City and Oblast: towards more synergy

Since 1992, St.-Petersburg and Leningrad Oblast are both subjects of the Russian Federation that can independently define their actions and policies. Yet, the two administrations are responsible for an area that makes up one socio-economic whole, with multiple interactions in the economic, social and territorial spheres. It is widely felt that crucial development opportunities are missed due to insufficient co-operation. The socio-economic situation of the region requires increased action in the area of strategic policy integration and co-operation. To this end, the City and Oblast work together in a Tacis (European Union) project “Enhancing Synergy”: Integration of Strategic Policies of the City of St.-Petersburg and the Leningrad Oblast in the context of the Northwest Region”.

The project

The primary focus of the project is the integration of strategic policies of City and Oblast in five main policy areas: Economic Policy, Spatial Planning, Transport, Housing and Tourism. A second focus is the development of an institutional and legislative basis for future co-operation between City and Oblast in the context of the Northwest region. Environmental aspects are incorparated in all policy fields. The main outputs of the project are a strategic plan for regional co-operation, and a joint organisation for future regional strategic planning and the implementation of co-operation projects.

The project started in March 1998 and runs for 2,5 years. The partner organisations are the Administration of the City of St.-Petersburg, the Administration of the Leningrad Oblast and the Northwest Association. The Northwest Association is an organisation for economic co-operation of 12 Federal Subjects in the Northwest region of the Russian Federation. The Netherlands Economic Institute (NEI) is the main contractor of the project. Its Russian partner is the Leontief Centre. All important decisions are taken by a Steering Committee consisting of high level officials of the partner organisations.

Why co-operate?

Enhanced policy co-ordination and co-operation has a huge potential of promoting development in St.-Petersburg, the Leningrad Oblast and the wider Northwest region. Co-operation will lead to better conditions for the private sector and actively support private enterprise: a.o. by harmonising taxation and licensing practices, joint lobbying with the federal government, combined efforts to attract foreign investors, co-ordination of financing and crediting policies. Furthermore it will lead to the improvement of the physical conditions: the improvement of infrastructure, a better distribution of economic and social functions, and more attention to the requirements of sustainability. This includes also institutional aspects, like joint spatial planning for border regions, joint operation of infrastructure, joint development of industrial estates and terminals. Some efforts have already been made, but these need to be expanded to optimise the development potentials of the whole region.

The general, overarching aim for co-operation is to promote socio-economic development in the region and to strengthen its position in the national and international context. In September 1998, the Steering Committee agreed to the following central objective for co-operation:

“A balanced increase in the standard of living in St.-Petersburg and the surrounding region”

An agenda for co-operation

On the basis of four scenarios for the future economic and political development, the most pertinent and strategic issues for co-operation were selected by six expert teams. Each team analysed the selected issues for co-operation, formulated projects to solve the issues, and applied criteria for prioritising the proposed co-operation projects. The output of the expert teams has resulted in an agenda for co-operation between City and Oblast in the context of the Northwest Region of Russia. Approximately 100 officials, experts, and representatives of the business community and NGOs took an active part in the discussion of this agenda. The agenda for future co-operation consists of a total of 55 projects ranked by priority. The ranking of the proposed projects was based on 2 scores: one score for the contribution of the project to the objective of co-operation between City and Oblast; and one score for the ability of a project to generate follow-up projects in the future.

Implementation of 7 pilot projects

Based on the ranking of the 55 projects the Steering Committee has selected 7 pilot projects for co-operation that will be financed by the Tacis project. Conditions for selection were that each project must be executed before September 2000 and that results be tangible. The following projects will be implemented:

1. A joint strategy for a sustainable improvement of the attractiveness of the region for investors.
2. A joint programme for the development of organisational and technological conditions for the transit of goods through St Petersburg and the Leningrad Oblast.
3. Joint marketing of regional tourism.
4. Transformation of dacha areas into well equipped areas for recreation and summer residences.
5. Identification of areas of mutual territorial interests of St Petersburg and the Leningrad Oblast, and the development of proposals for spatial planning on the basis of an integrated information and legislative base.
6. A common waste treatment policy in St Petersburg and the Leningrad Oblast.
7. Creation of an organisational structure for regional planning and co-operation.

Project teams have been set up involving Russian and foreign experts, officials from the governments of St.-Petersburg, the Leningrad Oblast and from the Northwest Association and representatives of business and NGOs.

What is Tacis?

The Tacis programme is a European Union initiative for the New Independent States and Mongolia, which fosters the development of harmonious and prosperous economic and political links between the European Union and these partner countries. The programme provides grant finance for the transfer of know-how to twelve countries of the former Soviet Union, and Mongolia. In so doing, it fosters the development of market economies and democratic societies. It has launched more than 3,000 projects worth over ECU 3,290 million since its inception in 1991. Tacis provides know-how for a wide range of public and private organisations including advice and training, developing and reforming legal and regulatory frame-works, institutions and organisations, and setting up partnerships, networks, twinning, and pilot projects. Tacis also cultivates links and lasting relationships between organisations to promote understanding of democracy and a market-oriented social and economic system.