1. Role and potential small and medium-sized urban areas Latvia’s case
ALLEGATO N° 2
Role and potential small and medium-sized urban areas Latvia’s case
Indra Ciuksa
The Ministry of Environmental Protection
and Regional Development

2. ALLEGATO N° 2
Definition of SMUAs
No common definition at EU level - multiple definitions are in use:
New OECD-EC definition is thousand inhabitants for small cities, 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

3. Urban areas in Latvia 77 cities and towns, including:
ALLEGATO N° 2
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 %

4. Monocentric development tendencies
ALLEGATO N° 2
Income tax per inhabitant in local municipalities budget

5. Balanced network of centres – potential for polycentric development
Concentration of jobs (flow of personal income tax)
Concentration of services (flow of customers)

6. Remarkable regional development disparities
ALLEGATO N° 2
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%)

7. Republican cities demonstrates higher growth potential
Indicator
Republican 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

8. 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 8

9. Regional policy in Latvia
Development planning and policy documents:
Sustainable Development Strategy 2030
National Development plan
Regional Policy Guidelines
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

10. National spatial development perspective
Settlement 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 10

11. 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 11

12. Role and potential of urban areas (I)
ALLEGATO N° 2
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

13. Role and potential of urban areas (II)
ALLEGATO N° 2
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
Tukums, Ogre, Sigulda, Kuldīga, Saldus, Talsi, Dobele, Bauska, Aizkraukle, Cēsis, Smiltene, Valka, Gulbene, Alūksne, Madona, Limbaži, Līvāni, Preiļi, Krāslava, Ludza, Balvi

14. 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

15. 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

16. ALLEGATO N° 2
Thank you!