Development Strategies of Pilot Territories in Pskov Region

1
Development Strategies of Pilot Territories in
Pskov Region
HINTERLAND FORUM Denmark 26-27 February, 2007
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 750
  thousand people. There are 2 big cities in the
  region Pskov (200 thousand people) and Velikie
  Luki (100 thousand people) and 24 districts (28
  municipalities, 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 a tourist link joining the tourist
  facilities of the North-West and Central parts of
  Russia. 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
  2000 2005 Difference,
The Russian Federation, mln. people 146,3 142,8 -2,4
North-West Federal District, thousand people 14199 13628 -4,0
Kareliya Republic 729 698 -4,3
Komi Republic 1043 985 -5,6
Arkhangelsk Region 1369 1291 -5,7
Vologda Region 1290 1235 -4,3
Kaliningrad Region 957 940 -1,8
Leningrad Region 1680 1644 -2,1
Murmansk Region 923 865 -6,3
Novgorod Region 710 665 -6,3
Pskov Region 782 725 -7,3
Saint-Petersburg 4715 4581 -2,8
4
Population Forecast in the Region
Years Total Urban population Rural population Labour Force
2010 683,7 469,0 214,7 425,2
2015 634,8 446,0 188,8 370,9
2020 562,4 415,1 147,3 305,3
5
Analysis of Social and Economic Situation in the
Districts of Pskov Region

• In 1991-2005 rural population has shown the
  decline in all the spheres for the period of
  market reforms
• Urban population has decreased by 7.8 from
  535.1 thousand people to 493.4 thousand people
• In 1990-2004 sown areas has decreased twice from
  841.4 thousand hectare to 360.3 thousand hectare

6
Factor Analysis of Transformational Dynamics in
the Economy of the Districts

• The main reason of decline of basic industries is
  the crisis of traditional fields of
  specialization, primarily, in agriculture.
• In the pre-reform period the cooperation system
  between settlings of various hierarchical level
  was destroyed
• The basis of the local economy was agriculture

7
Existing Development Strategies

• Social and economic situation in the districts
  of Pskov Region is developing by inertia scenario
  under the influence of external factors

8
Territorial Strategic Planning

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

9
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
• Specialists understanding the necessity and
  importance of strategic planning who were trained
  and got experience within the Federal Projects

10
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 policys implementation mechanisms

11
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)

12
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
• Settlings put a special emphasis on support of
  some enterprises and projects only but not on
  stimulation of business activity and
  reconstruction of the economy

13
Choice of Economic Growth Poles

• Agriculture
• Timber felling and wood-processing
• Food industry
• Light Industry
• Tourism

14
Agriculture

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

15
Timber Felling and Wood-processing (1)

• Total wood area in Pskov Region is about 40 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

16
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

17
Food industry

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

18
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

19
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

20
Tourism

• Tourism is characterized by a multiplicative
  effect for the local economy
• Pskov Region has all the conditions for
  developing tourism
• There is a necessity to create infrastructure
  for tourism development

21
Development of Policys Implementation Mechanisms

• Development of corporate cooperation
• Support of entrepreneurship
• National projects
• Involvement of migrants into the local economy
• Deepening cooperation between municipalities
• Resources of educational institutions

22
HinterLand Project in Pskov Region (1)

• The project started in June 2006
• 3 pilot territories (rural settlements) were
  chosen
• Pogranichnaya volost (the Krasnogorodsk
  District)
• Gavrovskaya volost (the Pytalovo District)
• Vasilyevskaya volost (the Palkino District)

23
HinterLand Project in Pskov Region (2)

• Regular meetings of the representatives of Pskov
  State Polytechnic Institute with Pskov Region
  Administration and project coordinators
• Constant cooperation and information exchange
  with pilot territories (by telephone, fax and
  e-mail)
• Preliminary factor analysis in pilot territories
  development (Methodology Table)
• Draft SWOT of pilot territories (Advantages /
  Disadvantages in Methodology Table)
• Study visits to pilot territories for meeting
  people, getting information at place, arranging
  seminars
• Series of regular expert meetings at Pskov State
  Polytechnic Institute
• Definition of priority strategic development
  directions of pilot territories and resources of
  the territories (Drafts of the strategic
  development directions)

24
HinterLand Project in Pskov Region (3)

• Scientific and practical conference Strategic
  planning and development
• sources of municipal institutions (Pskov, 21-22
  December 2006)
• 45 participants from Pskov Region (including
  participants from 3 pilot territories), Pskov
  Region Administration, Pskov State Polytechnic
  Institute, the Ministry of Economic Development
  and Trade of Russia, Russian scientific centre on
  state and municipal management, Saint-Petersburg
  Academy of Management and Economics
• The following questions were discussed at the
  event
• Federal policy in strategic planning in regions
  and municipalities of Russia
• Strategic planning in municipalities in new legal
  conditions
• Innovative resources in strategic development of
  settlings
• Municipalities cooperation as an instrument of
  strategic development
• As the result, drafts of the strategic
  development directions were worked out during the
  conference.

25
HinterLand Project in Pskov Region (4)

• Gavrovskaya volost (the Pytalovo District)
• It is planned to develop the following
  directions
• Economic
• Effective use of natural resources (peat, sand,
  gravel, wood-felling, animal farming)
• Infrastructure development (cafes, service
  centres along the highway etc)
• Social (new working places, income increase)
• Cultural (tourism)
• Ecological (environment protection programme)
• International cooperation with Latvia (Malnava)

26
HinterLand Project in Pskov Region (5)

• Pogranichnaya volost (the Krasnogorodsk
  District)
• It is planned to build a new customs terminal at
  the border
• with Latvia.
• It is planned to develop the following
  directions
• Increase of building materials/ production
  (including for road-building needs)
• Cultural tourism (Lyamonov Park is a natural
  historical area connected with A. Pushkin.)
• SMEs development
• Flax production including for the needs of
  military-industrial complex of Russia.

27
HinterLand Project in Pskov Region (6)

• Vasilyevskaya volost (the Palkino District)
• It is planned to develop the following
  directions
• Effective use of natural resources (timber
  production, pulp and paper production)
• Agriculture development and income increase in
  the industry (animal husbandry, land plots to
  farmers and agricultural enterprises)
• Tourism (sport activities, recreational and
  cultural tourism)

28
HinterLand Project in Pskov Region (7)

• Further steps
• Continue active cooperation with all the parties
  involved in the project
• Continue developing strategic plans for pilot
  territories
• Host a HinterLand Forum in Pskov (Autumn 2007)
• Approve the developed strategic plans by
  representative authorities of pilot territories

29
Thank you for your attention!