Large turnout at launch of OECD report on Northern Sparsely Populated Areas in Brussels

On February 18, the launch of the report by the OECD, with funding from the European Commission, on the regions of the Northern Sparsely Populated Areas (NSPA) network took place. With around 100 participants, including stakeholders from the OECD, regional, and national EU representatives took part to reflect on the study and future developments for the NSPA regions.

During 2022–2024, the NSPA participated in a study led by the Organization for Economic Cooperation and Development (OECD) together with the 14 regions in northern Sweden, east and north Finland and northern Norway within the Northern Sparsely Populated Areas (NSPA) network. The study was carried out with the support of the Technical Support Instrument (TSI), a funding tool from the European Commission’s Directorate-General for Reform (DG Reform), which aims to support reforms for the green transition and digitalisation within the EU. The work in the form of various surveys, study visits from the OECD and data collection along with various dialogues held on local, regional and national level in the three different countries has resulted in several thematic and regional reports. The reports were further submitted to the 14 regions and the EU and presented to the responsible committee at the OECD on sight in Paris before Christmas. The final summary report is scheduled for formal publication in mid-March.  

In 2017 OECD presented its first study on the NSPA regions, conducted in the form of a so-called, territorial review. The study has been of great importance for the region’s development and for securing tailored support at the national and EU level to strengthen regional development. The support has been crucial for a large part of the development that is taking place in the NSPA regions today. Following, the purpose of the new study is to build on the previous research, consider the resulting changes, and continue advancing development and progress across the entire NSPA region.  

The launch also came in the midst of preparations within the EU for the next budget and program period in which means and tools available to the EU development efforts are governed. As a result, this period lays the groundwork for discussions about the future at both the national and EU levels. 

Launch of the study in Brussels 

On February 18, 2025, it was finally time to present the new OECD study in Brussels along with representatives from regional, national and EU level. Mikael Janson, Director at the North Sweden European Office, started the day by introducing Kristin Traavik, Minister Counsellor at the Norwegian Representation to the EU, who hosted the event at Norway House in the middle of the EU quarter in Brussels. Following, Jonas Andersson, Chairman of NSPA and Region Jämtland Härjedalen, was brought up on stage. Together, they welcomed the audience and highlighted the study's importance not only for the regions but also at the national and EU levels. 

If you have ever lived in the European Arctic, your heart stays there. That was the opening words of the first keynote speaker Charlina Vitcheva, Director General DG Mare, in charge of the EU’s Arctic policy and with experience working in the European Commission’s regional unit. Vitcheva spoke about DG Mare’s relationship with the European Arctic and the NSPA network, noting that NSPA was one of the first acronyms introduced to her upon joining the European Commission. She continued by stressing the importance of including regions and their perspective in the decision-making process as policies are ultimately implemented at the local level, and therefore, local and regional conditions need to be taken into account in both the formulation and implementation of EU policies. For the NSPA regions, this is particularly important due to their unique conditions, such as long distances, sparsely populated areas, and their valuable assets for all of Europe. 

Dorothee Allian-Dupre, Head of the Regional Development and Multilevel Governance Division at the OECD in Paris, within which the current study was conducted, explained more about the study and how the NSPA regions are at the forefront of many areas, such as the green transition and green energy production, both with importance to the EU as a whole. She explained that the project’s goal was to create a roadmap for capacity building, with the study serving as a starting point to guide ongoing work and regional development. Additionally, she emphasised that many other regions view the NSPA regions as a source of inspiration. 

Thomas Wobben from the Secretariat General of the European Committee of the Regions (the EU institution representing the regional level in the EU), spoke about the NSPA regions’ role being at the centre of the green transition and industries. Referring to the evolving geopolitical landscape, he further mentioned the regions’ important role when it comes to security and resilience for a sustainable and resilient Europe. For Wobben, as with Vitcheva, NSPA was one of the first acronyms he encountered working with regional development policy in the EU arena. Building on Vitcheva’s message, he stressed the importance of maintaining the influence of regions in policies formulated at the EU level. He also expressed concern that the regional focus is losing priority as attention shifts more toward the national level—at a time when regions are more crucial than ever. He also stressed the importance of not only considering local perspectives but actively creating space for them in policy implementation. 

Presentation of the OECD Study

Following, Kari Aalto, director at East & North Finland EU Office, invited Stefano Barbieri, Senior Policy Analyst at OECD, to  take the stage to present the OECD study on the NSPA regions. The study highlights 115 recommendations for various levels and actors to consider, addressing local, regional, national and EU levels.  Together with the EU offices of the NSPA regions, Stefano has from the OECD has been in charge of the study and the coordination of the field work conducted at the local level. In his speech, Stefano highlighted six key takeaways:  

  1. Competitiveness

  2. Green transition 

  3. Demographic change 

  4. Innovation 

  5. Multi-level governance 

  6. Policy Predictions 

He also touched upon trends in demography, the environment, technology and globalization that are impacting NSPA regions in new ways, bringing both opportunities and challenges.  

Among the challenges, he mentioned a declining and ageing population, difficulties in scaling up small businesses and challenges in digital infrastructure. Afterward, Stefano addressed present opportunities, highlighting increased industrial productivity, innovation in key sectors and a leading position in renewable energy.  

Regional perspectives on the report 

Representatives from the NSPA network were then invited to comment on the study.  

Benjamin Nordgård Furuly, Vice Chairmen of Troms County, Norway, pointed out the security situation and how it has amplified the need for more active EU policies to strengthen development. Referring to the report, he underscored its strength in offering perspectives, providing evidence of the NSPA regions’ success despite the challenges they face. Moreover, he emphasised the importance of utilising the information in the report and turning the recommendations into actionable steps to continue driving development in the regions. 

Jouni Ponnikas, Director of Regional Development, Kainuu Region, Finland, stressed the importance of keeping in mind the present demographic decline, and that stronger cooperation is necessary between the NSPA regions and its member countries. Meaning that this is of great relevance to a wide range of development areas, especially infrastructure in terms of transport and energy. In order to remain part of the green transition and to manage the new geopolitical situation, the regions need to develop their infrastructure. Including not least, routes from east to west and between the regions to provide more opportunities for cross-border cooperation.  

Rickard Carstedt, Chairman of the Regional Development Commitee, Region Västerbotten, Sweden, spoke about the importance of EU’s regional policy, the cohesion policy. Cohesion policy, along with regional aid measures, are important tools according to Carstedt, to create attractive communities to which people move to, stay in and continue living in to build capacity within the regions and municipalities. To ensure that the knowledge of the conditions within the regions are part of the decision-making process and that all sides of the coin are taken into account, he stressed the importance of keeping the decision-making capacity at the regional and local levels rather than moving it to the national level. 

Insights from national and EU level.  

Next, Nils Christian Sørheim Nilsen, Director at North Norway Euopean Office, introduced representatives from national and EU level that took the stage. Elisabeth Backteman, Director General, Swedish Agency for Economic and Regional Growth, highlighted the challenges that exist in NSPA. She mentioned factors such as limited accessibility and demographic decline but also highlighted the great potential that exists in digital transformation, competitiveness and NSPA’s strategic importance. Further, Backteman pointed out that the green transition also requires joint efforts at the governmental level to build a more competitive and stable northern Sweden that brings value to its own population including the EU as a whole. Education and capacity building, according to Backteman, are crucial factors alongside a comprehensive perspective of ongoing development in order to capture and share knowledge among practitioners, ensuring continuous progress. 

As a consequence of a shifting geopolitical landscape, Janne Uusivirta, Counsellor at the Permanent Representation of Finland to the EU for Regional and Structural Policy, highlighted the evolving security situation in the European Arctic. Emphasising the strategic importance of the European Arctic regions for Europe’s overall security policy, Uusivirta underscored the need for vibrant, resilient communities in the border regions covered by the NSPA regions. 

In line with this, Emil Raaen, State Secretary at the Norwegian Ministry of Local and Regional Government, emphasised the importance of cross-border cooperation, supported by strengthened infrastructure from east to west. He also highlighted northern Norway as one of the most strategic focus areas for the Norwegian government. Reflecting on the overarching perspective of the OECD report, he pointed out its strength in identifying regional challenges and their differences and how to address them. Lastly, he expressed willingness to take responsibility for organizing a seminar in Oslo to discuss the study. 

Sofie Eriksson, member of the european parliament (MeP) for the Regional Policy and Industrial Policy committees, said that being from an industrial region is a source of pride, but it also comes with a source of vulnerability. Highlighting the northern regions’ achievements in economic development and green transition, and its strong position at national and EU level, she said “I am not a resident of the NSPA, but I am an NSPA fan girl!”. Eriksson underlined that the OECD report will play an important role in future debates showcasing that we cannot move forward without cooperating and supporting these areas. She emphasised that cooperation must also occur at the local level to create and sustain vibrant, thriving communities, thereby maintaining a place-based focus and perspective. Regional development cannot occur without regional competence, Sofie said, adding that the green transition must also incorporate the local perspective and benefit local residents. 

Panel discussion with Stefano Baribieri, OECD 

As a final part of the launch event, focusing on the way forward for the NSPA regions, Jonas Andersson, President of NSPA together with José Enrique Garcilazo, Head of the Regional and Rural Policy Unit, OECD, who has taken part in both studies about the NSPA, the one in 2017 and the one now launched, took stage with the speakers from the national and EU level for a panel discussion moderated by Stefano Barbieri. 

Andersson stressed that it is important to keep in mind the differences among regions and societies, and that further action should be taken accordingly. Given the great potential for growth in the NSPA regions, Andersson highlighted that, due to sparsity and natural resources, there are also significant differences, which require place-based governance and policies. Hence, to utilise the potential among the regions there is a need for infrastructure target at innovation, financial resources and developed connections such as railways and digital connectivity. Jonas later underlined that regions have a lot to offer, but the foundational structures are missing. Moreover, how each region is unique and there is no one-size-fits-all solution. Different tools are required, as while the potential and challenges may be similar, the structure around them can vary.  

Garcilazo, said that it is important to focus on the existing potential and assets, referring to the report highlighting many of them, but underscoring that at the same time it is important to point out that there is no single solution. Digital solutions, for instance, should be region-specific, identified, and prioritised after careful assessment, Garcilazo said. Furthermore, he highlighted engagement and participation as two critical areas in which local communities need to be involved in processes, along with stakeholders internationally. To ensure all relevant stakeholders are included, Garcilazo pointed out the importance of a long-term strategy that considers both the strengths and the weaknesses of the regions.  

In closing, Garcilazo and Satu Vehreävesa, member and former Chair of the NSPA Steering Group and Director of Regional Development, Pohjois-Savo Region, Finland, provided concluding remarks. They both emphasised the importance of the study as a solid and strong foundation for continues work where the recommendations now need to be translated into actions. The NSPA is a strong partnership to build on.  

NSPA EU Forum on the occasion of the launch  

The following day, internal discussions within the NSPA network continued through the “NSPA EU Forum”, where external speakers from the OECD and the EU were invited to the North Sweden/North Norway European Office to reflect on the launch and the way forward.  

06 Mar 2025 Articles