Analysis of Factors Influencing Local Governments Performance in Kurzeme Region. Dace Štefenberga Kārlis Krēsliņš Ventspils University College

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Analysis of Factors Influencing Local Governments Performance in Kurzeme Region Dace Štefenberga Kārlis Krēsliņš Ventspils University College

Kurzeme region within the map of Latvia

Ventspils University and Ventspils city

Challenges for territorially balanced development On macroeconomic level decrease of inequality between EU average and Latvia indicators (GDP, labour force, entrepreneurship) On Latvia level- to minimize development differences between Riga region and regions in Latvia or to define accordingly preferences for competitiveness for each region On regional level to ensure equal development within the whole region

Main tasks To minimize regional differences in the territorial development Defining regional competitiveness preferences Level: governance, public sector, companies in the local market, export orientated companies, inhabitants

Activities for solving tasks Research of situation within the region indicators of development, rate of development Selection of model to accurately evaluate the situation Determination of impacting factors and development of possible solutions and alternatives Creation of the appropriate model for each region

ES regulations and planning documents Information basis: EU legal acts and regulations European territorial cooperation and territorially specific models Legal regulations of Latvia EU and Latvia policy planning documents; Main aspects: Competitiveness and knowledge based economy Regional and country development Balanced and sustainable development model

Development of region and country Development of country is determined by equal development of all its territories and regions. OECD regional development Policy planning documents: European level Smart specialization strategy; Europe 2020, Latvian level: NDP 2014.-2020.; Latvia 2030, EU Structural funds policy Guidelines for development of science, technology and innovations; Guidelines for industrial policy Guidelines for regional development transition from subsidies to activization and strengthening of local resources Regional level strategies and action plans for regional development

ESPON CUBE model with three indicators I Geographical location - agglomeration centre -- agglomeration suburb -- rural close to urban -- rural far from urban II Area characteristics - Predominantly rural - PR (more than 50%) - Intermadiate IM ( 15 50%) - Predominantly urban PU (up to 15%) III Development rate - High - Above average - Below average - Low

Matrix of development level - rate II Low development level and high development rate Promising territories Rate I High development level and high development rate Leaders Level III IV Low development level High development level and and low development rate low development rate Territories behind Territories stepping back

Data table Local municipality 2009 2010 2011 2012 2013 Develop ment rate, % Average chain develop ment rate, % 2009 2010 2011 2012 2013 Growth rate, % Average chain groth rate, % Average develop ment rate Rate cluster Develop ment level, ranking Developm ent evaluatio n Aizputes Alsungas Brocēnu Dundagas Durbes Grobiņas Kuldīgas Mērsraga 65 72 73 75 79 122 105 13 14 16 18 22 171 115 147 2 70 z 67 82 89 95 111 165 114 13 15 18 25 33 263 128 214 4 38 a 50 51 53 57 64 127 106 14 15 17 19 23 162 113 144 2 53 z 44 50 52 56 60 136 108 16 15 17 17 20 124 106 130 1 52 z 95 108 116 109 111 116 104 12 12 16 21 23 189 118 153 2 43 z 55 60 60 62 69 127 106 18 18 19 21 25 139 109 133 1 37 a 61 67 65 66 73 119 105 20 20 22 24 29 148 110 133 1 64 z 37 27 37 39 48 129 110 23 24 26 27 36 155 112 142 1 14 a Nīcas 87 95 91 91 89 102 101 18 20 21 24 26 143 109 122 1 31 a Pāvilostas Priekules 76 83 81 87 94 124 106 17 15 21 24 31 180 118 152 2 67 z 77 88 89 91 95 124 106 8 9 12 12 15 191 118 157 2 83 z Rojas 44 47 41 41 49 111 103 24 28 26 27 31 130 107 121 1 27 a Rucavas Saldus Skrundas 92 111 113 113 125 135 108 9 14 16 18 24 266 128 200 4 74 z 67 68 71 73 85 127 106 24 24 25 28 33 139 109 133 1 32 a 52 57 59 57 66 126 106 15 15 17 18 22 148 111 137 1 92 z Talsu 63 68 70 69 76 121 105 22 23 25 26 30 136 108 129 1 42 z Vaiņodes 46 53 53 54 56 121 105 6 10 11 14 18 289 131 205 4 97 z Ventspils 53 57 57 57 62 118 104 18 18 20 20 25 144 110 131 1 49 z Number of economically active market sector statistical units per 1000 inhabitants Number of individual commersants and companies per 1000 inhabitants

Summary of results of speed cluster and development level Kurzeme region L = 214 121= 93 Increment = 93/4=23,25 Cluster #1 = 121 144 Cluster #2 = 145 167 Cluster #3 = 168 191 Cluster #4 = 192 214 Local government Cluster of rate Level of development Evaluation of development Grobiņas 1 37 a Mērsraga 1 14 a Nīcas 1 31 a Rojas 1 27 a Saldus 1 32 a Dundagas 1 52 z Kuldīgas 1 64 z Skrundas 1 92 z Talsu 1 42 z Ventspils 1 49 z Brocēnu 2 53 z Pāvilostas 2 67 z Priekules 2 83 z Durbes 2 43 z Aizputes 2 70 z Alsungas 4 38 a Rucavas 4 74 z Vaiņodes 4 97 z

Kurzeme region (development rate development level clusters) I Low rate High level Grobiņas 37 Mērsraga 14 Nīcas 31 Rojas 27 Saldus 32 II Rate below average High level Low level Dundagas 52 Kuldīgas 64 Skrundas 92 Talsu 42 Ventspils 49 III Rate above average High level Low level Low level Aizputes 70 Brocēnu 53 Pāvilostas 67 Priekules 83 Durbes 43 IV High rate High level Alsungas 38 Low level Rucavas 74 Vaiņodes 97

Summary of results of number of inhabitants and growth rate L = 32773 1592 = 31181 Increment = 31181/4=7795 Cluster #1 = 1592 9387 Cluster #2 = 9388 17183 Cluster #3 = 17184 24978 Cluster #4 = 24979 32773 Local municipality Number of inhabitants at the beginning of 2014 (Source: PMLP data) Cluster of number of inhabitants Cluster of growth rate Dundagas 4556 1 1 Mērsraga 1774 1 1 Nīcas 3697 1 1 Rojas 4236 1 1 Skrundas 5609 1 1 Brocēnu 6552 1 2 Durbes 3187 1 2 Pāvilostas 3017 1 2 Priekules 6211 1 2 Rucavas 1893 1 4 Alsungas 1592 1 4 Vaiņodes 2775 1 4 Grobiņas 9874 2 1 Ventspils 12890 2 1 Aizputes 9839 2 2 Kuldīgas 26017 4 1 Saldus 27239 4 1 Talsu

Kurzeme region (Number of inhabitants growth rate clusters) (from 1592 to 32773=increment 7795) 1 low growth rate; 4 high growth rate I Low number of inhabitants 1592-9387 Alsungas 4 Brocēnu 2 Dundagas 1 Durbes 2 Mērsraga 1 Nīcas 1 Pāvilostas 2 Priekules 2 Rojas 1 Rucavas 4 Skrundas 1 Vaiņodes 4 III One increment higher number of inhabitants 17184-24978) II One increment higher number of inhabitants 9388-17183 Aizputes 2 Grobiņas 1 Ventspils 1 IV One increment higher number of inhabitants 24979-32773 Kuldīgas 1 Saldus 1 Talsu 1

Selection of territory Recommendation to select for research Alsunga territory (high rate, high level, located in between large cities Ventspils, Kuldīga un Liepāja) and Rucava territory (high rate, low level, located at the borderline and close to Liepāja city and port).

Qualitative research Survey of executive directors of the municipalities Main questions: Evaluation of the overall economic situation in the country Successful utilization of EU structural funds (investment plans of local governments, competences of employees at local governments in development planning, project management and financial management) Survey on who can carry out sustainable development of the countryside (government as institutions, local governments (managers-employees), people living in the territory of local government)

SMART TERRITORY I Smart Economy - Industrial production - Agricultural production - Services II Smart People - Human capital -- Social capital III Smart Governance IV Smart environment - Social environment - Environment of nature - Infrastructure

MODEL FOR BALANCED SUSTAINABLE DEVELOPMENT OF TERRITORY WITHIN THE CONTEXT OF KNOWLEDGE ECONOMY High ratio of innovative entrepreneurship Exploitation of EU funds for fostering innovative entrepreneurship Innovative methods of governance Development of economic activities of SMEs Enlargement of favourable e- environment

Next steps Determination of factors which foster and restricts entrepreneurial activities, economical situation, growth rate and level of development Determination of smart development models Best practice examples of smart region and companies in the region Select indicators which characterize smart, sustainable development of Latvia regions in order to carry out detailed analysis of Kurzeme region Develop scenario-model for sustainable development for the Kurzeme region

THANK YOU FOR YOUR ATTENTION!