NIB catalyses debate on competitiveness of the Baltic Sea region

On 14 June 2006, NIB marked its 30th anniversary by heading out a debate on the competitiveness of the region around the Baltic Sea.

NIB’s seminar on this subject was held at Scandic Grand Marina Congress Center, Helsinki. The event attracted 330 participants, among them prominent politicians, diplomats, representatives of the business community and media from many countries of the region.

Speaking to the seminar participants, Ulla-Maj Wideroos, Finland’s Coordinate Minister of Finance, emphasised the challenges the Baltic Sea region may acknowledge in order to secure its further growth.

“The competitive edge of the region is slipping compared to that of Central Europe and the rest of the world. We must complete the internal market, promote free competition and remove remaining trade barriers. There are still differences in legislation and standards, which may be harmful for a further integration and hampers an efficient use of workforce, innovation and strategic networks,” Ms Wideroos said.

The seminar speakers accentuated the significance of intensifying cooperation between the Baltic Sea countries and Russia, especially in the oil-and-gas industry, power production, transport and logistics, and protection of the environment. The Northern Dimension framework provides a practical tool for involving Russia, Norway and Iceland in such cooperation.

“The aim is to develop a common policy for the EU, Russia, Norway and Iceland with the focus on areas of cooperation, where a regional emphasis brings an added value,” said Finland’s Coordinate Minister of Finance.

In the presentation of a study on the state of the region, Christian Ketels, Principal Associate, Harvard Business School, stressed the heterogeneity of the “region by choice” and suggested to define a new challenge in order to remove these obstacles for better competitiveness of the Baltic Sea region.

“We have to set a new strategic goal to be able to leverage regional cooperation in our quest for growth. We need to review our institutions, strengthen the visibility of the region and become more assertive in defining required changes in EU policy, take the lead on economic relations to Russia wherever possible. We need to launch a debate on the identity and brand of the Baltic Sea region,” said Dr Ketels.

The seminar hosted a panel of experts who delivered their views on what would increase the attractiveness of the region. Siim Kallas, Vice President of the European Commission, suggested harmonisation of tax legislation. Lars Grönstedt, Chairman of Swedish Handelsbanken, underscored the importance of a comfortable place to live and favourable educational environment for the region to be competitive. Inge K. Hansen, President and CEO of Norwegian Aker Kvaerner, focused on the need for capital and high quality human resources. Tomas Dyrbye, CEO of Danish Maersk Nordic and Baltic, emphasised the importance of removing infrastructural bottlenecks (ports, roads, vessel sizes), cut costs and improve efficiency of logistics, and improve security of shipping. The panel was chaired by the former First Vice President of the EBRD Noreen Doyle.

The seminar was honoured by the President of Finland Tarja Halonen. She suggested measuring competitiveness by defining “what is the best part of being a member of your society, your region.”

“The Nordic countries are among the winners in globalisation. We share the same objectives on competitiveness and growth potential. But to be winners in the global competition in the future, we need to increase our investments in human resources, lifelong learning and in research and development,” said Ms Halonen.

The President of Finland thanked the Nordic Investment Bank for the work done during the past 30 years and pinpointed the important role NIB as a financial institution plays to catalyse the development of the region’s competitiveness in years to come.