R ole and potential small and medium-sized urban areas Latvia’s case

1. Role and potential small and medium-sized urban areasLatvia’s case Indra Ciuksa The Ministry of Environmental Protection and Regional Development 04.12.2014.

2. Definition of SMUAs • No common definition at EU level - multiple definitions are in use: • New OECD-EC definition is 50-100 thousand inhabitants for small cities, 100-250 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 citiesandtowns, 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 Income tax per inhabitant in local municipalities budget

5. Balanced network of centres – potential for polycentric development

6. 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

8. Challenges of Latvia’s development centres • Economical and social: • high unemployment, increasing poverty rate • insufficient business environment and infrastructure, need for new jobs • lackof 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of heating networks that causes high heat losses • incomplete use of centralized water supply services, in some cases outdated infrastructure networks

9. Regional policy in Latvia • Development planning and policy documents: • Sustainable Development Strategy 2030 • National Development plan 2014 - 2020 • Regional Policy Guidelines 2013- 2020 • Oriented on unlocking the potentialof 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

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

12. Role and potential ofurban areas (I) • International development centre (1) • CapitalRiga, 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 ofurban 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 continuespecialization, developing mutually supplementing co-operation, thus achieving the attraction of human resources and economic activity equal to development centres of national significance

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. Thank you!