Growth opportunities in Arctic Scandinavia?

By Anne Husebekk, Rector of University of Tromsø—the Arctic University of Norway

Traditionally, the northern regions of Finland, Sweden and Norway were poor areas that were dependent on financial support from the south. In addition, since the 1970s, the area has undergone a process of centralisation, and a large proportion of the workforce has typically been employed in the public sector.

Northern Norway is today experiencing economic growth higher than that in the south, and there are great expectations linked to the development of oil, gas and minerals in the region. Furthermore, the prospects for both traditional fisheries and aquaculture are very positive. The economic outlook for northern Sweden and northern Finland is more challenging.

What opportunities for economic growth exist in Arctic Scandinavia? The prime ministers of Sweden, Norway and Finland invited a group of experts to answer this question. The group includes Magdalena Andersson, Governor of Västerbotten County in Sweden, Risto E. J. Penttilä, CEO of Finland’s Chamber of Commerce, and myself.

We have chosen four possible drivers that have the potential of stimulating growth in all three countries:

– Liquefied natural gas and renewable energy

– Greener mining solutions

– Increased tourism

– Ice and cold climate solutions

To exploit this potential, the region needs common centres for research and training, with at least one university from each country participating. These centres would focus on green energy, green mining, tourism and ice and climate solutions.

Furthermore, we suggest that liquefied natural gas (LNG) from the Barents Sea be used as a source of energy in the region, including for its metals industry, replacing coal. LNG is a relatively clean fossil source of energy. Still, the use of renewable energy should be the ultimate goal, meaning that hydro-, solar and tidal power must be developed in the area.

To reduce the local conflict level often associated with mining operations, we recommend establishing common Nordic guidelines and practices for the development of mineral resources. The aim should be to use greener solutions for mining.

The average tourist from central Europe or Asia is likely to regard Arctic Scandinavia as a single destination. Hence, a common marketing strategy could work for the whole region—irrespective of national borders.

Ice and climate technology is also a potential driver for industrial development. The technology used to build houses, roads, tunnels and bridges in the Scandinavian Arctic climate could potentially be exported to other parts of the circumpolar north.

The potential for growth in Arctic Scandinavia is considerable; politicians, academic institutions and industry partners must collaborate in order to maximise it. Furthermore, a common Norwegian, Swedish and Finnish Arctic policy should be seen as a priority and an integral part of national growth policies.

Download the report Growth from the North