranging responsibility for the development of regional vitality
  • increased goal-oriented cooperation between municipalities in the programme regions
  • increased and deeper strategic regional cooperation especially in areas of industrial policy and service development
  • strengthened contract basis for regional cooperation, and organisation and reform of cooperative structures
  • more efficient networking of private and public sector actors, strengthening the base of expertise
  • the programme has accelerated and extended networking and improved the quality of cooperation

The Regional Centre Programme is assessed to have strengthened the strategic focus of regional development and to have developed the prioritisation of measures. The programme has clarified the coordination and division of tasks within development activities.

According to the country report published in November 2005 by the OECD, the Regional Centre Programme has been an innovative and successful tool in regional development, helping balance regional development in Finland. According to the OECD, three rationalities shape Finnish urban policy: first of all, urban areas are centres for new jobs and economic growth; secondly, they promote innovations, thus increasing competitiveness; and thirdly, a wide network of multi-centre urban regions, including small and medium-sized urban regions, acts as a safeguard of balanced regional development.

The attention paid to a multi-actor developer network and a principle of bottom-up development is viewed particularly positively. According to the view of the OECD, development should be targeted at genuine functional urban regions, which is why the OECD is critical of the extent of some programme regions and the large number regional centres.





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