Development Strategies of Development Strategies of Pilot Territories in Pskov Pilot Territories in Pskov

RegionRegion

Project part-financed by

the European Union (ERDF)

HINTERLAND FORUM

Denmark

26-27 February, 2007

«Pogranichnaya volost’» (Krasnogorodsk District)«Pogranichnaya volost’» (Krasnogorodsk District)

«Gavrovskaya volost’» (Pytalovo District)«Gavrovskaya volost’» (Pytalovo District)

«Vasilyevskaya volost’» (Palkino District)«Vasilyevskaya volost’» (Palkino District)

Pskov RegionPskov Region

Pskov Region is located in the North-West of the Russian Federation. It covers 55,3 thousand km2. The population of Pskov Region is about 750 thousand people. There are 2 big cities in the region: Pskov (200 thousand people) and Velikie Luki (100 thousand people) and 24 districts (28 municipalities, 28 urban and 192 rural settlements)

There is an:

• internal border with Novgorod and Leningrad Regions in the North-West and with Tver and Smolensk Regions in the South-East;

• external border with Belarus (352 km long), Estonia (249 km) and Latvia (270 km).

The region is a tourist link joining the tourist facilities of the North-West and Central parts of Russia. The region is situated at the crossroads of highways and railways connecting Moscow with Riga and Tallinn and St.-Petersburg with Riga and Kiev. Pskov is located relatively close to such big cities as St.-Petersburg (280 km), Tallinn (280 km), Riga (260 km) and Moscow (650 km).

PopulationPopulation  2000 2005 Difference, %

The Russian Federation, mln. people 146,3 142,8 -2,4

North-West Federal District, thousandpeople

14199 13628 -4,0

Kareliya Republic 729 698 -4,3

Komi Republic 1043 985 -5,6

Arkhangelsk Region 1369 1291 -5,7

Vologda Region 1290 1235 -4,3

Kaliningrad Region 957 940 -1,8

Leningrad Region 1680 1644 -2,1

Murmansk Region 923 865 -6,3

Novgorod Region 710 665 -6,3

Pskov Region 782 725 -7,3

Saint-Petersburg 4715 4581 -2,8

PPopulation opulation FForecastorecast in the Region in the Region

Years Total Urban population

Rural population

Labour Force

2010 683,7 469,0 214,7 425,2

2015 634,8 446,0 188,8 370,9

2020 562,4 415,1 147,3 305,3

Analysis of Social and Economic Analysis of Social and Economic Situation in the Districts of Situation in the Districts of

Pskov RegionPskov Region

In 1991-2005 rural population has shown the decline in all the spheres for the period of market reforms

Urban population has decreased by 7.8% from 535.1 thousand people to 493.4 thousand people

In 1990-2004 sown areas has decreased twice from 841.4 thousand hectare to 360.3 thousand hectare

FFactor actor AAnalysisnalysis of T of Transformationalransformational Dynamics in the Economy of the DistrictsDynamics in the Economy of the Districts

The main reason of decline of basic industries is the crisis of traditional fields of specialization, primarily, in agriculture.

In the pre-reform period the cooperation system between settlings of various hierarchical level was destroyed

The basis of the local economy was agriculture

Existing Development StrategiesExisting Development Strategies

Social and economic situation in the districts of Pskov Region is developing by inertia scenario under the influence of external factors

Territorial Territorial Strategic PlanningStrategic Planning

Strategic planning has been used on the corporate and territorial levels since 1990s when stability in economic and social spheres was achieved

Problems:

the system of budget relations and instability of tax legislation lead to improper use of existing resources and promote use of upper budgets in solution of territorial problems

inertness of the territorial social and economic processes, caused by diversity of incomes and support measures, partly conceal the crisis of the territories that becomes apparent in degradation of existing resources and sharp fall of standard of living

The Necessity of Strategic The Necessity of Strategic Planning in Pskov RegionPlanning in Pskov Region

Further degradation of traditional industries of specialization

Inefficiency of inertia strategy even in the conditions of economic growth

Specialists understanding the necessity and importance of strategic planning who were trained and got experience within the Federal Projects

The CThe Conceptiononception of Social and of Social and Economic DevelopmentEconomic Development

Initial evaluation of social and economic situation

Strategic goal-setting of social and economic development

Choice of economic growth poles

Development of basic directions of social and economic policy

Development of policy’s implementation mechanisms

Initial Evaluation of Social and Initial Evaluation of Social and Economic SituationEconomic Situation

Reevaluation of the importance of natural resources in economic development

Problems arose in analysis and evaluation of financial, investment and labour potential

Problems in evaluation of natural resources and their proper use promote orientation on the regional budget (most settlings put subsidies from the regional budget in the first place but search of investor and use of own resources still remain in the second place)

Strategic Goal-setting of Social Strategic Goal-setting of Social and Economic Developmentand Economic Development

The objective of all the concepts is to improve the living standard of the population, but it is not structurized and it has declarative character

Settlings put a special emphasis on support of some enterprises and projects only but not on stimulation of business activity and reconstruction of the economy

Choice of Economic Choice of Economic Growth PolesGrowth Poles

Agriculture

Timber felling and wood-processing

Food industry

Light Industry

Tourism

AgricultureAgriculture

In spite of the crisis in agriculture it is still one of the leading branches of the economy on the number of people involved in it (16,5%) in the region

Its input Gross Regional Product is 10%

Dairy industry is considered to be perspective

Agriculture is supported with the National Project

Timber Felling and Timber Felling and Wood-processing (1)Wood-processing (1)

Total wood area in Pskov Region is about 40% of the territory

Total wood reserves are approximately 250 million m3 (45% - coniferous forests, 35% - birch forests)

The resources allow felling up to 3,5 million m3 of timber yearly (30% - coniferous forests), but at present only 25-30% of possible volume is processed

Timber Felling and Timber Felling and Wood-processing (2)Wood-processing (2)

Due to the Programme of social and economic development of Pskov Region, pulp and paper mill (output 600 thousand tons per year) may become the core of wood-processing cluster

It requires raw materials – approximately 1,5 million m3 per year (mostly aspen)

1400 working places will be created to start up the mill and provide it with raw materials

Food industryFood industry

is closely connected with agriculture

is included in dairy industry

has capacious markets

is characterized as stable

Light IndustryLight Industry

Light industry is considered to be an economic growth pole in 11 districts of Pskov Region

Light industry as well as food industry and machine-building are traditional industries of specialization for Pskov Region

Construction Materials Construction Materials ProductionProduction

The potential of resources for construction materials production is one of the most significant in the Pskov Region

Only 4 districts included production of construction materials into their strategic plan

TourismTourism

Tourism is characterized by a multiplicative effect for the local economy

Pskov Region has all the conditions for developing tourism

There is a necessity to create infrastructure for tourism development

Development of Policy’s Development of Policy’s Implementation MechanismsImplementation Mechanisms

Development of corporate cooperation

Support of entrepreneurship

National projects

Involvement of migrants into the local economy

Deepening cooperation between municipalities

Resources of educational institutions

The project started in June 2006

3 pilot territories (rural settlements) were chosen:

Pogranichnaya volost’ (the Krasnogorodsk District)

Gavrovskaya volost’ (the Pytalovo District)

Vasilyevskaya volost’ (the Palkino District)

HinterLand Project in HinterLand Project in Pskov Region (1)Pskov Region (1)

Regular meetings of the representatives of Pskov State Polytechnic Institute with Pskov Region Administration and project coordinators

Constant cooperation and information exchange with pilot territories (by telephone, fax and e-mail)

Preliminary factor analysis in pilot territories development (Methodology Table)

Draft SWOT of pilot territories (Advantages / Disadvantages in Methodology Table)

Study visits to pilot territories for meeting people, getting information at place, arranging seminars

Series of regular expert meetings at Pskov State Polytechnic Institute

Definition of priority strategic development directions of pilot territories and resources of the territories (Drafts of the strategic development directions)

HinterLand Project in HinterLand Project in Pskov Region (2)Pskov Region (2)

Scientific and practical conference «Strategic planning and developmentsources of municipal institutions» (Pskov, 21-22 December 2006)

45 participants from Pskov Region (including participants from 3 pilot territories), Pskov Region Administration, Pskov State Polytechnic Institute, the Ministry of Economic Development and Trade of Russia, Russian scientific centre on state and municipal management, Saint-Petersburg Academy of Management and Economics

The following questions were discussed at the event: Federal policy in strategic planning in regions and municipalities of

Russia Strategic planning in municipalities in new legal conditions Innovative resources in strategic development of settlings Municipalities’ cooperation as an instrument of strategic development

As the result, drafts of the strategic development directions were worked out during the conference.

HinterLand Project in HinterLand Project in Pskov Region (3)Pskov Region (3)

HinterLand Project in HinterLand Project in Pskov Region (4)Pskov Region (4)

Gavrovskaya volost’ (the Pytalovo District)

It is planned to develop the following directions:

Economica. Effective use of natural resources (peat, sand, gravel,

wood-felling, animal farming)b. Infrastructure development (cafes, service centres along

the highway etc)Social (new working places, income increase)Cultural (tourism)Ecological (environment protection programme)International cooperation with Latvia (Malnava)

HinterLand Project in HinterLand Project in Pskov Region (5)Pskov Region (5)

Pogranichnaya volost’ (the Krasnogorodsk District)

It is planned to build a new customs terminal at the borderwith Latvia.

It is planned to develop the following directions:

1. Increase of building materials/ production (including for road-building needs)

2. Cultural tourism (Lyamonov Park is a natural historical area connected with A. Pushkin.)

3. SMEs development 4. Flax production including for the needs of military-

industrial complex of Russia.

HinterLand Project in HinterLand Project in Pskov Region (6)Pskov Region (6)

Vasilyevskaya volost’ (the Palkino District)

It is planned to develop the following directions:

1. Effective use of natural resources (timber production, pulp and paper production)

2. Agriculture development and income increase in the industry (animal husbandry, land plots to farmers and agricultural enterprises)

3. Tourism (sport activities, recreational and cultural tourism)

Further steps

Continue active cooperation with all the parties involved in the project

Continue developing strategic plans for pilot territories

Host a HinterLand Forum in Pskov (Autumn 2007)

Approve the developed strategic plans by representative authorities of pilot territories

HinterLand Project in HinterLand Project in Pskov Region (7)Pskov Region (7)

Thank you for your attention!Thank you for your attention!