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Methodological issues of working out strategies for HL in the Pskov Region

This project discusses the methodological issues of developing strategies for hinterland development in the Pskov Region. It explores the economic development indicators, transformational dynamics, typology of municipalities, and the necessity of strategic planning in the region.

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Methodological issues of working out strategies for HL in the Pskov Region

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  1. Project part-financed by the European Union (ERDF) HINTERLAND FORUM Pskov 6-7 September, 2007 Methodological issues of working out strategies for HL in the Pskov Region «Pogranichnaya volost’» (Krasnogorodsk District) «Gavrovskaya volost’» (Pytalovo District) «Vasilyevskaya volost’» (Palkino District)

  2. Pskov 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 700 thousand people. There are 2 big cities in the region: Pskov (200 thousand people) and Velikie Luki (100 thousand people) and 24 districts (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 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).

  3. Population

  4. Population Forecast in the Region

  5. Basic Indicators of Economic Development in Pskov Region • The main industries of the Pskov Region economy are: manufacturing – 19.7 %, agriculture and forestry – 17.4 %, trade and catering – 14.5 %, and construction – 6.8 %. • Manufacturing is represented by approx. 1500 enterprises. The leading industries are machine-building, food and power supply. • There are more than 300 agricultural companies, 1400 farms and 130 thousand individual farms. The leading industries are flax cultivation, milk and meat production, vegetable- and potato-growing. • 16,5 % of people is engaged in agriculture, almost 60 % of labour potential is involved in farming • Foreign trade brought in $733 million in 2005, including export – $403.2 million, and import – $329.8 million. More than 10% of Russia’s stream of supply is carried out through Pskov region.

  6. Social and economic situationin the Districts of Pskov Region • In 1991-2005rural population has decreased by 21% from 307,8 thousand peopleto 243,3 thousand people • Urban population has decreased by 7,8% from 535,1 thousand people to 493,4 thousand people • Negative demographic tendency – natural population loss in rural areas 2,5 times increases population loss in cities that causes decrease of labour potential in rural territories • In 1990-2004 sown areas has decreased twice from 841,4 thousand hectare to 360,3 thousand hectare

  7. Factor Analysis of Transformational Dynamics in the Economy of the Districts • The main reason of degradation in all the spheres is the crisis of traditional industries of specialization, primarily, in agriculture • In the pre-reform period the cooperation system between districts and all kinds of settlements was established • The basis of the local economy was agriculture

  8. Typology of municipalities of the Pskov Region (population and income, 1990)

  9. Situation in the beginning of the reforms • Income of the population is in the range 230-250 Rubles. • Minimal income is in 2 districts – Gdovskiy and Sebezhskiy • The group of the territories of highest income consist of big cities, highly populated cities and suburban districts

  10. Typology of municipalities of the Pskov Region (population and income, 2001)

  11. The situation in 2001 • Indicators of 3 districts significantly decreased – Palkinskiy, Velikolukskiy, Pskovskiy • 2 distrcits increased their indicators – Sebezhskiy and Dedovichskiy

  12. Typology of municipalities of the Pskov Region (population and income, 2005)

  13. Existing Development Strategies • Social and economic situation in the districts of Pskov Region is developing by inertia scenario under the influence of external factors • Less attention is paid to the strategic choice of settlements in new economic conditions and development of cooperation between settlements of various level

  14. Territorial Strategic Planning • Strategic planning has been used on the corporate and territorial levels since the end of 1990s when stability in economic and social spheres was achieved • Problems: • irregularity of the budget relations system and instability of tax legislation lead to improper use of existing resources and promote use of upper budgets in solution of territorial problems • inertnessof the territorial social and economic processes, caused by diversity of incomes and support measures, partly conceal the “bankruptcy” of the territories that becomes apparent in degradation of existing resources and sharp fall of standard of living

  15. The Necessity of Strategic Planning in Pskov Region • Further degradation of traditional industries of specialization • Inefficiency of inertia strategy even in the conditions of economic growth • Appearance in Pskov Region specialists understanding the necessity and importance of strategic planning (were trained and got experience within the Federal Projects)

  16. The Conception of Social and Economic 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

  17. Initial Evaluation of Social and Economic 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)

  18. Territorial potential and efficiency of its use • At the present moment there is no common understanding of the potential of the territory • In scientific literature idea of economic aspect of the potential is discussed that is understand as a “totality of resources” • It is necessary to use social and economic potential but not economic potential, as only social and economic potential characterizes opportunities of strategic development and use of all the resources

  19. Structure of social and economic potential • Basic resource potentials of the territory (natural, economic and geographical, demographic); • Potentials which provide development(labour, industrial, social, infrastructural, budget, investments); • Potentials which may cause economic reforms (staff, social and psychological, legal, scientific and methodological)

  20. Strategic Goal-setting of Social and 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 • Municipalities lay special emphasis on support of some enterprises and projects only but not on stimulation of business activity and reconstruction of the economy

  21. Typology of the volost’ in demography and economy

  22. Typology of the volost’ in demography and economy

  23. Choice of Economic Growth Poles • Agriculture • Timber felling and wood-processing • Food industry • Light Industry • Tourism

  24. Agriculture • In spite of the crisis in agriculture it is still one of the leading industries of the economy on the number of people involved in it (16,5%) in the region • Its input in Gross Regional Product is 10% • Dairycluster is considered to be perspective • Agriculture is supported with the National Project

  25. Timber Felling and Wood-processing (1) • Total wood area in Pskov Region is about 30% 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

  26. Timber Felling and 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

  27. Food industry • is closely connected with agriculture • is included in dairy cluster • has capacious markets • is characterized as stable

  28. Light 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

  29. Construction Materials Production • 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

  30. Tourism Tourism is characterized by a multiplicative effect for the local economy Pskov Region has sufficient potential for developing tourism There is a necessity to create infrastructure for tourism development

  31. Development of Policy’s Implementation Mechanisms • Development of corporate cooperation • Support of entrepreneurship • Using resources of National projects • Involvement ofmigrants into the local economy • Deepening inter municipal cooperation • Using resources of educational institutions

  32. Peculiarities of the Russian approach to strategic territorial planning Strategic planning is a specific kind of management the core of which is in development of strategic decisions with such objectives and strategies realization of which provide their effective functioning in the long-term perspective and fast adaptation to changing conditions. Characteristic features: • Estimates and forecast s of internal and external environment; • Factor analysis influencing on the development perspectives; • Focus on middle- or long-term perspective; • Orientation on key objectives influencing on the further development of the system; • Taking into consideration of resources required for the achievement of the objectives

  33. Stages of strategic planning on the municipal level • Strategic analysis of the starting point and basic preconditions of social and economic development of municipalities; • Giving prove to the strategic choice, objectives, priorities and mechanisms of their implementation; • Preparation of management decisions on achievement of objectives and priorities in the form of the conception of the strategic development, social and economic development programmes, investment projects; • Monitoring of strategic choice realization and objectives’ achievement

  34. Strategic development papers • Conception of complex social and economic development (of the region or municipality)is prognostic and analytical paper including the system of ideas on the strategic choice, strategic objectives and priorities of the territories’ development, basic conditions of the strategy and social and economic policy on various aspects and resources of the set objectives achievement. • Program on complex social and economic development (of the region or municipality) – is conception’s realizing paper where information on the resources, actors, time of implementation directed on the objectives achievement and realization of the strategic choice. • Strategic plan is a short paper of representative character which includes projects directed on realization of priority functions set out as a strategic choice.

  35. States of conception’s on social and economic development in the regions of the Russian Federation • 1 – working out basic ideas of the conception of strategic development in the region of Russia (short variant); • 2 – dissemination of the worked out materials in municipalities included into the region; • 3 – working out conceptions of municipal development by municipalities; • 4 – agreement and correction of the worked out conceptions, their approval; • 5 – working out of conceptions of strategic development of the region of the Russian Federation

  36. A sample of the conception of municipality’s strategic development (beginning) 1. The starting point of the strategic development • general characteristic and its role in the region’s development; • integral estimations of basic social and economic situation and preconditions of the municipality’s development; • basic problems; • internal resources; • external factors determining municipality’s development; • analysis of life quality of the population; • analysis of potentials’ use; • analysis of ecological situation; • analysis of economic situation; • management system’s conditions 2. Strategic objectives of social development • level of health and life interval; • life level of the population; • way of life of the population; • parameters of ecological situation 3. Strategic choice of municipalities • perspective directions of economic activities; • factor analysis; • activities included into strategic choice.

  37. 4. Strategic choice of settlements 5. Strategic objectives of economic development 6. General mechanism of the conception’s implementation 8. A list of top-priority measures 9. Projects 7. Basic ideas of local social and economic policy Social policy Health protection policy Safety securing policy Social support policy Social adaptation of young people policy Education policy Culture sphere policy Services policy Housing policy Housing services policy Recreation policy Transportation policy Social policy Other Ecological policy Economic policy Financial policy Economy’s diversification policy Resources’ integration policy Entrepreneurship support policy Conversion policy Investment policy Partnership relations policy Intermunicipal cooperation policy Other A sample of the conception of municipality’s strategic development (continuation)

  38. The function of social and economic development program • Firstly, it helps to solve major problems of complex social and economic development of the municipality; • Secondly, it helps to set out objectives (usually for the period of 2-5 years); • Thirdly, it gives a chance to combine interests of various actors in the process of solution of the municipality’s development problems based on the idea of social partnership

  39. Tasks solved in the program of social and economic development of municipalities • General objectives of complex social and economic program for the period of its implementation are defined; • Basic problems are specified, “second level” objectives and tasks as well as projects are singled out; • A system of measures directed at implementation of defined objectives and tasks is worked out (priorities, resources etc. are defined)

  40. Sample structure of program on social and economic development of municipality (beginning) 1. Summary • 1.1. Starting point and preconditions of municipality’s development • 1.2. Program objectives and social and economic development priorities • 1.3. Strategic choice • 1.4. Program objectives and key priorities of economic development • 1.5. Basic activities and projects • 1.6. Financial sources of the program’s implementation 2. Life quality • 2.1. health protection of the population • conditions for development of physical training culture and sports • other • 2.2. Protection of socially not protected groups of the population • help within the federal law on guardianship • solution of housing problems of poor groups of the population • other • 2.3. Accomplishment and planting of greenery in the territory • gabage and wastes removal; • ccomplishment and planting of greenery in the territory; • use and protection of woods; • outdoor lighting organization; • use and building of roads, bridges and other engineering constructions; • organazation of ritual services; • other

  41. Sample structure of program on social and economic development of municipality (continuation) • 2.4. Fire safety securing and liquidation of emergency situations • Fire safety securing at the borders of municipalities; • Participation in anticipation and liquidation of emergency situations; • other • 2.5. Education and culture • libraries; • spare time activities; • arranging places for the rest of the population; • monuments’ protection of local importance; • other • 2.6. Housing services, energy and transportation • keeping in order and building new houses; • creation of conditions on building new houses; • organization of electro-, heat, gas, water supply of the population; • creation of conditions on provision of transportation services; • transportation services • other • 2.7. Communication, trade and services • creation of conditions on provision of communication services; • creation of conditions on provision of food services; • creation of conditions on trade development; • creation of conditions on provision of services; • other • 3. Realization of the strategic choice • 3.1. Measures on organizational, legal, information and staff securing • 3.2. Origination projects • infrastructural projects; • participation in district and regional projects • 3.3. Investment projects

  42. Sample structure of program on social and economic development of municipality (ending) 4. Economy’s development • 4.1. stimulation and development of municipal sector • 4.2. development of the market economy directed at solution of issues of municipal importance • 4.3. development and support of entrepreneurship • 4.4. securing of realization of municipal economic policy • 4.5. other 5. Spatial planning and land use • 5.1. building up planning • 5.2. zoning • 5.3. land use control • 5.4. other 6. Intermunicipal cooperation • 6.1. creation of intermunicipal organizations • 6.2. participation in network cooperation • 6.3. other 7. Participation in international, national and regional programs and projects 8. Development management • 8.1. staff training • 8.2. regulation of relations with authorities • 8.3. cooperation of interests of business, authorities and local population • 8.4. creation of up-to-date image of the municipality and its marketing • 8.5. scientific and research projects on municipality’s development • 8.6. Other

  43. Sample structure of program on social and economic development of municipal district (beginning) 1. Summary • 1.1. Starting point and preconditions of municipality’s development • 1.2. Program objectives and social and economic development priorities • 1.3. Strategic choice • 1.4. Program objectives and key priorities of economic development • 1.5. Basic activities and projects • 1.6. Financial sources of the program’s implementation 2. Life quality • 2.1. health protection of the population • conditions for development of physical training culture and sports • other • 2.2. Protection of socially not protected groups of the population • help within the federal law on guardianship • solution of housing problems of poor groups of the population • other • 2.3. Accomplishment and planting of greenery in the territory • gabage and wastes removal; • ccomplishment and planting of greenery in the territory; • use and protection of woods; • outdoor lighting organization; • use and building of roads, bridges and other engineering constructions; • organazation of ritual services; • other

  44. Sample structure of program on social and economic development of municipal district (continuation) • 2.4. Fire safety securing and liquidation of emergency situations • Fire safety securing at the borders of municipalities; • Participation in anticipation and liquidation of emergency situations; • other • 2.5. Education and culture • libraries; • spare time activities; • arranging places for the rest of the population; • monuments’ protection of local importance; • other • 2.6. Energy and transportation • organization of electro-, heat, gas, water supply of the population; • creation of conditions on provision of transportation services; • transportation services • other • 2.7. Communication, trade and services • creation of conditions on provision of communication services; • creation of conditions on provision of food services; • creation of conditions on trade development; • creation of conditions on provision of services; • other • 2.8 Ecological situation and environment protection • environment protection activities; • ecological control; • other 3. Realization of the strategic choice • 3.1. Measures on organizational, legal, information and staff securing • 3.2. Origination projects • infrastructural projects; • participation in district and regional projects • 3.3. Investment projects

  45. Sample structure of program on social and economic development of municipal district (ending) 4. Economy’s development • 4.1. stimulation and development of municipal sector • 4.2. development of the market economy directed at solution of issues of municipal importance • 4.3. development and support of entrepreneurship • 4.4. securing of realization of municipal economic policy • 4.5. other 5. Spatial planning and land use • 5.1. building up planning • 5.2. land use control • 5.4. other 6. Intermunicipal cooperation • 6.1. presentation of the district’s interests in the organs of government • 6.2. creation of intermunicipal organizations (municipal districts'’ council, intermunicipal projects, agreements, other) • 6.3. participation n network cooperation (national, regional and thematic organizations, others) • 6.4. participation in international cooperation (twin-cities cooperation, international economic organizations, associations, others) • 7. Participation in international, national and regional programs and projects 8. Development management • 8.1. staff training • 8.2. regulation of relations with authorities • 8.3. cooperation of interests of business, authorities and local population • 8.4. creation of up-to-date image of the municipality and its marketing • 8.5. scientific and research projects on municipality’s development • 8.6. Other

  46. Possible sources for financing projects of social and economic development program • local budget; • budgets of other municipalities; • regional budgets; • federal budget; • Investing resources of enterprises, external and native investors; • credits; • sources of foundation and grants; • other financing sources

  47. Thank you for your attention!

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