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Tornio-Haparanda May 26th, 2005

Economic and geopolitical situation

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Outline

IntroductionComparing statistics: population, area, unemploymentPresentation of Survey results for the single cities

- Görlitz/Zgorzelec - Narva/Ivangorord - Imatra/Svetorgorsk - Haparanda/ Tornio - Frankfurt-Oder/Slubice

Discussion

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Introduction

“The development of border regions and the level of cooperation across borders is heavily dependent on the general political climate“

“The younger the border the more influence has the traumatic experience“

“Strong objectives for close co-operation are the inequality of resources, the marginal location and a small size of the cities.

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Population in the City Twins

Görlitz

Zgorzelec

Narva

Ivangorod

Frankfurt/Oder

Słubice

Imatra

Svetogorsk

Tornio

Haparanda

0

10000

20000

30000

40000

50000

60000

70000

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Area(km²) of the City Twins

67,2

15,86

84,54

66147,61

19,2

191,6

13,1

1183

918

0

200

400

600

800

1000

1200

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Unemployment (%) in the City Twins

Görlitz

Zgorzelec

Narva

Ivangorod

Frankfurt/Oder

Słubice

ImatraTornio Haparanda

0

5

10

15

20

25

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Görlitz/ Zgorzelec

G örlitz

P ieńsk

S zczec in 35 0 km

W ro c³aw 160 km

B erlin 220 km

D resden100 km

P raha150 km

Bolesław iec

Zaw idów

Bogatynia

Lubań

Ż arska W ieś

Jelenia G óra

A4

A4

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Görlitz

• Border since 1945, EU frontier east EU internal frontier• Poland, Germany and Czech• Population: 57 677 Unemployment: 24%• Population: 1990-2003age <15: 19,2% to 10,6% (- 80%) age >65: 15,7% to 22,8%

(+30%)• application for the title „European culture capital 2010“

together with Zgorzelec• Historic, cultural centre draw tourists inflow of money• Diversity of educational institutions; Language education• Excellent infrastructure• 3400 SMEs, several support and subsidy programs

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SWOT-Analysis Görlitz

Strength1- open-minded population2- tourism, 2 important companies 3- good infrastructural conditions 4- Qualified young people

1=population,2=economic development,3=Infrastructure 4=HR

Weaknesses1- migration, high age-average2- 24% unemployment3- big distance4- Migration

Opportunities1- EU enlargement, development of education2- EU-extension as a chance to establish new companies3- Görlitz/ Zgorzelec as one town4- Good conditions for companies

Threats1- migration, bad economic situation2- insignificant town on the way between Dresden and Breslau3- to have to shrink the infrastructure4- Possible to sustain good conditions?

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Zgorzelec• Border since 1945, EU frontier east EU internal frontier• Poland, Germany and Czech• Population: 33800 Unemployment: 14%• Population: 1995-2003age <15: 15,8% to 18,93% (+17%) age >65: 14,0% to 16,27%

(+14%) notice! Increase in percentage of young people• Employment: 55,9% in industry and building sector; 23,1%

services; 20,65% public administration• Educational institutions/ cultural associations• Excellent infrastructure• Main sectors of the economy: energetic sector , services• 6000 SMEs in the region (building, transport, trade)

supported by several organizations• National and international subsidy program• developed support network but missing incubators/ technology parks

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Strength1-reduction in Migration balance2- Great number of small businesses3- Green and recreational area4- young people

1=population,2=economic development,3=Infrastructure 4=HR

Weaknesses1- Low increase in birth-rate2- Industry monoculture3- Lack of investment area4- low education of young people

Opportunities1- Improving living conditions2- Development of service sector 3- develop the green and recreational area 4- Create new jobs

Threats1- Stagnating economic growth2- Inefficient capital investment3- inefficient financial aid from external source 4-Inconsistent economic & educational policy

SWOT-Analysis Zgorzelec

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Narva/ Ivangorod

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Narva

• Border since 1991, Non EU Frontier East EU Frontier East (EU Financing)

• Population: 70000 Unemployment: 8,2%• 55,7% female population (through clothing industry)• Population: 1990-2003age <15: 22,1% to 17,7% (-20%) age >65: 8,0% to 16,0%

(+100%)• Educational institutions/ cultural events and organizations• Important transit and border station from Russia to Estonia

and Scandinavia• 2998 SMEs ; 60,9% registered as sole-proprietors 40% trade companies, 14% services• Main industries: textile industry; power engineering• SME support through national and regional/local

organizations; EU funding Enterprise Estonia

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Strength-transport routes,-Cultural traditions, memorials, sights-two governments strive hard to cooperate under new conditions-Dense concentration of enterprises, constantly increasing

Weaknesses-High level of unemployment-difficulties in integrating Russian residents-Agreements of temporary character-potential and opportunities (industry& tourism) not used-passiveness in search for investments-no rulings and regulations for investors-costly visas

Opportunities-strengthen strategic importance as border region (EU-Russia)-encouraging investment into the city -develop general policies to attract investments-development of the structure for services-polish image restore sights-ease visa regulations

Threats-aging population-Narva as “pass-through” (Tallin, Sankt Petersburg)

-Deterioration and instability in the relations between the two states-low level of investment, outdated technologies, lack of dialogue btw SMEs and city authorities-toughening border crossing regulations

SWOT-Analysis Narva

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Ivangorod

• Border since 1991, Non EU Frontier East EU Frontier East • Population: 11900 Unemployment: 2,5% (decreasing)• Stable demographics: increasing birth-rates, decreasing

death-rates• Average monthly salary 2004: 4795 rubles (142 Euro)

increase in wages of 25% in 2003• Suitable infrastructure• 490 SMEs• Enormous increase in industrial output but due to one

enterprise only• 92,5% of total capital investments also made by Ltd. The

Trading House of Ivangorod • Partizipation in regional and international programs

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Imatra/ Svetogorsk

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Imatra• EU Frontier East• Population: 29728 Unemployment: ca 16,2%• Population: 1990-2003age <15: 16,7% to 14,9% (-11%) age >65: 14,3% to 20,3% (+42%)• Highest reduction in population in Finland (-10,7% since 1990)• Education: day-care centers, comprehensive and secondary schools, several museums and

libraries as well as cultural events on international basis• Infrastructure: daily trains to St. Petersburg and Moscow, functioning public transport and

highway access• Economy; main sectors: forestry, steel, communications, IT and the service industry (75% of

Imatra’s income from the paper making industry, mainly “StoraEnso”)• 1240 SMEs in the region (997 of them with less than 4 employees)• Cooperation through Entrepreneurs association, Chamber of Commerce and Russian trade club• Several SME support strategies and support organizations• EU funded subsidies for SMEs

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Strength1- High educated population possibilities2- change from producing to service industry3- well developed infrastructure, connection to Russia 4- Qualified workforce, good health care

1=population,2=economic development,3=Infrastructure 4=HR

Weaknesses1- aging population2- change is too slow, stagnating growth3- expansive maintenance of infrastructure4- not enough jobs for qualified people, high migration and unemployment

Opportunities1-bring in outside workers from Russia2-market the Russian markets, enhance research3- Use qualified resources, improve railway connections (raw material transport)4- create jobs for qualified workforce

Threats1- limited ability to bring in workers, early retirement2- decreasing population and tax incomes

3- Decreasing value of the infrastructure due to decreased funding 4- decrease of resources due to depopulation

SWOT-Analysis Imatra

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Tornio/ Haparanda

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Tornio• Border since 1809/ EU Internal Border• Population: 22198 Unemployment: 14,8% • Population: 1990-2003age <14: 23,0% to 19,5% (-15,2%) age >65: 11,0% to 14,0% (+27,3%)• Shares a local common history (over many generations) with Haparanda no prejudices• Unity of landscape, culture, population and language (Lapland)• Meänkieli (“our language”, 2000 declared official minority language) European Funding• Infrastructure: highway access (E4), nearby airport, railway to Sweden and Europe, common

bus connection with Haparanda• Education: Comprehensive and secondary schools, vocational schools, language school

together with Haparanda, 5 libraries and several museums annual cultural events• Main sectors of the economy: industry/processing, public services and trade• 1049 SMEs, support through Entrepreneurs associations, Chamber of Commerce as well as

the “NEO²“- and the “On the Border“ project• Incubators: industrial park “Mediapolis” together with Haparanda• One big employer; Outokumpu (biggest stainless steel plant in the world, 2300 emlpoyees)

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Strength1- High educational level2-successful companies (Outokumpu, Lapin Kulta)3- well developed infrastructure, located in the “meeting point” of the Barent Region and the Baltic sea 4- Qualified workforce

1=population,2=economic development,3=Infrastructure 4=HR

Weaknesses1- high Unemployment2- bad economy

4- not enough jobs for qualified people

Opportunities1-Migration has stopped2-new investments in the new common city centre3- construction of a new railway to the south4- create jobs for qualified workforce through “On the Border” project

Threats1- Aging population, new migration

4- lack of skilled labor in certain branches

SWOT-Analysis Tornio

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Haparanda• Border since 1809/ EU Internal Border• Population: 10346 Unemployment: 14,7%• Population: 1990-2003age <15: 18% to 16% (-11,2%) age >65: 18% to 19% (+5,6%) !notice: evenly weighted amounts of young and old• Shares a local common history (over many generations) with Tornio no

prejudices• Unity of landscape, culture, population and language (Lapland)• Almost 40% Finns in Haparanda• Infrastructure: highway access (E4), nearby airport, railway to Finland and

Russia, common bus connection with Tornio• Education: Comprehensive and secondary schools, language school

together with Tornio, university courses• Main sectors of the economy: private/public services,

retail/restaurant/hotel and manufacturing• Ca 500 SMEs (many with origin or parent company in tornio/Finland),

support through Entrepreneurs associations, Chamber of Commerce and Almi (swedish support organization)

• Incubators: industrial park “Mediapolis” together with Tornio• Subsidies through national programms

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SWOT-Analysis Haparanda

Strength1- High educational level2-successful companies (Outokumpu, Lapin Kulta)3- well developed infrastructure, located in the “meeting point” of the Barent Region and the Baltic sea 4- Qualified workforce

1=population,2=economic development,3=Infrastructure 4=HR

Weaknesses1- high Unemployment2- bad economy

4- not enough jobs for qualified people

Opportunities1-Migration has stopped2-new investments in the new common city centre3- construction of a new railway to the south4- create jobs for qualified workforce through “On the Border” project

Threats1- Aging population, new migration

4- lack of skilled labor in certain branches

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Frankfurt-Oder/ Słubice

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Słubice

• Border since 1945, EU frontier east EU internal frontier • Population: 19694 Unemployment: 25%• Population: 2000-2003age <17: 24,42% to 23,09% (- 5,7%) age >65: 8,33% to 8,95% (+7%) notice! Relatively high percentage of young people• Education at all levels offered, Science Centre Collegium

Polonicum• Functioning but outdated infrastructure, railway, waterway,

E30, airports• SMEs: 3000 business support structures only in the

beginning (through private associations low national support)• Main sectors of economy: construction, logistics and transport,

services (restaurants, hotels, barbers)

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Frankfurt/Oder

• Border since 1945, EU frontier east EU internal frontier • Population: 66341 Unemployment: 19%• Population: 1995-2003age <17: 22,5% to 14,6% (- 35%) age >65: 9,5% to 17,4%

(+83%) notice! High emigration of young people from the city• Education at all levels (including handicapped), European-

University Viadrina• Cultural institutions and events throughout the year• Excellent infrastructure; 3 international airports, railways,

E30, waterways• SMEs: 3087; trade, transport, services• Many support associations (national, regional and private) but confusion about who does what too many actors• Intensive funding (EU, Germany, Brandenburg), subsidies• Well developed support structures subsidy

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Strength-well developed infrastructure/ industrial surface-Existing business support structures/ institutions- availability of funds- educated workforce-- good potential for agriculture

Weaknesses- difficulties in the marketing of these surfaces, weak industrial structure- missing co-operation between institutions- unsorted information about funding- drastic decrease in employment in industry and agriculture-- difficulties of regional products to enter the market

Opportunities- further development of existing structures, special economic zone- use of potential offered by institutions-gather and network the information-- improvement of cross border co-operation to use potential in agriculture

Threats-high cost of supply and disposal of technique, international competition bad circumstances for companies -Loss of funds due to lacking knowledge-- social conflicts, impoverishment of parts of the population

SWOT-Analysis Frankfurt/ Oder

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Thank you for your attention!

Presentation: Diana Hörauf