latvia 1 greg clark june 2012

1

Regional Development

Lessons for Latvia?

Greg Clark June 2012

Regional Development

Functional geography

Administrative system

Development model

21

Regional Development Tools

i. National Regional Dev Systems Poland / New Zealand

ii. Regional business/investment climate Switzerland

iii. Regional Strategic Planning Turin/Bilbao /Basel

iv. Regional Development Agencies Finland

v. Regional Development Systems Bizkaya / South Africa

vi. Regional Financial Institutions FinPiemonte

vii. Regional Marketing Alliances GWI

viii. Regional Enterprise Scottish Enterprise

ix. Regional Innovation Systems South Ontario

x. Regional University Networks Emilia Romagna

xi. Regional Investment Incentives Western Canada

xii. Regional Business Clusters New Zealand

xiii. Regional Business Leadership Seattle Trade Alliance

xiv. Inter regional co-operation Oresund region

A Re-Balanced World With No More Core and Periphery

5

The new mobility.....not just tourism

Increasing

Mobility

Visitors

Firms

Events & Festivals

Students

Investors

Institutions

Innovators

Entrepreneurs

Research

6

Human and Urban Development and Ecological Footprint by Country

7

HUMAN DEVELOPMENT AND ECOLOGICAL FOOTPRINT BY COUNTRY

8

WELL-DESIGNED

CITIES

Integrated Framework For City/Region Development

9

Pre-conditions

Business environment & investment

Educational and research

base

Land and physical

infrastructure

Social/ cultural infrastructure &

quality of life

Ecological base

Innovation & creativity

Industrial structure

Business ownership & mgt

Human capital

Connectivity

Use of resources

Productivity Population

Development and growth

Drivers

Global economy and Macro-economic

framework

Feedback effectsMarkets

Governance structure

Environ mgt

10

Traditional Regional Policies‘Regional Planning’1950s to 1990s

New Regional Policies‘Territorial Development’1980s to present

Objectives Balance national economies by compensating for disparities

Increase regional development performance

Strategies Sectoral approach Integrated development programmes and projects

Geog. focus Political regions Metro regions and eco regions

Target Lagging regions All regions - Metropolitan regions

Context National economy International economy and local economies

Tools Subsidies, incentives, state aids, and regulations

Assets, drivers of growth, soft and hard infrastructures, collaboration incentives, development agencies, co-operative governance, financial intermediation

Actors National governments and sometimes regional governments

Multiple levels of governments, private and civic actors. Implementation agencies. Collaborative governance

Requirements of the two models

Traditional

Political Orientation

Development within regions

Departmental approach: capable National Gov

Technical skills and administration

New

Market Orientation

Linkages between regions

Inter-Governmental appraoches, whole of Gov approach

Capable local/regional governance

Leadership and alliance building

11

A basic typology

1. Regional admin/gov with City-Regions.Germany, Italy, France, Spain.

2. Regional admin/gov without City-Regions.Poland, Netherlands, Portugal, Korea.

3. Strong Federal States, encouraging City-Regions without Regional Gov or nation wide policy.USA, Canada, Australia.

4. National-Local only; limited regions, no city-regions.Ireland, Greece,

20

The ‘Northern Way’

Integrated Framework For City/Region Development

21

Pre-conditions

Business environment & investment

Educational and research

base

Land and physical

infrastructure

Social/ cultural infrastructure &

quality of life

Ecological base

Innovation & creativity

Industrial structure

Business ownership & mgt

Human capital

Connectivity

Use of resources

Productivity Population

Development and growth

Drivers

Global economy and Macro-economic

framework

Feedback effectsMarkets

Governance structure

Environ mgt

Regional Development Leadership

1. National Gov Co-ordination and Innovation

eg Inter-ministerial commitment and discipline

eg Integrating National and EU Efforts

2. Regional level

Strategy development

Alliance building

Inter-regional system

3. Local level

Collaboration with neighbours

Prioritisation

Business and Investment friendliness

National Leadership

1. The biggest challenge in regional development is internal government co-ordination and alignment.

Cabinet Committees?

Super Ministries?

Shared targets?

2. 2nd challenge: how to deliver a co-ordinated effort.

regional co-ordination offices

joint programmes

joint strategies

3. The 3rd biggest challenge is integrating national and EU approaches.

Different competences. Gaps.

How to avoid being led by the money?

National Gov Ministries must become active partners. 231

Roles of Local Government

1. Representation.2. Services.3. Regulation.4. Development and Investment.

This 4th role is different...........requires additional expertise, and new structures and arrangements

Four roles of local government:

Local and Regional

What is really regional and local?

Capable local government, with enough scale and incentive to encourage development.

4th role of Local needs special arrangements.

Enough Regional Governance with competence and authority to lead and co-ordinate and achieve scale

251

How should national governments organise to support the regional development role of local government?

Imperatives...

• Delivery national and sectoral policies in a co-ordinated manner..... Beware unintended consequences

• Support convening city networks• Invest in data and evidence that reveal constraints

and opportunities• Deliver intercity and international transport

infrastructures and connectivity• Provide encouragement for metropolitan areas to

be recognised as the predominant organising boundary unit for local economies

• Foster complementary strategies that avoid competition between cities but increase competitiveness in international markets

27

Building the regional development system

i) Rowing ii) Steering

iii) Cheering

iv) Coaching

Regional Development Tools

i. National Regional Dev Systems Poland / New Zealand

ii. Regional business/investment climate Switzerland

iii. Regional Strategic Planning Turin/Bilbao /Basel

iv. Regional Development Agencies Finland

v. Regional Development Systems Bizkaya / South Africa

vi. Regional Financial Institutions FinPiemonte

vii. Regional Marketing Alliances GWI

viii. Regional Enterprise Scottish Enterprise

ix. Regional Innovation Systems South Ontario

x. Regional University Networks Emilia Romagna

xi. Regional Investment Incentives Western Canada

xii. Regional Business Clusters New Zealand

xiii. Regional Business Leadership Seattle Trade Alliance

xiv. Inter regional co-operation Oresund region

1. National Regional Development Systems

Poland Local and regional self government

Clear national co-ordination

Money serves strategy

New Zealand

Sector and spatial strategies

Co-ordinating ministry

Eco Dev and Infrastructure

Regional Offices of Government

291

2. Business and Investment Climate

Customer orientation

Reform 301

3. Regional Strategic Planning

Definition:

“Regional/spatial planning gives geographical expression to the economic, social, cultural and ecological policies of society.”

(European Regional / Spatial Planning Charter)

“It is at the same time a scientific discipline, an administrative technique and a policy developed as an interdisciplinary and comprehensive approach directed towards a balanced regional development and the physical organisation of space according to an overall strategy."

(European Regional / Spatial Planning Charter)

3. Origins of Strategic Planning

• Spanish Cities after Franco• Australian Cities catching up with sprawl.• EU cities in the context of EU enlargement• Chinese cities coping with rapid urbanisation

and metropolitanisation.• Japanese cities confronting climate change.

Tackling Crisis and Challenge is often the beginning.

32

3. Core features of Strategic PlanningShape the future or be shaped by it!

i. Shaping future growth management. Clear framework for market development and public investment. Understand the returns to the city and citizens form development.

ii. Integrated Efforts, mixture of tools, cross cutting issues.iii. Guiding other strategies and frameworks.iv. Based on Vision, foresight, and evidence.v. Incentivising external investment. Combines internal and

external rates of returns. Overcomes apparent tensions.vi. Setting standards and measurable targets.vii. Agreement between tiers of Government, providing

decisive outcome. Conformity. Joint Prospectus. Agreement.

viii. Consultation with stakeholders.ix. Implementation arrangements.x. Locate roles of different bodies.

3. Turin metropolitan strategic plan

City centre strategy Strategic themes of strategy Specific initiatives Strategy management

Phase 1 (1993-1997)

Urban renewal – rejuvenation of the city’s public realm and accommodation with a focus on the city centre area and adjacent areas.

Special Communication Project, ‘Luci d'Artista’, Film Commission Torino Piemonte, Invest in Turin and Piedmont Agency, 1st Strategic Plan, Torino Convention Bureau, Atrium project, Winter Olympics.

City of Turin, Piedmont Region, Torino Internazionale (Agency for Strategic Plan)

Phase 2(1998-2007)

Internationalising the city and consolidating and projecting the city’s new image and identity to the world. A focus on the city centre but not specific to it.

Hosting of culturally significant events such as: Torino World Design Capital and XXIII World Congress of Architecture (2008); Euroscience Open Forum (2010); Italia 150 (2011, celebrations of the Unification of Italy 150th anniversary)

City of Turin, Piedmont Region, Torino Internazionale (Agency for Strategic Plan), former Banking Foundations, University system, Italia 150 (committee for the organization of the 2011 celebrations). The Urban Centre Metropolitano.

Phase 3(2008-2011)

Turin as a ‘knowledge hub’

Special Communication Project, ‘Luci d'Artista’, Film Commission Torino Piemonte, Invest in Turin and Piedmont Agency, 1st Strategic Plan, Torino Convention Bureau, Atrium project, Winter Olympics.

City of Turin, Piedmont Region, Torino Internazionale (Agency for Strategic Plan)

4. Regional Development Agencies

Typology

Urban Development

and Revitalisation

Agencies

Productivity and

Economic Growth

Agencies

Integrated Economic Agencies

Internationalisat-ion

Agencies

Visioning and

PartnershipAgencies

Purpose “Place drivers”

“Employment and

productivity drivers”

“Place and productivity

leaders”

“Place and productivity promoters”

“Place -shapers and visioners”

Example Agency

4. Value added of Development Agencies

i. Aggregate otherwise disparate economic development efforts within one body that can generate real expertise and track record of delivery.

ii. Increase the pace of the local response to investors/developers.

iii. Enlarge the scale of the implementation that is possible, often by enabling delivery on multiple programmes and projects and simultaneously by commissioning additional resources quickly.

iv. Enhance the reputation and credibility of local ‘negotiators,’ giving an external investor confidence in the process of decision taking.

v. Find appropriate means to share costs and risks between those promoting developments and investments.

vi. Develop mechanisms for value and benefit capture, enabling some of the fruits of economic development to be recycled within city budgets and programmes.

4. Finland RDAs

371

Finnish RDAs

Clear national approach

Local Government and Business

Universities

Innovation and Business orientated

Advocacy in business climate and infrastructure

RDAs with no regional government.

5. Bizkaya: Regional Development System

6. Development Banks and Financial Institutions

i. Many regional development imperatives are neither wholly market fundable, nor justifying permanent subsidy.

ii. They can be seen as ‘niches’ where the use of mixed public/private, cash/equity, short-term/long- term financing is involved.

iii. To make this work ‘capable intermediaries’ are needed, special purpose financial institutions.

iv. Development Banks can build these niches, utilise their balance sheet to manage risks and spread innovation, and leverage external investment.

391

6. Building a regional development financial system.

i. National Development Bank.ii. Evolution of local and regional development finance

system to be a key focus.iii. Inter-ministerial co-ordination: national and at regional

level.iv. EU Structural Fund programme simplification.v. Regional level finance, budgets, and programming.vi. PPPs and Project Bondsvii. Municipal finance.viii. Inter-municipal collaborationix. Bankers co-ordinationx. Finance skills

41

7. The challenge for regional branding

04/11/2023 42 2011 Greg Clark

Brand

Activation

Experience

7. Regional marketingExamples: Washington, Basel, Miami/South Florida, Oresund, Puget SoundGreater Washington Initiative: strong example of an economic development promotion coalition. Free one-stop business consultancy that performs key market analysis as a promotional tool. Provides advocacy in improving the quality of the region’s infrastructure

Metro Basel: cross-border think-tank since 2008; shows the critical importance of civic and business involvement to complement the political engagement of usual government channels; has its own comic strip, highlighting regional strengths and weaknesses.

Southern Florida; three regional counties have worked towards developing a shared regional branding initiative; marketing brochures and DVDs promote area’s science and technology credentials to mostly North American audience

Vancouver/Seattle – Puget Sound region - dramatically improved coordination efforts thanks to 300 organisation public-private coalition dedicated to developing a common long-term economic strategy. Oresund – branding strategy since 1990s, backed by public transport infrastructure investment. Government and business representatives co-operate in art, culture and tourism sectors.

8. Regional Enterprise

441

9. Regional Innovation

451

10. Regional Universities

461

11. Regional Incentives

Tax system Costs

Momentum

Cluster building

EU rules

471

12. Regional Clusters

491

13. Regional Business Leadership

50

Negotiate Advocate with Gov

Attract & retention

Ent Reg collab

Bus know how

Comms & media CSR

Int best practic

e

Pay for activitie

s

X Party collab

Wider particip

14. Intercity networking and communication

Intercity Networks

e.g. South African Cities Network, South Africa (est. 2002)Mayors of SA’s 9 largest cities, National Government Departments, NGOs, the Private Sector and Universities.

“Review of the 2006-2011 Strategic Plan of the SACN” (2009)• In 2006/7, City Development Strategies for all large cities.• 6 knowledge exchange and networking events.

“Done well in keeping cities informed on emerging urban trends and policy but its impact on action within cities is not tangible”

“Should begin to consider performing a lobbying and advocacy role on behalf of cities”

latvia 1 greg clark june 2012

Technology