Urban development policy in Finland is designed in accordance with the Government Programme and the national regional development targets established on the basis of this Government Programme. Responsibility for its coordination rests with the Ministry of the Interior.

The profile of Finnish urban policy could be described as opportunity-oriented, focusing on science and innovations in cities as the competitiveness engine. The results have been impressive; the largest urban regions have driven the national economy for the past decade. Several international indicators show the Helsinki capital region to be one of the most dynamic city regions in Europe.

Late but rapid urbanization
There are few historically traditional towns in Finland. Agrarian tradition still exercises a strong impact on the rather thin urban culture. Even as late as in the beginning of the 1960s almost a third of the population earned its livelihood from agriculture and forestry. The shift from agriculture to urban service industry only occurred in the 1960s, but after the late start the pace has been the fastest of all Europe. The sudden migration into fast-expanding cities required rapid construction activity. Housing estates were intended to combine the benefits of both rural and urban areas, but the result was not always successful. Cities also experienced a scattered structure.

Finland was a somewhat successful welfare state until the late eighties. Building this welfare state was characterised by a highly effective transfer of resources from urban regions to previously populous peripheral areas. These transfers were used to produce welfare services, to build and maintain the infrastructure and to attract investment.

Nowadays a successful urban economy lays the groundwork for a solid welfare state. Since the urban areas account for about four-fifths of the total production in the national economy, the competitiveness and expertise exhibited by the urban enterprises can be considered the backbone of the entire economy.

Diversified urban policy
Urban policy in Finland is based on a polycentric approach and a network of vital cities and towns. The main tools for the urban development policy are the Regional Centre Programme and Centre of Expertise Programme, both special programmes in accordance with the Regional Development Act. The Centre of Expertise Programme and the Regional Centre Programme serve in fact as the basis for a policy mix for large urban regions. This is why an integrative policy package for large urban regions has been recently introduced.

The significance of large urban regions to the country's success, prosperity and national economy is growing, because considerable new innovations, information and expertise evolve in such regions. Large urban regions compete in the global market for businesses and activities that could be located in Finland. The special role of regions is taken into account when outlining regional development measures so as to enable them to perform within the international competition. Development policy is diversified according to the strengths of different urban regions.

Advisory Committee for Large Urban Regions
An Advisory Committee has been set up to devise a policy mix for large urban regions. The advisory committee devises a policy mix together with the urban regions and ministries. This policy mix is based on existing tools of RCP (Regional Centre Programme) and CoE (Centre of Expertise Programme).

Developing the Greater Helsinki Region
Helsinki is Finland's only metropolitan region, and thus its competitiveness and balanced development are vital to the entire country. The special characteristics of the Greater Helsinki Region require special attention in terms of regional policy. The function of the Advisory Committee for the Helsinki Region is to monitor the development of the Greater Helsinki Region and to specify the content of urban policy implemented by the state in issues concerning the region. The aim is also to promote cooperation between municipalities in the Greater Helsinki Region, to improve cooperation procedures between the region and central government, and to assess the suitability of the existing administrative boundaries.

Scattered Urban Structure and Transportation
The urban environment is characterized by exceptionally scattered community structures. This may lead in consequence to wasting natural resources, unfinished and somewhat vague living environments, networks which are too wide, a lack of services or services which are too expensive, and unnecessary traffic brought about by a small population base. Besides the community structure, the development in the distribution of transportation structures may be problematic. Transportation is increasingly road-based.

Social Challenges in Cities
Even if segregation in Finland has not reached the scale found in international metropolises, there are signs that urban segregation is intensifying. Problems brought about by long-term unemployment and living on welfare, as well as the need to take children into custody and certain forms of criminality, centre in specific areas. Besides assistance aimed at individual problems, coordinative multi-sectoral work is needed, focusing on entire communities.

The Regional Centre Programme (RCP)
The aim of the RCP is to develop a network of regional centres covering every region, based on the particular strengths, expertise and specializations of urban regions of various sizes. Regional development founded on a network of regional centres results in a more balanced regional structure and enhanced international competitiveness. The main RCP target at the regional level is to strengthen sub-regional co-operation as well as to promote business development. RCP is a special government programme in accordance with the Regional Development Act.

Centre of Expertise Programme (CoE) 
The Centre of Expertise Programme plays an important role in a national growth strategy based on information and expertise. The programme is designed to pool local, regional and national resources for the utilization of top-level expertise. The programme supports regional strengths and specialization and furthers cooperation between the centres of expertise.

The Urban Programme for the Helsinki Metropolitan Region
The Urban Programme for the Helsinki Metropolitan Region implements joint development projects in the region and develops cooperation procedures amongst its cities and towns. In the programming period 2002-2004, the themes of the programme were strengthening competence and developing innovation, increasing participation and ensuring social cohesion.

21/12/2005

policy

Urban Policy