OECD Rural Policy Reviews OECD Mining Regions and Cities Case Study Outokumpu and North Karelia, Finland

This report identifies 12 recommendations that can assist the municipality of Outokumpu and the region of North Karelia in Finland to become key players in the national mining strategy and attain sustainable economic growth by: focusing on mobilising the potential of the local mining value chain, diversifying and developing new sources of economic growth, and improving governance co-ordination. It is part of a project that is building a platform for knowledge sharing and co-operation on increasing productivity and enhancing the well-being of cities and regions with a specialisation in the mining and extractive sector (metals, minerals, and energy resources). Foreword Acknowledgements Abbreviations and acronyms Executive summary Assessment Key recommendations Assessment and recommendations Assessment Outokumpu has scope to mobilise existing assets to boost economic growth and become a mining hotspot in the country and the EU Outokumpu can diversify its economy to boost employment and attain sustained and inclusive growth Greater governance co-ordination can make Outokumpu a key player in the development of Finnish mining sector Recommendations I. Mobilise local assets to make Outokumpu a key player in the mining value chain in Finland and the EU II. Diversify sources of economic growth to boost employment and reduce labour market mismatches III. Improve governance co-ordination to make Outokumpu a key player in the development of Finnish mining sector Chapter 1. Drivers of growth and challenges for regional development Introduction North Karelia, Outokumpu and the history of mining The transformation of mining in Finland, North Karelia and Outokumpu Demographic and settlement patterns Summary Economic performance Economic performance of North Karelia Regional economic performance of Outokumpu Summary Well-being and quality of life Summary References Chapter 2. Towards a sustainable development in Outokumpu and North Karelia Introduction The institutional environment in Finland and North Karelia Finland as a key player to fulfil the European Union demand for minerals The mining policy in Finland lacks a territorial approach Policy strategies to attain sustainable economic development in Outokumpu The development policy strategy in North Karelia and Outokumpu North Karelia’s development strategy Outokumpu’s development strategy Mobilising regional assets to become a mining hotspot Unlocking the potential of Outokumpu geographic location Becoming a key player for the mining sector Towards an integrated strategy to unlock the mining potential Diversifying the economy for sustained and inclusive regional growth Expanding the existing industrial fabric beyond manufacturing Using tourism as an anchor of economic growth Unlocking new growth opportunities by upskilling the workforce and attracting new workers Upskilling labour force Strengthening strategies to attract new residents Considering ageing as an opportunity Promoting entrepreneurship and SMEs to unlock high-valued-added activities Linking SMEs entrepreneurs with local firms and international networks Boosting entrepreneurial culture in Outokumpu Notes References Chapter 3. Governing mining regions to attain sustained and inclusive growth Introduction Towards an integrated regional development policy with mining activities Key actors and roles on regional development in North Karelia and Outokumpu Challenges in the interaction of actors for regional development Better linking mining with regional development Mining sector governance in Finland Enhancing the mining governance framework through a territorial approach Enhancing the benefits of EU funds to support mining development. Making the most of the social acceptability of mining in Finland Enhancing governance in Outokumpu to attain sustainable growth Enhancing Outokumpu’s development plan for a long-term development vision Strengthening horizontal and vertical co-ordination Improving co-ordination with the regional council to achieve municipal objectives Improving co-ordination among municipalities Better inter-regional co-ordination to support the internationalisation of SMEs and the mining network Note References Blank Page