5th NORDIC-BALTIC CONFERENCE IN REGIONAL SCIENCE
GLOBAL-LOCAL INTERPLAY IN THE BALTIC SEA REGION
Pärnu, Estonia, October 1-4, 1998

Jussi S. Jauhiainen
Tartu University, Institute of Geography
Vanemuise Str. 46, EE 2400 Tartu, Estonia
Tel.: +372 7 465 818     Fax: +372 7 465 825     E-mail: jusaja@math.ut.ee

Priidu Ristkok
Office for Minister for Regional policy
Estonia

In the paper is presented the development of regional policy and its instruments in Estonia during the last ten years. The periods of regional policy are analysed from the viewpoint of European Union principles for regional development. The Estonian practice of regional policy is discussed in the light of recent theories of regional development. However, in the paper is underlined the contextual approach to understand the outcomes. The paper ends with proposals for future organisation of regional policy in Estonia.

The roots of modern regional policy in Estonia are in the program IME launched in 1989. In the program was discussed the possibilities of independent economic policy for Estonia in the period when Estonia was still part of the Soviet Union. The task of regional policy was generally to compensate economic and social hindrances of lagging regions. The first regional policy principle was designed in 1990 linked to general sectoral policy, however, underlining the diversified development possibilities of Estonian regions.

The independence in 1991 fostered the institutionalisation of regional policy and several organisations were created. In 1994 was established the concept of regional policy linked to general sectoral policy of the country, but also having a coordinating role in it. Also, it was agreed upon specific programmes of regional policy that covered from 1996 peripheral, monofunctional, border, movement, islands regions and as regionally specific case, Eastern Virumaa. The programs have been extended during the last years and the budget has grown continuously being 40.6 MEEK in 1996, 60.0 MEEK in 1997 and 136.4 MEEK in 1998. In this period regional policy has been institutionalised with several organisations, for example, with council for regional policy and Estonian regional development agency.

Another turning point has been the development in 1997-98 that show an increasing connection to the European Union regional policy principles, partly linked to the invitation of Estonia into the EU accession negotiations, partly due to the EU regional policy projects, like EURDE and other PHARE and RECITE funded projects.