1. Regional development in Estonia Conference on the Norwegian/EEA Financial Mechanisms, Tallinn 17.11.04

2. Tendencies “on the ground” Spatial concentration of the population, increasing “social burden” and urban problems Spatial concentration of jobs Loss of jobs, quality of labour force as an obstacle to business development -> risk for social marginalisation the best perspective for the development of knowledge-based economy in urban areas the mobility of population is increasing, however several limitations will stay the importance of urban areas is growing (jobs, competitiveness, population) deepening imbalance between urban and peripheral regions

3. Vision other urban areas are functioning as a balancing force to the capital area local development potential and resources are utilised in a maximum and skilful manner, innovative potential in regions is increased basic need of the population are met regardless of the location population and economic activity has concentrated on the county level leading to widened functional urban areas, capital area is experiencing qualitative (and not quantitative) economic growth rural areas are vital, in the conditions of sparse settlement the local resource potential is effectively in use urban centres are interconnected with their hinterland the functional network of urban centres is operational

4. Objectives Sustainable development of all regions -> moderate concentration of population and economic activities to the capital region: –spatial accessibility for meeting the basic human needs ensured –sustainable competitiveness of all regions –spatial connections to the rest of Europe strengthened

5. Policy measures (1) Meeting basic human needs: –improvement of the quality of living environment in urban areas outside the capital region –better connections between the places of jobs and residence –stimulating the creation of new jobs outside the urban areas –increasing the social involvement and activeness outside the urban areas –ensuring the accessibility of public services outside the urban areas –integrated development of urban areas in order to prevent specific urban problems

6. Policy measures (2) Increased competitiveness of regions: –increase in international competitiveness of the capital region and Tartu urban region (innovativeness, R&D etc.) –creation of attractive operating environment for businesses in other urban areas (infrastructure, networking etc.) –functional specialisation (“endogenous uniqueness”) and networking of all regions –human resource development –increase in institutional co-operation and capacity –enforcement of local development planning

7. Policy measures (3) Improved connections to the rest of Europe: –stimulation of cross-border co-operation of regions and their institutions –improved spatial communications (infrastructure)