REGIONAL FORMATION AND DEVELOPMENT STUDIES

Transcription

1 KLAIPĖDA UNIVERSITY SOCIAL SCIENCE FACULTY REGIONAL FORMATION AND DEVELOPMENT STUDIES (Human Resources the Main Factor of Regional Development) Journal of Social Sciences No. 1 (6) Klaipėda, 2012

2 Regional Formation and Development Studies (Human Resources the Main Factor of Regional Development) Klaipėda University Social Science Faculty Scientific Editor Assoc. Prof. Dr. Antanas Bučinskas Klaipėda University (Lithuania) Deputy of scientific editor Prof. Dr. Ligita Šimanskienė Klaipėda University (Lithuania) Editorial board: Assoc. Prof. Dr. Ciprian Beniamin Benea University of Oradea (Romania) Prof. Habil. Dr. Remigijus Čiegis Vilnius University (Lithuania) Prof. Dr. Larisa Emeljanova I. Kant Federal University (Russia Federation) Assoc. Prof. Dr. Sebastian Gadal University of Versailles Saint Quentin en Yvelines (France) Prof. Dr. Hilmar Þór Hilmarsson University of Acureyri (Iceland) Prof. Dr. Vytautas Juščius Klaipėda University (Lithuania) Prof. Dr. Jose Manuel Lasierra Zaragoza University (Spain) Prof. Dr. Vaidutis Laurėnas Klaipėda University (Lithuania) Prof. Habil. Dr. Tadeusz Palmowski Gdansk University (Poland) Assoc. Prof. Dr. Romana Provazniková Pardubice University (Czech Republic) Prof. Habil. Dr. Bronislaw Sitek Alicide De Gasperi University (Poland) Prof. Dr. Biruta Sloka Latvia University (Latvia) Assoc. Prof. Dr. Eduardas Spiriajevas Klaipėda University (Lithuania) Prof. Dr. Rimantas Stašys Klaipėda University (Lithuania) Prof. Habil. Dr. Gerhard Strohmeier Alpen-Adria Universitat Klagenfurt (Austria) Prof. Habil. Dr. Stasys Vaitekūnas Klaipėda University (Lithuania) Prof. Habil. Dr. Povilas Zakarevičius Vytautas Magnus University (Lithuania) Lithuanian language editor: Vilma Urbonavičiūtė (Lithuania) Layout: Karolis Saukantas (Lithuania) Cover design: Vilhelmas Giedraitis (Lithuania) The first number was published in There are 3 annual volumes in Lithuanian, English languages. The first numbers of journal were included in EBSCO Publishing Business Source Complete databases ( Address: Herkaus Manto g. 84, LT Klaipėda, Lietuva, tel. (370 46) , fax (370 46) Internet address: Klaipėda University, 2012 Social Science Faculty, 2012 Every paper is revised by two reviewers ISSN

3 PREFACE This journal seeks to invite scientist from social sciences to discuss about problems in regional development. The important direction in regional development is social, economic and development problems in borderlines; so here a very important line is dispose of researches and frame of proposals for sustainable development in borderlines. The new scientific theme remains the same important scientific and practical direction problems of regional development. Organizations management determines different regional development, therefore corporate social responsibility and studies of small and medium sized organizations are like the main engine of regional development, also are very important for sustainable regional development and timely. Journal is turned to change title to more clear description about basic problem in our region Regional Formation and Development Studies. This was decided at Klaipėda University Senate ( Nr ). We hope that these changes will encourage social sciences scientists to do more researches in this field and to have also practical value to region. Deputy of scientific editor Prof. Dr. Ligita Šimanskienė (Klaipėda University, Lithuania) PRATARMĖ Žurnalas siekia pakviesti socialinės srities mokslininkus diskutuoti apie problemas, kurių kyla regionuose. Svarbi regionų vystymosi kryptis pasienio regionų socialinės, ekonominės ir plėtros problemos. Šia kryptimi atliekami tyrimai, pateikiama pasiūlymų, kaip darniai vystyti pasienio regionus. Nevienodą regionų išsivystymą lemia organizacijų valdymas, todėl įmonių socialinės atsakomybės, smulkaus ir vidutinio dydžio organizacijų tyrimai, kaip pagrindinis darnaus regionų vystymo variklis, yra svarbūs ir savalaikiai. Žurnalas siekia išgryninti tematiką, todėl keičiamas pavadinimas: Regionų formavimo ir plėtros studijos. Tai nuspręsta Klaipėdos universiteto Senate ( Nr ). Tikimės, kad šie pokyčiai paskatins socialinių mokslų mokslininkus atlikti daugiau tyrimų šia tematika, kartu suteiks praktinę vertę regionų vystymuisi. Redaktoriaus pavaduotoja Prof. dr. Ligita Šimanskienė (Klaipėdos universitetas, Lietuva) 3

4 TURINYS Angelija Bučienė The Shrinking Rate of Utilised Agricultural Land and its Components in the Baltic Sea Region Countries / 6 (Naudojamų žemės ūkio naudmenų ir jų komponentų mažėjimo tempai Baltijos regiono šalyse) / 14 Trung Quang Dinh, Hilmar Þór Hilmarsson What Are the Economic Justifications for the Existence of Export Credit Agencies and How Can They Facilitate Cross Border Trade to Emerging Market Economies? / 15 (Ekonominės eksporto kreditų agentūrų egzistavimo prielaidos, jų galimybės paskatinti užsienio prekybą su kylančiomis rinkos ekonomikomis) / 25 Anna Belova International Cooperation of Border Settlements in Strategies for Development of Small and Semi-Medium Cities: Case-Study of Kaliningrad Region (Russian Federation) / 26 (Tarptautinis pasienio gyvenviečių bendradarbiavimas mažų ir vidutinių miestų vystymo strategijose: Kaliningrado srities pavyzdys (Rusijos federacija)) / 35 Jaroslav Dvorak Sustainability of Evaluation Function in Lithuanian Public Administration / 36 (Vertinimo funkcijos tvarumas Lietuvos viešajame administravime) / 46 Gražina Jatuliavičienė, Marija Kučinskienė Export Promotion Changes of Sme s for Export Expansion Directions Development in Lithuania / 47 (Smulkaus ir vidutinio verslo įmonių eksporto skatinimo pokyčiai Lietuvoje, eksporto plėtros kryptys) / 59 Janis Kleperis, Ilze Dimanta, Justs Dimants, Biruta Sloka Lessons from Teaching Renewables: Domestic and Cross-Border Education Action Latvian Solar Cup / 60 (Atsinaujinančių išteklių pamokos: vietinių ir kitų šalių moksleivių mokymas Latvijos Saulės taurė ) / 66 Valentyna Oleynik, Sergii Iaromenko Problems and Prospects of Development of Green Rural Tourism in Ukraine / 67 (Žaliojo kaimo turizmo Ukrainoje plėtros problemos ir galimybės) / 73 Janis Paiders, Juris Paiders Quantitative Measurement of Cross-Border Interactions (Example of Africa) / 74 (Kiekybinis pasienio sąveikos matavimas (Afrikos pavyzdys)) / 81 Liudmila Parfenova, Andrei Pugachev, Vytautas Juščius Stimulation of Innovative-Investment Process: World Experience / 83 (Inovatyvaus investavimo proceso skatinimas: pasaulinė patirtis) / 92 Gintarė Pociūtė The Problem of Klaipėda Region Peripherality / 93 (Klaipėdos regiono periferiškumo problema) / 103 Ilmars Purinsh, Toms Reizinsh, Girts Braslinsh, Natalja Svitlika Decision-Making Process in Credit Grantig / 104 (Sprendimų priėmimo procesas teikiant kreditus) / 113 Arnaud Serry Circulation at Russian-Baltic States Boundary: a Cut and a Seam / 114 (Cirkuliacija Rusijos ir Baltijos šalių pasienyje: apribojimai ir sandūra) / 123 4

5 Eduardas Spiriajevas Hindrances and Suggestions for Sustainable Development of Lithuanian Coastal Strip (Zone) / 125 (Lietuvos pajūrio juostos darnios plėtros kliuviniai ir pasiūlymai, kaip jų išvengti) / 136 Ligita Šimanskienė, Darius Burgis, Diana Līduma, Māra Zeltiņa Verslo bendradarbiavimas Klaipėdos regiono ir Latvijos pasienyje / 137 (Business cooperation in the cross-border of Klaipeda region and Latvia) / 145 Rasa Viederytė, Giedrė Strakšienė Practice of Cross Border Cooperation in Capacity Building Project: Ensuring Sustainable Development / 147 (Tarptautinio bendradarbiavimo praktika gebėjimų ugdymo projekto atveju: ilgalaikės plėtros užtikrinimas) / 159 Daiva Viningienė Darbuotojų darbo motyvacijos ir pasitenkinimo darbu sąsajos / 161 (Employees Relationship between Work Motivation and Job Satisfaction) / 169 Jekaterina Vozņuka Place Marketing Strategy of Latgale Region Development / 171 (Latgalos regiono vietos rinkodaros strategija) / 182 Vytautas Jonas Žilinskas, Jelena Dementjeva Lietuvos inovacinės veiklos tendencijos ir tobulinimo galimybių analizė Europos Sąjungos kontekste / 183 (Lithuanian Innovation Activity Trends and Analysis of Opportunities for Improvement in the Context of the European Union) / 192 Aurimas Župerka, Erika Župerkienė Studentų verslumo ugdymo tyrimas Vakarų Lietuvos regione / 195 (Research of Students Entrepreneurship Education in West Lithuanian region) / 207 5

6 Angelija Bučienė THE SHRINKING RATE OF UTILISED AGRICULTURAL LAND AND ITS COMPONENTS IN THE BALTIC SEA REGION COUNTRIES THE SHRINKING RATE OF UTILISED AGRICULTURAL LAND AND ITS COMPONENTS IN THE BALTIC SEA REGION COUNTRIES Angelija Bučienė 1 Klaipėda University (Lithuania) ABSTRACT The temporal and spatial changes of land use are important while studying the rural landscapes on both the regional-geographical and environmental scales. In the Baltic Sea region with nine countries (including Russian Federation, represented by Kaliningrad oblast, the utilised agricultural land (UAL) makes about 34 % of total region area on the average. The current research revealed the trends of different shrinking rate of UAL in nine studied countries from 1993 to 2008: it varied within the range between 3 % in Denmark and 43 % in Estonia. Research focus was given to the changes in ratio between arable land and area under meadows and pastures: it increased from 6.5 to 10.9 during 15 years period ( ) on the average, that shows the increase in land use and farming intensity even the UAL area was shrunk. KEY WORDS: utilised agricultural land, arable land, meadows and pastures, shrinking rate. JEL codes: Q 16, Q 15. Introduction Agriculture is shaping most of the European landscapes and it is diverse, ranging from intensively farmed monocultures that put heavy pressure on the environment, to extensively farmed semi-natural areas creating much less pressure (Mücher, Wascher, 2007: 38). One of the problems is land abandonment, which is already a common phenomenon in regions where agricultural productivity is relatively low (Baldock et al., 1996). The shrinking of agricultural land is natural, where agriculture is becoming less important as economic activity, or where the soils are less favored, either the urbanisation level is high. However when looking from the world perspective, the agricultural land resources in many areas of our Planet are limited, the recent agricultural land is particularly important to be utilised as much as the soil fertility allows. The situation is particularly worrying in the central and Eastern Europe, where political and economic change has negatively affected the conditions for farming (EEA, 2004). This is evident in the south-eastern Baltic sea coast region too: during the last 20 years the farming has experienced tremendous changes after the collapse of Soviet Union in 1991 and during the transition to market economy period in Estonia, Latvia, Lithuania, Kaliningrad oblast of Russian Federation (RF), Poland and Eastern Germany (Korneevets, 1997: 23; Bučienė, 2002: 15; Dobele, 2004: 34; Contemporary changes, 2008: 7, 21; Agriculture, Fisheries, 2012: 3; Vinokurov, 2007: ; Celevaja programma..., 2006: 51 52). New membership in EU has made the impact on the farming and land use as well, since many of farmers, particularly elder, could choose to farm further or not. With more sustainable development of rural landscapes and more rational usage of land, its important to carry on all forms of farming, involving more younger people from the countryside and making life there more attractive (Europe in figures, 2009; Bučienė, 1 Angelija Bučienė Klaipėda University, Department of Social geography, prof. dr., scientistic interest: agroecological, environmental and social geographical aspects of rural landscapes in the Baltic Sea region. angelija.buciene@ku.lt Tel.:

7 ISSN Regional Formation and Development Studies, No. 1 (6) 2003: 158). Thus it was important to focus not only on quantitative, but also on qualitative changes of rural landscapes (Andersen, 2003; Nikodemus et al., 2010). The aim of this research was to analyse the shrinking rate of utilised agricultural land (UAL) and its components and to reveal the trends of agricultural land use and farming intensity in nine Baltic Sea region countries during period. 1. Materials and methods It is not easy to make a sustainability assessment of rural landscapes with different land use, farming intensity, etc. due to the complexity of structural elements and their inwrought relations (Sustainable agriculture, 2012: 43). Our research in Lithuania has revealed that leaching of nitrate nitrogen via drainage runoff is almost 10 times higher from the arable crop plots, than from the permanent long term pasture on the average (Bučienė, 2009: 13). Other research in the Baltic region also has shown the same trends (Towards a Baltic Sea..., 2007). Thus the ratio between arable and grassland areas is important from the sustainability point of view. In this research the attempt was done to focus on the trends of changes of UAL and its components: arable land area, area under the meadows and pastures and their ratio. After the compilation of agricultural land use data, the main trends in time and space were revealed. The studied countries were grouped in accordance to the main trend of land use change. Four types of UAL shrinking rate trends in the research region during the period from to were determined: 1) Countries where the UAL decreased a little in the area; 2) Countries where the UAL decreased on the average from 10 to 20 %; 3) Countries where the UAL decreased from 20 to 30 %; 4). Countries where the UAL decreased more than 30 %. According to the ratio of arable land and area under the meadows and pastures, countries were grouped into the 4 groups: 1) Countries where this ratio decreased mostly; 2) Countries where the ratio remained as it was or slightly decreased; 3) Countries where the ratio increased from 10 to 20 %; 4) Countries where the ratio increased more than 20 %. The research region nine Baltic Sea region countries: Latvia, Estonia, Finland, Sweden, Denmark, Germany (Mecklenburg-Vorpommern and Schleswig-Holstein Federal Lands), Poland, Kaliningrad oblast of RF and Lithuania with total area 137,300 thous. ha. For this research databases of FAO, EUROSTAT and National Statistics Departments of studied countries were used. 2. Results 2.1. The main trends of distribution and changes of UAL in EU and Baltic Sea region countries The shrinking of agricultural land was observed also in older EU member countries (EU-15), but this process was not drastic (Fig.1). The UAL for most of EU-15 decreased by 2.5 % between 1990 and 2000, affecting mainly permanent grasslands and permanent crops, not the arable land crops. The total number of livestock units was quite stable from 1990 to 2000, but trends vary for different livestock types and regions. In 1990, 44 % of the agricultural area of EU-15 was managed by high-input farms, but this decreased to 37 % in Low-input farms occupied the lowest share of the agricultural area (26 %) but this share increased to 28 % in In some regions the livestock stocking density has increased by more than 10 % mainly due to higher pig stocking density in Denmark, northern Germany, and north-eastern Spain. And there was indicated that Spain had large land cover flows from forest/seminatural land to agriculture and from agriculture to forest/semi-natural land. Italy and Portugal showed land cover flow only from agriculture to forest/semi-natural land (EEA..., 2005). At the same time, there was an active participation of farmers of EU-15 in the different environment protection schemes, and this also decreased the shrinking of UAL. Almost one-quarter of all utilised farmland in the EU-15 has been included in an agri-environment scheme, although this figure varies greatly among the Member States in

8 Angelija Bučienė THE SHRINKING RATE OF UTILISED AGRICULTURAL LAND AND ITS COMPONENTS IN THE BALTIC SEA REGION COUNTRIES The changes of UAL in all agricultural farms/holdings of studied nine Baltic sea region countries can be seen from the Table 1. Figure 1. Regional importance of the dominant agricultural land uses and the trend Source: EEA, 2005 Table 1. The changes of UAL area in thous. ha and % in all agricultural farms/holdings of 9 Baltic sea region countries from 1993 to 2008 Country/region Thousands ha Difference in 2008 as to the ± thous. ha ± % Denmark Estonia Finland Germany* Kaliningrad oblast (RF) ** Latvia Lithuania Poland Sweden Total/average Note: * Mecklenburg-Vorpommern and Schleswig-Holstein, data for 1995 and 2008 ** For Kaliningrad oblast data for1995 (Bučienė, 2002) and

9 ISSN Regional Formation and Development Studies, No. 1 (6) The shrinking of UAL took place in all studied countries of Baltic Sea region: it decreased by almost 16 % during the research period in the region. However the grouping of countries according to the shrinking rate has revealed some differences of this process (Fig. 2). Figure 2. The main groups of Baltic sea region countries with different shrinking rate of UAL The least decrease in UAL during the studied period was characteristic to Denmark (about 3 %) and Sweden (8 %) (group 1). The group 2 (North Germany, Poland, Finland) distinguished with decrease of UAL by 13 % on the average. The area of UAL was shrunk by 26 % in the group 3 (Lithuania, Kaliningrad oblast of RF, Latvia) on the average, and the country, which experienced the largest shrinkage almost 43 % was Estonia (group 4) Recent trends of shrinking rate of utilised arable land area The largest areas of arable land in absolute figures are characteristic to Germany and Poland, however as to the % of total land area, the leader country is Denmark (about 57 %), and the second two countries are Poland and Germany (Bučienė, 2010: 11). Lithuania remains in the fourth place (almost 29 %). The arable land has shrunk from 1993 to 2008 by 14 % for whole the region; however there were differences between the countries in shrinking rate (Table 2). 9

10 Angelija Bučienė THE SHRINKING RATE OF UTILISED AGRICULTURAL LAND AND ITS COMPONENTS IN THE BALTIC SEA REGION COUNTRIES Table 2. The changes of utilised arable land area in thous. ha and in % in all agricultural farms/holdings of 9 Baltic sea region countries from 1993 to 2008 Country/region Thousands ha Difference in 2008 as to the ± thous.ha ± % Denmark Estonia Finland Germany* Kaliningrad oblast (RF) ** Latvia Lithuania Poland Sweden Total/average Note: * Mecklenburg-Vorpommern and Schleswig-Holstein, data for 1995 and 2008 ** For Kaliningrad oblast data for1995 (Bučienė, 2002) and 2005 Thus countries with the least shrinkage were again two: Denmark and Sweden (about 6 %). The second group of 4 countries (North Germany, Poland, Finland and Lithuania) showed the trend to decrease from 10 to 20 %. The third group with 2 countries (Latvia and Kaliningrad oblast of RF) was distinguished by the shrinking of arable land area from 20 to 30 %. And again, the country, which showed the largest shrinkage of utilised arable land, was Estonia (about 46 %) Recent trends of utilised area under meadows and pastures The largest areas under the permanent grassland of total land area in the Baltic sea region were typical for North Germany, Lithuania, Poland and Latvia (Bučienė, 2010:11), however Denmark was the only country in the region, where the area under the meadows and pastures increased from 1993 to 2008 (Table 3). In other countries there was evident shrinkage, which varied from 9 % in Kaliningrad oblast of RF to almost 69 % in Finland (with about 21 % on the average). Table 3. The changes of utilised meadows and pastures in thous. ha and in % in all agricultural farms/holdings of 9 Baltic sea region countries from 1993 to 2008 Country/region Thousands ha Difference in 2008 as to the ± thous. ha ±% Denmark Estonia Finland Germany* Kaliningrad oblast (RF) ** Latvia Lithuania Poland Sweden Total/average Note: * Mecklenburg-Vorpommern and Schleswig-Holstein, data for 1995 and 2008 ** For Kaliningrad oblast data for1995 (Bučienė, 2002) and

11 ISSN Regional Formation and Development Studies, No. 1 (6) In Lithuania the majority of utilised meadows and pastures are concentrated in private farms: from 24 to 43 % (Kazakevičius, 2011: 98). Tat shows that private farms are creating more diverse and more sustainable rural landscape in Lithuania, than the large agricultural companies with higher farming specialisation and more intensive land use for arable crops The ratio between utilised arable land and area under the utilised meadows and pastures The higher values of this ratio show the more intensive land use and farming, and in opposite, the lower values show the more extensive land use and farming, but at the same time more diverse landscape. Calculation results are presented in Table 4. The calculations show the different trends in different countries. In general the ratio increased from 6.5 to 10.9 showing some tendency to the more intensive farming even the UAL area was shrunk. However more evident differences between countries can be seen from the Fig.3. It shows, that in the group 1 (Estonia, Kaliningrad oblast of RF, Denmark) there was a trend towards more extensive land use, and the same but less expressed trend was observed in North Germany and Latvia (group 2). Differently, in the groups 3 (Lithuania, Sweden and Poland) and 4 (Finland), the ratio increased showing the trend towards more intensive land use and farming. Table 4. The changes of ratio between arable land and area under the utilised meadows and pastures all agricultural farms/holdings of 9 Baltic sea region countries from 1993 to 2008 Country/region Ratio Difference in 2008 as to the ± ratio ±% Denmark Estonia Finland Germany* Kaliningrad oblast (RF) ** Latvia Lithuania Poland Sweden Average Note: * Mecklenburg-Vorpommern and Schleswig-Holstein, data for 1995 and 2008 ** For Kaliningrad oblast data for1995 (Bučienė, 2002) and 2005 As the other research conducted in the Middle of Lithuania revealed the productivity point of agricultural farming lands, sensitivity of soils to erosion processes and favorable conditions for the development of large farms and agricultural farming land areas these are the factors having not much impact on the changing processes of farming lands. Land users, human migration processes in rural areas, the origin of abandoned, uncultivated land areas and economic factors have the largest impact on the change of farming land at present (Atkoceviciene et al., 2011: 35). In order to make more grounded conclusions it is necessary to analyse these reasons for other Baltic Sea region countries in further research. 11

12 Angelija Bučienė THE SHRINKING RATE OF UTILISED AGRICULTURAL LAND AND ITS COMPONENTS IN THE BALTIC SEA REGION COUNTRIES Figure 3. The main groups of Baltic Sea region countries with different trends of changed ratio between utilized arable land area and area under the utilized meadows and pastures, Conclusions After the analysis of results above, few conclusions might be drawn: 1. The determined shrinking of UAL in nine studied countries from 1993 to 2008 was almost 16 %. The highest shrinking rate was determined in Estonia, followed by Latvia, Kaliningrad oblast of RF and Lithuania. For arable land it was characteristic to shrink as it is shown mostly also in Estonia, followed by Latvia and Kaliningrad oblast of RF. 2. Denmark was the only country in the region, where the area under the meadows and pastures increased from 1993 to 2008 (by 32 %), and Finland was one, where it decreased mostly (by almost 69 %). In the rest of countries the area under the utilised meadows and pastures decreased from 14 to 33 %, and arable land area decreased from 12 to 19 %. 3. Two main trends of changes in ratio between the area of utilised arable land and area under the meadows and pastures were determined in the research region: 1). Trend towards extensive land use and farming mostly evident in Estonia, Kaliningrad oblast of RF, Denmark, and less evident in North Germany and Latvia; 2). Trend towards more intensive land use and farming mostly evident in Finland and a little less evident in Lithuania, Sweden and Poland. 12

13 ISSN Regional Formation and Development Studies, No. 1 (6) References Agriculture & Fisheries. Website: (visited 10th of January, 2012). Andersen, E. (ed.) (2003). Developing a high nature value farming area indicator. Internal report EEA. European Environment Agency, Copenhagen. Аtkoceviciene, V., Gudritiene, D., Dudoniene, V. (2011). The analysis on the change of farming lands in the territory of Middle Lithuania. Baltic surveiying 11. Proceedings International Scientific Conference of Agriculture Universities of Baltic States, 11th 13th of May, Jelgava, p Baldock, D., Beaufoy, G., Brouwer, F., Godeschalk, F. (1996). Farming at the margins: Abandonment or redeployment of agricultural land in Europe. IEEP/LEI-DLO, London/Den Haag. Bučienė, A. (2002). Overview of rural population demographic situation, land use and spheres of activity in the Baltic Sea region. Tiltai. Brücken. Bridges. Scientific paper of Klaipėda University, vol. 2, p Bučienė, A. (2003). Žemdirbystės sistemų ekologiniai ryšiai. Monografija. Klaipėda: Klaipėdos universiteto leidykla. Bučienė, A. (2009). Biogenų N ir P išplova Lietuvos žemumų dirvožemiuose. Habilitacijos procedūrai teikiamų mokslo darbų apžvalga. Fiziniai mokslai, geografija (06P). Vilnius. Bučienė, A. (2010). Ecological agriculture and sustainable development in the Baltic Sea region. Human resources the main factor of regional development, Journal of Social sciences, No. 3. Klaipėda university, p Contemporary changes of agriculture in East-Central Europe. (2008). J. Banski, M. Bednarek (eds.). Rural Studies, Vol. 15. Warsaw. Dobele, A. (2004). Use of land resources in Latvia. Approbation, presentation and resume of PhD Paper, Jelgava, Latvia University of Agriculture, Faculty of Economics, Department of Business and management. Website: http// (visited 9th January, 2012). EEA Signals (2004). A European Environment Agency update on selected issues. Copenhagen. Website: (visited 11th January, 2012). EEA. (2005). Agriculture and environment in EU-15 the IRENA indicator report. Europe in figures. (2009). Agriculture, forestry and fishery Eurostat yearbook. Kazakevičius, Z. (2011). Žemės išteklių naudojimo Lietuvos ūkininkų ūkiuose vertinimas. Management theory and studies for rural business and infrastructure development, Nr. 3 (27). Research papers, p Korneevets, V. (1997). Agriculture in North-Western Russia. A sustainable Baltic region. Food and Fibres. Sustainable agriculture, forestry and fishery. B. Bodin, S. Ebbersten (eds.). Swedish University of Agricultural Sciences. Uppsala University, p Mücher, S., Wascher, D. (2007). European landscape characterisation. Europe s living landscapes. Essays on exploring our identity in the countryside. LANDSCAPE EUROPE / KNNV. B. Pedroli, A. Van Doorn, G. De Blust, M. L. Paracchini, D. Wascher, F. Bunce (eds.). Website: (visited 11th January, 2012), p Nikodemus, O., Bell, S., Penēze, Z., Krūze, I. (2010). The influence of European Union single area payments and less favoured area payments on the Latvian landscape. Europ. Countrys, Vol. 1, p Statistics Division FAO. (2010). Website: yearbook_2010/a04.xls (visited on 8th January, 2012). Sustainable agriculture. (2012). Ch. Jakobsson (ed.). Ecosystem Health and Sustainable Agriculture, Vol. 1. The Baltic University Programme, Uppsala University. Towards a Baltic sea unaffected by eutrophication. (2007). HELCOM Overview, HELCOM Ministerial Meeting Krakow, Poland, 15 November Website: pdf (visited on 9th January, 2012). Vinokurov, E. (2007). Kaliningrad: Enclaves and Economic Integration. Thinking ahead for Europe, Special Report, CEPS (Centre for European Policy Studies). Website: (visited on 9th January, 2012). Website: Website: Website: Website: Website: Website: Website: (all visited on 9th January 2012). Целевая программа Калининградской области «Осножные направления развития агропромышленного комплекса Калининградской области на годы». Приложение к постановлению Правительства Калининградской области от 2006 года (in Russian). 13

14 Angelija Bučienė THE SHRINKING RATE OF UTILISED AGRICULTURAL LAND AND ITS COMPONENTS IN THE BALTIC SEA REGION COUNTRIES NAUDOJAMŲ ŽEMĖS ŪKIO NAUDMENŲ IR JŲ KOMPONENTŲ MAŽĖJIMO TEMPAI BALTIJOS REGIONO ŠALYSE Angelija Bučienė Klaipėdos universitetas (Lietuva) Santrauka Erdviniai ir laikiniai žemėnaudos pokyčiai reikšmingi tiriant kaimo kraštovaizdžio kaitą tiek regioniniugeografiniu, tiek ir aplinkosauginiu aspektais. Nagrinėjamame Baltijos regione (9 šalys, kur Rusijos Federacijai atstovauja Kaliningrado sritis), naudojamos žemės ūkio naudmenos vidutiniškai sudaro apie 34 % bendrojo regiono ploto. Atlikus tyrimą nustatyta bendra tendencija naudojamų žemės ūkio naudmenų ploto mažėjimas nuo 1993 m. iki 2008 m. 16 % visame regione (mažiausias sumažėjimo tempas užfiksuotas Danijoje 3 %, didžiausias Estijoje 43 %). Tyrimais nustatytas ir skirtingas naudojamų žemės ūkio naudmenų bei jos komponentų ariamosios žemės, pievų ir ganyklų mažėjimo tempas pavienėse Baltijos regiono šalyse. Be Estijos, dideliu naudojamų žemės ūkio naudmenų plotų mažėjimu per minėtą laikotarpį pasižymėjo Latvija, RF Kaliningrado sritis ir Lietuva. Šiose šalyse labiausiai sumažėjo ariamosios žemės plotai. Danija buvo vienintelė šalis regione, kurioje per m. padidėjo naudojamų pievų ir ganyklų plotas (32 %), tuo tarpu Suomijoje jis sumažėjo labiausiai net 69 %. Likusiose šalyse (šiaurinėje Vokietijos dalyje, Lenkijoje, Švedijoje) naudojamų pievų ir ganyklų plotai sumažėjo nuo 14 iki 33 %, ariamosios žemės plotai nuo 12 iki 19 %, atsižvelgiant į šalį. Išryškėjo dvi naudojamų žemės ūkio naudmenų kaitos tendencijos regione: 1) žemės ūkio ekstensyvėjimo tendencija, kai sparčiau traukėsi ariamosios žemės plotai, lyginant su pievų ir ganyklų plotais; 2) žemės ūkio intensyvėjimo tendencija, kai ariamosios žemės dalis, nors ir traukėsi naudojamų žemės ūkio naudmenų plotai, santykinai padidėjo. Pirmoji tendencija akivaizdi Estijoje, RF Kaliningrado srityje ir Danijoje, šiek tiek mažiau ryški šiaurinėje Vokietijoje ir Latvijoje, antroji akivaizdi Suomijoje, šiek tiek mažiau ryški Lietuvoje, Švedijoje ir Lenkijoje. PAGRINDINIAI ŽODŽIAI: naudojamos žemės ūkio naudmenos, ariamoji žemė, pievos ir ganyklos, mažėjimo tempas JEL kodai: Q 16, Q

15 ISSN Regional Formation and Development Studies, No. 1 (6) WHAT ARE THE ECONOMIC JUSTIFICATIONS FOR THE EXISTENCE OF EXPORT CREDIT AGENCIES AND HOW CAN THEY FACILITATE CROSS BORDER TRADE TO EMERGING MARKET ECONOMIES? Trung Quang Dinh 1, Hilmar Þór Hilmarsson 2 School of Business and Science, University of Akureyri (Iceland) Abstract Export Credit Agencies (ECAs) have played an important role in cushioning the downturn in cross border trade during the current economic and financial crisis. This article discusses the role of ECAs in facilitating cross border trade to emerging markets as well as the economic rationale for the existence of such agencies. It also demonstrates how selected risk mitigation instruments of ECAs, namely: (i) buyer credit guarantee, (ii) supplier credit guarantees and (iii) export loans have been applied in practice. Finally cases are presented that highlight how companies have used the service of ECAs, for example, to obtain better terms, including longer term loans and/or lower interest rates. KEY WORDS: Cross border trade, emerging markets, financial crisis, export credit agencies (ECAs), commercial and non-commercial risks, and risk mitigation instruments. JEL codes: F14, F21, G01, G24, G32 Introduction The current economic and financial crisis resulted in a sharp fall in international trade in the second half of 2008 and early According to a recent IMF working paper export credit agencies (ECAs) played an important role in cushioning this downturn. The same IMF paper also argued that ECAs may also have played an important signaling role by reassuring the private sector that official institutions stand ready to back up at difficult times (Asmundson, 2011: 33). But what are ECAs? On the website of the OECD one can find the following information Governments provide official export credits through Export Credit Agencies (ECAs) in support of national exporters competing for overseas sales. ECAs provide credits to foreign buyers either directly or via private financial institutions benefiting from their insurance or guarantee cover. ECAs can be government institutions or private companies operating on behalf of the government (OECD n.d.). ECAs thus facilitate cross border trade by providing insurances or guarantees against commercial and non-commercial/political risks. But what are those risks? MIGA defines political risk broadly as the probability of disruption of the operations of MNEs by political forces or events, whether they occur in host countries, home country, or result from changes in the international environment. In host countries, political risk is largely determined by uncertainty over the actions of 1 Trung Quang Dinh School of Business and Science, University of Akureyri (Iceland), M.Sc. student, International Business. ha110243@unak.is Tel.: Dr. Hilmar Þór Hilmarsson School of Business and Science, University of Akureyri (Iceland), professor, scientistic interest: financial investitions, economics. hilmar@unak.is Tel.:

16 Trung Quang Dinh, Hilmar Þór Hilmarsson WHAT ARE THE ECONOMIC JUSTIFICATIONS FOR THE EXISTENCE OF EXPORT CREDIT AGENCIES AND HOW CAN THEY FACILITATE CROSS BORDER TRADE... governments and political institutions, but also of minority groups, such as separatist movements. In home countries, political risk may stem from political actions directly aimed at investment destinations, such as sanctions, or from policies that restrict outward investment (MIGA, 2009: 28). The Oxford Handbook of international Business defines political risk as the probability of disruption to an MNE s operations from political forces or events and their correlates. It involves governmental or societal actions, originating either within or outside the host country, and negatively affecting foreign companies operations and investments. Political risk reflects the degree of uncertainty associated with the pattern of decisions made by the political institutions such as governmental and legislative agencies 3 (Luo, 2009: 2). Commercial risk is defined by the OECD (in the context of export credits) as the risk of nonpayment by a non-sovereign or private sector buyer or borrower in his or her domestic currency arising from default, insolvency, and/or a failure to take up goods that have been shipped according to the supply contract (OECD, 2003). For the purpose of this article we will primarily be concerned with commercial and non-commercial risks faced by exporters who wish to engage in cross border trade to emerging market economies. Those economies are often undergoing a political and economic transition which makes private sector engagement more challenging then when exporting to developed economies. Companies entering emerging markets can expect to face higher market barriers and more political uncertainties than those entering developed countries. The primary question to be answered in this article is: What is the economic justification for export credit agencies and how can they facilitate cross border trade to emerging markets? 1. Are there any economic justifications for government involvement in trade finance? According to Raoul Ascari 4 the rationale for establishing an ECA has never been spelled out in a definite way. Furthermore he states that the economic literature on this line of research has almost disappeared over the last two decades (Ascari, 2007: 3). Ascari, however, refers to the World Bank Research Observer from 1989 that lists some rationales behind export credit. Those are: domestic distortions, capital market failures 5 ; risk uncertainty and incomplete insurance markets; moral hazard 6, and adverse selection 7. As Ascari points out moral hazard and adverse selection may rise premium above the threshold at which exporters are willing to buy insurance (Ascari, 2007: 3). Other rationales for export credit and insurance are: industrial policies; export externalities; employment and balance of payments and matching other countries programs (For detail, see Fitzgerald and Monson, 1989; Ascari, 2007). According to a report published by the WTO in 1999 aggravated asymmetric information 8 in cross border trade, and the inability or unwillingness of private commercial banks to take on economic/commercial risks and political/non-commercial risks is often seen as an economic justification in trade financing (Finger and Schuknecht, 1999). This is especially true for large and long-term trade contracts to countries with less developed financial systems. Obviously asymmetric information can be significantly larger in international trade, as compared with domestic trade. This is because information about foreign companies (e.g. importers) is often more limited or less familiar to the supplier or exporter and his bank than in the case of domestic clients. This problem relates to commercial risks. Another problem associated with distant market has to do with policy 3 Different conceptualization of political risk can lead to different data sources, analytical tools, and interpretation of results (Luo, 2009). 4 At the time of writing his paper (2007) Raoul Ascari was the CFO of SACE. Currently he is the Chief Operating Officer of SAGE. In an to the authors dated February 22, 2012 Ascari confirmed that according to his knowledge this gap in the literature still exists. 5 Incomplete information on export risk can, for example, cause lenders to charge higher rates or to demand more collateral. 6 Moral hazard is a problem created by asymmetric information after the transaction occurs. This occurs when the borrower engages in activities that are undesirable for the lender in the sense that they make it less likely that the borrower can pay back the loan. In the case of ECAs moral hazard would exist if the insured exporter has an incentive to change its behavior once it has the insurance. The exporter would sell to a riskier importer and transfer higher risk than he would want bear in the absence of insurance. 7 Adverse selection is the problem created by asymmetric information before the transaction takes place. This occurs, for example, when the borrower who is least likely to produce a desirable outcome most actively seeks a loan and thus is most likely to get the loan. Exporters would have an incentive to insure only high risk sales but not those that are considered low risk. 8 This implies that one party does not have enough information about the other party to make decisions. For example, the borrower who takes a loan often has better information on the potential returns on an investment project than the lender has. 16

17 ISSN Regional Formation and Development Studies, No. 1 (6) changes which make transfer of foreign exchange difficult or impossible thereby preventing the importer/ purchaser from making a payment to the exporter/supplier. This problem relates to non-commercial risks. ECAs from developed countries can help in this process if they guarantee exports to emerging markets and by doing so reduce the needs for domestic financing. ECAs can provide cover for both commercial and non-commercial risks as discussed below. In fact most developed countries have ECAs that help promote exports. As Finger and Schuknecht point out ECAs provide trade related financing through three main instruments: (i) credits for trade transactions which would be difficult, or more costly to finance via commercial lending, (ii) guarantees for repayment of credits which help exporters receive more favorable lending terms from their local or international banks, (iii) insurance for exporters against commercial and non-commercial/ political risk (Finger and Schuknecht, 1999: 9). 2. Export credit agencies and their risk mitigation instruments When private companies engage in cross border trade in emerging markets, the risks they face is a key concern. Managing those risks will be one of the primary objectives of the company. Not only small and medium sized companies need to evaluate and assess the risks they are faced with carefully, but also large corporations with stronger financial capabilities need to protect their business from risks. In order to meet this existing demand the political and commercial risk insurance industry has been formed. The leading association in this industry is the Berne Union (founded 1934) with 73 members including mainly ECAs, multilaterals, and private insurers (MIGA, 2010). ECAs are either public-sector institutions in their respective countries, established to provide support for the exports of that country, or private-sector companies that act as a channel for government support for exports from the country concerned (Yescombe, 2002). In general, these ECAs will charge a premium to those companies who use their products. According to MIGA the OECD country ratings are designed to set guidelines to price the default risk on export credit and to set minimum premium rates charged by participating ECAs (MIGA, 2010: 63). The ratings known as the Knaepen Package came into effect in 1999, is a system for assessing country credit risk and classifying countries into eight risk categories, from 0 to 7 (OECD n.d). Basically, ECAs will assess political risk and commercial risk when they issue guarantees to exporters or foreign buyers. ECAs use country ratings by OECD as platform to assess political risk or country risk while commercial risk is assessed based on each individual corporate s information such as operation and background information, financial and audited annual reports, project feasibility studies, etc. Companies who are eligible to use products or services provided by an ECA must have their operations relevant to national interest of the country where the ECA is located. In other words, the companies must contribute to national economic development of that country in a direct or indirect way. For instance, a company must have production facilities located in the home country of the ECA. The ECA can also support a home company who has production facility in a host country. There are various products or risk mitigation instruments offered by ECAs and these products can be the same or very similar from one ECA to another. Products of ECAs include, for example: Bond Guarantee, Investment Guarantee, Project Financing Guarantee, Financing Guarantee, Project Delivery Guarantee, Working Capital Guarantee or Reinsurance. The products that this article focuses on and analyses are: (i) Buyer Credit Guarantee, (ii) Supplier Credit Guarantees and (iii) Export Loans. The authors of this article chose those three products based on their research of a large European company in connection to its business expansion in Vietnam. These products seem to be the most suitable in terms of risk mitigation when companies export goods or services to their buyers in emerging markets. However, companies need to find what product suits them best on a case by case basis. A Buyer Credit Guarantee is basically a guarantee issued by an ECA to a bank that lends money to a foreign importer to pay for an order of goods or services from an exporter in the country where this ECA is located (see figure 1). In emerging economy countries, both local and international banks are cautious when deciding 17

18 Trung Quang Dinh, Hilmar Þór Hilmarsson WHAT ARE THE ECONOMIC JUSTIFICATIONS FOR THE EXISTENCE OF EXPORT CREDIT AGENCIES AND HOW CAN THEY FACILITATE CROSS BORDER TRADE... to lend capital to companies. A research 9 among the largest fisheries processors (ranked by VASEP 10 ) in Vietnam conducted by the authors in November 2011 found that when companies applied for medium or longterm loans (up to 5 years) to invest in their processing equipment they usually only got 50 to 55 percent of the amount requested. If a company has good working experience and good relations with a local bank and the feasibility study of their project is highly assessed, the amount of loan could be increased to 70 percent of the total loan requested. The companies had to use their own funds for the rest of the investment. Some processors said that they could hardly obtain any medium or long term loan if the size of the loan is up to few millions US dollars. This has been one of the companies main constraints and it prevents companies from investing intensively in comprehensive and modern processing lines. Figure 1. Model of Buyer Credit Guarantee of the Danish ECA EKF Buyer Credit Guarantee can help foreign buyers in emerging markets to obtain larger loans from international banks with longer lending term and at more favorable interest rates. This can also be done through a local bank but it would normally take longer time as the ECA is more likely to know the international banks. The bank will then be covered from buyer s default in repayment due to commercial or non-commercial risks. A Supplier Credit Guarantee is a guarantee issued by an ECA to the supplier or the exporter and this exporter can then grant the foreign buyer extended credit on amounts payable for the order. The supplier or the exporter will be protected against the risk of not being paid by the buyer or the importer due to political or commercial risks. The exporter can take advantage of supplier credit guarantee to lend the foreign buyers in an emerging market where an extended credit period may be the key incentive for the buyers to select the most competitive supplier over the others. Supplier Credit Guarantee helps the buyer or the importer repay the order in a longer period (see figure 2). This can be very advantageous for a buyer who may have limited cash flow and has difficulty in accessing funds. During a research conducted by the authors of this article 9 In co-operation with Marel Food Systems, the authors selected, visited and interviewed 4 of the largest Vietnamese pangasius processors in order to understand their difficulties and constraints in modernizing their processing lines. Export value of these processors on a yearly basis varied from USD 17 million to USD 61.7 million in 2010 (according statistic from VASEP sent via July 22, 2011). These companies are thus an important source of foreign exchange for Vietnam. 10 Vietnam Association of Seafood Exporters and Producers (VASEP) is a non-governmental organization, established on June 12th 1998, based on the principles of volunteer, autonomy and equality. VASEP members include leading Vietnamese seafood producers and exporters and companies providing service to the seafood sector. 18

19 ISSN Regional Formation and Development Studies, No. 1 (6) among 20 largest Vietnamese fisheries processors in August 2011, a questionnaire was sent out. All of those who answered indicated that they have to pay the supplier within 3 to 6 months after the equipment has been fully installed and checked. This short term repayment period for the equipment from the supplier is one of their main constraints especially for companies who lack working capital and have difficulty in obtaining loans. The field research conducted by the authors in November 2011 found that these companies have not been offered an extended credit period from any supplier. They have to apply for loans from local banks with high interest rates. Most loans lent to them are both short term loans (less than 12 months) and the amount allocated is far lower than the amount they requested. This constraint appears to be one of the reasons why Vietnamese fisheries processors could not purchase sophisticated processing equipment from European manufacturers on a large scale. Figure 2. Model of Supplier Credit Guarantee of the Danish ECA EKF They only purchased a small part of the equipment needed from these manufactures and the rest of processing lines were locally made or imported from more affordable Asian manufacturers like China, Korea or Japan. This suggests that if buyers from an emerging market like Vietnam were offered an extended credit period, it might affect their investment decision which means that they would perhaps invest more sophisticated processing equipment on a larger scale. Some of the processors in Vietnam indicated that if they were granted a longer repayment period from the supplier and at reasonable cost they would consider to invest and modernize their processing lines more comprehensively. See figure 2 for the description of how Supplier Credit Guarantee works. An export loan is a lending scheme to help the exporter s foreign buyer when this buyer is unable to secure credit facilities from banks for purchasing products and services from the exporter (see figure 3). In the case of EKF, the Danish Export Credit Agency, they would facilitate the export loan through a bank, and the loan is based on the bank s lending terms. It depends on each individual ECA whether or not they offer the export loan product and how long the lending term will be. But this product is very important during financial crisis when banks are unable to provide loans to companies. The EKF offers export loans as a result of the crisis and application for an export loan from EKF can be made until end of

20 Trung Quang Dinh, Hilmar Þór Hilmarsson WHAT ARE THE ECONOMIC JUSTIFICATIONS FOR THE EXISTENCE OF EXPORT CREDIT AGENCIES AND HOW CAN THEY FACILITATE CROSS BORDER TRADE... Figure 3. Model of Export Loan of the Danish ECA EKF However, the costs associated and premium for this Export Loan scheme is not necessary cheaper than other traditional lending schemes because the export loan is granted jointly by a bank (usually the exporter s bank) and an ECA to the foreign buyer on a commercial basis and market conditions. Export loan can be even more expensive but it also can be critically important in international trade especially during financial crisis time where many banks are unable to provide funds to companies. The next chapter will illustrate how this produce is applied with a case in Jordan. 3. Cases. The application of ECAs risk mitigation instruments Continuous opening up of emerging market economies provides companies with many new opportunities but at the same time it involves international business risks. This chapter discusses some success stories of companies who used products of the Danish Export Credit Agency, EKF when engaging in cross border trade. These cases are quoted directly from cases published on the EKF s website Olam International Limited and the use of Buyer Credit Guarantee from Danish ECA EKF for a manufacturing facility in Vietnam (2009) Olam is a leading global supply chain manager and processor of agricultural products and food ingredients. With direct sourcing and processing in most major producing countries for various products, with the headquarters in Singapore, Olam has built a global leadership position in many businesses, including cocoa, coffee, cashew, sesame, rice, cotton and wood products. Olam operates an integrated supply chain for 20 products in 65 countries, delivering these products to over 11,000 customers worldwide (Olam, 2011). 20

21 ISSN Regional Formation and Development Studies, No. 1 (6) The Challenge In the year 2009, Olam was looking to invest in equipment for its new coffee manufacturing facility in Vietnam. Olam chose a Danish company namely GEA Process Engineering A/S as the supplier. Unfortunately, the global economic and financial crisis made it difficult for Olam to secure the financing it needed to buy the equipment. At the same time, Olam s bank was reluctant to secure long term financing. Owing to the lack of liquidity in the financial market in February 2009 it would in all probability have been impossible to secure financing with a repayment term beyond 2 3 years for Olam, says Antero Ranta from Olam s bank, ANZ Structured Asset and Export Finance, in Singapore The Process Thanks to long standing working relations between GEA and EKF, GEA proposed that EKF be involved in the process of procuring financing for Olam s project in Vietnam. I was convinced that EKF would be able to assist in putting the financing in place. For our part, it was all plain sailing, as, right from the start, our custo mer and ANZ were keen to take over and deal with EKF directly, says Jesper Duckert, Project Finance Manager, GEA Process Engineering A/S. In order to implement the financing negotiations, EKF decided to send its representatives to Vietnam and had a meeting with representatives from Olam and ANZ Structured Asset. After the visit to Vietnam, EKF had better basis for assessing the actual credit risk entailed by the project. The Solution After the meeting and negotiation EKF came up with a detailed assessment of the project and was able to offer a buyer credit guarantee. This guarantee meant that EKF assumed a share of the risk of extending a loan to Olam, and therefore, ANZ could secure financing for Olam as they needed. With an export credit guarantee from EKF we were able to offer Olam a loan with a repayment term of 8.5 years, says Antero Ranta from ANZ Structured Asset and Export Finance in Singapore. In spite of the financial crisis we were able to secure long-term financing for our activities on a growth market, says Arun Sharma, Senior Vice President, Coffee Division, Olam (EKF, 2009a) A Jordanian company namely Modern Cement & Mining Company, and the use of Export Loan and Buyer Credit Guarantee from Danish ECA EKF (period of credit: 2010 to 2017) The Challenge In July 2008 the Jordanian company Modern Cement & Mining Company chose a Danish company namely FLSmidth as an equipment supplier for its new cement plant in the south of Amman. The first deliveries were already paid by the Jordanian company but the main part of the order was to be financed by a local bank. However, due to the global economic and financial crisis, the bank turned down applications for new loans. This threatened the progress of the construction and the order of FLSmidth. FLSmidth decided to contact EKF in the spring of 2009 because FLSmidth had previously been assisted by EKF with guarantees for financing solutions. The Process EKF had meetings with a number of international and local banks who expressed their interest in taking on the risks of the project provided that EKF would guarantee most of the loans. Furthermore, through the export lending scheme EKF was able to offer a loan to the buyer of FLSmidth services. Then EKF quickly endorsed the project. EKF s endorsement was conditional to the approval of the risks and terms in the transaction, its environmental impact and the extent of the Danish eco nomic interest in the transaction aspects which all needed further examina tion and subsequent negotiation with the parties involved (EKF, 2010). 21

22 Trung Quang Dinh, Hilmar Þór Hilmarsson WHAT ARE THE ECONOMIC JUSTIFICATIONS FOR THE EXISTENCE OF EXPORT CREDIT AGENCIES AND HOW CAN THEY FACILITATE CROSS BORDER TRADE... The Solution Finally the solution came into place in May Half of the FLSmidth contract was financed with equity from the owners of the cement plant while the other half was financed with loans. More than half of the debt financing came from the Danish export lending scheme administered by EKF, while the remainder was provided by a group of local banks (EKF, 2010). HSBC London arranged the EKF financing. HSBC London is also acting as agent bank on behalf of EKF. Thanks to EKF s loan and guarantee, the construction of the cement plant in Jordan could continue as planned. And the plant is expected to be ready for production start-up at the beginning of 2012 (EKF, 2010) Grain and seed exporter Nibulon Company in Ukraine used EKF s Buyer Credit Guarantee to borrow money from a European Bank at a far lower interest rate than in Ukraine The Challenge In 2009, a Danish company, Cimbria Unigrain received the first of two large orders worth EUR 20 million from Nibulon, Ukraine s largest grain and seed exporter and a high-growth company. This order consisted of eight silo facilities for storing, drying and loading grain and seed. And Nibulon uses this equipment to extend and standardize its storage and transportation facilities by the rivers of Ukraine and the Black Sea. However, the Ukrainian buyer s constraint was that they had to borrow at a high interest rate in Ukraine to pay Cimbria Unigrain. And this might create uncertainty regarding the order from the Danish manufacturer. The Process Cimbria contacted EKF and EKF agreed to assess the viability of the export order and work on the financing options via a guarantee from EKF. Even allowing for the premium payable to EKF, Nibulon is making a big saving, says Sales Director Henning Roslev Bukh. He adds that Nibulon regards Cimbria Unigrain and EKF as important and regular business partners. The Solution Finally EKF offered a buyer credit guarantee to Nibulon. This meant that Nibulon was able to secure a loan from a Western European Bank at a far lower interest rate than in Ukraine. Nibulon is very pleased that it was possible to arrange a Danish guarantee for this order. We might well have got the order anyway, as Nibulon has ordered from us for many years and is very satisfied with our products. Nibulon could perhaps have financed the purchase with equity, but it is often cheaper to borrow the money than to use equity, and equity is greatly needed in a growth-oriented company such as Nibulon, says Henning Roslev Bukh. And in Nibulon made another order for eight silo facilities and once again, EKF provided a guarantee for the buyer s payments. Thanks to this order Cimbria Unigrain has hired 30 employees in 2010 (EKF, 2009b). 4. Marel Food Systems expansion in Vietnam Marel Food Systems is one of the leading manufactures internationally in food processing equipment and solutions. Marel is headquartered in Iceland 11 and has production facilities for processing lines in fish, poultry, and meat in numbers of European countries, USA, Brazil and in Asia. Marel is ambitious to expand their business in emerging markets where food processing industry is becoming more important like for example 11 Iceland has an ECA called TRÚ. This agency has so far been inactive and has never processed a transaction. Since Marel Food Systems has production facilities in several countries the company can use the services of the ECAs in those countries. Iceland, like several small states, also has limited membership in international financial institutions (IFIs) and is not member of the regional development banks (see, for example, Hilmarsson, 2011). This limits the access of Icelandic companies to the risk mitigation instruments of IFIs. For more detail about the application of IFI risk mitigation instruments in emerging market economies see, for example Hilmarsson,

23 ISSN Regional Formation and Development Studies, No. 1 (6) in China, Thailand and Vietnam. However, the purchasing volume of buyers from these markets remains low especially in Vietnam. The research conducted by the authors in cooperation with Marel, mentioned earlier, among largest pangasius processors in Vietnam, found that Vietnamese buyers bought some limited number of equipment rather than investing in comprehensive processing lines. During in-depth interviews with 4 of the largest Vietnamese processors, the authors were told that most of the equipment made by European manufacturers is very sophisticated and advanced, however, this equipment is too expensive for them to purchase on a large scale. Instead, they needed to select some equipment which is most important for them. The remaining equipment they bought from more affordable manufacturers from China, Korea or Japan and some other equipment is locally made. When asked, these processors said they were aware of the fact that having advanced equipment in their processing lines would enable them to export more of their products to high income markets like USA, Europe and Japan. The critical issue is lack of funding which prevents them from investing intensively. The issues here include low amount of loan allocation from local banks, limited availability and accessibility to long term loans especially in foreign currency like USD, high interest rates, short repayment period to the equipment suppliers etc. At the same time, the authors visited and interviewed some ECAs in Europe like EKF (Denmark), EKN (Sweden) and Atradius (Netherlands), and ECICS in Asia (Singapore). In response to the question what products offered by ECAs they thought would be most suitable for Marel and its buyers in Vietnam given the constraints mentioned above, these ECAs thought that two products should be suitable which are Buyer Credit Guarantee and Supplier Credit Guarantee. The recommended products of ECAs could help Marel achieve its goal which is to expand its business in Vietnam. However, the ECAs also said that in order to be supported by ECAs instruments, the Vietnamese buyers need to fulfill requirements in terms of being able to provide sufficient and transparent information about their companies, especially financial information, including audited annual reports. The readiness and good home-work of Vietnamese buyers will help the process of ECAs in assessing their creditworthiness and making decision on their request quicker. Most of the Vietnamese fisheries processors now are working with local banks both state owned and private, however, ECAs indicated that if foreign buyers work with international banks it will normally make the process faster because ECAs have more working experience with large international banks than local banks in a specific country. Conclusions ECAs have played an important role in cushioning the downturn in cross border trade during the current economic and financial crisis. The article discussed the role of ECAs in facilitating cross border trade to emerging markets as well as the economic rationale for the existence of such agencies. Continuous opening up of emerging market economies provides companies with many new opportunities but at the same time it involves international business risks. When companies engage in cross border trade they are likely to face higher risks than in domestic markets. These risks can be political and commercial risks and the level of risk is also different in different markets. In order to cover the existing demand and to promote the export of its home products, ECAs worldwide provide various risks mitigation instruments for cross border trade. Through the research done by the authors and the cases described in this article, we can see that there are real possibilities for companies to have risks covered thus enhance their business development especially when they tap into emerging markets. Among the key factors for success is the ability of ECAs to assess the creditworthiness of companies involved especially the foreign buyers. Therefore, in response to this issue, foreign buyers should provide full and transparent financial information to help the process move faster, including audited annual reports. Also, ECAs prefer working with international banks that they know and already have a business relationship with so it would be advantage for foreign buyers to seek loans from international banks such as ANZ and HSBC or international financial institutions such as the Asian Development Bank and the International Finance Corporation of the World Bank Group, etc. The products offered by ECAs show that the risks associated with 23

24 Trung Quang Dinh, Hilmar Þór Hilmarsson WHAT ARE THE ECONOMIC JUSTIFICATIONS FOR THE EXISTENCE OF EXPORT CREDIT AGENCIES AND HOW CAN THEY FACILITATE CROSS BORDER TRADE... political and commercial risks in emerging markets can be managed, and the cases discussed in this article are tangible evidence of recent success during a global economic and financial crisis. References Ascari, R. (2007). Is Export Credit Agency a Misnomer? The ECA Response to a Changing World. Available at: (accessed on February 25, 2012). Asmundson, I., Dorsey, T., Khachatryan, A., Niculcea, I., Saito, I. (2011). Trade and Trade Finance in the Financial Crisis. IMF Working Paper, WP/11/16, p Available at: wp1116.pdf (accessed on February 25, 2012). EKF. (2009a). Case: Olam Buys Danish Equipment with Long-term Loan. Available at: (accessed on November 14, 2011). EKF. (2009b). Case: Ukraine Orders Create Jobs in Thisted, Denmark. Available at: (accessed on November 14, 2011). EKF. (2010). Case: EKF Secures Financing of Large FLSmidth Order to Jordan. Available at: How-it-works/cases/Pages/FLSmidth.aspx (accessed on November 14, 2011). Finger, K. M., Schuknecht, L. (1999). Trade, Finance and Financial Crises. The World Trade Organization. Available at: (accessed on January 12, 2012). Fitzgerald, B., Monson, T. (1989). Preferential Credit and Insurance as Means to Promote Exports. The World Bank Research Observer, Vol. 4(1), p Hilmarsson, H. Þ. (2011). Managing reform: How can the Baltic States as aid donors best share their transition experience with less advanced economies and what lessons can they learn from the international development programs of the Nordic countries? Review of International Comparative Management, Volume 12, Issue 4, October 2011, p Available at: (accessed on February 14, 2012). Hilmarsson, H. Þ. (2012). Small States and Large Private Sector Investments in Emerging Market Economies in Partnership with International Financial Institutions. In Innovation Systems in Small Catching-Up Economies: New Perspectives on Practice and Policy. Springer Book Series on Innovation, Technology and Knowledge Management, Vol. 15, Part 2, p DOI: / _8. Available at: content/g822445l85313n03/ (accessed on February 14, 2012). Luo, Y. (2009). Political Risk and Country Risk in International Business. The Oxford Handbook of International Business. Published to Oxford Handbooks Online: September doi: /oxfordhb/ MIGA. (2009). World Investment and Political Risk. Available at: pdf (accessed on December 12, 2011). MIGA. (2010). World Investment and Political Risk. Available at: (accessed on December 12, 2011). OECD. (2003). Definition of commercial risk. Available at: (access on October 15, 2011). OECD. (n.d). Coutry risk classification. Available at: en_2649_34171_ _1_1_1_1,00.html (accessed on December 12, 2011). OECD. (n.d.). Export Credits, Official Export Credits Agencies. Available at: en_2649_34169_1_1_1_1_1,00.html (accessed on February 25, 2012). Olam. (2011). Annual Report. Available at: Reports_2011 (accessed on December 14, 2011). VASEP. (2011). Vietnam Association of Seafood Exporters and Producers. Official website: (accessed on August 31, 2011). Yescombe, E. R. (2002). Principles of Project Finance. Academic Press, London, 343 p. 24

25 ISSN Regional Formation and Development Studies, No. 1 (6) ekonominės eksporto kreditų agentūrų egzistavimo prielaidos, jų galimybės paskatinti užsienio prekybą su kylančiomis rinkos ekonomikomis Trung Quang Dinh, Hilmar Þór Hilmarsson Verslo ir mokslo mokykla, Akureyri universitetas (Islandija) Santrauka Eksporto kreditų agentūros (EKA) suvaidino svarbų vaidmenį švelninant finansų krizės padarinius užsienio prekybai. Šiame straipsnyje aptariamas EKA vaidmuo skatinant užsienio prekybą su kylančiomis rinkos ekonomikomis, aptariamos ekonominės tokių agentūrų egzistavimo prielaidos. Straipsnyje parodoma, kaip praktikoje taikomos EKA rizikos mažinimo priemonės: 1) pirkėjo kredito garantijos; 2) tiekėjo kredito garantijos; 3) eksporto paskolos. Pateikiama pavyzdžių, kaip organizacijos naudojosi EKA paslaugomis, pavyzdžiui, siekdamos geresnių sąlygų, tokių kaip ilgesni paskolų terminai ir/ ar mažesnės palūkanos. PAGRINDINIAI ŽODŽIAI: užsienio prekyba, kylančios rinkos, finansų krizė, eksporto kredito agentūros (EKA), komercinė ir nekomercinė rizika, rizikos mažinimo instrumentai. JEL codes: F14, F21, G01, G24, G32 25

26 Anna Belova International cooperation of border settlements in strategies for development of small and semi-medium cities: case-study... International cooperation of border settlements in strategies for development of small and semi-medium cities: case-study of Kaliningrad Region (Russian Federation) Anna Belova 1 Immanuel Kant Baltic Federal University (Russia) Abstract The role of cross-border cooperation of Kaliningrad region s of Russian Federation border municipalities in its development strategies are observed. Significance of cross-border cooperation of small and semi-medium cities for its socio-economic development is analysed. The main spheres of cooperation between small and semi-medium border settlements of Kaliningrad region, Poland and Lithuania have been defined. The theoretical base on cross-border cooperation (Russian and foreign researchers) was analysed, and five geographical methods were used on preparation the article. KEY WORDS: development strategy, cross-border cooperation, border settlements, small and semi-medium-sized cities, socio-economic development. JEL Codes: R120, R230, R500, R580, R590, O180, O190, F500, F590 Introduction Kaliningad region of Russian Federation due to its geographical location has the exclave status for the country. And the cross-border cooperation of the Kaliningrad region with surrounding EU countries (Lithuania and Poland) plays significant role for socio-economic development of Kaliningrad region. It is important to mention that only Kaliningrad region is separated from Russian territory by other states. And the border regions of Russia consider the cross-border cooperation as one of the ways towards socio-economic development of the territory. Mostly small and semi-medium-sized cities are located along the borders of Russia, and its cooperation reflected in the development strategies of the border regions of the Russian Federation. Compared to other Russian peripheral territories, semi-medium sized cities of the Kaliningrad region actively participate in cross-border and transnational cooperation. All of them enjoy partnerships and twinning relationships with overseas neighbouring, and even with geographically remote cities. The strategies for socio-economic development of semi-medium sized cities of Kaliningrad region plays significant role for cross-border and trans-border cooperation for its development. The main aim of the article is to analyse the strategies for socio-economic development of semi-mediumsized cities of Kaliningrad region on issue of the cross-border cooperation and to define main sectors for cooperation of semi-medium sized cities of Kaliningrad region with border municipalities of Lithuania and Poland. Also it is the objective to analyse the role of the border cities of Kaliningrad region for the settlement system o the region. 1 Anna Belova Head of the European Union information center of the Immanuel Kant Baltic Federal University, Kaliningrad, scientific interests: social geography, international cooperation. polyotkina@mail.ru 26

27 ISSN Regional Formation and Development Studies, No. 1 (6) 1. Research review There are many Russian (Soviet) scientists have dealt with settlement systems, region planning and role of the settlements in socio-economic development of the territory. Among Russian scientists in this sphere it is needed to pay attention to economic geographers as B. S. Khoreev, S. G. Smidovich, G. M. Lappo, D. G. Khodzhaev, G. M. Fedorov (Lappo, 1997; Fedorov, 2001; Pustovgarov, Fedorov, 2001) and others. Among foreign scientists W. Crystaller and A. Lesh, H. Hotellinag, J. Tunen, W. Laundhart, A. Weber and others (Simagin, 2009). As soon as for border regions and territories, many scientists in their research work paid attention to border as the significant resource for improving the socio-economic situation in peripheral areas. There are such scientists as Russian (Soviet) geographers: P. Y. Baklanov, Y. N. Gladky, Y. M. Zverev, T. N. Chekalina, V. S. Korneevets, N. V. Kaledin, V. A. Kolosov, A. G. Manakov, B. B. Rodoman (Baklanov, Ganzej, 2004; Kaledin, Korneevets, Chekalina, 2008; Kolosov, Turovskij, 1998; Rodoman, 2002) and others; economists: O. V. Butorina, L. B. Vardomski, N. M. Mezhevich, N. Y. Oding (Mezhevich, 2002; Oding, Fedorov, 2009); politologs: I. N. Barygin, K. K. Khudoley, O. V. Plotnikova and others (Barygin, 2009; Plotnikova, 2005; Khudoley, Lanko, 2009). Significant role plays the research works of such foreign scientists as Е. Antola, Е. Buchhover, V. Goermar, P. Joenniemi, U. Kivikari, M. Lindstrоm, K. Lihuto, Т. Palmovsky, E. Spiriajevas, I. Samson, F. Tassinari, H. Timmermann, K. Wellmann, J. Zaleski (Rosas, Antola, 1995; Buchover, 1994; Kivikari, Lindstrom, Liuhto, 1998; Palmowski, 2004; Spiriajevas, 2004; Timmermann, 2001; Tassinari, 2004). As for the strategic planning for the regional development in boder regions and muniipalities, it is important to note such scientists as V. S. Bilchak, G. M. Fedorov, D. A. Bolotova, V. A. Lapina, V. Y. Liubovny, M. Y. Mahovej, N. M. Mezhevich, M. A. Nikolajeva, S. N. Yurkova (Bilchak, 2001; Fedorov, Zverev, Korneevets, 2008; Mezhevich, 2009; Shirokov, Yurkova, 2004) and others. 2. Methodology During preparation of the present research the following methods used in research of social and economic geography have been applied (Djakonov, 1996): y bibliographical method (study of works of Russian (soviet) and foreign geographers on the present subject); y comparative and geographical method (to reveal general tendencies of social and economic development of the small and semi-medium-sized border cities and other border settlements of Kaliningrad region and border areas of Lithuania and Poland, and to analysis the strategic documents of the border municipalities of Kaliningrad region); y method of spontaneous study of populated places (to reveal problems of border small and semi-medium cities of the Kaliningrad region); y method of analysis of statistic data (to compose tables of forms and types of the crosborder cooperation of the border small and semi-medium cities of the Kaliningrad region with the view of their further analysis); y cartographical method (aiming at presentation the border settlements of the region and adjacent EU states). 3. Research results Regional strategies and policies of semi-medium sized cities and their adjacent areas were elaborated with regard to the specific geographical situation of the Kaliningrad region and the experience of cross-border and transnational cooperation. 27

28 Anna Belova International cooperation of border settlements in strategies for development of small and semi-medium cities: case-study... The Medium and Long-term Strategy for Socio-economic Development of the Kaliningrad region links the prospects of regional development to three interrelated problems (Strategy of soc. econ. develop. of Kaliningrad region, 2007): 1. Ensuring the Kaliningrad region s effective integration into chief socio-economic processes currently in progress in the Baltic region, with priority given to industrial-technological issues, transport, cultural development and migration issues. It requires synchronization of regional development both with closest neighbours and with other Russian regions. 2. Defining the role of the Kaliningrad region in achieving the strategic goals set on the Federal level viewed as an incentive for restructuring regional economies and for competitiveness enhancement. 3. Defining the baseline scenario of the EU-Russia relations development and the role of the Kaliningrad region in its implementation. Among the options considered there are: a) Russia s full membership in the EU; b) creation of a common market, including labour and capital markets, which suggests harmonization of Russian and European legislations; c) cooperation in several strategically significant areas (strategic partnership); e) maintenance of the status quo in the relationships. Current socio-economic processes in the Baltic macro-region are regarded as fundamental factors of the regional development strategy in the Kaliningrad region. Along with the formation of a common market of labour, capital and transport services; together with technological upgrading, production management improvement (especially outsourcing, including the redistribution of businesses from the countries of old Europe to Poland and the Baltic States), we are witnessing the reform of general and vocational education, aimed at the formation of a common European space of higher education in the context of Bologna Process (Russia included). On top of this, great importance is attached to changes in migration issues and to the transformation of urban environment into a more environmentally and investment-friendly milieu, with cities functioning as Pan-Baltic business centres or tourism hubs and emerging transnational urban agglomerations (Copenhagen-Malmo, in the long run Tallinn-Helsinki) (Kaledin, Korneevets, Chekalina, 2008). The Strategy emphasizes that culture is becoming a factor of productivity growth and economic development, promoting an inflow of investments, mobile personnel, and information. It is these processes that account for a large share of tourism in the Baltic macro-region. The Kaliningrad region is facing the challenge to form a single tourist and recreational space jointly with some Polish and Lithuanian regions, and to enhance cross-border and international cooperation with the countries whose history is closely connected with the history of the area (including France, Holland, Italy, Austria, and the Czech Republic). North-western Russian regions are also integrating into the spatial dimension of the Baltic region (Strategy of soc. econ. develop. of Kaliningrad region, 2007). An example of cross-border collaboration is set by the Baltijsk municipality. Baltijsk, whose role until recently was limited to servicing the naval base, is now embarking on the path of developing civilian infrastructure, promoting SMEs, using its tourist potential, etc. Prospects for the district s advance are linked primarily to the development of port infrastructure and integration into the South Baltic Sea area transport system. The formation of the transport network in Baltijsk is remarkable for being part of the conversion process. The Ministry of Defence has already handed over two objects for civilian use (the third and fourth basins); two berths have been equipped for receiving ferries in Basin 3, and a ferry line has been launched with the itinerary Ust-Luga St. Petersburg Baltijsk. A railway terminal and a railway ferry service have been also launched, running Ust-Luga Baltijsk ports of Germany. A harbour station and a hydro-acoustic harbour are listed among prospective constructions. The District Administration is determined to promote cross-border cooperation and to integrate into the world economy. The city is actively involved in relations with neighbouring cities (Strategy of soc. econom. development of Baltijsk, 2008). Baltijsk s participation in the network of international transport corridors implies, above all, attracting freight and passenger flows and investment, business development, solution of acute social issues (including employment of laid-off officers to the reserve) and prevention of environmental pollution. On the whole, it 28

29 ISSN Regional Formation and Development Studies, No. 1 (6) will contribute to the prosperity of the Kaliningrad region, its socio-economic alignment with neighbouring countries and, ultimately, to the increase of living standards of its population. It is the expansion and modernization of the Baltijsk port complex that is bound to boost competitiveness of Kaliningrad ports. It is necessary to build partnership relations between Kaliningrad and Klaipeda ports to set the specialization areas and ensure competitiveness for the cross-border consortium. In the Baltijsk urban development strategy until 2015, cross-border issues are clearly set in the mission of the territory, stating that it is the Baltic sea gate of Russia and her outpost in the West; the key constituency in the development of the Kaliningrad region of the Russian Federation at the intersection of trade routes East-West, North-South; a centre for international cooperation, education, recreation, health improvement and tourism. What accounts for most of the municipality s growth points is chiefly the function of servicing transit cargo and passenger flows, and simultaneous development of cross-border links with neighbouring regions, namely, Lithuania, Poland and Sweden (Strategy of soc. econom. development of Baltijsk, 2008). The main advantage of the urban district of Svetly is its location along the Kaliningrad sea canal the major infrastructural component of the transport complex in the Kaliningrad region, opening up the shortest way to the Baltic Sea, provided with equipped mooring lines, and offering a wide choice of transport communications (water, rail-, motor- ways), as well as the availability of developed transport infrastructure and several sea terminals. Among the noteworthy strengths of the district, are a number of major infrastructural facilities of regional significance located on its territory (JSC Lukoil-Kalinigradmorneft, PLC Commonwealth-Soya, PLC Optim, etc.). A long-term cooperation with these enterprises is considered highly promising for the port. The district is also counting on benefits from the expansion of foreign economic relations and the growth of Russian exports. Another potential feature is vested in socio-economic cooperation with Kaliningrad, as well as with Russian and Polish settlements on the coast of the Vistula Bay (Strategy of soc. econom. development of Svetly, 2008). As is stated in the mission, the Baltijsk district aims to form a modern urban industrial centre with the dominating role of a complex, embracing industrial (manufacturing) and freight handling facilities. In its strategy the District is not focused on the search of its own niche, but rather on the qualitative development of already emerging areas of specialization (Strategy of soc. econom. development of Baltijsk, 2008). The urban districts of Svetly, as well as those of Baltijsk, Svetlogorsk, Guryevsk, Mamonovo, Bagrationovsk and the Zelenogradsky region (western part of the Kaliningrad region) in the long run could join the metropolitan area with its centre in the city of Kaliningrad. In its development strategy, the Sovetsk urban district indicates among its internal strengths the proximity to the border equipped with crossing points, accessible external resources and a well-developed versatile industrial infrastructure. The participation in the Euro region Saule and other international projects; the district s tourist potential; its geographical location in the transport network both in the Kaliningrad region and prospective international corridors these features add to the strengths of the district (Strategy of soc. econom. development of Sovetsk, 2009). The district s external opportunities comprise: attraction of investments (including foreign ones) for the development of manufacturing, tourism, life-support systems and for implementing social programs; increasing its liaison function of the border and cross-border cooperation; location on the left bank of the River Neman, which is an international waterway; forwarding, warehousing, logistics and other services within servicing a newly built transportation corridor (Strategy of soc. econom. development of Sovetsk, 2009). The Strategy for the medium- and long-term socio-economic development of the Kaliningrad region stresses that it is desirable to consider the potential of creating a strong freight-cargo hub on the basis of the conurbation Gusev Cherniakhovsk, with the further relocation of logistics, sorting and the administrative centres for freight and rail haul to the hub. This measure would partially ease Kaliningrad s cargo transportation burden and thereby allow Kaliningrad to focus on specializations inherent in the capital city as a tourist and recreation centre, and a location of foreign and national businesses. This will also contribute to creating a more balanced spatial pattern of the Kaliningrad region, which now lacks the second city the point 29

30 Anna Belova International cooperation of border settlements in strategies for development of small and semi-medium cities: case-study... of attraction for labour and production technologies (Strategy of soc.econ. develop. of Kaliningrad region, 2007; (Programme of soc. economic development of Kaliningrad region, 2006). In the development strategy for the urban district of Cherniakhovsk, its international ties are regarded as one of the challenges whose solution is aimed at creating a favourable natural environment and at improving the quality of life (Strategy of soc. econom. development of Cherniakhovsk, 2009). As points of growth the municipality specifically addresses two economic clusters: a transportation and logistics centre and the East-European Centre of horse husbandry. The transportation and logistics centre is defined as a facility unit for processing goods and for traffic servicing, which includes transportation networks (railways, roads), facilities infrastructure (warehouses, terminals) and services infrastructure (temporary storage warehouses, customs office, hotels, catering businesses, service stations). Although the transport sector of the Cherniakhovsk urban district is already an economic cluster, additional investments are badly needed into the accompanying infrastructure, such as logistics companies and hotel service (Strategy of soc. econom. development of Cherniakhovsk, 2009). Gusev urban district also connects its prospects with the development of rail and road transport infrastructure and the Goldap-Gusev border crossing. Gusev is actively involved in cross-border cooperation projects under the neighbourhood programme including Lithuania, Poland, and the Kaliningrad region of Russia. The district is leading in a number of projects among municipalities, being engaged in attracting investments into processing industries (based on local resources) and agriculture. Currently, it is implementing the development of techno polis in partnership with I. Kant Baltic Federal University, and it also aims to develop cross-border cultural, historical and natural tourism. The municipality is actively working within the Euro region Neman (Programme for soc. econom. development of Gusev, 2009). Analysing the cross-border cooperation of border cities (small and semi-medium-sized) of Kaliningrad region, sustainable networks have been established with small and medium-sized cities of the border countries Lithuania and Poland (Table 1). Table 1. Existing cross-border cooperation of the border small and semi-medium-sized cities of Kaliningrad region Border city of Kaliningrad region Cooperation border country Cooperation border city and sphere of cooperation 1 Sovetsk Lithuania Panemune (transport and logistic, culture, tourism) Shilale (Culture) Pagėgiai (business, tourism, culture, youth policy, sport) Taurage (transport and logistic, business, culture, tourism, youth policy, sport, education) Plunge (common food production enterprise) 2 Nesterov Lithuania Virbalis (culture, education) Kybartai (border crossing point, transport and logistic) Vilkaviškis (culture, entrepreneurship) 3 Neman Lithuania Siauliai, Taurage (within euro region Saule, tourism, culture, environmental protection) Siauliai, Vilkaviškis, Kazlu Ruda, Kalvarija, Marijampole, Jurbarkas (within euroregion Sheshupe, environmental protection) 30

31 ISSN Regional Formation and Development Studies, No. 1 (6) Border city of Kaliningrad region Cooperation border country Cooperation border city and sphere of cooperation 4 Svetlyj Poland Svinoustje (tourism, environmental protection) Kalwarija Zebzhydovska (environmental protection, tourism) Novy Dwor Gdanski (culture, sport, education) Frombork (tourism, culture) Kentrzyn (culture, sport, education, social cooperation, environmental protection) Common Union of the coastal gminas of the Vistula lagoon (12 cities) for development of the marine yacht tourism 5 Ozersk Poland Elk (agrotourism, culture, entrepreneurship) Ostroda (social sphere) Sopot (social sphere, tourism) 6 Gusev Poland Goldap (culture, sports, social sphere, tourism, environmental protection) Pabjanice (culture, sport, social sphere) 7 Baltijsk Poland Elblag (transport, tourism, social sphere, entrepreneurship) Krynica Morska (transport, tourism) Commun Union of the coastal gminas of the Vistula lagoon (12 cities) for development of the marine yacht tourism 8 Mamonovo Poland Branevo (environmental protection, transport and logistic, social sphere) Prabuty (social support of the local inhabitants) Pish (culture, entrepreneurship, tourism) Penezhno (entrepreneurship, culture, historical and cultural heritage) Commun Union of the coastal gminas of the Vistula lagoon (12 cities) for development of the marine yacht tourism 9 Bagrationovsk Poland Lidzbark (social sphere, education, culture, sport, youth policy, entrepreneurship, cooperation between non-governmental organisations) Korshe (culture, tourism) Bartoszyce (transport and logistic, entrepreneurship, culture, environmental protection, tourism) Ilawa (culture, social sphere, entrepreneurship) Sourse: Prepared by Author According to the spheres of cross-border cooperation of small and semi-medium sized cities with neighbouring border cities of Poland and Lithuania, culture and tourism are in leader position (Fig. 1). 31

32 Anna Belova International cooperation of border settlements in strategies for development of small and semi-medium cities: case-study... Figure 1. Cooperation spheres of the border cities of Kaliningrad region of RF, Lithuania and Poland Source: Prepared by Author According to the Fig.1, as it was mentioned above, culture and tourism are leaders of cooperation of the border cities. Also, social sphere, sport and entrepreneurship have significant role in cross-border cooperation. NGO cooperation is not well-developed, but thanks to euro regional cooperation and such cooperation tool as Cross-border cooperation Programme Lithuania-Poland-Russia , there are more and more NGO establishing and start to cooperate. Conclusions Every semi-medium sized town of the Kaliningrad region benefits from of its geographical location and economic situation. It is these benefits that predetermined the growth in the size of these towns compared to other municipal town of the region (excluding the city of Kaliningrad) and created the necessary prerequisites for their further dynamic development. These prerequisites can be realized under several conditions, if the Kaliningrad region (as it can be expected) starts to play a more important role in international economic relations of Russia, and if Russia s economy continues its rapid development. Secondly, if industrial cooperation develops in the south-east of the Baltic Sea region, thus forming a single territorial Russian-Polish- Lithuanian economic system, called Trehgradie (Gdansk Gdynia Sopot Kaliningrad Klaipeda). Apart from it, a lot depends on the growth in the labour recourses of the Kaliningrad region as a result of the implementation of the programme of re-settlement of Russian citizens, who now live abroad, in the Kaliningrad region. Another condition is to be fulfilled the development of transport infrastructure, including extensive development of the rail roads and highways, connecting the Kaliningrad region with other Russia regions and European countries. The ports of the Kaliningrad region are to increase their capacity. Baltijsk and Svetly, being Kaliningrad Avant posts, are parts of the Kaliningrad agglomeration and the Kaliningrad transport junction. The development of these two towns as satellites of Kaliningrad should be closely connected with the development of the whole agglomeration, its industrial and, to a greater extent, social infrastructure, as well as its rapid changes in labour recourses and the necessity to solve common environmental problems. Cross-border cooperation of these cities with border cities of neighbouring states is mostly connected with transport and logistic, and sports and social sphere. Cherniakhovsk and Gusev trend to create a single territorial system, developing as one whole. These towns could counterbalance further concentration of the industrial potential in the west of the Kaliningrad 32

33 ISSN Regional Formation and Development Studies, No. 1 (6) region. From the point of view of the development of urban-rural partnership, Cherniakhovsk plays an important role in agro-industrial cooperation and providing services to the rural population in the south-east of the region. Cherniakhovsk, developing its integration with Gusev and forming a single territorial system, may become even more active in providing services to the neighbouring rural population. Sovetsk can use the advantages of its proximity to the border for further strengthening its economic ties with the neighbouring districts of Lithuania. While developing, Sovietsk may include Neman and Slavsk into the sphere of its influence, thus creating a small agglomeration in the north of the Kaliningrad region. As soon as Sovetsk is one of the biggest border-crossing point, which is significant not only for Kaliningrad region, but also for Russia, the transport and logistic are main cooperation sphere with neighbouring Lithuanian settlements. Other significant cooperation spheres are: entrepreneurship, social sphere, culture and tourism. Also Nesterov and Chernyshevskoje settlement of Kaliningrad region are cooperate with Lithuanian border settlements first of all as crossing-border points, and within different social spheres. The cross-border cooperation of small and semi-medium-sized cities of Kaliningrad region and border states Lithuania and Poland strengthening from year to year. People-to-people contacts of the border settlements also rising up. This is possible due to cooperation tools such as euroregional cooperation and cooperation Programmes (CBC ENPI Lithuania-Poland-Russia , Baltic Sea Region Programme and South Baltic Programme), and also due to significant role of cross-border cooperation in development strategies of border cities and municipalities, as well as the Kaliningrad region as a whole. Cross-border cooperation of border cities of Kaliningrad region with Lithuanian and Polish ones is very important for regional socio-economic development. It allows experiencing exchange and to get and implement the best practices in different spheres, such as environmental protection, innovative industry, social sphere, education, etc. It is necessity improving the socio-economic situation of the border areas due to opening the small crossborder movement between Poland and Kaliningrad region. Further coordination of the development strategy of the Kaliningrad region and its municipalities with the development strategies of the neighbouring Baltic Sea region countries will definitely facilitate positive trends in the development of semi-medium sized towns and the Kaliningrad region as a whole. References Buchover, E. (1994). Die Neuorientierung der Aussenhandelstrome in ihrer Auswirkung auf die wirtschaftlichen Binnenstrukturen Polens und der baltischen Staaten. Neuorientierung der Aussenwirtschaftsbeziehungen in Ostmitteleuropa. Wirtschafts- und Sozialwissenschaftliche Ostmitteleuropa-Studien, Vol. 20, S Kivikari, U., Lindstrom, M., Liuhto, K. (1998). The external economic relations of the Kaliningrad Region. Turku school of economics and business administration. Discussion C2. Rosas, A., Antola, E. (eds.) (1995). A Citizens Europe: in Search of a New Order, р Tassinari, F. (2004). Mare; Europaeum: Baltic: Seat Region Security and Cooperation frompost-wall to post-enlargement Europe. Copenhagen. University of Copenhagen, 70 p. Timmermann, H. (2001). Kaliningrad: eine Pilotregion fur Gestaltung der Partnerschaft EU RuSland? Osteuropa, Vol. 51, p Zaleski, J. (2006). Together or separately? A contribution to the concept of Baltic region commonwealth. Baltic Europe. From Idea to Reality. Coastal Regions, Vol. 11, p Бакланов, П. Я., Ганзей, С. С. (2004). Приграничные и трансграничные территории как объект географических исследований. Вестник СПбГУ. Геология, география, No. 4, c Барыгин, И. Н. (2009). Международное регионоведение. СПб. Питер, 384 с. Бильчак, B. C. (2001). Приграничная экономика. Монография. Калининград. Изд-во КГУ, 372 c. Дьяконов, К. Н., Касимов, Н. С., Тикунов, В. С. (1996). Д93 Современные методы географических исследований: Кн. для учителя. Москва: Просвещение. АО «Учеб. лит.», 207 с. Каледин, Н. В., Корнеевец, В. С., Чекалина, Т. Н. (2008). Сетевое сотрудничество как основополагающий фактор формирования трансграничных регионов. Вестник СПбГУ. Геология, география, No. 4, c Колосов, В. А., Туровский, Р. Ф. (1998). Современные государственные границы: новые функции в условиях интеграции и приграничное сотрудничество. Известия Геология, география, No. 1, c

34 Anna Belova International cooperation of border settlements in strategies for development of small and semi-medium cities: case-study... Лаппо, Г. М. (1997). География городов: Учеб. пособие для геогр. ф-тов вузов. Москва: Гуманит. изд. центр ВЛАДОС, c Межевич, H. M. (2009). Приграничное сотрудничество и практика деятельности Еврорегионов на Северо- Западе России и в Республике Беларусь. Информационное бюро Совета Министров Северных стран в Санкт-Петербурге, 268 с. Межевич, Н. М. (2002). Региональная экономическая политика Российской Федерации: влияние трансграничного сотрудничества на традиционные и новые механизмы реализации. СПб. Изд-во СПбГУ. Одинг, Н. Ю, Федоров, Г. М. (2009). Трансграничное сотрудничество на Балтике как фактора перехода экономики сотрудничающих регионов на инновационный путь развития. Исследования.Балтийского региона, No. 1, c Официальный сайт Администрации муниципального образования «Багратионовский муниципальный район»: Официальный сайт Администрации муниципального образования «Мамоновский городской округ»: Официальный сайт Администрации муниципального образования «Неманский муниципальный район»: neman.gov39.ru Официальный сайт Администрации муниципального образования «Нестеровский район»: Официальный сайт Администрации муниципального образования «Озерский район»: Пальмовский, Т. (2004). Новая Балтийская биполярная модель межрегионального сотрудничества. Вестник Калининградского государственного университета. Регионоведение, 4, c Плотникова, О. В. (2005). Международное сотрудничество регионов: концептуальные подходы. Новосибирск. Изд-во СО РАН, 356 с. Программа социально-экономического развития Калининградской области на годы. (2006). www2.gov39.ru/index.php?idpage=563 Программа социально-экономического развития муниципального образования «Гусевский муниципальный район» на годы. (2009). Гусев. Пустовгаров, В. И., Федоров, Г. М. (2001). Государственное регулирование системы расселения Калининградской области. Калининград. Изд-во КГУ, c Родоман, Б. Б. (2002). Государственные границы в СНГ и приграничная политика. Поляризованная биосфера: сборник статей. Смоленск. Ойкумена, c Симагин, Ю. А. (2009). Территориальная организация населения и хозяйства. Учебное пособие. Москва: КноРус, с Спиряевас, Э. (2004). Туризм как перспективное направление в приграничном сотрудничестве на территории Куршского залива. Российская Балтика: приграничное сотрудничество. Калининград, c Стратегия социально-экономического развития Калининградской области на средне- и долгосрочную перспективу. (2007). Стратегия социально-экономического развития муниципального образования «Балтийский городской округ» на период до 2016 года. (2007). Калининград. Стратегия социально-экономического развития муниципального образования «Светловский городской округ» на период до 2016 года. (2008). Светлый. Стратегия социально-экономического развития муниципального образования «Советский городской округ» на период до 2016 года. (2009). Советск. Стратегия социально-экономического развития муниципального образования «Черняховский городской округ» на период до 2016 года. (2009). Черняховск. Федоров, Г. М. (2001). Население Калининградской области. Демографические условия обоснования Территориальной комплексной схемы градостроительного планирования развития территории Калининградской области и ее частей: Монография. Калининград: Изд-во КГУ, c Федоров, Г. М., Зверев, Ю. М., Корнеевец, В. С. (2008). Россия на Балтике: годы. Калининград: Издво РГУ им. И. Канта, 224 с. Худолей, К. К., Ланко, Д. А. (2009). Санкт-Петербург в Балтийском регионе. Балтийский регион, Vol. 1, c Широков, А. Н., Юркова, С. Н. (2004). Федеральное законодательство России о местном самоуправлении. Москва, 78 с. 34

35 ISSN Regional Formation and Development Studies, No. 1 (6) Tarptautinis pasienio gyvenviečių bendradarbiavimas mažų ir vidutinių miestų vystymo strategijose: Kaliningrado srities pavyzdys (Rusijos federacija) Anna Belova Emanuelio Kanto Baltijos federalinis universitetas (Rusija) Santrauka Kaliningrado regionas yra Rusijos Federacijos eksklavas, todėl pasienio bendradarbiavimas su jį supančiomis ES šalimis (Lietuva ir Lenkija) ypač svarbus socioekonominiam regiono vystymuisi. Kaliningrado regione yra devyni vidutiniai pasienio miestai, kurie, kaip ir kiekviena gyvenvietė, regione išnaudoja savo geografinės padėties privalumus. Baltijskas ir Svetly yra Kaliningrado aglomeracijos ir transporto mazgo dalis. Šių dviejų miestų vystymasis labai priklauso nuo visos aglomeracijos vystymosi tendencijų. Šių miestų bendradarbiavimas su kaimyninių valstybių pasienio miestais daugiausia susijęs su transportu, logistika, sportu ir socialiniais ryšiais. Černiachovskas ir Gusevas sudaro vieningą teritorinę sistemą ir vystosi kartu. Šie du miestai gali išlyginti šiuo metu pastebimą pramonės susitelkimą Kaliningrado regiono vakaruose. Černiachovskas vaidina svarbų vaidmenį plėtojant agropramoninį bendradarbiavimą ir teikiant paslaugas pietrytinei regiono daliai. Sovetskas gali pasinaudoti pasienio teikiamais privalumais ir toliau stiprinti ekonominius ryšius su kaimyniniais Lietuvos regionais. Besivystantis Sovetskas gali įtraukti Nemano ir Slavsko miestus į savo įtakos zoną, taip sukurdamas nedidelę aglomeraciją regiono šiaurėje. Transportas ir logistika yra pagrindinės bendradarbiavimo su kaimyniniais Lietuvos regionais sritys, kitos svarbios sritys yra verslas, socialinė sritis, kultūra ir turizmas. Kaliningrado regiono, Lietuvos ir Lenkijos pasienių bendradarbiavimas metams bėgant darosi vis aktyvesnis. Žmonių bendravimas pasienyje taip pat aktyvėja, tam labai padeda bendradarbiavimą skatinančios programos (tokios kaip CBC ENPI Lithuania-Poland-Russia , Baltic Sea Region Programme , South Baltic Programme), pasienio miestų, savivaldybių ir regionų plėtros strategijos, kur pasienio bendradarbiavimui skiriamas didelis dėmesys. Pasienio bendradarbiavimas leidžia keistis patirtimi įvairiose srityse, tokiose kaip aplinkosauga, moderni pramonė, socialinė sritis, švietimas ir pan. Tolesnis Kaliningrado srities ir jos savivaldybių vystymo strategijų koordinavimas su kaimyninių Baltijos jūros regiono valstybių vystymo strategijomis, paskatins smulkių ir vidutinių miestų bei viso Kaliningrado regiono tolesnį vystymąsi. PAGRINDINIAI ŽODŽIAI: vystymo strategija, pasienio bendradarbiavimas, pasienio gyvenvietės, maži ir vidutiniai miestai, socioekonominis vystymasis. JEL klasifikacija: R120, R230, R500, R580, R590, O180, O190, F500, F590 35

36 Jaroslav Dvorak SUSTAINABILITY OF EVALUATION FUNCTION IN LITHUANIAN PUBLIC ADMINISTRATION SUSTAINABILITY OF EVALUATION FUNCTION IN LITHUANIAN PUBLIC ADMINISTRATION Jaroslav Dvorak 1 Klaipėda University (Lithuania) Abstract This article sets out to examine the public policy evaluation model, which is applied for evaluating public policy in Lithuania. The data was collected from the papers published by local researchers, official documents available at the ministries and agencies web sites and other printed materials. Qualitative data for this paper was taken from the series of individual interviews with public officials and evaluators (conducted ). The data was supplemented with quantitative data from the survey about the scope and significance of evaluation in Lithuania (conducted in 2010). It was found that monitoring system was weak designed and required significant reinvention. The reinvention of the monitoring system will built base for the future evaluation of the results. It is suggested that that the greatest demand for the effectiveness, efficiency and productivity in the government leads to the highest use of performance management and evaluation as a tool for decision-making. KEY WORDS: evaluation, program, monitoring, Lithuania. JEL codes: D730, D780, D790, H830, L380 Introduction Evaluation of public policy has been applied in Lithuania only recently, and a certain impact of this tool is noted while administering the support of the EU Structural and Cohesion Funds. However, the information about evaluation has not been perfect yet. Evaluation is institutionalized in the Lithuanian administration system. An evaluator is a new social role, and, as we know from anthropology and sociology, rights, duties, expectations, etc. are typical for any role. In addition, the role of an evaluator is related to other roles, i.e. politicians, administrators or citizens. Rules of behaviour exist for any given pair of relationship or the norms and corresponding configurations of power; thus not only time, but also will is necessary to include evaluation into the agenda. In the process of evaluation consolidation, the evaluator has the right to ask specific questions and demand for certain information and charge the people to use evaluation results. While analyzing the development of the evaluation function, it is important to know how evaluation influence appears, mediates, is blocked or develops or, speaking instrumentally, how the influence of any evaluation may be increased. The research on policy evaluation, as well as many other retrospective instruments of public policy, faces the lack of data. The amount of data about the outcomes of public policy instruments, which was provided a decade ago, is significantly bigger in comparison to the information on public policy evaluation provided only several years ago. Apparently, the need to clarify how public policy evaluation is applied in the Lithuanian political and administrative environment exists. Of course, it is not necessary to wait for several decades for the information about the implementation of public policy evaluation in post-communist countries. The more 1 Jaroslav Dvorak Klaipėda University, Department of Public Administration and Law, lect. dr., scientific interest: evidence based administration, public services delivery, evaluation of public policy. jvd@takas.lt Tel.:

37 ISSN Regional Formation and Development Studies, No. 1 (6) institutionalized evaluation is, the more difficult it will be to make changes while reconstructing the process of evaluation/the mechanism and compare with earlier stages of implementation. The aim of this paper to analyze and generalize the public policy evaluation model, which is applied for evaluating public policy in Lithuania. The configurative-idiographic method of case study was applied for the analysis of public policy evaluation in Lithuania. The application of this case study type allowed understanding the internal way of operation of the case and the fundamental characteristics of evaluation in Lithuania. The data for the analysis were collected using the conception of triangulation and using several sources: (i) document analysis (legal or administrative documents, protocols, reports and media reports); in-depth expert interview of direct contact and contact by telephone; (iii) quantitative questionnaire of public officials on the internet; (iv) content analysis of decision-making evaluation reports; (v) statistical analysis of the data; (vi) logical distribution and classification. 1. Description of the concept of public policy evaluation The general definition of evaluation influences the formation of understanding the concept of public policy evaluation. Policy evaluation has a different meaning for different people and it can serve different purposes. Because there is no definition of evaluation which is accepted universally, every definition provided in the scientific literature is limited from one or another perspective because it is always possible to find the kinds of activities that are universally accepted as an evaluation but they are not comprised to the definition proposed by one or another author. First of all, it is possible to claim that evaluation is the systematic assessment of the worth or merit of some object. Evaluation is the systematic acquisition and assessment of information to provide useful feedback about some object (Trochim, 2006). As we can see from the provided definition, the concept of evaluation is intermingled with the assessment of worth and merits of a certain object. In the context of evaluation, a merit is understood as a correspondence to evaluation standards and specifications or, in other words, whether the assessment object performs something as well as it had to. If a programme has merits, it should serve the purpose to improve peoples welfare. In Dahler-Larsen s (2007) opinion, different evaluation values and standards lead to different evaluations. Therefore, it is important for the evaluators to certify the value structure, according to which the evaluation conclusions will be made. There is an opinion that the concept of quality is the equivalent of a merit (Stufflebeam, Shinkfiled, 2007: 12). In turn, analyzing the concept of worth, it is possible to distinguish that even though the merits of the evaluation object may be evaluated very well, but its worth may be low. The benefit of public policy evaluation is measured by the validity of evidence, the reliability of evaluation for the state, politicians, administrators, citizens and other intended users of the results and the impact of evaluation information on public policy, programme action or programme results. Naturally, if the policy is valuable, the highest value has to be created. The main feature of worth is the exclusiveness of the object under evaluation, which determines its competitiveness against others. According to Widmer (2010), an evaluation is defined as a research-based service providing a systematic and transparent assessment of an object. Thus the term service underlines the fact that the evaluations are oriented towards a client (the government, the stakeholders) and are performed because of the public benefit, i.e. the services, the usage of which provides the collective benefit. However, it is necessary to add that the provision of evaluation services may influence the political environment; therefore, evaluation services may provide both advantages and disadvantages for the political environment. To be precise, the evaluation service may have not only output, but also a specific effect or impact on the environment. Thus it is possible to maintain that there is a specific relationship between the output of the evaluation service provision and the result (impact/effect). Irrespective of other factors, in order to evaluate the impact/effect of the evaluation service, a meta-evaluation is used, which helps to evaluate the efficiency and effectiveness of this service. Another important aspect included into Widmer s definition, is the reference to transparency. Obviously, 37

38 Jaroslav Dvorak SUSTAINABILITY OF EVALUATION FUNCTION IN LITHUANIAN PUBLIC ADMINISTRATION the public interest demands that the evaluations would be directed to honesty, fairness, transparency and the evaluation of ethic behavior. Evaluations have to check the correspondence of the programmes to moral standards without any compromise (Stufflebeam, Shinkfiled, 2007: 14). As one can see from the provided definitions, the evaluations are performed in order to assess the merits and value of a certain object. Evaluation society has created its own vocabulary; therefore, the evaluation object is called an evaluand or an evaluandum. If the evaluation object is a person, it is suggested to call him/ her an evaluee. The evaluator has to be sure about the definition of his/her evaluand. However, logically, it may be difficult to achieve this because different interest groups may have different opinions what is an evaluand or how it has to be described. The objects that can be evaluated comprise various activities. In many cases, the evaluation object influences the complexity and complication of the public policy evaluation process. As it is noted by Geva-May ir Thorngate (2003), programmes are an easier target for changes, as they can be easily evaluated, stopped or changed, while it is more difficult to change policies because they form the system of general approaches or the programme structure and the strategies of function. The changes also may occur before the beginning of evaluation, during it or after its finish. 2. Values of the public interventions and budgetary process Lithuanian experience has parallels with other post-communist countries; there have not been deep discussions about the measure of public sector intervention. Summing this experience, Careja and Emmenegger (2009) note that the state was asked to provide support not only for those who lost jobs because of economy restructurization, but also for those who had to retire earlier or wanted to change qualification to meet the needs of the new competitive job market. The intervention scope has increased significantly because of the politicians will to approach to the model of the welfare state of old European Union members because it was aimed to finance many state functions (social security, health service, education and science, defense, economics, security of the society). However, incompatibility between these wills and possibilities has become apparent because of limited budget resources (Bivainis, 2005: 74; Kuodis, 2008: 103). In this context it is important to note that national policies are reactive and unmatched with strategic planning documents and other programmes; the government activities are not integrated to the system of strategic planning; therefore, no attention is paid to the achievement of medium and long-term aims, as current conjectural aims dominate. This means that decisions are usually made only then, when the government has already faced the problem and there is no time to suggest alternatives and analyze them because the decision has to be made quickly, while evidence-based government policy attempts to envisage future problems and foresee the transitional solution stages. According to Diskienė, Marčinskas and Vaškelis (2008), only the thirteenth and fourteenth governments got a real possibility to relate their programmes with the Long-term Economic Development Strategy of Lithuania until 2015 and National Development Strategy. Apparently, the previously mentioned activity vectors are logical. Strategic thinking and decision making culture could not be created in Lithuania, as well as the capacity to use the strategic analysis instruments (Smilga, Laurėnas, 2005: 1; Diskienė, Marčinskas, Vaškelis, 2008: 28). Even though national budget expenses increased several times from 2002 to 2009 but important political debates took place in the input phase rather than because of the foreseen output and outcomes, which shows that the main struggle between the political parties exists because of the amount of resources allotted to the protected organizations and institutions rather than the citizens. These are listed in the table below. A wide range of beneficiaries (companies and individuals) have started to use various tax concessions, which were invented in the input phase and unchecked by ex-ante evaluation. Inapprehension of object concessions, planning of intervention and evaluation caused legal premises in the change of concession object, which was used by businessmen and residents. However, the implementation of taxation policy was ineffective because there was no operative reaction towards the changes of concession object (Kuodis, 2008: 103). Mortgage concessions preconditioned the rise of realty price bubble, the explosion of which became the beginning of the economical and financial crisis (Kuodis, 2008: 103). 38

39 ISSN Regional Formation and Development Studies, No. 1 (6) As the table 1 shows, the number of budget programmes constantly increased in Lithuania in , and only in 2008 the number of programmes decreased to 682 programmes, in 2009 the number of budget programmes reduced to 596 and in 2010 till 502. But still there are hundreds of programmes in Lithuania, which have various priorities, initiatives, financial resources, and criteria for choosing projects and different schedules for their implementation. Besides, the programmes are oriented towards spending rather than aiming at a specific development level. Table 1. The amount of budget programmes and dynamic of expenditures year Year The amount of budget programmes National budget expedintures, billion, Litas (together with EU funds) 6,7 7,4 10,1 10,1 13,8 15,7 18,8 20,7 26,6 26,9 29,3 The increase of programme number may be explained by factors distinguished by De Leon (1987), which are the following: dynamic conservatism and coalitions of programme anti-termination. In the case of dynamic conservatism, programme administrators had to terminate the programmes after achieving their aims; however, new aims were set and legitimated, which caused continuation of the programmes. Meanwhile, anti-termination coalitions were prevalent when financing in a certain area or provision of public goods were aimed to be decreased, therefore, the Government tended to continue the activities of the programmes that had already terminated. When the new education reform (2009) started, we see that the government seeks to change the old model of higher education financing; however, opponent coalitions formed immediately, the aims of which are to resist the implementation of the new model. A big number of programmes in Lithuania require additional human and financial resources. These are transaction costs of budget programmes, which are often invisible, but they exist. Transaction costs decrease programme efficiency and the programme itself has less resources. It is also emphasized that it is difficult to plan, require accountability, perform state audit and evaluate. Apparently, the number of programmes should be adequate to the strategic aims of the institutions. A project of the budget is not usually based on the aims of budget programmes but on the needs of appropriation managers. Programme providers and evaluators are the same subjects who implement them (National Audit Office, 2007: 16). The programmes are prepared without clearly distinguishing activity areas and deciding on the optimal number of programmes necessary to reach one aim; the principles of proportion of programme scope are not obeyed. It is noted that the programme aim often specifies a process rather than a result. It happens that the programme aim does not have a logical connection with the aim of the strategy, and the most common problem is that the need for unreal financing is provided (KTU Savivaldos mokymo centras, 2008). It is also possible to state that the programme management system is unstable because of often changes in the rules, as well as new programmes are created, which partly double the already existing programmes, and this restricts effective and efficient usage of programme resources. 3. Reinventing the monitoring system In Lithuanian, in different areas of public policy, monitoring rules and requirements were approved by orders of the ministers or other legal acts after accessing the European Union (Gudelis, 2009: 93). Sector ministries collect quite a big amount of perfomance information; however, data quality is of an average level. Municipalities are also involved into the process of collection and presentation the monitoring data, thus the burden of data collection went to the street level bureaucracy, who is already over tasked and who rarely get some feedbacks how the data are used in the further decision making or if it is used at all. This influences data 39

40 Jaroslav Dvorak SUSTAINABILITY OF EVALUATION FUNCTION IN LITHUANIAN PUBLIC ADMINISTRATION quality because lower level public servants are not willing to do routine tasks, that possibly will not make any benefit for their work. As there is a big number of uncoordinated monitoring systems and a centralized strategic planning system, it is necessary to create a national integrated monitoring system. Figure 1. Monitoring cycle and existing issues In the monitoring system being analyzed, one can see the obstacles prevalent in different stages of monitoring cycle (Figure 1). Insufficient regulation of the monitoring process and weak quality of evaluation criteria are faced in the preparatory stage of monitoring (Lithuanian Government, 2009: 4). According to the conception, it is necessary to regulate monitoring in order to ensure the quality of evaluation criteria because the documents of institutions do not define monitoring implementation of activity and the processes of document analysis, as well as personal employees responsibility for achieving the aims and objectives (Lithuanian Government, 2009: 4). On the one hand, the appearance of such regulation, which provides a mandate for monitoring, may be an impetus, legitimizing monitoring in Lithuania, where the necessity of a legal instrument is a condition for each government reform. On the other hand, the regulation would not guarantee that efforts will be put to create a monitoring system. It was found out that in the preparatory stage of monitoring, only one fourth of institutions have methodical explanations, where the methodology for counting criteria importance would be provided (Lithuanian Government, 2009: 4). Nowadays, the public administration institutions have to think of the criteria themselves, as there are no methodologies or rule how to do that. While formulating the criteria, there is a lack of leadership and participation of highest-level authorities and politicians. The criteria are mainly formulated by the responsible officials, who lack knowledge and experience (Lithuanian Government, 2009: 4). Annual monitoring plans are not formed in the institutions or departments responsible for monitoring. The activities are fragmented, and sometimes they are influenced by the European Union orders, which may be evaluated positively, as it is probable that the good practice will be used for learning purposes. 40

41 ISSN Regional Formation and Development Studies, No. 1 (6) In the implementation stage of monitoring, a superficial analysis is sometimes made while evaluating the degree of criteria achievement. In the strategic documents, the institutions do not formulate logical programme models or theories of change, therefore, the reasons for not achieving the criteria are rarely provided (Lithuanian Government, 2009: 5). According to the public servant, While making an audit, logical nonsense s are often noticeable. For instance, there is a programme and its evaluation criteria. Evaluating the achievement of criteria, it seems that they are achieved in 200 per cent, while evaluating in terms of money; it is noticeable that a part from the subsidies of this programme is moved to another programme, i.e. almost a half of the programme value. < > Then we express a lot of pretensions about the evaluation criteria and that the achieved results of the programme are not taken into consideration while providing financing for the next year. It is also clear that evaluation criteria are the main problem. This example expresses the performance paradox (Van Thiel, Leeuw, 2002: 267) very clearly, which is not foreseen, because public servants attempt to increase the level of criteria achievement to an unbelievable degree. This happens because of lack of analysis of expenses usage and it is not aimed at using monitoring information for making decisions. The ministries hardly use monitoring information preparing budgets or accounting for the usage of expenses or they use this information for choice (Lithuanian Government, 2009: 5). The research, ordered by the Ministry of the Interior (2009), analyses the introduction of performance management characteristics in all ministries in Lithuania. The analysis of the data about monitoring and evaluation shows that the level of introduction depends on the definition of monitoring and evaluation at the ministries. It is seen that monitoring and evaluation are introduced the best in the ministries that dispose only 21 % of the budget resources (Ministry of Education and Science, Ministry of Transport and Communication, Ministry of Energy, Ministry of Foreign Affairs) (Table 2). Monitoring and evaluation are introduced by 100 % by the by the customer of the research, the Ministry of the Interior. This may also be treated as an unintended consequence (Van Thiel, Leeuw, 2002: 267) of performance measurement because the ministries think of the criteria applicable to themselves in order to correspond to them. This way they can use the information and attempt to manipulate the evaluations, which does not correspond to the logic of organizational education. On the contrary, the introduction of monitoring and evaluation is bad in the ministries that dispose 67 % of the budget resources. According to the features of monitoring and evaluation distinguished in the research, the Ministry of Finance has neither monitoring, nor evaluation. Both elements are very poorly introduced in the Ministry of Agriculture which has a department of national programmes monitoring and evaluation (30 %). In the Ministry of Social Security and Labour, the capacities of monitoring and evaluation were trained and developed while implementing a project of the World Bank. The project was pursued for five years; the civil servants participated in the educational programme that lasted for three years, also a permanent annual preparation of social reports was initiated. However, according the mentioned research, there is no monitoring in this ministry as well and evaluation is introduced only in 15 %. In the monitoring conception, the lack of leadership was mentioned while defining criteria; however, it can be seen that the Ministry of the Interior takes the role of leadership and attempts to show which ministry has the management system introduced the best but this is done grounding on the criteria that do not correspond to the actual situation of the ministries. In the final monitoring stage, the following problems are possible: monitoring information is used for accounting rather than for management improvement; monitoring information is usually used preparing reports, but it is not aimed at improving internal processes of the institution. It is emphasized in the conception that prepared reports are poor quality and they lack transparency because the data sources are not always revealed, the benefit for the society is explained insufficiently, the reaction towards the results and activity outcomes is not shown (Lithuanian Government, 2009: 5 6). In our opinion, this is done purposefully because if the sources are not provided, an external analyst or evaluator will not be able to perform a metaevaluation of the prepared report. 41

42 Jaroslav Dvorak SUSTAINABILITY OF EVALUATION FUNCTION IN LITHUANIAN PUBLIC ADMINISTRATION Table 2. Introductions of monitoring and evaluation in the ministries (Prepared according Ministry of Interior 2009) Ministry State expenditures in the ministry, percentage Quantitative assessment of monitoring, percentage* Quantitative assessment of evaluation, percentage* Ministry of Finance Ministry of Agriculture Ministry of Social Security and Labour Ministry of Economy Ministry of Education and Science Ministry of Transport and Communication Ministry of National Defence Ministry of Interior Ministry of Health Ministry of Energy Ministry of Environment Ministry of Culture Ministry of Foreign Affairs Ministry of Justice * horizontal line (good), if the proper weight of indicators equal 80% and more; grey colour (satisfactory) if the proper weight of indicators more than 59, but less than 80 %; Down diagonal line(poor), if the proper weight of indicators 50 % inclusively. 4. Managing evaluation function Coordination of evaluation function. National audit office, as an active supervisor of programme implementation, enumerated the absence of appropriate evaluation system as one of the problems, i.e. the evaluations for financing the programmes of Lithuanian public sector institutions lack qualitative evaluation criteria. The respondent confirmed this: In the national level, we started creating evaluation system, first requirements appeared in the legal acts to perform evaluation, but the system itself is still not created, as there no evaluation skills or methodology, and conclusions are still not used in decision making, i.e. refusing budget programmes or continuing them. The overall impression from the literature review was that the majority of the researchers were discouraged and skeptical that Lithuania does not have an institution responsible for the coordination of budget programmes evaluation and monitoring, while the reports are only started to be integrated into further planning. According to Vilpišauskas (2007), this was influenced by the lack of evaluation capacity, political and institutional motivators. The reform is not finished in the central level of public administration and even though the number of qualified human resources, being able to implement projects according to the requirements of the changing environment, is increasing, there is still lack of them. One should admit that the first evaluation plan should be prepared at 2012, however it isn t publicly available yet, and that causes the fact that there is no budget to hire external evaluators. The evaluation methodology was approved by the Ministry of Finance, however Lithuanian evaluation community as main stakeholder in evaluation process wasn t involved in the disputes about the content of methodology. Evaluation capacity. Programme evaluation is fragmented, even though the Government order for the evaluation of budget programme implementation, which existed until 2007, prescribed that the ministers, heads of Government institutions have to provide programme implementation reports and evaluation of aims 42

43 ISSN Regional Formation and Development Studies, No. 1 (6) fulfillment according to evaluation criteria so that the evaluation results would be discussed in the Strategic Planning Committee and the Government. In addition, the requirement to collect information did not appear in the programme management mechanism to enable it to be comparable with other projects, programmes and to be meaningfully used for analysis and education. Only two ministries (Ministry of Finance, Ministry of Agriculture) have evaluation departments, while such skills have not been developed in other ministries and municipalities at all, thus there is a gap in this area and, consequently, the skills of report evaluation are poorly developed. In Lithuania, a more significant part of evaluation is focused on resources rather than outcomes and administrational processes rather than economical and social impacts. When programme implementation problems appeared, institutionalization of evaluation system started. In the present situation, there are no appropriate and developed procedures how to initiate, implement and use evaluations in the process of public policy. The hierarchy of central bureaucracy is dominated by lawyers, for whom evaluation is an unknown exercise. According to the respondent, In the institutions, which had the departments of statutory officials for a long time, the realization of evaluation function faces quite a bureaucratized administration culture. One of the qualities of Lithuanian administration culture is that departments are subordinate to the Ministries rather than the Government. The contractual research is provided to the ministry but not to the Prime Minister s Office, which impedes the diffusion of knowledge in the public management system. On the other hand, the Prime Minister s Office may press the departments of the ministries, especially if it has a strong support from the Prime Minister; however, evaluation performance and usage is fragmented in Lithuania. Political parties impede the professionalization of bureaucracy. Being weak, political parties attempt to weaken a potential competitor (Dvorak, 2008: 101). It should also be noted that the existing tradition of administration in Lithuania and administrative law contributed quite a lot to the evaluation of the civil servants for the legitimization of their activities rather than their results. To be precise, first the procedures appeared but nobody thought about the outcomes of public interventions. The Lithuanian public service was politicized for a long time after regaining the independence, and only after adopting the new public service law, politicization significantly decreased. Therefore, qualificational maturation of Lithuanian bureaucracy was significantly late and even though unqualified bureaucracy managed to compete with partocracy (Laurėnas, 2001: 221), it still remained responsible for routine provision of public services and has not become an expert of the prestigious evaluation function. Naturally, the ability to compete is influenced by the fact that the bureaucracy communicates with clients and interest groups much more often than politicians; therefore, it has more information what is appropriate in politics. In the survey, it was asked what role is played by evaluation in the process of formation national budget and implementing it (figure 3). The biggest part of the respondents (34 per cent) emphasized that the role of evaluation is not very important, while 32 per cent of the respondents think that it is important, and 18 per cent of the respondents claim that the role of evaluation is very important. Also, 8 per cent noted that the role of evaluation in making national budget and implementing it is not important and the same number of respondents said that they do not know. The same question was provided to some respondents of the interview. Respondents believe that, it is possible to maintain that in the present situation, the change from the subsystem of evaluation of the EU Structural funds to the subsystem of making and implementation of national budget. In this subsystem, the clear evaluation function is little developed because the budget making process is of political nature. Public servants avoid performing an in-depth interim evaluation while making the budget because they may experience political pressure. For this purpose, there is a possibility to avoid clash with politicians. The Ministry of Finance does not perform regulatory impact assessment while preparing a ruling about the distribution of subsidies according to the programmes confirmed by the budget of the Lithuanian Republic for the year N because it is claimed that it is not a normative act but a task of technical character, for which a regulatory impact assessment note is not necessary (LR Finansų Ministerija, 2010). In principle, the National audit 43

44 Jaroslav Dvorak SUSTAINABILITY OF EVALUATION FUNCTION IN LITHUANIAN PUBLIC ADMINISTRATION office provides its position in this stage; however, it depends on Seimas (Lithuanian Parliament) whether its remarks and recommendations would be taken into consideration and how it manages to use the additional value of such evaluation. The situation of programme evaluation has not changed significantly when provisions about the possibilities to review budget programme appeared in the strategic planning methodology, as a systematic review and evaluation is performed by a small number of institutions. Figure 2. Role of evaluation in the budgetary process of Lithuania Conclusions After the analysis of public intervention values and the functioning of the budget process, a conclusion can be made: Lithuania does not learn from earlier lessons. Imitating the Western experience and forming pre-conditions for the unmeasured interventions, the point of view had to change in the new situation of the crisis; however, while allotting money, nobody mentions or promises that such interventions will be evaluated. The evaluators do not dare to tell the society that interventions have to be measured and evaluated. The present political regime sends signals to the international business and policy community that something is being done and it is invested into evidence-based symbols of politics. It is wrong to think that symbol politics does not have consequences. There is some basis to claim that the evaluation function is scarcely developed in the formation and implementation of national budget, the decision impact process is not performed, even though the budget is confirmed by a different law every year and it is also comprised from strategic elements. From this point of view, the budget is the basis for the Government programme or the coalition platform. Apparently, the budget process has not become a learning process. The theory teaches that monitoring requires methodological accuracy; however, in Lithuania many uncoordinated systems of monitoring and evaluation are legalized, which require an integrated monitoring and evaluation strategy. In the monitoring cycle, the existing problems show the consequences of the lack of monitoring coordination and planning: insufficient regulation of the monitoring process; poor quality of evaluation criteria; superficial data analysis; undeveloped analysis of monitoring data; unused monitoring information in order to improve management; poor quality of activity reports. The results of the research show that the introduction of monitoring and evaluation into the ministries depends on their definition criteria. The meta-analysis of another research forms the pre-conditions to maintain that the unforeseen paradoxes of activity measurement appear in Lithuania when the ministries think of the criteria that correspond to them with the aim to have a leading position in the activity management area. Unfortunately, the evaluators 44

45 ISSN Regional Formation and Development Studies, No. 1 (6) do not object against such activities while carrying out such investigation. Besides, there is no programme evaluation coordinator, even though several reorientations to the performance of coordination and strategic planning functions are performed in the office of the Prime Minister. Political parties inhibit the creation of evaluation competencies for a long time: as they are weak, they attempt to weaken their potential rival, i.e. state office. References Bivainis, J. (2005). Lietuvos valstybės išlaidų masto ir struktūros lyginamieji vertinimai. Ūkio technologinis ir ekonominis vystymasis, Nr. 11 (2), p Careja, R., Emmenegger, P. (2009). The Politics of Public Spending in Post-Communist Countries. East European Politics & Societies, Vol. 23, No. 2, p Dahler-Larsen, P. (2007). Evaluation and Public Management. In: E. Ferlie, E. Laurence Lynn jr., Pollitt Chr. (ed.) The Oxford handbook of public management. Oxford: University Press. De Leon, P. (1987). Policy termination as a political phenomenon. In: D. J. Palumbo (ed.). The politics of program evaluation. Sage: Newbury Park, CA. Diskienė, D., Marčinskas, A., Vaškelis, V. (2008). Valstybės strateginio planavimo subjekto dilema. Ekonomika, No. 81, p Dvorak, J. (2008). A Theoretical Interpretation of Policy Evaluation in the Context of Lithuanian Public Sector Reform. Baltic Journal of Law & Politics, Vol. 1, No. 1, p Geva-May, I., Thorngate, W. (2003). Reducing Anxiety and Resistance in Policy and Programme Evaluations: A Socio- Psychological Analysis. Evaluation, Vol. 9, No. 2, p Gudelis, D. (2009). Lietuvos savivaldybių veiklos matavimo būklės vertinimas. Viešoji politika ir administravimas, No. 29, p KTU Savivaldos mokymo centras. (2008). Strateginio veiklos planavimo ir programinio biudžeto sudarymo vadovas Lietuvos savivaldybėms. Kaunas: Technologija. Kuodis, R. (2008). Lietuvos ekonomikos transformacija metais: etapai ir pagrindinės ekonominės politikos klaidos. Pinigų studijos, Nr. 2, p Laurėnas, V. (2001). Normalios politikos genezės atvejis. Klaipėda: Klaipėdos universiteto leidykla. National Audit Office of Lithuania. (2007). Programme budget system. Performance audit report, No. VA-60-1P-1. Website: Ministry of Interior. (2009). ŽIPVP 4 prioriteto 2 uždavinio rodiklio Valstybės išlaidų, kurias apima veiklos valdymo sistemos visose 13 ministerijų, dalis (procentais) dydžio nustatymo tyrimas. Website: Nakrošis, V. (2008). Strateginis valdymas Lietuvoje: Ar turime rezultatų vyriausybę? Vilnius: VU TSPMI. Smilga, E., Laurėnas, V. (2005). Strateginio efekto problemos Lietuvoje. Tiltai, Nr. 4, p Stufflebeam, D. L.,Shinkfield, A. J. (2007). Evaluation Theory, Models and Applications. San Francisco: Jossey-Bass. Trochim, W. M. K. (2006). Introduction of Evaluation. Research Methods Knowledge Base. Website: Van Thiel, S., Leeuw, F. L. (2002). The Perfomance Paradox in the Public Sector. Public Perfomance & Management Review, Vol. 25, No. 3, p Vilpišauskas, R. (2007). Programinio biudžeto svarba Lietuvos finansų sistemai. Website: Vilpišauskas, R., Nakrošis, V. (2005). Ko verta politika? Vilnius: Eugrimas. Widmer, T. (2010). Evaluation and Sustainability: Immersion or Distortion? Conference: Sustainable Develompment Evaluations in Europe, Brussels, November 17 19,

46 Jaroslav Dvorak SUSTAINABILITY OF EVALUATION FUNCTION IN LITHUANIAN PUBLIC ADMINISTRATION VERTINIMO FUNKCIJOS TVARUMAS LIETUVOS VIEŠAJAME ADMINISTRAVIME Jaroslav Dvorak Klaipėdos universitetas (Lietuva) Santrauka Viešosios politikos vertinimas neseniai pradėtas taikyti Lietuvoje ir tam tikra jo įtaka jau pastebima administruojant ES Struktūrinių ir Sanglaudos fondų paramą. Tačiau informacija apie vertinimą kol kas netobula. Vertinimas institucionalizuotas Lietuvos administracinėje sistemoje. Vertintojas naujas socialinis vaidmuo. Kaip žinome iš antropologijos ir sociologijos, kiekvienam vaidmeniui būdingos teisės, pareigos, lūkesčiai ir kt. Be to, vertintojo vaidmuo susijęs su kitais vaidmenimis politiko, administratoriaus, piliečio. Kiekviena duota santykių pora turi tam tikras elgesio taisykles, arba normas, ir atitinkamą galią, tad reikia ne tik laiko, bet ir valios, norint vertinimą įtraukti į darbotvarkę. Vertinimo įtvirtinimo procese vertintojui suteikiama teisė užduoti specialius klausimus, reikalauti tam tikros informacijos ir įpareigoti žmones naudoti vertinimo rezultatus. Analizuojant vertinimo funkcijos raidą, svarbu žinoti, kaip atsiranda vertinimo įtaka, arba, kalbant instrumentiškai, kaip gali būti padidinta bet kokio vertinimo įtaka. Tyrinėjant politikos vertinimą, kaip ir daugelį kitų retrospektyvių viešosios politikos instrumentų, aktualus duomenų trūkumas. Prieš dešimtmetį pateiktos informacijos apie viešosios politikos instrumentų taikymo padarinius yra gerokai daugiau, palyginti su viešosios politikos vertinimo informacija, pristatyta tik prieš keletą metų. Svarbu išsiaiškinti, kaip viešosios politikos vertinimas taikomas Lietuvos politinėje ir administracinėje aplinkoje. Be abejo, nebūtina laukti dešimtmečių, kol atsiras žinių apie viešosios politikos vertinimo taikymą pokomunistinėse valstybėse. Kuo labiau institucionalizuotas taps vertinimas, tuo sudėtingesnius bus galima atlikti pakeitimus, keičiant vertinimo procesą / mechanizmą, palyginti su ankstesnėmis įgyvendinimo stadijomis. PAGRINDINIAI ŽODŽIAI: vertinimas, programa, viešasis administravimas, stebėsena. JEL klasifikacija: D730, D780, D790, H830, L380 46

47 ISSN Regional Formation and Development Studies, No. 1 (6) Export promotion changes of SME s for export expansion directions development in Lithuania Gražina Jatuliavičienė 1, Marija Kučinskienė 2 Vilnius University (Lithuania) Abstract The article aims to show that conditioned by globalization processes integration tendencies in the world economy stimulate the search of new export expansion directions and development methods. Their evaluation and implementation are important driving forces for national economic growth and sustainable development of regions. Current Lithuanian state s position in export promotion, as it enters into exchanges with the ever-changing global environment, must be conceptually justified, enabling equal participation in the international trade and the ability to withstand globalization s challenges. Most importantly, export promotion and development mechanisms and instruments should allow for timely responses towards the increasing liberalization of economic relationships and encourage the introduction of prerequisites for the acceleration of economic growth through export expansion. KEY WORDS: internationalization, globalization, SME s, export promotion, export development. JEL codes: F130; F140; F150; O110; R110. Introduction The new era of globalization, being operated through World Trade Organization (WTO), and marked by liberalization of trade through elimination of all physical and fiscal barriers, has unfolded multitude of opportunities and challenges. Constantly changing global business environment encourages the search for new growth opportunities, thus creating background for the stimulation of international business relationships. International trade is a key feature of economic globalization. Economic theory as well as empirical evidence clearly shows that countries which are more open to trade are also those that grow the fastest. Regarded as priority export orientation of the national economy is expected to ensure its sustainable and dynamic progress, economic and financial security and, in the end, growth of common wealth. Increased liberalization of international trade that resulted from globalization processes has brought pressure to bear on Lithuanian exporters to be more competitive both in price and quality to succeed in the European Union and global market. Lithuania had adopted export orientation as a development policy. Yet, Lithuania s export performance has remained not enough. Export promotion measures that can be utilized under the current World Trade Organization (WTO) system can be treated as the tool for economic development. State support for exporters becomes a necessity due to inevitable competition with economy subjects from other states who are in a more favorable position. This 1 Gražina Jatuliavičienė Vilnius University (Lithuania), Faculty of Economics, Business Department, Lecturer, Doctor of social sciences, scientific interest: export development. grazina.jatuliaviciene@ef.vu.lt Tel.: Marija Kučinskienė Vilnius University (Lithuania), Faculty of Economics, Business Department, Head of Business Department, Professor, Doctor of social sciences, scientific interest: business strategies. marija.kucinskiene@ef.vu.lt Tel.:

48 Gražina Jatuliavičienė, Marija Kučinskienė EXPORT PROMOTION CHANGES OF SME S FOR EXPORT EXPANSION DIRECTIONS DEVELOPMENT IN LITHUANIA advantageous position is acquired not only through the longer experience in the global market but also from effectively functioning export promotion processes management system in their countries. States are not always capable of fully implementing export development due to specific restrictions that exist internally. Management of successful export development processes is a complex task, as it requires a lot of efforts, resources and persistence in comparison with traditional export promotion methods. Consequently, it defines concentration of theorists efforts for new export development strategic directions formation, new internationalization and export development trajectories models creation. The challenges in the management of export development in the context of global area create new requirements for the states, their national institutions and economy subjects. They are challenged to adopt new strategic export development decisions that would encourage focus on the creation and acceptance of new skills. Such innovations would allow overstep the boundaries of traditional business and enable the acquisition of competitive advantage in the global area product markets. Three major issues have recently emerged that influence export promotion: growing interest in the environment and sustainable development, the importance of small and medium-sized enterprises (SMEs) as exporters and the scope for increasing trade in goods and services. The export potential of small and medium-sized enterprises has been a growing subject of interest. The current trend points strongly towards a sustained growth in this share, supported by expanding output and employment. Recognizing their growth potential, most governments in developing countries are giving priority to SMEs through policy support and other incentives. The main aim of the article is to reveal the importance of small and medium- sized business for export growth and to review export promotion and development impact taking into account the factual export performance of Lithuanian SME s s and their attitude to export promotion activities. Research methods: logical analysis and synthesis of related literature, comparison and generalization, deduction and conceptualization, empirical research. 1. Internationalization trajectories Current dynamic globalization processes create international business environment that radically differs from the former providing new challenges and trade-offs. Literature studies reveal that separate authors present different definitions of globalization but uniting features in all definitions are that they highlight the trend towards greater political, economical, cultural and technological interdependence among national institutions and economies (Czinkota, Ronkainen, Moeffett, 2005; Daniels, Radebaugh, Sullivan, 2007; Hill, 2009). Discussing the current peculiarities of the global economy it is useful to evaluate as it opens possibilities to enter into new markets, provides extensive choice of the human and other resources and creates competitive pressure (Kucinskiene, Jatuliaviciene, 2002). Market openness, associated with globalization, has increased the speed, frequency and magnitude of access to worldwide markets, including all tangible and intangible aspects of commerce thus attracting attention of all concerned: both theorists of international business, state institutions, interested in export development and business sector enterprises. The stimulation of rapid globalization has tremendously influenced the patterns of firms internationalization. The term internationalization has been defined differently by many scholars depending on their field of research. Johanson, Vahlne (1977), early developers of the idea of internationalization, have defined it as a gradual and incremental process in which the firm involves on the international markets through a series of incremental stages. The broadest definition that can be applied in every single concept developed is that internationalization is the process of increasing involvement in international markets (Welch, Luostarinen, 1988). There are many empirical researches existing that analyze the process of internationalization of small and medium-sized enterprises (SME s). The patterns of internationalization, developed by some of the authors, involved into internationalization patterns research, and described as a sequence of stages based on a mixture of classification criteria, including length of export criteria, export involvement, volume of exports as a percentage of sales, countries exported to, etc. are presented in Table 1. 48

49 ISSN Regional Formation and Development Studies, No. 1 (6) Johanson, J., Wiedersheim, P. F (1975) Table 1. Different perspectives to internationalization stages Author/Year Criterion Specification of stages Market entry mode Bilkey, W. J., Tesar, G. (1977) Cavusgil, S. T. (1980) Johanson, J., Wahlne, J. E. (1990) Kotabe, M., Czinkota, M. R. (1992) Albaum, G., Duerr, E., Strandskov, J. (2005) Sequence of learning stages Export involvement Resource commitment Experience Choice of countries for exporting Stage1. No regular export activities Stage 2. Export via independent representatives (agent) Stage 3. Sales subsidiary Stage 4. Production/manufacturing Stage1. Management is not interested in exporting and would not even fill an unsolicited order Stage 2. Management is willing to fill unsolicited orders, but makes no effort to explore the feasibility of active exporting Stage 3. Management actively explores the feasibility of exporting Stage 4. The firm exports experimentally to some psychologically close country Stage 5. The firm is an experienced exporter to that country Stage 6. Management explores the feasibility of exporting to additional countries, psychologically more distant Stage1. Experimental involvement Stage2. Active involvement Stage3. Committed involvement Stage1. Irregular export activities Stage 2. Export via independent sales representative Stage 3. Establishment of overseas sales subsidiary Stage 4. Establishment of foreign manufacturing subsidiaries Stage 1: Partial Interest in Exporting. Prepared to fill an unsolicited export order, but does not make the effort to explore the feasibility of exporting Stage 2: Exploring Exports. Actively exploring the feasibility of exporting, but exporting less than 5 % of total sales Stage 3: Experimental Exporter. Exporting on an experimental basis to countries that are geographically close or which share a culture similar to the domestic market, with exports representing over 5 % of total sales Stage 4: Emerging Exporter. Export sales exceeding 5 % of total sales; ready to adjust export offerings to changes in the commercial environment, but still exporting only to countries that are close geographically or culturally Stage 5: Experienced Exporter. Export sales are greater than 5 % of total sales; currently exploring the feasibility of exporting to additional countries that are distant and have different cultures Stage1. No interest in exporting Stage 2. Fill unsolicited orders Stage 3. Explore feasibility of exporting Stage 4. Export on experimental basis to psychologically close country Stage 5. Experienced exporter to country of stage Stage 6. Explore feasibility of exporting to other countries Passing the stages reflect evolution of orientation from primarily a domestic firm to a global player. Internationalization entails a notion of exchange, or, more precisely, trade, and progress through stages leads a firm presumably ending with no longer being solely an exporter but introducing some forms of overseas production. Therefore, as Dicken (2003), Hill (2009) point out, economic activities are becoming not only more internationalized, but that, more significantly, they are becoming increasingly globalized. These terms are often used interchangeably although they are not synonymous. Internationalization is related with increasing geographical expansion of economic activities over a national country s border (Dicken, 2003, or, according to Hill, 2009). internationalization occurs as firms extend products and services into foreign markets, accordingly it is relatively easy to measure internationalization via the proportion of international sales (exportimport) to total sales Globalizations is more advanced and complex form of internationalization, emerging as the norm in a growing range of economic activities Dicken (2003) and is the process by which businesses 49

50 Gražina Jatuliavičienė, Marija Kučinskienė EXPORT PROMOTION CHANGES OF SME S FOR EXPORT EXPANSION DIRECTIONS DEVELOPMENT IN LITHUANIA create value by leveraging their resources and capabilities across borders, and includes the coordination of cross-border manufacturing and marketing strategies (Hill, 2009). 2. Impact of exporting on economic development Accelerating changes of the global business environment evoke the need for an updated understanding of the possible benefits of exporting and in a new way to evaluate its attitude towards long term perspective. The obvious and potential benefit of exporting for the state s economic growth and development requires exploitation of propelling challenges in the global arena. It is widely accepted that an increase in the export volumes has a positive impact both on the development of separate regions, states as well as individual subjects of the economy (Rakauskienė, 2006). Regions and states, which are tied together by globalization, experience faster economic growth than the ones that integrate into the world economy at a slower pace. Empirical researches (Sena, 2004; Kearney, 2004; Beck, 2006) reveal the impact of speedier globalization processes for the state s involvement into political, technological, cultural integration processes. Exports have become a major source of national income for many small, open economies and a source of growth and survival for many small and medium-sized and large enterprises, especially in Europe. World trade recorded its largest ever annual increase in 2010 as merchandise exports increased 14.5 per cent, buoyed by a 3.6 per cent recovery in global output as measured by gross domestic product (GDP) (World trade report, 2011). As it could be seen from the Table 2, world GDP at market exchange rates increased by 3.6 % in 2010, one year after an unprecedented contraction of 2.4 % that accompanied the financial crisis in 2009, while world trade increase achieved 13.5 percent in Table 1. GDP and merchandise trade by region, (Annual % change) a Includes the Caribbean. b Hong Kong, China; Republic of Korea; Singapore and Chinese Taipei. Source: World trade 2010, prospects for 2011 Therefore, the international trade can be seen as a crucial factor for success in development without an increase in international exchanges, there can be no development. Regarded as priority export orientation of a national economy is expected to ensure its sustainable and dynamic progress, economic and financial security and, in the end, growth of common wealth. Expansion of regional trade relations becomes intermediate necessary step striving to participate in the global trade and 50

51 ISSN Regional Formation and Development Studies, No. 1 (6) allows for business subjects to acquire necessary experience to successfully compete in the global markets (World trade report, 2011). Considering the importance of exports for economic development, the question of the day is how states, regions and their economy subjects should improve export performance in the markets radically changed by globalization? Concept of export-led growth (growth though exports), especially stresses significance of exports for economic growth, accumulation of foreign exchange reserves, the necessity to create production facilities to serve export markets resulting in increased employment levels, to attract foreign private investment and technology to build new export industries with improves productivity and, ultimately enhance prosperity, also to create export promotion and development strategies and export promotion institutional structure (Czinkota, 1994; Jatuliaviciene, Kucinskiene, 2005; Todaro, Smith, 2006). The global market offers opportunities for exporting small to medium-sized enterprises products and services. Because there is no single globally accepted definition of SMEs, definitions of SMEs are various in different countries depending of the number of employees, kind of the economic activity and the amount of sales (Small and medium-sized enterprises: 2010). The European Union has adopted a new standardized definition of SMEs concerning the definition of micro, small and medium-sized enterprises with updated financial thresholds that entered into force for EU members on January 1, (Commission recommendation, 2003). This definition is to be used for all cases where eligibility is to be assessed and programms are to be targeted. The export potential of small and medium-sized firms has been a growing subject of interest. Why should today s export promotion strategies focus on SMEs, rather than on large enterprises? Small and medium enterprises (SMEs) occupy unique position in most of the countries and are found in a wide array of business activities. SME does also play a central role in the European economy. In 2010 Europe s 23 million SMEs, accounted for two thirds of jobs in the private sector and 59 % of total value added in the non-financial business economy as of 2010 around 80 % of new jobs over the past five years have been created by SMEs (Small Business, Big World, 2010). However, European SME s are ill equipped to capitalize on exporting opportunities. A considerable number of European SMEs are engaged in international activities yet only a small percentage is involved in internationalization beyond the Internal Market. The two most common modes of internationalization are exports and imports: 25 % of SMEs within the EU 27 export, of which about 50 % also go beyond the Internal Market (13 %); 29 % of SMEs within the EU 27 import, again 50 % import from countries outside the Internal Market (14 %). (Internationalization of European SME s, 2010). Europe needs to boost their internationalization process and provide the necessary support to SMEs when going international (Small Business, Big World, 2010). 3. The concept of export promotion and export development Another important aspect in the research of exporting expansion is export promotion. Export promotion has become a popular policy for promoting economic development growth in state and local economies since the 1930 s. Realignments on both macro and micro levels are occurring on a daily basis, making past orientations obsolete and compelling companies to seek new business beyond national borders. Exports and export promotion activity that have received interest only recently due to the balance of trade deficit, unemployment and domestic growth slowdown, are becoming important components of the state economic development program (Todaro, Smith, 2006). The promotion of export activities through government and other public or private sector institutions has received wide attention from both policy makers and academic researchers. This interest reflects, on the one hand, recognition of the potential usefulness of export promotion for businesses and, on the other hand, that the well-performed export promotion activities have a major impact on trading businesses competencies abroad and thus bring in the economic well-being of a country. Governments consider exports as engine of growth and worldwide provide assistance applied to improve their enterprises performance by providing the knowledge and competence applied to export market develo- 51

52 Gražina Jatuliavičienė, Marija Kučinskienė EXPORT PROMOTION CHANGES OF SME S FOR EXPORT EXPANSION DIRECTIONS DEVELOPMENT IN LITHUANIA pment (Gencturk, Kotabe, 2001). As the states enter into more and more into international exchanges, new export promotion mechanisms evolve in the global trading system striving do not protect local industry but forcing it to compete internationally. The broadest definition, presented by Czinkota, Ronkainen, Moeffett (2005) defines export promotion as the government attempts to stimulate exports by giving incentives to exporting firms. Incentive programs are designed to attract more firms into exporting by offering help in product and market identification and development, pre-shipment and post-shipment, financing, trading, payment guarantee schemes, trade fairs, trade visits, foreign representation, etc. (Export promotion. Business dictionary). Assistance for exporters may take many forms. Some of export promotion activities are new and not explored; others are widely used and confirmed empirically. The most interesting among them deal with exporting not as an end in it but as a part of a package of trade development initiatives. The understanding that export expansion is needed to achieve further growth and development induced the governments of various countries to create export promotion policies, export strategies, establish export promotion institutions and create programms for export promotion. Successful export growth relies not only on governmental institutions activities but also on private sector institutions initiatives and activities. The who and where gives the assistance for exporters, and the form of assistance varies among the countries according to the country s history, political and economic circumstances, economic and social structure. This occurs because there is not uniform agreement on the nature or extent of involvement by private and public sector in export promotion. Governments were responding to greater liberalization of foreign trade regulations and increased competition from abroad. Export promotion strategy is an important component of country s economic growth and development and is related with possibilities to increase exports. In a study about export performance of firms in Chile, Alvarez (2004) has shown that permanent and successful exporters have used public export promotion programms more intensively than less successful exporters. The further discussion of both such traditional and innovative approaches in export promotion or export development should shed more light into the matter. Differences between two concepts export promotion and export development strategy evidence in their orientation. Export promotion activities are to encourage increased sales of products that are currently available for export. All promotional efforts are based on existing production and aim at increasing the value of foreign sales by a given target. Today s export promotion strategies must reflect the changing nature of the international trade environment. As a reaction to the challenges of the contemporary globalization processes, many scientists, such as Hibbert (1998), Czinkota (2002), Evans (1997) distinguished new and innovative approach to export promotion that is export development conception which emphasizes the importance of non-traditional export development. This type of development would include creation of new exportable products and/or penetration into the new, previously inapproachable, markets as well as development and diversification of non-traditional export areas thus creating more dynamic and competitive business environment. Representatives of this concept argue that for the research and implementation of export development methods and means there is a need to identify opportunities, which not only allow sustaining traditional markets or entering the new ones, but also provide help while creating competitive advantages in the enterprise, product sector and state levels. The export development approach clearly requires more effort, resources, and persistence than the simple traditional export promotion approach (Hibbert, 1998). Both strategies, export development and export promotion, have their own rationale and are related to different problems and consequences for a country. States are not always capable of fully implementing export development due to specific restrictions that exist internally. Management of successful export development processes is a complex task, as it requires a lot of efforts, resources and persistence in comparison with traditional export promotion methods. The challenges in the management of export development in the context of global area create new requirements for the states, their national institutions and economy subjects. They are challenged to adopt new strategic export development decisions that would encourage focus on the creation and acceptance of new skills. Such inno- 52

53 ISSN Regional Formation and Development Studies, No. 1 (6) vations would allow overstep the boundaries of traditional business and enable the acquisition of competitive advantage in the global area product markets. 4. Lithuanian export development subjects interests diagnostics Lithuania, as a small country, with small domestic market, historically has had little choice but to implement export led-growth. Foreign trade now plays a significant role in determining the overall growth rate of the Lithuanian economy. Export of goods and services is regarded in Lithuania as one of the most important priorities of national economy development. Lithuania has a very open market and carries out most of its foreign trade with the EU. The trade to GDP ratio reached percent in (Country profile: Lithuania) In 2010 Lithuanian merchandise exports reached 20.8 billion US$ and commercial services exports 4,07 billion respectively (Country profile: Lithuania). Lithuanian foreign trade shows a deficit insofar as the value of imports is greater than that of exports. This can largely be explained by the fact that the country imports a large quantity of gas from Russia, whose prices were raised in recent years. The export performance of SMEs is of great significance to Lithuania, given the contribution of small and medium-sized business to economic growth and job creation. The Lithuanian export promotion system is in accordance with relevant international rules (WTO and EU rules and regulations) and enables Lithuanian exporters to participate under fair competitive conditions in international markets. Overall, Lithuania has reshaped incentives provided to exporters, eliminated subsidies in order to harmonize foreign trade policies and increased transparency of export subsidy programs. Due to WTO regulations and EU Customs Union, Lithuania now applies measures indirectly assist exporters such as: export finance and insurance as well as marketing assistance. However, large scale export promotion programms are difficult to implement under the budget constraints. Active debate about export promotion system reform concerns questions of an export promotion support access evaluation. The aim of the research. To reveal Lithuania s SMEs export development possibilities improvement during the process of internationalization in the context of current state of globalization. In order to achieve the aim of the research detailed objectives are formulated: 1. To reveal obstacles that are suppressing Lithuanian SME s export development and to evaluate motivation for Lithuanian export promotion activity transformation through the use of empirical research. 2. Through the use of the results from the empirical research, to foresee areas and means for the improvement of Lithuanian SMEs exporting. The following criteria for the achievement of empirical research aims were distinguished: 1. By type of impact (influence on export growth). 2. By impact object (SME s in manufacturing industry and services (wholesale and retail trade and construction) industries. 3. By utility of impact according to internationalization stages. Survey data has been used to test statistical hypotheses: H.1. Evaluation of export promotion encouragement depends on the type of firm s activity area; H.2. With the growing export experience, the application of export promotion is evaluated more favorably. The survey questionnaires were based on theoretical considerations. Based on the parameters of this material sampling, adaptation to empirical research, has been identified, and questions had been formulated. Questionnaire consists of open and closed questions which are divided into two parts. First part of the questionnaire analyzes current situation of respondents enterprises exporting situation whilst defining their current internationalization stage. In the second part, testing of raised hypotheses is conducted and respondent attitude to export promotion state is identified. 53

54 Gražina Jatuliavičienė, Marija Kučinskienė EXPORT PROMOTION CHANGES OF SME S FOR EXPORT EXPANSION DIRECTIONS DEVELOPMENT IN LITHUANIA During research 380 Lithuanian enterprises were questioned. Survey data were processed and analyzed by using statistical data analysis methods such as statistical data analysis packet SPSS 13.0, Mann-Whitney and Kruskal-Wallis test criteria as well as Spearman correlation ratio. The results of the research Striving for long term economic growth under conditions of current globalization, at first it is needed to evaluate current economy s exporting position and potential As the respondents named the types of economic activities they are in, while answering questions based on the nominal scale, their answers showed that more than half of the enterprises operated within the manufacturing sector 52.6 percent while less than half of them operated within trade and construction sectors percent. Through the use of the interval scale, responses regarding length of companies activities were gathered. The results showed that there were 21.1 percent of companies that had the operational history of up to 5 years, 40 percent five to nine years, 30.3 percent ten to fifteen years and 8.7 percent operated longer than 20 years. According to the size of the companies by the number of people employed, there were 23.2 percent of up to 9 employees, 55.8 percent of 10 employees and 21 percent of the companies had 50 to 249 employees. The experience in the export activities was measured, and the results revealed (see x table) that 13.4 percent of the companies have never exported and show no intention to do so. 7.9 percent of the companies with no exporting experience wanted to start internalization process. Figure 1. The experience in export activities There were not many companies that would consider themselves as experienced exporters to geographically and culturally remote countries 6.3 percent. The majority of the researched companies failed upon their first exporting experiences 32.1 percent. There were 24.3 percent of the companies that successfully exported and wanted to expand their export further and 21.1 percent of the companies were experienced exporters selling to geographically and culturally proximate countries. Evaluating export involvement, enterprises that only fulfill occasional export orders, make up for just over one fifth of the responders 21.3 percent. Companies that fulfill regular export orders, but do not intend to research active export possibilities are dominating the research 35.8 percent. Only 18.4 percent of respondents are actively researching the possibilities to export. Furthermore, only 6.3 percent of the companies had prepared an export marketing plan. Similarly, only 6.1 percent of the companies have prepared their long-term export strategy. 54

55 ISSN Regional Formation and Development Studies, No. 1 (6) Figure 2. Export involvement evaluation The majority of the respondents (61.8 percent) were companies whose export part of sales was 10 to 49 percent, 26.2 percent of the companies had percent export part of sales, 35.6 percent had 20 to 49 percent and 16.1 percent had more than 50 percent of export as part of their sales. Equally, 11.4 percent and 10.7 percent of the companies had accordingly up to 5 percent or 5 to 9 percent as their export part from the sales. Figure 3. Export part of sales In regards to the levels of goods and services adaptation and standardization levels, almost half of the exported products are the same as the products being sold internally 44.6 percent. Products, which have been minimally adapted, play quite a significant role reaching to 33.9 percent. However, only 19.6 percent of adapted and/or new products are exported to the foreign markets. The export-led growth strategy is not an un-mixed blessing and its success is conditioned by the export of diversified capital intensive and value-added products 55

56 Gražina Jatuliavičienė, Marija Kučinskienė EXPORT PROMOTION CHANGES OF SME S FOR EXPORT EXPANSION DIRECTIONS DEVELOPMENT IN LITHUANIA While evaluating the help in promoting export, the majority of respondents thought it was average (44.1 percent), 31.4 percent believed it to be negative and only 24.6 percent evaluated the help positively. During the analysis of respondent opinion on the export promotion evaluation, some of hypothesis were sought to confirm: Hypothesis 1: Evaluation of export promotion encouragement depends on the type of company s activity area From all of the respondents that negatively evaluated export promotion, 56.8 percent were manufacturing and 43.2 percent were services sector companies. Within the manufacturing companies, 33.7 percent evaluated the help negatively. In the services sector 28.7 percent evaluated the help negatively. From all of the respondents that positively evaluated export promotion in Lithuania, manufacturers make up to 42.5 percent and service industries 57.5 percent. Within the manufacturing companies, 19.8 percent evaluated the help positively. Within the services industry, 29.9 percent evaluated the help positively. The help was valued as average by 55.8 percent of manufacturing companies and 44.2 percent service companies respondents. It can be thus confirmed that opinion on export development evaluation and the type of firm s activity area are not related, i.e. the differences of opinions are statistically unimportant since (Chi-Square) p = 0,085, hypothesis is not confirmed. Hypothesis 2: With the growing export experience, the application of export promotion is evaluated more favourably. Among the companies that have never exported and are not intending to do so, 16.7 percent evaluated the export promotion encouragement negatively, which represented 7.2 percent of overall respondents percent evaluated help favorably, which represented 10.3 of overall respondents percent or 19.9 percent of overall respondents evaluated help as being average. Since p = 0.007, there is a dependency and the numbers are statistically reliable. Among the companies that have never exported but would like to start the export, the export promotion help was valued favorably by 21.5 percent of respondents, or 6.9 percent of overall respondents with 25.0 percent (or 6.3 percent overall) valuing it negatively and 53.6 percent (or 9.6 overall) valuing it as being average. Since p = , the valuation of export promotion and export experience are not interrelated, i.e. statistically insignificant. Having compared the results for the statement Started exporting but the results were disappointing together with How do you value export promotion help in Lithuania, 28.0 percent or 29.7 percent of overall respondents valued it negatively and 40.7 percent or 30.8 percent of overall respondent valued the help as being average percent or 42.5 percent of overall respondents valued help positively. Since p = the differences are statistically insignificant. It is confirmed then, that respondents that experienced export downfalls, also value export promotion help in Lithuania negatively. Among the experimental companies that have successfully exported and wanted to carry on, export promotion help was valued unfavorably by 51.7 percent of respondents, or 41.4 percent of overall respondents, with 28.1 percent (or 16.0 percent overall) valuing it as being average and 20.2 percent (or 20.7 overall) valuing it favorably. Since p = 0.000, values are statistically reliable. Among the companies that are experienced exporters into geographically and culturally close markets, export promotion help was valued unfavorably by 20.0 percent of respondents, or 11.7 percent of overall respondents percent (or 11.5 percent of overall respondents) valued the help favorably percent (or 26.9 percent of overall respondents) did not have an opinion. Since p = 0,001, values are statistically reliable. Among the companies that are experienced exporters into geographically and culturally distant markets, export promotion help was valued favorably by 56.6 percent of respondents, or 14.9 percent of overall respondents percent (or 3.2 percent of overall respondents) did not have an opinion while 21.7 percent (or 4.5 percent of overall respondents) valued the help unfavorably. Since p = 0.001, values are statistically reliable. 56

57 ISSN Regional Formation and Development Studies, No. 1 (6) It can be therefore summarized, that research results showed interdependence between company s internationalization level and its opinion toward the usefulness of export promotion, most favorably evaluated by the experienced exporters into geographically and culturally close markets. Hypothesis, that with the growing export experience, the application of export promotion is evaluated more favorably, was partially confirmed. Conclusions Current internationalization and globalization processes create new opportunities and challenges for international business development. Considering export benefit, every state is interested in active support as for its economy subjects export opportunities improving, as helping for current or potential exporters to widen or strengthen their activities in the international markets. Regarded as priority export orientation of the national economy is expected to ensure its sustainable and dynamic progress, economic and financial security and, in the end, growth of common wealth Support for SME s and their goods and services becomes prerogative, therefore export promotion means should be more oriented to SME s enterprises Export promotion means should provide better accesses to the recent foreign markets and more knowledge about them. Export development aims at producing new export products and/or penetrating new markets that were not accessible before. Strategic implications should be specific programs to address the constraints for exporters in different internationalization stages. Lithuania depends heavily on trade in general. The majority of the country s exports come to European Union member countries. Empirical research on Lithuanian SME s revealed a rather pessimistic evaluation of current export development condition and disadvantages of Lithuania SMEs export supply, as well as lack of knowledge on export promoting institution help. Research also revealed the need for more value added exports, more adapted or new products and enlarging the involvement base of Lithuanian SME s companies in exporting. Export promotion and development support should be oriented to providing better access to the foreign markets and more knowledge about them providing specific programs to address the constrains. Export encouragement, the choice of priority subjects, identification of the most perspective export development markets for SMEs, depending on the stage of internationalization as well as concentrated export support towards those SMEs, in authors opinion, would allow seeking for directed export development in the context of globalization conditioned integration processes. Improving export promotion and development activities in Lithuania would strengthen its export capability, enhance its competitiveness and boost demand for products, thereby stimulating economic growth and development in the global market. References Albaum, G., Duerr, E., Strandskov, J. (2005). International Marketing and Export Management. 5th ed. Pearson Education. Alvarez, R. (2004). Sources of export success in small and medium-sized enterprises: the impact of public programs. International Business Review, No. 13, p Bilkey, W. J., Tesar, G. (1977). The Export Behaviour of Smaller-sized Wiskonsin manufacturing Firm. Journal International Business Studies, No. 9 (Spring/Summer), p Beck, U. (2006). Cosmopolitan vision. Cambridge, UK: Polity Press. Cavusgil, S. T. (1980). On the internationalization of firms. European Research, Vol. 8, November, p Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and mediumsized enterprises [Official Journal L 124 of ]. Country profile: Lithuania. Website: aspx?language=e&country=lt 57

58 Gražina Jatuliavičienė, Marija Kučinskienė EXPORT PROMOTION CHANGES OF SME S FOR EXPORT EXPANSION DIRECTIONS DEVELOPMENT IN LITHUANIA Czinkota, M. R. (2002). Export promotion: a framework for finding opportunity in change. Thunderbird International Business Review, Vol. 44 (3), p Czinkota, M. R., Ronkainen, A., Moeffett, M. H. (2005). International business. 7th ed. Thomson. Daniels, J. D., Radebaugh, L. H., Sullivan, D. P. (2007). International Business. Environments and Operations. 11 th ed. Upper Saddle River/NJ. Prentice Hall. Dicken, P. (2003). Global Shift. Reshaping the Global Economic Map in the 21st Century. 4 th edition. The Guilford Press. Export promotion. Business dictionary. Website: Evans, P. (1997). The Eclipse of the state. World Politics, No. 50, p Jatuliavičienė, G., Kučinskienė, M. (2006). Impact of globalization processes on Lithuanian industry development perspectives. Proceedings of the 16th International Scientific Conference Modern Approaches to Corporate Management. Slovak Republic: Slovak University of Technology in Bratislava. Gencturk, E. F., Kotabe, M. (2001). The effect of export assistance program usage on export performance: a contingency explanation. Journal of International Marketing, Vol. 9, No. 2, p Hill, J. S. (2009). International business: Managing Globalization. SAGE publications. Internationalisation of European SMEs. Final Report. (2010). Website: market-access/files/internationalisation_of_european_smes_final_en.pdf Johanson, J., Wiedersheim, P. F. (1975). The internationalization of the firm Four Swedish cases. The Journal of management studies, No. 12, p Johanson, J., Vahlne, J. E. (1977). The Internationalization Process of Firm A Model of Knowledge Development and Increasing Foreign Market Commitments. Journal of International Business Studies, Vol. 8, No. 1, p Johanson, J., Vahlne, J. E. (1990). The Mechanism of Internationalization. International Marketing Review, Vol. 7, No. 4, p Hibbert, E. P. (1987). The Principles and Practice of Export Marketing. Heineman: London. Kearney, A. T. (2004). Measuring globalization. Foreign Policy Magazine, No. 3 4, p Kotabe, M., Czinkota, M. R. (1992). State government promotion of manufacturing exports: a gap analysis. Journal of International Business Studies, Vol. 23, No. 4, p Kučinskienė, M., Jatuliavičienė, G. (2002). Globali ekonomika ir antreprenerystė. Ekonomika: mokslo darbai, Lietuvos ekonomika ir globalizacija, Nr. 60(2), p Kučinskienė, M., Jatuliavičienė, G. (2005). Globalization challenges and environment dynamics. Business development possibilities in the new European area. Scientific proceedings. Part 1. Vilnius. Lithuania September. Vilnius University, Faculty of Economics, p Kotabe, M., Czinkota, M. (1992). State Government Promotion of Manufacturing Exports: A Gap Analysis. Journal of International Business Studies, No. 23, p Rakauskienė, O. G. (2006). Valstybės ekonominė politika. Vilnius: Mykolo Riomerio Universiteto leidybos centras. Sena, V. (2004). The return of the prince of Denmark: a survey of recent developments in the economics of innovation. Economic Journal, No. 114 (496), p Small and Medium-Sized Enterprises: U.S. and EU Export Activities, and Barriers and Opportunities Experienced by U.S. Firms. (2010). U.S. International Trade Commission Investigation, No Publication 4169 July Website: Small Business, Big World a new partners hip to help SMEs seize global opportunities. (2011). Communication from the Commission to the European parliament, the council, the European economic and social committee and the committee of the regions. European commission. Website: files/communication_sme_internationalisation_draft_en.pdf Todaro, M. P., Smith, S. C. (2006). Economic Development. 9th edition. Addison-Wesley, Boston et al. Welch, L. S., Luostarinen, R. K. (1988). Internationalization: Evolution of a Concept. Journal of General Management, Vol. 14, No. 2, p World trade 2010, prospects for Website: World trade report Website: 58

59 ISSN Regional Formation and Development Studies, No. 1 (6) Smulkaus ir vidutinio verslo įmonių eksporto skatinimo pokyčiai LietuvoJE, eksporto plėtros kryptys Gražina Jatuliavičienė, Marija Kučinskienė Vilniaus universitetas (Lietuva) Santrauka Šiuolaikinės integracijos tendencijos, nulemtos globalizacijos procesų, skatina kurti naujus eksporto plėtros kryptis ir plėtros metodus. Jų įvertinimas ir įgyvendinimas yra svarbi varomoji jėga ekonominiam augimui ir darniam regionų vystymuisi. Straipsnyje siekiama atskleisti, kad dabartinė Lietuvos valstybės pozicija, įsitraukiant į tarptautinius mainus dinamiškoje globalioje aplinkoje, eksporto skatinimo požiūriu turi būti konceptualiai pagrįsta, leidžiant lygiaverčiai dalyvauti tarptautinėje prekyboje ir tinkamai reaguoti į globalizacijos iššūkius. Svarbiausia, kad eksporto skatinimo ir eksporto plėtros mechanizmai bei instrumentai leistų laiku reaguoti į vis spartėjantį ekonominių santykių liberalizavimą ir skatintų ekonominį augimą, atsižvelgiant į eksporto plėtrą. PAGRINDINIAI ŽODŽIAI: internacionalizacija, globalizacija, smulkus ir vidutinis verslas, eksporto skatinimas, eksporto plėtra. JEL kodai: F130; F140; F150; O110; R

60 Janis Kleperis, Ilze Dimanta, Justs Dimants, Biruta Sloka LESSONS FROM TEACHING RENEWABLES: DOMESTIC AND CROSS-BORDER EDUCATION ACTION LATVIAN SOLAR CUP LESSONS FROM TEACHING RENEWABLES: DOMESTIC AND CROSS-BORDER EDUCATION ACTION LATVIAN SOLAR CUP Janis Kleperis 1, Ilze Dimanta 2, Justs Dimants 3, Biruta Sloka 4 University of Latvia (Latvia) Abstract From 2008 the education action Latvian Solar Cup is organized in University of Latvia. In this event, intended for pupils and students, the basics of one of the types of renewable energy solar photovoltaic are taught, and pupils from 5 th to 12 th classes are being taught, and students those who teach. Lectures about renewable technologies are organized for pupils, and materials are distributed them for homework to built up just a solar-powered vehicle. First Solar Cup became with an active participation of Czech colleagues (University of Ostrava) and their experience in organizing similar initiatives. Over the next few years the German colleagues from the University of Kassel (Germany) shared with their experience from German Solar Cup activities. KEY WORDS: renewable energy technologies, solar cup, education action, photovoltaics. JEL codes: Q130; Q290 Introduction Renewable energy resources and technologies are ready to meet our energy needs, probably only partly today and fully in the future (Hearps and McConnell, 2011: 58). They are cleaner and safer than coal, oil, also nuclear power. Use of them helps improve public health and energy security, as well as reduce the emissions of the primary global warming pollutant carbon dioxide. Hydropower still represents the dominant source in renewable electricity generation, but has become less important during recent years. This technology accounted for 94 % of green electricity generation by 1990 while by 2008 its share had decreased to below 60 % (EU Working Document, 2011: 41). This is caused by strong development of emerging renewable energy technologies, such as wind, sun and biomass. However the Lithuania was the most dependent country between all 27 EU states of electricity import in 2010, and main reason of it was closing the Ignalina nuclear power plant (Paskevicius, 2011: 16). Net electricity import in Latvia constituted 12 % in 2010 (23 % in 2009) (CSB, 2010). Therefore the sooner we make the transition to renewable energy, the more our nations will benefit. Which prevents them from introduction? Renewable energy technologies are ready to be implemented, 1 Janis Kleperis Institute of Solid State Physics, University of Latvia (Latvia), Seniour Researcher, Head of Laboratory of Hydrogen and Gaseous Sensors, Dr. phys., scientific interestests: renewable energy technologies; hydrogen energy; education of next generation. kleperis@latnet.lv 2 Ilze Dimanta Faculty of Biology, University of Latvia (Latvia), Doctoral student, Mg. biol., scientific interests: renewable energy technologies; hydrogen energy; creation of hydrogen energy on basis of biology sources. ilze.dimanta@gmail.com; ilze.dimanta@lu.lv 3 Justs Dimants Faculty of Economics and Management, University of Latvia (Latvia), Doctoral student, Mg. admin., scientific interests: renewable energy technologies; hydrogen energy; hydrogen economy, marketing of hydrogen energy. justs.dimants@gmail.com; justs.dimants@lu.lv 4 Biruta Sloka Faculty of Economics and Management, University of Latvia (Latvia), Professor, Dr., scientific interests: marketing research; regional development; education development. biruta.sloka@lu.lv; biruta@eurofaculty.lv 60

61 ISSN Regional Formation and Development Studies, No. 1 (6) but increased public confidence, regulatory reforms, and a system of economic incentives for development of these resources are needed to make large-scale use of renewables a reality. Education is an important first step in making this transition. Renewable energy is an ideal topic for middle and high school classrooms (Brown, 2008: 100). Renewable energy resources and technologies can be used to teach basic scientific principles: the Sun as renewable (in the scale of human life infinite) source of Earth s energy, conversion of energy from one form to another, or electricity generation electricity storage and finally a reasonable spending power. Natural science, physics, biology, chemistry teachers can incorporate activities on renewable energy into a unit on the environmental impact of energy use. Social studies teachers can select renewable energy activities that demonstrate how the marketplace and our political system govern the way energy decisions are made. But this applies not only to primary schools, as well as or even more importantly it is for future engineers in high schools. High schools struggle to get and keep students engaged in the study of science, while industry struggles to attract employees with advanced technical skills in renewable energy technologies. As it is mentioned by Brown (2008:100), progressive teachers and lecturers see a great opportunity to combine the growing national interest in renewable energy with research science and hands-on skills to provide a truly integrated, contextual curriculum to engage pupils and students: y Renewable energy provides a political, economic and technical framework for the study of scientific concepts and methodology; y Renewable energy utilization rests on the development of advanced technical skills in engineering research and design, electrical power production, storage, transmission and utilization, manufacturing, transportation modeling, urban planning and design; y The translating of scientific concepts into working physical models offers unparalleled opportunities for students to practice creative and critical thinking, and to problem-solve in a tangible context. In this article we summarize the experience in organizing Latvian Solar Cups for pupils from Latvia s schools in period from 2008 to Goal and objectives of Latvian Solar Cup The goal of activity is to understand the Sun as an energy source and an energy resource, as well as to acquire primary knowledge about technologies to collect energy from the Sun and to put it in use. Next objectives are set and realized every year in one-day event, which usually falls on a Saturday in mid-may: 1. To gain knowledge about the energy from the Sun and ways to harvest it, the fundamentals of photovoltaic devices, the implementation of renewable energy technologies in Latvia, Europe, the World. 2. To design and build car/boat/plane small prototype which can perform following tasks: 2.1 In the Speed Class the car must drive the given distance (8 10 m) as quick as possible using only currently (on the competition day) available Sun energy; 2.2 Cars in the Strength Class must drive the given distance with relief (artificial grass with small hills, 6 8 m) as quick as possible using only currently available Sun energy; 2.3 the boats must move as quickly as possible the distance (10 20 m) in specially arranged pool using only currently available Sun energy; 2.4 The plane must stay in the air at least 10 seconds or has to make the furthest flight after running start on horizontal ramp, using only currently available Sun energy. 2. Practical realization The one of the first tasks of the Solar Cup organization has to figure out workable tasks for pupils aged from 12 to 18 years. Organizing 1st Latvian Solar Cup we were modest, and the student team, consisting of up to 3 participants were given only the task to build a small toy car, whose engine is powered by solar battery. To create a vehicle which could then participate in the race should use a constant size solar cells. Since the solar 61

62 Janis Kleperis, Ilze Dimanta, Justs Dimants, Biruta Sloka LESSONS FROM TEACHING RENEWABLES: DOMESTIC AND CROSS-BORDER EDUCATION ACTION LATVIAN SOLAR CUP cells are already experiencing a third, even fourth generation, each of which has its own special technology and the different technical parameters, it is clear that all partner teams should have the same type and same area solar cells. Photovoltaics is a technology for converting light directly into electricity (renewables are Ready, 2003). Most photovoltaic cells have two layers of semiconductor material the same material used in computer chips. When light hits the photovoltaic cell, electrons travel from one layer to the other, creating a voltage (or charge) that can power an electrical device. Photovoltaic cells (also called PV or solar cells) were first developed to power space satellites. Technical advances have steadily increased PV cell efficiencies, and their cost has dropped significantly. Solar cells are widely used in calculators and for remote power applications not connected to an electricity grid (such as rural villages, communications relays, and emergency lights, signs, and telephones). They are not yet economically competitive for large-scale electricity generation. No one measure can not be organized without the financial investment, and, reflecting on the event-building tactics, we decided that the most important thing is to invest in solar cells, small electric motors and fans. Purchased parts are shared equally by each team, which has applied for, and sent to their addresses. Encapsulated solar modules SOL2 are made of interconnected photovoltaic solar cells, which convert sunlight into DC voltage to power electronic circuits and projects. A solar module may be used alone, or two or more modules can be wired together in series or in parallel (or both) into larger solar panels to increase the useful voltage or current. Just as with batteries, modules wired together in series will increases the voltage, and modules wired together in parallel will increase the available current. When even more power is needed, solar panels may be similarly expanded into solar arrays. Solar cells and modules are great for charging batteries, powering miniature motors and small circuits, science fair demonstrations and projects, or just experimenting with the possibilities. Four our pupils we chosed 2 cells from Velleman for one team with total area cm 2. Specifications of one SOL2 photovoltaic solar cell (Velleman) are next: y cell technology: polycrystalline silicon; y working output voltage: 0.5 V DC; y current: 800 ma; y connections: red and black wire leads; y dimensions: 6.5 cm x 9.2 cm x 0.5 cm; y encapsulated. Main participants are pupils from schools (average age years), but students and adults are welcome as well and will participate in a separate class. A team is formed from 1 3 participants, to apply the team needs a Team Name (also distinguishing marks for groups are welcome motto, flags, caps, shirts etc.). In the first Latvian Solar Cup the solar cars created by pupils took part in the speed and power tracks, but in the second and next Solar Cups also solar boats and solar planes participated. Description of tracks: Speed Track: Orientation from South to North; laminate surface 8 m long, 0.5 m wide (from 6 standard floor sheets); wood laths bounded both sides of track (see figure 1): Lath separates two tracks 55cm 8 m Figure 1. Organisation of Speed Tracks in Solar Cups Source: Contest Regulations, Institute of Solid State Physics, University of Latvia 62

63 ISSN Regional Formation and Development Studies, No. 1 (6) The Force Trace: Orientation from South to North; artificial grass surface (wires 2 cm high) 6 m long and 50 cm wide with 2 3 humps (10 20 cm high); both sides of Trace are bounded with vertical wood laths (see figure 2): 55cm 6 m Figure 2. Organisation of Force Trace in Solar Cups Source: Contest Regulations, Institute of Solid State Physics, University of Latvia The Water Trace: Orientation from Southwest to Northeast; the pool (artificial river) with film inlay and deepness cm, length 6 m and the width 2 m. The Sun boat needs a couple of hooks one in the bow and second in the tail, to use a string, if the problem will arise with reciprocal motion (see figure 3): 2 m 6 m Figure 3. Organisation of Water Trace in Solar Cups Source: Contest Regulations, Institute of Solid State Physics, University of Latvia The Air Trace: The orientation is free. Possible variants depending on the ability of participating models (will be evaluated just before the competition): y The Sun plane starts vertically the time is fixed when defined height is reached (6 8 meters). y The Sun plane needs the runway it will be arranged directly on place. The process of Start and Competition: y The Sun vehicle (boat) is laid on the Start just before the start line with covered Sun panels (from distance). y After starting signal the cover is removed; y If vehicle (boat) does not begin to move, it can be pushed slightly with one finger; y The time is fixed between two events when the front of vehicle is crossing the start line and when the tail of vehicle is crossing the finish line. 63

64 Janis Kleperis, Ilze Dimanta, Justs Dimants, Biruta Sloka LESSONS FROM TEACHING RENEWABLES: DOMESTIC AND CROSS-BORDER EDUCATION ACTION LATVIAN SOLAR CUP Dividing the Sun vehicles and Sun boats: The Judges team is dividing the vehicles and boats in classes: y A Folk Class: the vehicle or boat is using Solar panels with active area not exceeding 125 cm 2 and does not use electronics; y B Master Class: The tuning of Solar Panels is made (concentrators etc.) or electronics is used to store Solar energy (before competition the stored energy must be discharged); y C Extra Class: The active area of Solar panels exceeds 125 cm 2, hydrogen is used to store the solar energy and more extras); The competition takes place sequentially Folk Class, Master Class, and Extra Class starting with Speed Trace, then Force Trace, then Water Trace and finishing with Air Trace. During the time when the tracks are not used for competition they can be used for trial experiments; y Two drives will be allowed for every vehicle (boat, plane), and the best results will be judged. y Awards will be for the best 3 places in all Tracks and Classes. The Place of Latvian Solar Cups trditionally is the Car Parking place of Institute of Solid State Physics, University of Latvia (address: Latvia, Riga, Kengaraga Street 8). In case of rain the solar cars only will compete in the Vestibule of second floor, the lighting will be arranged with six 300 W halogen lamps situated 1.5 m above the track. However, the chosen date of the Latvian Solar Cup race Saturday in mid-may is usually sunny in Latvia, as it shows by long-time meteorological observations. Participants and results Latvian Solar Cup events are normally involved participants (maximum 80 teams) from schools, aged between 12 and 18 years. The younger participants had up to 4 years. Each year, the Sun Cup is also an international event either a team from a foreign country or a lecturer from abroad. An excellent teacher and lecturer at the first Latvian Solar Cup was Professor Bohumil Horák from Ostrava University, Czech Republic (Horák, 2008). University of Kassel (Germany) Professor Jürgen Zick participated in Latvian Solar Cup events two times 2009 and 2011 (Hessen Solar Cup, 2011). He told that this kind of events are taking place in Hessen for more than ten years every year to organize competition of solar boats, solar ultra-light mobile, remote-controlled solar-mobile or Solar Robots; it is the issue of energy revolution now involving German pupils, students. Let describe just one of our events, the Latvian Solar Cup On the 16th May the 2nd Latvian Solar Cup took place at Institute of Solid state Physics of University of Latvia. Organized events included lectures and races. Totally 120 participants were divided in 59 teams (applied 86), there were also teachers, parents and fans. Pupils came from different schools in Latvia: Riga (Agenskalna National Gymnasium, the Riga School of Crafts, Jugla Secondary School, Riga 64th Secondary School, Riga 84th secondary school, pupils from Riga Pupils Castle, Riga State 1. Gymnasium, the Riga State Technical School,, Gymnasium of Nordic languages and technical innovation group TJN Annas-2/RTU); from country A.Upītis Skriveru Secondary School, Auce Secondary School, Blome Elementary School, Liepaja 5th Secondary School, Jaunjelgava School, State Jelgava Gymnasium, Malpils Secondary School, Preili National Gymnasium, Priekuļi Secondary School, Saldus Gymnasium, Sigulda State Gymnasium, Smiltene Centre College and Smiltene Gymnasium. Lectures were started with academic speech of director of Institute of Solid state Physics (ISSP), Andris Šternbergs, overview oh Hessen Solar Cup by Professor Jürgen Zick. It was followed the lecture on organic photovoltaics by new researcher of ISSP Andrew Tokmakov and the presentation about Latvian solar testing plantation in Physical Energetic Institute lecturers Martins Vanags and Janis Blums. Although Saturday morning began with a great Sun, when lectures ended, the Sun was hiding in the clouds. Sun s missing then was the key to why the solar planes stood on the land, and why the speed of solar cars and boats was low. During the race of solar cars the participants were divided into three classes Folk Classs, Master 64

65 ISSN Regional Formation and Development Studies, No. 1 (6) Class and Extra Class. The races were on the speed track (distance 7.5 meters long), power track (6 m long artificial grass covering of the hills) and solar boat race in water (6 m long pool). Even in cloudy conditions, winners beat speed track in less than 4 seconds (from students Tinky team from Sigulda State Gymnasium, albeit for a slower solar car it took almost 2 minutes. In the power track only two teams finished all way it took 9 seconds for winning team and 1 minute 19 seconds for second place. The water race received much agreement from participants, but in cloudy conditions, only a few teams fought for the award-winning sites. Close of the Latvian Solar Cup event was the award ceremony, which awards students with different various prizes, which were brought upon sponsors: ISSP, University of Latvia, Latvian Academy of Sciences, Latvenergo, Latvian Council of Science, Riga Energy Agency, Riga City Council Education, Culture and Sports Department, VISC ESF project Dabaszinātnes un matemātika, Publisher company Lielvārds, Ltd. Perpetuum Nova Science, Journal Ilustrētā Zinātne, Ltd. Viessmann, Ltd. Rīgas Piensaimnieks, L Oreal and Ministry of Environment. There were also questioning arranged in each Latvian Solar Cup summarizing all recommendations to organizers. Conclusions and Summary from evaluations of participants It is important to understand that solar car, boat or another device is not simple, but system containing several important parts. We must begin by understanding each part of the system and setting realistic goals as to what can be done in the same time that lies ahead. Lofty goals are great, but if they are set unrealistically high, the project may not be completed in time. One the other hand, if we choose a very simplistic approach, there may not be enough challenges to hold interest for the team. In order to not only physical race of solar cars and solar boats, but also intellectual contribution to develop young researchers, it would be useful when Solar Cup race could begin with descriptions from each Team of their research building up their model: energy capacity, available speed, payload, another capabilities or functions. From the beginning it always useful to make experiments with solar cells to see who will come out. The sun shines during the day and the intense summer than in winter, the wind blows differently, depending on the time and place. On the other hand, the plug at any time day or night blindly plugged into the socket. To run the TV, computer, fridge, heating pump, the toaster or hair dryer, no matter when and for how long. This leads to the central question: How can the consumption and production of electricity at any time be brought into balance? What can we do to achieve a full supply of renewable energies? What is the role of the conscious use of energy in everyday life? How can electrical energy be stored? How can we orient our personal consumption at the supply of renewable energies? How to drive our cars without ejecting CO 2 and without gasoline and diesel fuels? It is not about science fiction. To develop meaningful utopias and displayed! Get creative with your pupils and students! Find out what everyone can do now is get closer to target the 100 % renewable energy? References Brown, M. A. (2008). Introduction to Renewable Energy Technology: A Year-Long Science & Technology Course. Lakewood High School, 100 pages. Available online from: CSB. (2010). Consumption of energy resources in Latvia in Central Statistical Bureau (CSB) of Latvia. Available online from: EU Working Document. (2011). Recent progress in developing renewable energy sources and technical evaluation of the use of biofuels and other renewable fuels in transport in accordance with Article 3 of Directive 2001/77/EC and Article 4(2) of Directive 2003/30/EC. EU Commission Staff Working Document, Brussels, , 41 pages. Available online from: Hearps, P., McConnell, D. (2011). Renewable Energy Technology Cost Review. Melbourne Energy Institute Technical Paper Series, 58 pages. Available online from: renewable-energy-technology-cost-review.pdf 65

66 Janis Kleperis, Ilze Dimanta, Justs Dimants, Biruta Sloka LESSONS FROM TEACHING RENEWABLES: DOMESTIC AND CROSS-BORDER EDUCATION ACTION LATVIAN SOLAR CUP Hessen Solar Cup. (2011). Available online from: Horák, B. (2008). Renewable and Aletrnate Power Sources. Pilot projects at VSB-TU Ostrava VSB. Available online from: Paskevicius, V. (2011). Electricity Sector Development in Lithuania. Report in Forum Energy in Latvia 2011, , Riga, 16 pages. Available online from: Renewables Are Ready: A Guide to Teaching Renewable Energy in Junior and Senior High School Classrooms. (2003). By the Union of Concerned Scientists. Available online from: Velleman: Encapsulated Solar Cell (0.5V/800mA). Available online from: view/?id= Acknowledgement Authors acknowledge financial support to organize Latvian Solar Cups from ERFP project No Nr. 2DP/ /10/ APIA/VIAA/010. More information about Latvian Solar Cups: Atsinaujinančių IŠTEKLIų pamokos: vietinių ir KITŲ ŠALIŲ MOKSLEIVIŲ mokymas latvijos saulės taurė Janis Kleperis, Ilze Dimanta, Justs Dimants, Biruta Sloka Kietųjų būsenų fizikos institutas, Latvijos universitetas Santrauka Nuo 2008 metų Latvijos universitete rengiami mokymai Latvijos Saulės taurė. Renginyje, kuris skirtas mokiniams ir studentams, kalbama apie vieną iš atsinaujinančių išteklių saulės fotogalvaninę energiją. Studentai moko 5 12 klasių mokinius. Mokiniams vedamos paskaitos, užduodami namų darbai: sukurti vien saulės energija varomą transporto priemonę. Iš pradžių Saulės taurė vyko aktyviai dalyvaujant Čekų kolegoms (Ostravos universitetas), remiantis jų patirtimi organizuojami panašūs renginiai. Vėliau kolegos iš Vokietijos Kaselio universiteto dalijosi patirtimi iš Vokietijos Saulės taurės renginių. PAGRINDINIAI ŽODŽIAI: atsinaujinančios energijos technologijos, Saulės taurė, mokymo iniciatyva, fotogalvanika. JEL klasifikacija: Q130; Q290 66

67 ISSN Regional Formation and Development Studies, No. 1 (6) PROBLEMS AND PROSPECTS OF DEVELOPMENT OF GREEN RURAL TOURISM IN UKRAINE Valentyna Oleynik 1, Sergii Iaromenko 2 Odesa National Academy of Food Technologies (Ukraine) Abstract The article is dealing with problems of emergence of green tourism in Ukraine, analyzing trends of eco-tourism in the world and in Ukraine. The research presented in this paper is the initial step of complex research of green tourism on the theoretic basis of social geography. The green tourism we consider as phenomenon that affects the development of rural areas, and makes a multiplier effect in the socio-economic and cultural spheres of rural areas. The paper is focussing on the regional difference in the development of tourism. The findings of O. Beydyk who created the recreational ranking methods, were taken as a methodological basis for this research. The economic estimation of GDP and the index of recreational and tourist potential of the regions in Ukraine are compared during this research stage. KEY WORDS: green tourism, agri-tourism, rural tourism, api-tourism, homesteads and farmsteads. JEL codes: R110 Introduction The concept of rural areas multifunctional development is more prevailing concept in Ukraine, and it makes possible the simultaneous development of several economic activities. At the same time special attention is given to non-agrarian ways. It becomes apparent in time of information technologies that rapid development of scientific and technological progress, priority role of service sector, the agrarian production only as such can t provide the necessary wealth to rural inhabitants. Prolonged socio-economic crisis reflects on social problems of population, mostly rural. However, acutely raises the question of overcoming inequalities of social and economic development between regions and within these regions. During the Soviet epoch and now various methods and principles to overcome this problem were and are declared. In the 1920s the principles of the elimination of economic, political and cultural backwardness were declared (Lanovyk, Matysyanevych, Mateyko, 1999). In 1930s a new economic politics with idea of rise of industrial level in backward agricultural areas was proclaimed (Skrypchenko, 1932). In 1950s principle of economic recovery act of each republic, equal status of all people of the USSR were declared (Danilov, Mukhin, 1959). Subsequently and still the basic principle of regional policy is the principle of equalization of socio-economic development of territories. This topic is widely debated between scholars of public administration, economics, geography. Famous works of F. Zastavny, Z. Varnaliya, Y. Shevchuk, I. Prokop, O. Topchiev, M. Baranovsky, I. Smal and many others embrace the extremely wide spectrum of research: backwardness, depression areas and their rehabilitation, development, management issues, etc. 1 Valentyna Oleynik Odesa National Academy of Food Technologies, Restaurant, Hotel and Touristic Business, Associate Professor, PhD in Geographical Sciences, Regional economy, Demography, Economic and Social Geography. v.oleynik777@mail.ru Tel.: Sergii Iaromenko Odesa National Academy of Food Technologies, Restaurant, Hotel and Touristic Business, Assistant, PhD in Geographical Sciences, Regional economy, Political Geography, Economic and Social Geography. syaromenko@gmail.com Tel.:

68 Valentyna Oleynik, Sergii Iaromenko PROBLEMS AND PROSPECTS OF DEVELOPMENT OF GREEN RURAL TOURISM IN UKRAINE 1. Methodology Scoring is mostly used in the study of natural phenomena and socio-geographical nature, and helps to improve the analysis of obtained data. When assessing the summary index, distribution of points for the reference value gradations is important. In this study, reference value, which we translated into points (from 1 to 5 stars), has 25 shades (the number of regions of Ukraine). Thus, the degree of accuracy causes share these gradations unit for 5 points. Note also that all components of the scale (25 regions corresponding rates) have the same value (the difference between the first gradations are as important as between the latter), so it is logical distribution of the reference range between points evenly. These positions developed a number of scoring matrices of recreational resources of Ukraine, which became the basis of their overall rating. On the basis of relevant quantitative indicators, the expert approach, expeditionary significant experience with 5-point scale assessed current and recreational potential of Ukraine regions, Autonomous Republic of Crimea and filled a number of auxiliary tables. Data have been summarized in Table 1. Administrative units Table 1. Recreational resource raking of Ukrainian regions Raking, points Socio-geographical Natural Natural and anthropogenic Architectural and historical Infrastructure Biosocial Event resource Sum of points Summary index of recreational rank AR of Crimea Vinnytsia Volyn Dnipropetrovsk Donetsk Zhytomyr Zakarpatska Zaporizhia Ivano-Frankivsk Kyiv Kirovohrad Luhansk L viv Mykolaiv Odesa Poltava Rivne Sumy Ternopil Kharkiv Kherson Khmelnytsky Cherkasy Chernivtsi Chernihiv Source: Beydyk, O. (2004). Methods of recreational ranking. Kyiv. 68

69 ISSN Regional Formation and Development Studies, No. 1 (6) O. Beydyk created seven major recreational resource blocks ( big seven recreational resources: social, geographical, natural, natural and anthropogenic, architectural and historical, infrastructure, biosocial, event units) which are evaluated in the amplitude of 1 5 points. For ease of evaluation minimal and maximal criterion (extreme positions: 1 and 5 points) were determined. The cumulative score was determined by ranking (also a 5-point scale) amounts of score evaluations. V. Oleynik created ranking in GDP by regions of Ukraine (25 points). GRP rating to the regions defined as ranking evidence of GRP (maximum and minimum of real GRP by 25 regions). 2. Results and Discussion One of the important directions of sustainable function of regional economy can be accelerated development of the tourism industry. All regions of Ukraine have a certain tourist and recreation resources. Beydyk (2001) identifies and ranks regions in accordance to indicators of tourist and recreation resources provision. The first in this rank is an Autonomy Republic of Crimea with the highest rates because it has the unique climate, natural diversity and rich history of region. The second group consists of Vinnytsia, Kyiv, Lviv, and Odesa regions (or oblasts in Ukrainian), in which anthropogenic and natural components are organically combined. The third group includes Ivano-Frankivsk and Chernihiv regions with rich historical and cultural, natural recreational areas and centers. The fourth group is quite numerous. It is formed by Volyn, Dnipropetrovsk, Zhytomyr, Zakarpatska, Mykolaiv, Poltava, Rivne, Sumy, Ternopil, Kharkiv, Kherson, Khmelnytsky, Cherkasy and Chernivtsi regions. The fifth group consists of Donetsk, Zaporizhia, Kirovohrad, Luhansk regions with lowest ratings. Comparing ranks of regions by classification of O. Beydyk (2001) and the main economic indicators (GRP) one can see the significant differences. That shows about existing and possible to issue potential of tourist and recreational resources (Table 2). Table 2. Rank indicators of tourist and recreational resources potential and gross regional product in regions of Ukraine Regions Rank of recreational resource Rank of GRP indicator Differences in ranks AR of Crimea Vinnytsia Volyn Dnipropetrovsk Donetsk Zhytomyr Zakarpatska Zaporizhia Ivano-Frankivsk Kyiv Kirovohrad Luhansk L viv Mykolaiv Odesa Poltava Rivne Sumy Ternopil Kharkiv

70 Valentyna Oleynik, Sergii Iaromenko PROBLEMS AND PROSPECTS OF DEVELOPMENT OF GREEN RURAL TOURISM IN UKRAINE Regions Rank of recreational resource Rank of GRP indicator Differences in ranks Kherson Khmelnytsky Cherkasy Chernivtsi Chernihiv The significant part of these regions consist the rural areas, so growth point can and should be the green rural tourism in these regions. The green rural tourism can be a factor in solution of region backwardness problems in preferred direction of integrated development of rural areas. For example, in the Europe has become popular the green tourism in holydays. The main factors of this process are (Grushchynsky, Krakovia-Bal, Kazmir, 2007): y ethno-cultural and socio-demographic changes in society, securing a healthy lifestyle, understanding of the environment values, natural products in mass production of artificial and synthetic materials, the need for urban residents to rest in rural areas; y difficult economic situation in agriculture; y release (due to technological progress in industry) workers of agriculture and the need for job creation in rural areas; y the desire to self-sufficient rural families get extra income from renting accommodation and free sale of agricultural quality natural products; y in time of the commercialization has increased the popularity of alternative tourism that promotes recreational activities; y ecologically clean environment; y the need to protect and restore rural landscapes. Thus, on the one hand, there was demand for recreation in the country side, on the other hand, was the offering responding to this demand by creating green tourism in a basis of farms and providing related services. There are several types of tourism nowadays. The rural tourism is a form of recreation in the country side which is closely related to local history, ethnic, cultural tourism and directly uses the attractiveness of rural areas. This form of tourism is valued for the fresh air, hospitality, local natural and cultural attractions. It is possible to identify several forms of rural tourism (Kravchenko, 2007): y rural tourism recreation in the country side; y agritourism (a form of rural tourism is closely connected with agriculture (animal husbandry, fishing, gardening) or agri-recreational tourism that develops on the basis of households rural or farm lands, provides for recreation in nature and voluntary participation in the holiday farm work, but work on their land is the main source of family needs for food and getting extra cash benefits; y green rural tourism (ecotourism variety), where the subject of tourism demand is ecologically clean areas, natural diversity, attractive landscapes. The basis for its development of rural settlements is located within or near the sites of nature. There are different possible combinations of types and forms of tourism. It may be cultural, educational, industrial, sports and health tourism, which developes on the basis of rural settlements. This can vary greatly in range of services. Separate homestead (farmstead; in Ukrainian sadyba) can specialize in hunting, fishing, horseback riding, organizing holidays. Significant spread of rural tourism gained in Europe, which operates in two admissions: first based on farms that specialize in various kinds of agricultural production and provide additional travel services, the second only focuses on serving tourists. Green tourism provides employment for 0.5 to 0.9 million in EU (Oleynik, 2010). Over 2 million tourists may get the accommo- 70

71 ISSN Regional Formation and Development Studies, No. 1 (6) dation in rural homesteads in Europe. A profit from green tourism reaches % of the total income of tourism industry. In Latin America ecological tourism has become an alternative to timber industry and was competitive. Foreign exchange receipts from tourism exceed the environmental benefits from the export of bananas, coffee, textiles. The alternative version of development of eco-tourism and rural tourism activities are becoming popular in the African continent. Tourism became a protected segment model of national parks instead of the old colonial scheme as unique natural areas intended, primarily, as an exclusive possession for white tourists, scientists and hunters. Local residents could visit the holy places, historical monuments. Now the situation has changed. The basis of environmental models is the principle, the essence of which is: unique species of flora and fauna, fragile ecosystems can be saved if the population that lives near the area to be financially interested in the development of protected areas, conservation of nature. Through eco-tourism the local inhabitants have to be compensated for the loss of other income (hunting, logging). The development of green tourism in Ukraine began much later than in the Europe and completely on other principles. First (by Ganin, 2011), consumers of services in the eco-tourism are usually the poor Ukrainians and foreign (especially Russians), and secondly, rural tourism is developing as an alternative activity that provides employment for agriculture which suffered decline. Unfortunately, for our fellow citizens (basically) green tourism is not yet to become an important type of recreation and continues to be some unexplained exotic. According to opinion polls only 15 % of Ukrainian tourists prefer green tourism over other types of recreation. In 2010, the country offers nearly 1,000 different farms with a total capacity of 10 thousand places each year for 800,000 visitors. For comparison, known locally as agritourism in Poland are functioning about 12 thousand households, in France, United Kingdom and Germany at least 20 thousand in each country. In Ukraine, hosts are mainly concentrated in the traditional tourist regions: in Crimea, close to Azov Sea, and the Carpathian Mountains, where about 90 % of rural tourism estates are concentrated. It should be noted that the supply of domestic agritourism products, services and products covers a rather narrow range. First of all rural villages offer tours, traditional cuisine, wellness and active forms of tourism activities. Investigation of the main types of agritourism activities in the Carpathian region showed that a high share offers in promotional publications account for a variety of recreation classes, trips to area attractions, hiking and gathering mushrooms and berries. Such tourist activities associated with the traditional known locally as agri-tourism, agri-therapy, agrientertainments, here are not sufficiently developed. World experience of agri-tourism products and services using indicates that a wide range of proposals in various spheres of activity are proposed. In particular, the innovative nature of them have the products and services in a special zoo corner in farmsteads, field games of the new generation, hypnotherapy, different types of agri-entertainments. In Ukraine, these innovative classes are not enough popular and little used in practice of the green rural tourism and agri-tourism. Therefore it is important to study these new forms of tourism activities in rural areas. Along with the development of Ukrainian agriculture tourism in organizational terms is different from European ones. Unlike the practice of European countries Ukrainian began to develop this sphere conducted from above. However, every year more and more local authorities and governments, civil society organizations involved in rural tourism development, approved policies and programs. The media has special role in this process that promotes the possibility of rest in the village, pays attention to existing unused resources. For example through the activities of the Union to promote rural tourism, in Ukraine actively implemented in tourist market agri-tourism product, known as the green tourism. Twenty-two regions of the country representing the properties of homestead that provides accommodation, meals, attraction to the work of local residents and foreign tourists. At the same time, given the approaching tourist season 2012, the soccer championship Euro-2012 and the International Congress Apimondia in 2013 to almost new version is being prepared for the Ukrainian information and tourist guide to api-tourism environment that will order the selected services and clarify the issue of location: 71

72 Valentyna Oleynik, Sergii Iaromenko PROBLEMS AND PROSPECTS OF DEVELOPMENT OF GREEN RURAL TOURISM IN UKRAINE 1) owners of farmsteads (sadybas) of rural tourism with an apiary and bee offered for medical purposes; 2) beekeepers offering bee products in medician purposes and services of accommodation and meals in their own sadybas; 3) information materials with invitation about the possibilities of recreation and api-therapy; 4) contacts of sadybas owners of rural tourism and beekeepers; 5) commentaries with experts on api-therapy. Promoting of rural tourism in Ukraine is suspended by the absence of perfect legislation. In the January 2009, in Ukraine was not adopted a law on rural or ecological (green) tourism unlike some neighbouring countries (Poland, Hungary). In consideration taken as the basis the first reading the draft law On rural and green tourism (Resolution of Parliament 2179 of town) was not repeatedly discussed at Ukrainian Parliament. In Parliament (Verkhovna Rada) there were bills On rural tourism 0920 from , and On the village green tourism 3467 of However, in the autumn of 2007, the Verkhovna Rada of Ukraine the next convocation withdrew them from consideration. Currently the Parliament is not pending any special law on green tourism. Registered bills in tourism related solely to tour operators and travel agents. Law of Ukraine On Tourism 324/95 of , the total is for all types of tourism and tourist activities. Some clarification of policies explains procedure to provide services to temporary accommodation, approved by the Government (Cabinet of Ministries) of Ukraine on March 15, 2006, N 297. Conclusions There is a need of funds in addition to the organization of rural tourism. The modern village has no better times. For proper execution of homesteads, procurement of necessary equipment and transport the help from the state is necessary. It would be needed to establish a public fund for the development of rural tourism, to introduce the provision of targeted loans at low interest rates. The problem is also how to create competitive regional tourism products: it is important to improve bad roads, inadequate development of rural infrastructure, low information basis for potential tourists, reducing the attractiveness of recreational resources of natural and anthropogenic origin due to irrational use and lack of effective measures for their protection. References Бейдик, О. О. (2001). Рекреаційно-туриські ресурси України: методологія та методика аналізу, термінології, районування. Київ: Видавничо-поліграфічний центр Київський університет. Ганін, В. В. (2011). Зелений туризм в Криму як елемент громадської дипломатії. Тези міжнародної конф. Розвиток сільських територій: економічний, соціальний і екологічний аспекти, березня. Київ. Грущинський, Є., Краковя-Баль, А., Казьмір, Л. (2007). Агротуризм як важливий чинник активізації розвитру сільських територій: Польський досвід і Українські перспективи. Географія. Економіка. Екологія. Туризм. Регіональні студії. Збірник наукових праць. За ред. І. В. Смаля. Ніжин. ТОВ. ВидавництвоАспект-Поліграф. Данилов, А. Д., Мухин, Г. Н. (1959). Размещение отраслей народного хозяйства СССР. Москва: Госпланиздат. Державний комітет статистики України. Режим доступу: Кравченко, Н. (2007). Роль сільського туризму в розвитку проблемних регіонів Полісся. Географія. Економіка. Екологія. Туризм. Регіональні студії. Збірник наукових праць. За ред. І. В. Смаля. Ніжин. ТОВ. ВидавництвоАспект-Поліграф. Лановик, Б. Д., Матисяневич, З. М., Матейко, Р. М. (1997). Економічна історія України і світу. Київ: Вікар. Олійник, В. (2010). Суспільно-географічна оцінка депресивних територій України. Автореферат дисертації на здобуття звання канд. геогр. наук. Сайт Верховної Ради України. Електронний ресурс. Режим доступу: Сільський зелений туризм. Електронний ресурс. Режим доступу: Скрипченко, О. (1932). Основні принципи раціонального географічного розміщення продуктивних сил у СРСР у другій п ятирічці. Харків. 72

73 ISSN Regional Formation and Development Studies, No. 1 (6) Смаль, І. (2007). Туризм як форма господарського освоєння депресивних регіонів. Географія. Економіка. Екологія. Туризм. Регіональні студії. Збірник наукових праць. За ред. І. В. Смаля. Ніжин. ТОВ. ВидавництвоАспект- Поліграф. Смаль, І. (2007). Туризм як форма господарського освоєння депресивних регіонів. Географія. Економіка. Екологія. Туризм. Регіональні студії. Збірник наукових праць. За ред. І. В. Смаля. Ніжин. ТОВ. Видавництвоc Аспект-Поліграф. Зінько, Ю. В., Горішевський, П. А., Рутинський, М. Й. (2011). Інноваційні форми занять в сільському туризмі та агротуризмі. Тези міжнародної конф. Розвиток сільських територій: економічний, соціальний і екологічний аспекти, березня. Київ. Žaliojo kaimo turizmo ukrainoje PLĖTROS problemos ir galimybės Valentyna Oleynik, Sergii Iaromenko Odesos nacionalinė maisto technologijos akademija (Ukraina) Santrauka Žaliojo turizmo tyrimas Ukrainoje yra svarbus. Valstybinio Ukrainos statistikos komiteto teigimu, apie 32 % Ukrainos gyventojų gyvena kaimo vietovėse. Pereinant prie rinkos ekonomikos žemės ūkio sektoriuje vyksta gyventojų nutekėjimas į miestus. Viena vertus, tą galima paaiškinti didesne mechanizacija, kita vertus besitęsiančia urbanizacija. Sprendžiant šią krizę, išeitis būtų industrializacija ir turizmo, kaip regioninio ekonominio multiplikatoriaus, plėtra. Žaliasis turizmas Ukrainoje turi daug galimybių plėtrai: dideli žemės ūkiui naudojami plotai, kraštovaizdžio įvairovė, žmogiškieji ištekliai. Taikydami O. Beydyk rekreacinių išteklių matavimo metodą ir V. Oleynyk atsilikusių regionų tyrimo metodus, straipsnio autoriai atliko lyginamąją sąlygų skirtumų analizę. Tyrimas parodė, kad tokie regionai kaip Krymo autonominė respublika, Černihiv, Čerkasy, Zakarpatska turi didelį rekreacinį potencialą, bet mažą bendrąjį nacionalinį produktą (BNP). Tai rodo menką regionų išsivystymą. Tai galėtų pagerėti išnaudojus turizmo sektoriaus privalumus. Šiame straipsnyje taip pat įvertinama kai kurių Europos valstybių patirtis ir pateikiamos bendros pasaulio turistinių regionų charakteristikos. Būsimi tyrimai turėtų sietis su planavimo schemų administraciniuose vienetuose kūrimu, turizmo išteklių inventorizavimu, perspektyviausių turizmo plėtros sričių nustatymu. PAGRINDINIAI ŽODŽIAI: žaliasis turizmas, agroturizmas, kaimo turizmas, namų ūkiai ir sodybos. JEL klasifikacija: R110 73

74 Janis Paiders, Juris Paiders QUANTITATIVE MEASUREMENT OF CROSS-BORDER INTERACTIONS (EXAMPLE OF AFRICA) QUANTITATIVE MEASUREMENT OF CROSS-BORDER INTE- RACTIONS (EXAMPLE OF AFRICA) Janis Paiders 1, Juris Paiders 2 University of Latvia (Latvia) Abstract Cross-border cooperation is one of the advantages of the EU that presented conditions for economic growth of all Member States when the organization was formed. The aim of the work was to look for quantitative indicators and data processing methods that would characterize cross-border interactions, while looking for and marking out high-integration regions. The authors previous studies (Paiders, Paiders, 2010) were aimed at conducting measurements of cross-border interactions in the cluster of European states. In this work, the authors use the already-familiar methodology and indicators in order to analyze the cross-border interactions of African states. The layout of highly integrated borders allowed marking out four groups of African states with the greatest economic integration with neighboring states. KEY WORDS: spatial autocorrelation, Africa s regions, neighbour effect. JEL Codes: C020, F150, Y910 Introduction Cross-border cooperation is one of the advantages of the EU that presented conditions for economic growth of all Member States when the organization was formed. The aim of the work was to look for quantitative indicators and data processing methods that would characterize cross-border interactions, while looking for and marking out high-integration regions. As evidenced by the authors previous studies (Paiders, Paiders, 2010: 31), cross-border interaction must be viewed in a much wider context, not only in geographical, economic, or political categories. Cross-border influence (migration, exchange of information, etc.) affects cultures, social and demographic areas, which is reflected in indicators connected with these areas. The authors previous studies (Paiders, Paiders, 2010) were aimed at conducting measurements of crossborder interactions in the cluster of European states. In this work, the authors use the already-familiar methodology and indicators in order to analyze the cross-border interactions of African states. Application of European experience in the economic and social transformation of the continent of Africa became particularly significant in the beginning of 2010, when social processes in North Africa (the Arab Spring), and several other Middle Eastern countries marked a shift from authoritarianism to searching for democratic models in state administration. Revolution in Egypt, Tunisia, Libya has a negative impact on almost all economic sectors in these countries. Also, the possibility of successful future economic development if the demographical situation stays the same is not likely to happen (Noury, 2011). 1 Janis Paiders Latvian University (Latvia), Geography and Earth science department, student, scientific interest: economic geography. paidersjanis@inbox.lv 2 Juris Paiders Latvian University (Latvia), Geography and Earth science department, doctor of geography, associated professor, scientific interest: economic geography. jpaiders@inbox.lv 74

75 ISSN Regional Formation and Development Studies, No. 1 (6) The authors were personally encouraged to conduct a study in this area by European Commissioner for Development Andris Piebalgs, as the results of the work may be used to apply quantitative indicators and methods of quantitative analysis to define areas with a high tendency of integration and mark those state borders that have become real barriers interfering with regional cooperation and development. 1. Data and methods Information on the amount of trade is obtained from Trademap (Trade Map, 2009) data on external trade of countries, based on official sources (COMTRADE, Eurostat, etc). Hence for this research annual changes in gross domestic product (GDP) per capita, based on purchasing-power-parity (PPP) valuation, were selected as an indicator, using International Monetary Fund World Economic and Financial Surveys obtained from the World Economic Outlook Database. Gross domestic product (GDP) per capita: annual changes based on purchasing-power-parity (PPP) valuation. Data of Human Development Index are based on United Nation statistic sources (Human Development, 2009). As a parameter for determining the weight of the weighted average for neighbour territories, authors have used the proportion of length of the land border of neighbour territories against the total length of the land border. The weighted average for neighbour territories was obtained according to the formula X n Rn X 1 n = n where n the number of territories that border territory i; X n the weighted average parameter of neighbour territories; R n the total length of border with the respective territory; 1 R n n X n the value of the respective parameter in the neighbour country. Further in the regression analysis it was assumed that an indicator of a territory is a function of the weighted average of the respective indicator in all neighbour countries. In this case, the border will serve as a variable that describes spatial interaction, assuming that the longer a border between corresponding territories, the stronger the spatial interaction between them. However, not all borders can serve as measures of spatial interaction. If there are indicators that describe spatial interaction between two countries, the value of the indicator (compared against the length of border) would serve to describe the amount of interaction. Following the standard used by Frolova (2005), the zero hypothesis was tested for regression models, checking whether zero was included in the credibility interval of the regression coefficient (t-statistic) but significance of determination coefficient (R Square in tables) was tested using F empirical. As a measure to characterize interaction, external trade turnover was chosen; borders were classified according to the size of this indicator per border kilometre. Since often significant inequalities are seen in neighbour countries mutual trade agreements, the authors have used an improved formula to calculate the economic permeability of borders. ( Xeksp + Yimp) + ( Yeksp + X C = 2R where C economic permeability of border; imp ) 75

76 Janis Paiders, Juris Paiders QUANTITATIVE MEASUREMENT OF CROSS-BORDER INTERACTIONS (EXAMPLE OF AFRICA) R the length of border (km); X exp exports of country X to country Y; Y imp imports of country Y from country X; Y exp exports of country Y to country X; X imp imports of country X from country Y. It is possible to calculate the economic permeability of borders in a simpler manner by using the following formula: T C = R where C economic permeability of border; R length of border (km); T mutual amount of external trade between countries (imports + exports). Whereas in the previous study the authors focused on cross-border interactions as a scalar field, the present study has obtained the first results by looking at international trade in the form of a vector field. International trade can be expressed spatially as a vector whose numeric value is proportional to the trade balance amount, while the vector s direction is determined by the trade surplus (the vector s plus sign) or trade deficit (minus sign). At the time when data for the study was being collected, South Sudan had not yet declared its independence therefore, the work and figures use the former borders of Sudan., 2. Results and discussion on the influence of autocorrelation and cross-border measurement The obtained results (tables 1, 2) force to conclude that there are parameters and geographical territories, for which the neighbour influence is extremely high. Results show that, for many economic and other indicators, including the average changes of the same indicator in surrounding territories explains most of dispersion in regression analysis. For instance, for all world countries the GDP per capita (2007) closely correlates to the average GDP per capita of neighbour countries (R 2 = 0.67). Table1. Neighbour effect (spatial autocorrelation) in World countries Indicators Number of countries R Square F-empirical t-statistic GDP per capita ,67 290,47 17,04 GDP per capita ,61 223,43 14,95 Increase in GDP per capita 2007 / ,66 269,57 16,42 Increase in GDP per capita 2008 / ,19 33,88 5,82 Average lifespan ,78 482,39 21,96 Average lifespan (men) ,75 409,67 20,24 Average lifespan (women) ,80 549,76 23,45 Birth rate ,77 479,77 21,90 Child mortality 142 0,61 222,56 14,92 Average number of children per woman ,71 341,78 18,49 Change in population 2007/ ,67 291,23 17,07 Human Development Index (HDI) ,80 564,65 23,76 Source: author s calculations. 76

77 ISSN Regional Formation and Development Studies, No. 1 (6) When looking at various indicators characterizing the development of states in Africa (Table 2), it can be noted that the autocorrelation of values of neighboring African states is generally significantly weaker than on the global scale (Table 1). However, for all examined indicators, the correlation between the weighted average of a state and its neighboring states is still statistically significant. The reason why the interlinking of a state and its neighboring states is lower on a continental scale is connected with the fact that, when shifting from the global scale to a smaller (continental) scale, the variation in values of the examined parameter is reduced. Table 2. Neighbour effect (spatial autocorrelation) in African countries Indicators Number of countries R Square F-empirical t -statistic GDP per capita ,37 26,08 5,11 GDP per capita ,28 17,48 4,18 Increase in GDP per capita 2007 / ,40 28,94 5,38 Increase in GDP per capita 2008 / ,12 6,03 2,46 Average lifespan ,48 41,32 6,43 Average lifespan (men) ,45 36,72 6,06 Average lifespan (women) ,53 48,66 6,98 Birth rate ,52 47,77 6,91 Child mortality 46 0,21 11,76 3,43 Average number of children per woman ,45 35,66 5,97 Change in population 2007/ ,34 22,44 4,74 Human Development Index (HDI) ,26 15,40 3,92 Source: author s calculations. Figure 1 shows the African state borders that practically act as barriers. As evidenced by the obtained results, the African continent is splintered, due to both geographical and political reasons. Moreover, splintering is characteristic to parts of Africa with different climatic and geographic specialization, which could complement each other. In Sub-Saharan Africa informal trade can be explained by the fact that land borders are not similar to the local ethnic group borders (Walther, 2009) Barriers in African land borders have a negative impact on the future economic development of African countries (Sipetean, Ivan Oana, 2010). Borders that practically function as barriers are the main obstacle that prevents Africa from using the opportunities that cross-border cooperation gives to, for example, Europe. In the other hand income inequality is a barrier in successful future economic development in African countries (Fanta, Upadhyay, 2009). Also, informal sector cross-border trade plays a much larger role in Africa than in Europe (Peberdy, 2000). Areas with a high level of cross-border cooperation are shown in Figure 2. It displays the African borders with the greatest border throughput where the border s economic throughput exceeds USD 600,000 per year per one kilometer of the border. Such level of throughput is comparable with the least-integrated borders of European states in the Balkans and Eastern Europe. Intra-regional trade in Africa as a part of the total trade has traditionally been low in comparison to other forms of integration (Bilas, Franc, 2010). When comparing the level of integration in Europe and Africa, it must be concluded that the differences are statistically significant. In essence, borders that would be defined as barriers within the context of Europe must be viewed as highly integrated in Africa. Figure 3 displays Africa s cross-border cooperation in the form of a generalized vector space, revealing the main directions and centers of international trade. Figures 1 3 served as the basis for developing the regionalization scheme of Africa s cross-border interactions (Figure 4). The work has resulted in the development of a regionalization scheme (Figure 4), marking out Africa s regions with a high level of cross-border interactions. The layout of highly integrated borders allowed marking out four groups of African states with the greatest economic integration with neighboring states. 77

78 Janis Paiders, Juris Paiders QUANTITATIVE MEASUREMENT OF CROSS-BORDER INTERACTIONS (EXAMPLE OF AFRICA) Figure 1. African land borders with low economic permeability in 2008 Source: Trade Map, 2009; author s calculations Figure 2. African land borders with high economic permeability in 2008 Source: Trade Map, 2009; author s calculations 78

79 ISSN Regional Formation and Development Studies, No. 1 (6) Figure 3. Direction of cross-border trade flow in African countries (2008) Source: Trade Map, 2009; author s calculations A Arab states of North Africa. This group includes Algeria, Morocco, Tunisia, Libya, and Egypt. These states, in spite of the relatively great lengths of the borders between them, are characterized by large border throughput, compared to the average level of Africa. This is largely due to being populated by one nation (Arabs) and having a unifying religion (Sunni Islam). Considering that instability negatively affects tourism and international trade, it can be expected that the revolutions in Tunisia and Egypt in spring 2011, as well as the Libyan civil war, will have affected the integration of this region s states negatively in the short term. However, upon removal of the political obstacles, the Arab states of North Africa could become one of the most promising examples of high integration in the future. B Coastal states of the Gulf of Guinea. This group includes both coastal states of the Gulf of Guinea and the border-states thereof, with which there is rather significant economic integration. The central and economically most powerful states of this group, Ivory Coast and Ghana, also have significant economic throughput on the land borders. The borders of this area on which the economic integration exceeds USD 600,000 per year per kilometer are the ones connecting coastal states with landlocked states. The great economic throughput is largely explained by the need of landlocked countries (Mali, Burkina Faso) to access the sea. It must also be noted that the high economic throughput per kilometer is largely due to the small length of these borders. C East Africa Community (EAC). This group includes Kenya, Tanzania, Uganda, Rwanda, and Burundi. The economic integration of all of these states, except for Burundi, is rather high on the overall African background. The most integrated borders in this group are those with Kenya, which is the most developed country of the region. One of the specific tasks of the EAC is to facilitate the mutual economic integration of these states. 79

80 Janis Paiders, Juris Paiders QUANTITATIVE MEASUREMENT OF CROSS-BORDER INTERACTIONS (EXAMPLE OF AFRICA) Figure 4. Zones in Africa with high cross-border interactions in 2008 Source: Trade Map, 2009; author s calculations D Republic of South Africa and its neighboring states (mostly Southern African Development Community countries). This group includes South Africa, as well as Namibia, Botswana, Zambia, Mozambique, and Swaziland. The high integration of the borders of these states is connected with the relationship of South Africa as an economically powerful center with its less-developed neighboring states. The economic relations of South Africa with its neighboring states are characterized by a significant trade surplus. South Africa acts as an economic engine dragging up the neighboring states. Southern African Development Community has higher regional integration between member countries compared to East African Community (Sissoko, Sohrabji, 2010). Unlike the Arab region of North Africa, in which there is no marked economic leadership or dominance, this region is mono-centric. Conclusions African regions with the greatest economic integration with neighboring states are Arab states of North Africa, Coastal states of the Gulf of Guinea, East Africa Community, Republic of South Africa and its neighboring states. African borders with the greatest border throughput are comparable with the least-integrated borders of European states in the Balkans and Eastern Europe. Republic of South Africa and its neighbor countries could become one of the most promising examples of high integration in the future. 80

81 ISSN Regional Formation and Development Studies, No. 1 (6) References Bilas, V., Franc, S. (2010). Globalization, Regionalization and Information Communication Convergence of Africa. Interdisciplinary Description of Complex Systems, No. 8(2), p Frolova, L. (2005). Korporatīvā sektora attīstība Latvijā un to ietekmējošie faktori. (The Development of the Corporate Sector in Latvia and Factors Influencing it.) 690. [sēj.]. Latvijas Universitātes Raksti. Vadības zinātne. Rīga: Latvijas Universitātes akadēmiskais apgāds, lpp (In Latvian) Human development reports statistics. (2009). Noury, V. (2011). N African revolution: counting the cost. African Business, Issue 374. p Paiders, J., Paiders, J. (2010). Measuring Influence of Neighbour Effect on Sustainable Development of Countries. Homan Resources the Main Factorof Regional Development. Journal of Social Sciences, No. 3. Klaipėda: Klaipėda University, p Peberdy, S. (2000). Border Crossings: Small Enterpreneurs and Cross-border Trade between South Africa and Mozambique. Journal of Economic & Social Geography, Vol. 91, Issue 4, p Sipetean, C., Ivan Oana, N. (2010). Beyond the Borders of Globalizations EU-AFRICA, Economy and Conflict. Annales Universitatis Apulensis Series Oeconomica, Vol. 12, Issue 2, p Sissoko, Y., Sohrabji, N. (2010). Current account sustainability in African economic communities: Are there regional differences? China-USA Business Review, Vol. 9, Issue 10, p Trade Map: Trade statistics for international business development. (2009). Walther, O. (2009). A Mobile Idea of Space. Traders, Patrons and the Cross-Border Economy in Sahelian Africa. Journal of Borderlands Studies, Vol. 21, Issue 1, p Kiekybinis pasienio sąveikos matavimas (Afrikos pavyzdys) Janis Paiders, Juris Paiders Latvijos universitetas Santrauka Pasienio bendradarbiavimas buvo vienas iš ES teikiamų privalumų, lėmusių visų organizacijos narių ekonominę plėtrą. Šio darbo tikslas nustatyti kiekybinius rodiklius ir duomenų apdorojimo metodus, kurie leistų apibūdinti pasienio sąveiką, kartu ieškant ir išskiriant labai integruotus regionus. Ankstesni autorių (Paiders, Paiders, 2011) darbai skirti matuoti pasienio sąveiką Europos valstybių klasteryje. Šiame darbe ta pati metodologija ir rodikliai naudojami Afrikos valstybių pasienio sąveikai įvertinti. Ankstesni autorių tyrimai sutelkti ties pasienio sąveika kaip skaliariniu lauku, o šiame darbe tarptautinė prekyba vertinama vektorių forma. Tarptautinė prekyba gali būti išreikšta vektoriumi, kurio skaitinė reikšmė proporcinga prekybos balansui, tuo tarpu vektoriaus kryptį nulemia prekybos perviršis (teigiama vektoriaus reikšmė) arba prekybos deficitas (neigiama vektoriaus reikšmė). Lyginant Europos ir Afrikos integracijos lygį, padaryta išvada, kad skirtumai yra statistiškai svarbūs. Iš esmės sienos, kurias galima apibūdinti kaip skiriančias ribas Europos kontekste, Afrikoje būtų laikomos labai integruotomis. Ištyrus labiausiai integruotas sienas, išskirtos keturios Afrikos valstybių grupės, kurios labiausiai ekonomiškai integruotos su kaimyninėmis valstybėmis. Tyrimo išvados: 1. Labiausiai integruoti Afrikos regionai yra arabų valstybės šiaurėje, pakrantės valstybės Gvinėjos įlankoje, rytų Afrikos bendruomenė, Pietų Afrikos Respublika ir jos kaimyninės valstybės. 2. Labiausiai integruoti Afrikos regionai Europos kontekste būtų lygintini su mažiausiai integruotais Balkanų ir Rytų Europos regionais. 81

82 Janis Paiders, Juris Paiders QUANTITATIVE MEASUREMENT OF CROSS-BORDER INTERACTIONS (EXAMPLE OF AFRICA) 3. PAR ir jos kaimyninės valstybės ateityje turėtų tapti didesnės ekonominės integracijos Afrikoje pavyzdžiu. Tyrimo rezultatai gali būti panaudoti taikant kiekybinius rodiklius ir kiekybinius tyrimo metodus, apibrėžiant regionus, kur didžiausias integravimosi potencialas, ir pažymint tas valstybių sienas, kurios tapo skiriamąja riba, stabdančia regioninį bendradarbiavimą ir vystymąsi. PAGRINDINIAI ŽODŽIAI: erdvinė autokoreliacija, Afrikos regionai, kaimynystės efektas. JEL klasifikacija: C020, F150, Y910 82

83 ISSN Regional Formation and Development Studies, No. 1 (6) STIMULATION OF INNOVATIVE-INVESTMENT PROCESS: WORLD EXPERIENCE Liudmila Parfenova 1, Andrei Pugachev 2, Vytautas Juščius 3 The Yaroslavl Demidov State University (Russia), Klaipėda University (Lithuania) Abstract In the article results of the comparative analysis of world experience of stimulation of innovative-investment process through the formation of a favorable tax climate are generalized. Development of tax stimulation of innovation activity is considered as a crucial factor in building a new model of economic growth. It is concluded that within the subject principle there are three elements of the stimulation instrument: amortization privileges, preferences concerning the profits tax, indirect measures of tax stimulation. Conclusions on potential use of foreign tax instruments of stimulation of innovation activity in the Russian conditions are presented. KEY WORDS: tax stimulation, innovation activity, tax credits, investment tax credit, tax research credit, amortization, profit tax of the organizations, R&D, modernization. JEL codes: H250, O110. Introduction In different regions and countries stimulation of innovative-investment process depend on strategic aims and existing economic policy. In some countries direct support of the innovation enterprises prevails, in others support in the preference system, in the third complex of support of innovations is balanced between direct and indirect measures. However tax stimulation is to some extent used in all countries with the developed innovative sphere. Forming of a favorable tax climate becomes one of prime problems of the Russian economy within the task of a transition to the new model of economic growth based on innovations, the private initiative, a qualitative financial infrastructure (Budget Message of the President of the Russian Federation on fiscal policy in ). The urgency receives introduction and development of tax stimulation instruments of innovation activity which become the integral vector in space of the state financial mechanisms of stimulation of innovative-investment process. Ample opportunities of use, outstanding performance and simplicity of the organization and application of tax stimulation cause its appeal to business and the state that practice of application of tax stimulation in the developed economy confirms. The favorable tax climate doesn t mean 1 Parfenova Liudmila the Yaroslavl Demidov State University, Economic Faculty, Prof. habil. dr., scientific interest: International finances, European integration. decan@econom.uniyar.ac.ru Tel.: Pugachev Andrei the Yaroslavl Demidov State University, Economic Faculty, Doctoral student, scientific interest: Finances, Tax systems, Investment policy. andrxim@yandex.ru Tel.: Juščius Vytautas Klaipėda University, Social Sciences Faculty, Prof. dr., scientific interest: Globalization, Business social responsibility. ek.smf@ku.lt Tel.:

84 Liudmila Parfenova, Andrei Pugachev, Vytautas Juščius STIMULATION OF INNOVATIVE-INVESTMENT PROCESS: WORLD EXPERIENCE today decrease in tax burden within the general system of taxation, and even on the contrary preference consists in development of local tax stimulation branch, regional, target, one of which directions is tax stimulation of innovative-investment activity. The object of the research stimulation of innovative-investment process. The paper aims to identify world practice and opportunities use of foreign tax instruments of stimulation of innovation activity in the Russian conditions. The objectives set for the research are: y to examine world experience of activation of innovative-investment process through the formation of a favorable tax climate; y to examine the experience of tax stimulation of innovation activity and possibilities of improving innovation activity in Russia. The research methods are based on literature review, its generalization and systematization, comparative analysis of secondary statistical data. 1. World experience of tax stimulation of innovation activity Today it is obvious that Russia can t provide strategic economic growth without development of scientific potential, as almost 40 % of gross national product are created at the expense of raw export, and the high technology production has no due development. Export of hi-tech goods constitutes only 2.3 % of industrial export of Russia. In the USA this indicator constitutes 32.9 %, in China 32.8 % (OECD, STAN Indicators Database, 2009). Degree of depreciation of fixed assets in 2009 has reached 46 %, and on machines and the equipment exceeds 50 % (Statistical Yearbook of Russia, 2009, p ). Such data are primarily due to low internal costs of R & D, which is now 1.1 % of GDP, much lower than in developed countries 4. Inflow of foreign investments to the Russian economy is reduced also: according to Bank of Russia in II quarter 2011 reducing of direct foreign investments has constituted in relation to I quarter 2011 of 27.5 %, by II quarter %, and by II quarter % (Direct investment in the Russian Federation in 2007 I II quarters in 2011). Also, lagging in sphere of high technologies is caused in many respects by imperfection of the Russian legislation in the field of R&D. So inadmissibly long time was absent legislatively fixed accurate and actual concept of innovative activity, that is there were no even criteria of reference of this or that activity to innovation that caused uncertainty in revealing the base of granting the innovative stimulation. Among the countries-leaders in the field of innovation development it is difficult to allocate a general variant of the successful scenario of forming of the given sphere. However tax stimulation is to some extent used in all countries with the developed economy. Figure 1 shows the proportion of direct and indirect funding of R&D activities by governments of OECD countries as at It can be observed that Korea, Belgium, Ireland, Hungary, Japan, Portugal, Netherlands and Canada support their R&D initiatives more through tax incentives. However, the United States, France, Czech Republic and Spain are more dependent on direct government funding. 4 According to the Federal State Statistics Service (Rosstat) in Russia the share of domestic R & D expenditures were as follows: %, %, %, %. In Japan, Sweden, Israel this indicator is % of GDP in the U.S. 2.8 %, Germany 2. 5%. According to the OECD, China rapidly increasing expenditure on R & D (1.7 % of GDP). It is expected that in the next decade China will overtake the U.S. in terms of research spending. Rapidly rising costs of R & D in India, by 2012 they will reach 2 % of GDP. The European Union has set the task to increase R & D spending to 3 % of GDP. 84

85 ISSN Regional Formation and Development Studies, No. 1 (6) Figure 1. Direct and indirect government funding of business R&D and tax incentives for R&D, 2008, as a percentage of GDR Source: Tax incentives to promote innovation, 2011 Figure 2 illustrates the tax subsidy rate for USD1 of R&D expenditure. It can be seen from the chart that the R&D tax incentives of most countries do not differentiate between large companies and small and medium enterprises (SMEs). However, Canada, Japan, United Kingdom and Netherlands grant higher tax subsidies to SMEs than large companies while the reverse position is observed in Korea. Figure 2. Tax subsidy rate for USD1 of R&D, large firms and SMEs, 2008 Source: Tax incentives to promote innovation,

86 Liudmila Parfenova, Andrei Pugachev, Vytautas Juščius STIMULATION OF INNOVATIVE-INVESTMENT PROCESS: WORLD EXPERIENCE Within the tax stimulation of innovation activity it is possible also to allocate a number of the directions used in the international practice. Tax instruments of stimulation of innovation activity can be classified by objective and subject principles. The objective principle determines a direction of the application instrument of influence. Here we will allocate the tax tools stimulating the offer of innovations (amortization privileges, privileges on the profits tax of the organizations, on installments for a social assistance) and demand for them (amortization privileges, privileges under the VAT), the instruments directed on attraction of citizens to innovation activity (privileges concerning the incomes tax) and the across-the-board measures of tax character stimulating also innovativeinvestment process. The subject principle assumes determination actually the mechanism of stimulation. World experience shows that within the subject principle there are three elements of classification the stimulation instrument: amortization privileges, preferences concerning the profits tax, indirect measures of tax stimulation (directed not particularly on support of the innovation enterprises, but promoting of innovation activity). So, the most widespread tax incentive in the international practice is possibility of accelerated amortization of the equipment concerning research activity. In Finland, Germany, Sweden depreciation at a rate of 30 % of cost of such equipment is used, in Denmark 20 %, in France there is a possibility of a choice of 100 % at a time or 20 % within 5 years (Andreosso-O Callaghan, 2000), Great Britain, the Netherlands, Spain, Canada gives free rain of depreciation of assets (including buildings), concerning innovation activity. Privileges concerning the profits tax of corporations are the most widespread among the tax concessions in the countries with the developed innovation environment at simultaneously high level of the tax load under this tax. In Denmark there is a possibility to write off in an investment reserve to 25 % of the sum of the profits tax due to payment for the future expenses on experimental activity, in Sweden it is authorized to subtract 30 % of a salary of foreign research assistants from taxable surplus, in Great Britain research associations are released from the profits tax, and the enterprises acquire the right of a deduction from the profits tax of 175 % and 130 % of expenses on research works for small, average, and large enterprises accordingly, in Germany losses from innovation activity can be carried both on the past, and for the future periods (Tax incentives of innovation processes, 2009, p. 72, ). It is necessary to note practice of granting of the tax research credit in Great Britain, the USA, Japan and France which, according to specialists, became the basic financial stimulus of innovation activity in these countries. The essence of the mechanism consists in granting of a deduction from the profits tax of a part of costs for innovation activity. In France the percent of the tax research credit constitutes 50% in the first year, 40% in the second year and 30 % in following years (Riffe Stern), in Great Britain 24 %, in the USA the maximum rate constitutes 20 % (Research tax credit, 2011), in Japan besides 30 % of a deduction from the profits tax of corporations within the tax research credit there is a system of additional stimulus at expansion of innovation divisions and stimulation of innovation activity (Stuart-Smith, 2009), also the discount to 20 % of the profits tax of corporations is provided in Japan as stimulus of joint surveys. Also in world practice indirect tax incentives of innovative process are presented: in Finland on 30 % the incomes tax for foreign research assistants decreases (Andreosso-O Callaghan, 2000); in Germany by means of privileges under the tax to cars demand for harmless cars also is stimulated in Japan the assets used in the research purposes, are released from taxes to the acquired property, from taxes to the property, from the specialized land tax and the tax to development of cities. Let s consider separately experience of the countries with innovative environment successfully developing recently Israel and China. In Israel the innovative companies, whose projects are approved by specialized state institute, receive exemption from payment of all taxes to 2 years, besides, within 7 years are released from tax discharge on profit from the moment of its occurrence (Tax incentives of innovation processes, 2009, p. 118). Also the system of the tax concessions stimulating participation of the foreign capital in the innovative companies functions, here privileges are provided on the profits tax and the dividend tax. Besides, the fiscal privileges 86

87 ISSN Regional Formation and Development Studies, No. 1 (6) are provided for the enterprises depending on a site in territory of the country, the arrangement of the innovative companies is stimulated in its central part. It is necessary to mention an extensive system of tax concessions developed recently in China. So, there are various options of a reduction in tax for profit: from exemption from payment for 2 years from the moment of profit origin before decrease in the rate of the tax to 10 items of the item from 25 % to 15 % (Corporate and Indirect Tax, 2010). Stimulus are differentiated depending on a type of activity (the hi-tech enterprises, the hi-tech enterprises with participation of the foreign capital, the hi-tech enterprises with 70 % export revenue in revenue total amount, start-ups, the enterprises rendering consulting services in the field of a science and technologies, and also accounting, tax and legal consulting). In China accelerated amortization is used also: 2 years for manufacturers of integrated schemes, 3 years for the software. Privileges under the VAT are widely applied: from the tax are released: import of the equipment intended for sphere of R&D and complete returning of the VAT arising at realization of the hi-tech equipment. Besides from the incomes tax are released: academicians of the Chinese academy of Sciences, the Chinese academy of the engineering sciences, specially invited professors, receive partial exemption employees, whose activity is connected with technology transfer (Tax incentives of innovation processes, 2009, p. 150). However, do not believe that foreign practice of tax incentives for innovation is flawless. The R&E tax credit has never been made a permanent part of the tax code (it has been renewed 11 times during its 25-year history) and has been modified several times since its enactment indicate a lack of understanding and hence consensus on the part of policy makers with respect to the precise roles and expected impacts of different tax incentives for R&D. For example, the credit was originally 25 percent of the increase in R&D spending relative to a base level determined by formula. The Tax Reform Act of 1986 reduced the credit to 20 % (Tassey, 2007, p. 4). However, almost all scholarly studies conducted since the early 1990s, including newer analyses conducted in the last 5 years, have found that the credit is an effective tool and that at minimum it produces at least one dollar of research for every tax dollar forgone (Atkinson, 2007). Other studies have found even greater benefits, with the research investment to tax-cost ratio between 1.3 and 2.9 (Coopers and Lybrand, 1998). It is possible to present classification of tax instruments by a subject principle of stimulation of innovation activity abroad in the tabular form. Table 1. Tax stimulation of innovation activity abroad 5 No. Country 1. United Kingdom Instruments of tax stimulation of innovation activity Amortization Privileges(concessions), privileges(concessions) concerning the profits tax Free depreciation of Research associations are released assets, including buildings from the profits tax, and the enterprises acquire the right of a deduction from the profits tax of 175 % and 130 % of expenses on research works (for small both average, and large enterprises accordingly) The tax research credit (24 %) 2. Denmark Accelerated amortization of 20 % Possibility to write off in an investment reserve to 25 % of the sum of the profits tax due to payment for the future expenses on experimental activity Privileges(concessions) under other taxes 5 Here data of foreign experience in tax incentives for innovation activity is based on generalizations of the following sources: Andreosso-O Callaghan, 2000; Borisov, 2011; Owens, 2010; Tax incentives of innovation processes, 2009; Tax incentives to promote innovation,

88 Liudmila Parfenova, Andrei Pugachev, Vytautas Juščius STIMULATION OF INNOVATIVE-INVESTMENT PROCESS: WORLD EXPERIENCE Instruments of tax stimulation of innovation activity No. Country Amortization privileges(concessions) Privileges(concessions), concerning the profits tax 3. Israel Accelerated amortization Exemption from tax discharge till of 20 % 7 years 4. China Accelerated amortization Wide system of privileges: from (to 2 and till 3 years) exemption from payment for 2 years from the moment of origin of profit before decrease in the rate of the tax from 33 % to 15 % and to 10 %; the right of a deduction from the profits tax of 150 % of expenses on research works 5. USA Accelerated amortization The tax research credit (20 %) 6. Finland Accelerated amortization of 30 % 7. Germany Accelerated amortization of 30 % 8. France At a time 100 % or accelerated amortization of 30 % 9. Sweden Accelerated amortization of 30 % 10. Japan Accelerated amortization (to 25 %) Losses from innovation activity can be carried both on the past and for the future periods The tax research credit (40 %) It is authorized to subtract 30 % of a salary of foreign research assistants from taxable surplus The tax research credit (20 %); a discount in 20 % of the sum of the paid tax for the companies leading joint surveys 11. Korea Revenue expenditure enhanced deduction; tax exemption tax holiday; tax credit; Intellectual property special deduction. Privileges(concessions) under other taxes Import of the equipment intended for sphere of researches and developments is released, complete returning of the VAT arising at realization of the hitech equipment; income tax exemption of some categories of research assistants On 30 % the incomes tax for foreign research assistants is lowered Privileges under the tax to cars for harmless cars; stimulation of expenses on advanced training The tax credit on training; the tax deduction for support of byproduct of research; privileges under the land tax and the real estate tax The assets used in the research purposes, are released from taxes to the acquired property, from taxes to the property, from the specialized land tax and the tax to development of cities Thus, clearly that the tax concessions and preferences are the major instruments of stimulation of innovation activity in the countries with the innovative environment developed for today. The classification of tools of stimulation presented in the table by a subject principle shows that in the countries-leaders in the field of innovations measures of direct tax influence amortization privileges and privileges concerning the profits tax are considered as the most widespread. However the measures of indirect tax stimulation uniting privileges under other taxes are to a greater or lesser extent used also. But the main thing in world experience of tax stimulation of innovative activity the complex approach to system of really working privileges and preferences, studying and realization of this aspect in domestic tax stimulation becomes actual. 2. The practice of tax stimulation innovative activity in Russia If to understand as stimulation prompting, creation of interest to actions, and under tax stimulation of innovation activity prompting to generation and introduction of innovations by means of the tax concessions 88

89 ISSN Regional Formation and Development Studies, No. 1 (6) and preferences, then in the modern Russian taxation system it is possible to carry following elements to it 6 (classification by an objective principle): 1. Directed on stimulation of innovative-investment process regarding the offer of innovations: y accepting to a deduction of expenses on R&D at determination of tax base on the profits tax of the organizations (possibility of application of the raising coefficient) (clause 262 of the Tax Code of the Russian Federation); y accepting in expenses of costs on training, vocational training and retraining of workers (item 3 of clause 264 of the Tax Code of the Russian Federation); y duty remission on profit of the means gratuitously received by the organizations of a science and funds of support of science and education (sub item 14 of item 1 of clause 251 of the Tax Code of the Russian Federation); y decrease in the rate of insurance installments for the organizations and the individual businessmen having the status of the resident of a special economic zone and producing payments to physical persons, working in territory of a special economic zone (sub item 5 of item 1 of clause 58 of the Federal Low from 7/24/2009 N 212-FL); y amortization privileges (clause of the Tax Code of the Russian Federation); y the investment tax credit (clauses 66, 67 of the Tax Code of the Russian Federation); y privileges for project participants of Skolokovo (clause item 5.1, clause 284 items 19, 20, clause 381 item 10, clause 395 of the Tax Code of the Russian Federation; clause 58.1 of the Federal Low from 7/24/2009 N 212-FL). 2. Stimulating demand for innovations: y exemption from the VAT of accomplishment of the researches and development concerning creation of new goods and technologies (sub item 16.1 of item 3 of clause 149 of the Tax Code of the Russian Federation); y entering of the rate of 0 % and exemption from the VAT of alienation and transfer of results of intellectual activity (sub item 31 of item 3 of clause 149 of the Tax Code of the Russian Federation). 3. Stimulating citizens to participation in innovative activity: y the tax deduction on training under the PIT (sub item 2 of item 1 of clause 219 of the Tax Code of the Russian Federation). 4. The across-the-board measures of tax character stimulating innovation activity: y exemption from the land tax and the property tax within first five years after statement on accounting of the corresponding ground area or the property considered on the balance sheet of the organizationsresidents of a special economic zone (item 3 of clause 395 of the Tax Code of the Russian Federation); y a reduction in tax for profit of the organizations and preserving behind regions of the right of decrease in the rate in a part enlisted in the sub federal budget (item 1 of clause 284 of the Tax Code of the Russian Federation). However, the stimulating potential of each instrument actually becomes sufficiently limited. It is possible to consider the measures accepted regarding decrease of loading on the profits tax of the organizations hardly effective from positions of stimulation of economy in recession. Decrease in the rate of the tax conflicts to interest of the enterprises for use of the tax concessions (soft terms of accepting of expenses on research and development with a view of the profit taxation; increase in the amortization award with 10 to 30 %), hence, and to carrying out of scientific developments as the more low the tax rate, smaller sum can be saved by 6 Classification of the presented instruments is resulted on the basis of the analysis of acting practice of the taxation and studying of scientific researches on problems of tax stimulation of innovation activity: Gordeeva, 2009; Tax incentives of innovation processes, 2009; Vasiliev,

90 Liudmila Parfenova, Andrei Pugachev, Vytautas Juščius STIMULATION OF INNOVATIVE-INVESTMENT PROCESS: WORLD EXPERIENCE means of use of privileges. At the same time, if in the conditions of profit reducing at a stage of recession decrease in the rate of the tax and entering of privileges hasn t to the full opened stimulating effect, then at a stage of an overcoming the crisis influence of the given measures sharply increases. Besides, rate decrease has passed for economy as a whole, and stimulation is a prompting to certain behavior, that is there is a convention share as a whole at reference of the given privilege to tax stimulation of innovation activity 7. The same situation with convention in reference to instruments of stimulation of innovation activity and with amortization privileges (in particular, possibility of single write-off of 30 % of cost of fixed assets of the third-seventh amortization groups) application for general stimulation of capital investments, but not accurately R&D, however, we will notice that the given measure as a whole corresponds to experience of the leading countries in the field of innovations. Accepting to a deduction of expenses on R&D at determination of tax base on the profits tax of the organizations with possibility of application of coefficient 1.5 became possible the most stimulating instrument, however its appeal has been partially lost owing to decrease in the rate of the profits tax of the organizations, and also negative influence of financial crisis (decrease in profit of the innovation companies and growth of a share unprofitable among them). Let s notice also that in China similar measures have been entered in 2008 on the contrary the profits tax rate has been lowered for the innovation hi-tech enterprises working in priority industries of economy, and the additional deduction has been given all taxpayers at whom positive dynamics of growth of expenses on R&D was observed (Borisov, 2011, p. 53), that, in our opinion, has much bigger stimulating effect in comparison with the Russian analogy. Transition to system of insurance installments, and in particular increase of their rate since January, 1st, 2011, became an essential brake of development of the companies implementing innovations and R&D. It is connected by that insurance installments have the most essential share in the tax load of the given companies as the specific weight of costs for payment in total amount of expenses for the sphere connected with introduction of R&D, is very high. The following tool of the taxation system which changes have concerned, is the VAT. In recession the order of confirmation of the rate of the VAT of 0 % is simplified at export of goods. Term of representation of documents for zero rate confirmation is increased. Besides, the VAT is entered at the process equipment import which analogs aren t produced in Russia. VAT decrease is represented as optimum step from positions of release of necessary resources for investment and economy revival. It is connected by that the VAT is paid even by the unprofitable enterprises. Besides, the basic receipts from the VAT go from industries where now and introduction of innovations is necessary. However, privileges under the VAT are directed in a greater degree on stimulation of demand for innovations, and a question on necessity stimulation of demand for innovative goods is sufficiently disputable. So, on the one hand, demand for innovations needs stimulation, the offer differently won t be claimed, however, on the other hand, the offer is claimed already owing to that the innovative product bears in itself new qualitative characteristics, or economy at the expense of introduction of the innovative elements reducing its cost value, or at the expense of an intensification, etc. That is, the stimulating potential of the given instrument also is limited enough. It is objectively difficult to say about stimulating influence of privileges for special economic zones that is caused by obviously accurate restriction of sphere of influence of instruments. Conclusions The tax concessions and preferences are the major instruments of stimulation of innovation activity in the countries with the innovative environment. In the countries-leaders in the field of innovations measures 7 In this article by innovation we mean activities (including scientific, technological, organizational, financial and commercial activities) aimed at implementation of innovation projects, as well as the creation of innovation infrastructure and support its activities in accordance with Federal Low from FL On Amending the Federal Law On Science and State Science and Technology Policy. 90

91 ISSN Regional Formation and Development Studies, No. 1 (6) of direct tax influence amortization privileges and privileges concerning the profits tax are considered as the most widespread. The estimation of tax stimulation in Russia indicates that stimulus are entered or fragmented (the limited insufficient influence of the stimulating potential), or, conversely, is too general (stimulating influence on economy as a whole, and not just on sphere of innovations). There is no interdependence between general system of the taxation and a kit of available privileges and preferences, there is no accurate legislative interpretation of various aspects of tax stimulation. There should be systematic in application of the tax concessions in interdependence with a taxation general regime, to develop various stimulus which would cover a wide range of the various enterprises focused on research and development, and, as a whole, to create the favorable environment for application of tax stimulation of innovative activity with resource utilization of authorities on places, potential of small and average business, development of consultation centers on corresponding questions, thus it is necessary to apply world experience of forming of a favorable tax climate with its translation on a context of the Russian conditions. References Andreosso-O Callaghan, B. (2000). Taxation and Innovation in the European Union. Available at: (accessed 7 December 2011). Atkinson, R. (2007). Expanding the R&D tax credit to drive innovation, competitiveness and prosperity. The Journal of Technology Transfer. Published online: 24 July Borisov, O. (2011). Tax incentives of innovation as an anti-crisis measure in Russia and China. Tax Policy of the Russian Federation: the role and importance in overcoming the global financial crisis: a collection of research papers. Moscow: Finance University, p Budget Message of the President of the Russian Federation on fiscal policy in Coopers and Lybrand. (1998). Economic Benefits of the R&D Tax Credit. Corporate and Indirect Tax. (2010). KPMG s. Available at: (accessed 19 January 2012). Direct investment in the Russian Federation in 2007 I II quarters in The Central Bank of Russian Federation. Available at: (accessed 17 January 2012). Federal Law of FL On Amending the Federal Law On Science and State Science and Technology Policy. Gordeeva, O. (2009). Tools of the tax regulation of innovation activity. Taxes, Vol. 48, p OECD, STAN Indicators Database. (2009). Owens, J. (2010). Taxes for innovation. Available at: (accessed 17 January 2012). Research tax credit. (2011). Grant Thornton LLP. Available at: item.91c078ed5c0ef4ca80cd ca/?vgnextoid=17fd7c2ad6ac5010vgnvcm acrcrd (accessed 22 January 2012). Riffe Stern, S. Tax Relief. Paris School of Economics. Available at: (accessed 22 January 2012). Statistical Yearbook of Russia. (2009). Rosstat, Moskau, 795 p. Stuart-Smith, J. (2009). Japan: More generous R&D tax credit approved. Available at: (accessed 22 January 2012). Tassey, G. (2007). Tax incentives for innovation: time to restructure the R&E tax credit. The Journal of Technology Transfer. Published online: 1 August Tax incentives of innovation processes. (2009). Moskow: IMEMO RAN, 160 p. Tax incentives to promote innovation. (2011). Pricewaterhouse Coopers. Available at: Appendix%20II_EDIT.pdf (accessed 17 January 2012). The forecast of socio-economic development of the Russian Federation in 2012 and the planning period The Ministry of Economic Development. Available at: (accessed 24 December 2011). 91

92 Liudmila Parfenova, Andrei Pugachev, Vytautas Juščius STIMULATION OF INNOVATIVE-INVESTMENT PROCESS: WORLD EXPERIENCE The Tax Code of the Russian Federation (Part One) from N 146-FL (as amended on ). The Tax Code of the Russian Federation (Part Two) of N 117-FL (as amended on ). Vasiliev, S. (2008). Legal means of tax incentives for innovation. Moscow: Chamber of Commerce of the Russian Federation, 120 p. Борисов, О. (2011). Налоговое стимулирование инновационной деятельности как антикризисная мера в России и Китае. Налоговая политика Российской Федерации: роль и значение в преодолении последствий мирового финансового кризиса: сборник научных трудов. Москва: Финансовый университет, с Бюджетное послание Президента Российской Федерации о бюджетной политике в годах. Васильев, С. (2008). Правовые средства налогового стимулирования инновационной деятельности. Москва: Торгово-промышленная палата Российской Федерации, 120 с. Гордеева, О. (2009). Инструменты налогового регулирования инновационной деятельности. Налоги, 48, c Налоговое стимулирование инновационных процессов. (2009). Москва: ИМЭМО РАН, 160 с. Налоговый кодекс Российской Федерации. (2000). Часть вторая. Oт N 117-ФЗ (ред. от ). Налоговый кодекс Российской Федерации. (1998). Часть первая. Oт N 146-ФЗ (ред. от ). Прогноз социально-экономического развития Российской Федерации на 2012 год и плановый период годов. Министерство экономического развития Российской Федерации. Доступ из: ru/minec/press/news/doc _014 (обращение 24 декабря 2011). Прямые инвестиции в Российскую Федерацию в 2007 год I II кварталах 2011 года. Центральный банк Российской Федерации. Доступ из: htm&pid=svs&sid=itm_23050 (обращение 17 января 2012). Российский статистический ежегодник. (2009). Стат.сб./Росстат. Москва, 795 с. Федеральный закон Российской Федерации от ФЗ «О внесении изменений в Федеральный закон «О науке и государственной научно-технической политике». Inovatyvaus investavimo proceso SKATINimas: pasaulinė patirtis Liudmila Parfenova, Andrei Pugachev, Vytautas Juščius Valstybinis Jaroslavo Demidovo universitetas (Rusija), Klaipėdos universitetas (Lietuva) Santrauka Straipsnyje aptariama pasaulinė inovatyvių investavimo procesų, kuriant palankų mokestinį klimatą, skatinimo praktika, apibendrinama lyginamoji analizė. Mokestinio skatinimo sistema inovacinei veiklai yra esminė kuriant naują ekonomikos augimo modelį. Taigi egzistuoja trys skatinimo instrumento elementai: amortizacijos ir pelno mokesčio lengvatos, netiesioginės mokestinės stimuliavimo priemonės. Pateikiamos išvados dėl galimų mokestinių inovacinės veiklos stimuliavimo instrumentų naudojimo Rusijos atveju. Pagrindiniai žodžiai: mokestinis skatinimas, inovacinė veikla, mokesčių reguliavimas, inovacijų skatinimas, mokesčių kreditai, investavimo mokesčių kreditai, tyrimo mokesčių kreditai, amortizacija, pelno mokestis, R&D, modernizacija. JEL klasifikacija: H250, O

93 ISSN Regional Formation and Development Studies, No. 1 (6) THE PROBLEM OF KLAIPĖDA REGION PERIPHERALITY Gintarė Pociūtė 1 Institute of geology and geography (Lithuania) Abstract This article presents the socioeconomic and demographic situation in Klaipėda county that is illustrated by chosen indicators analysis. In this article Klaipėda county has been chosen as an example territory to measure the peripherality phenomenon. Thus, in order to measure the peripherality the chosen indicators values were compared with Lithuanian average and state s centres values. The article stresses the most peripheral regions in Klaipėda county which needs the governance attention and also the strongest one that leads all the county. The article finds out that the cooperation question is essential for both county s peripheries and centres as it provides possibility to stay stable or even endows a potential to grow. KEY WORDS: Klaipėda county, core-periphery, peripheral region, cooperation. JEL codes: R100 Introduction The peripherality question is one of the most essential ones while discussing about the region s possibility to compete and at the same time cooperate with other regions. In the cooperation sphere the priority is usually given to the stronger and more centrality features worth regions as these regions have enough of social, economical, demographical stock. In this case appears the question: which regions might me noticed as central ones and which ones should be underlined as peripheral? Thus, this article takes a task to clarify this question while taking Klaipėda region as an example for measuring peripherality of this specific region. In this article the peripherality phenomenon is going to be declared via chosen socioeconomic and demographic indicators provided by Department of Statistics of Lithuania. The general purpose of the article is with the help of the most relevant up to date statistical data (that include the most essential according to the author social, economic, and demographic indicators) to underline the current situation of Klaipėda region. In this way the article seeks for the answer if Klaipėda region should be declared as central region in Lithuania that has enough potency for the domestic and international cooperation or still this region should be considered as peripheral one. In order to clarify the region s position, it is necessary Klaipėda region s statistical findings compare with Lithuanian average data. Also, in the research it is imposed Vilnius city and Kaunas city municipalities statistical data as these two largest country s cities are considered as Lithuanian centres. Thus, in the peripherality research it is informative material in order to notice the difference. Generally, peripherality question is being analyzed by broad amount scientists taking into account geographers, sociologists, economists and others (Krugman, Venables, 1995; Schmidt, 1998; Knox, Marston, 2001; Jerabek, 2006; Daugirdas, Burneika, 2006; Marada, Chromy ir kt., 2006; Nagy, 2006, Pociūtė, 2011). Summarizing scientists proposed definitions and this article author s ideas, peripheral region might be un- 1 Gintarė Pociūtė Nature research centre, Institute of geology and geography, Laboratory of Human Geography, PhD student. Scientific interests: peripheral regions in Lithuania, regional geography, regional policy, territorial polarization. Gintarei.pociutei@gmail.com Tel.:

94 Gintarė Pociūtė THE PROBLEM OF KLAIPĖDA REGION PERIPHERALITY derstood as the territorial unit, located outside the centre boundary, and related with the centre on the dependence link, characterized by the lagging behind from the average and lowest geographic, socioeconomic, demographic, cultural, and political indicators. However, the research in this article excludes some of the aspects proposed in the definition and takes into account several socio-economic and demographic indicators. Peripherality is closely linked to centrality researches as these are the two poles of the dichotomy model. Therefore, working on peripherality evaluation researches it is important to understand how the core-periphery (CP) model works because this model allows to understand the place of the periphery in the territory system and at the same time points out the periphery relations with other unites of this system (Fig. 1). The idea of CP model appeared in the middle of XX century and firstly was produced by J. Friedmann (Friedmann, 1966) and it should be stressed that the model was modified since its first idea. Nowadays scientists introduce other territorial unites in between of centre and periphery poles. For instance, Z. Norkus (Norkus, 2009) gives an idea that the territorial disparities model should have four levels (Fig. 1). The author underlines that the strongest regions should be called centres that are usually surrounded by peripheries. Thus Z. Norkus defines these territories around centres as centre-peripheries. According to author, the weakest regions in the country are pointed out as peripheries. But at the same time, these weakest regions have the local centres that are more developed territories in the regions. Accordingly, these better developed territories in peripheral region are named periphery-centres (Fig. 1). Figure 1. Centre-periphery model (according to Z. Norkus idea) Source: Norkus, 2009 The model that is developed using Z. Norkus (Norkus, 2009) idea might be adapted for Klaipėda region as this region is particularly diverse. Klaipėda county has strong centre which is Klaipėda city with the national level seaport. Also this county has deep peripheral territories that are mostly located in country s border zones. Furthermore, Klaipėda region has centre-peripheries and periphery-centres in between. Thus, one of this article goals is to underline the differences in this particular Klaipėda county. The portrait of the current situation in Klaipėda region would allow to take specific measures in order to improve the conditions for national and international cooperation. As the one of the purposes of this article is to compare chosen for the survey territories with the Lithuanian average, the methodology for this survey has been chosen in this way: y for the selected socioeconomic indicators analysis: the Lithuanian average (LT average) is equated to 100 %, thus this allows to see the regions deviation (negative or positive) from the LT average value; 94

95 ISSN Regional Formation and Development Studies, No. 1 (6) y selected demographic indicators analysis is prepared comparing general statistical data of chosen regions with Lithuanian average values. The percentage comparison is not applied to demographic indicators due to appearing logic mistakes influenced by sufficiently big differences between values. 1. The general picture of Klaipėda county The first thing that has to be mentioned while talking about Klaipėda county is this region s special geographical position that makes this county unique in Lithuania. The region is situated in Western Lithuania on the coast of Baltic sea and is an important district in terms of marine business, recreation and tourism, industry and agriculture as well. The county borders with two countries Latvia and Kaliningrad region (Russian Federation). Moreover, Klaipėda county might be interesting for other countries to cooperate as it has such strategic objects like Palanga Airport and especially Klaipėda State Seaport which is the only sea gate in Lithuania (Portrait of, 2008). Thus, geographic location makes Klaipėda county favourable for developing international cooperation relations. Table 1. The comparison of Klaipėda county with Lithuanian average Vilnius, Kaunas and Klaipėda cities statistical data 23 INDICATORS Density (people/ km ²) (2011) Population number (thousand) (2011) Gross value added (GVA) (for 1 person) (thousand) (2010) Foreign direct investment (FDI) (LTL/1 person) (2010) Unemployment rate (%) (2012) Employment rate (%) (2010) Level of entrepreneurship (per 1000 population) (2012) Recipients of social assistance benefits (per 1000 population) (2010) Natural increase (per 1000 population) (2010) Old-age pension beneficiaries (per 1000 working age population (2010) Ageing index 1 (persons) (2011) Number of pupils in general schools (per 1000 population) ( ) Net migration (per 1000 population ) (2010) LT average Vilnius city Kaunas city Klaipėda city Klaipėda county Source: Lithuanian Labour Exchange, Counties of Lithuania 2010, Statistical Yearbook of Lithuania 2011, Economic and Social Development in Lithuania2011/12, Demographic Yearbook 2010 In order to attract the attention of neighbour countries and encourage the border cooperation the region should be attractive not only by geographic factor but also by socioeconomic and demographic aspects. Thus, the current situation of Klaipėda county is presented in Table 1. Also, the table presents information that concerns Vilnius, Kaunas and Klaipėda cities and Lithuanian average data. Therefore, the statistical data in the table allow to compare Klaipėda city and county with Lithuanian centres and state s average and 2 Ageing index: the number of elderly people (aged 60 and over) per 100 children under 15 (Department of Statistics of Lithuania: 3 Total number of residents in Lithuania. 95

96 Gintarė Pociūtė THE PROBLEM OF KLAIPĖDA REGION PERIPHERALITY in this way it is possible to notice if Western Lithuanian region appears peripheral or central in Lithuanian context. However, it should be stressed that while presenting the statistical data we still have to understand that positive numbers do not mean that the situation in the region is perfect as there might be hidden factors that could strain the real region s situation. For instance, it might be noticed the growing numbers of foreign direct investment for a person but at the same time it might be admitted that these numbers are growing influenced by the decreasing county s inhabitants number. Thus, one statistical data should supplement other and the overview of the situation in the region should be based on interpretations of taking into account the group of various indicators. The article is based on researches of peripherality, thus, the indicators were selected in order to measure this phenomenon. Meanwhile peripherality is being understood as the deviation from the average towards negative side, in order to notice if Klaipėda might be called as peripheral region there is the need to compare the regions statistical data with Lithuanian average (Fig. 1). Figure 2. The comparison of socioeconomic indicators between Klaipėda, Vilnius and Kaunas cities, Klaipėda county municipalities and Lithuanian average Source: Lithuanian Labour Exchange, Counties of Lithuania, 2010; Statistical Yearbook of Lithuania, 2011; Economic and Social Development in Lithuania, 2011/12; Demographic Yearbook, 2010 As the figure shows, it obvious that the best rate of socioeconomic indicators values are in Vilnius city municipality. These findings should not astonish because Vilnius city as the Lithuanian centre attracts much more attention. As well, being political, economical, social centre Vilnius is interesting for international companies. Thus, the foreign direct investment in Vilnius city is more than 3 times bigger comparing with Lithuanian average. Besides, Vilnius city municipality interfere less with such social problems as employment rate which is 20 % higher in comparison with LT average (Fig. 2). Also, Vilnius city municipality strongly leads in the comparisons of level of entrepreneurship that is more than 90 % higher than LT average (Fig. 2). It is obvious that Vilnius city municipality takes all the advantage in this socioeconomic comparison and reflects relevantly big disparities within Lithuania. Thus, there might be ideas that while looking for peripherality in Lithuania Vilnius city municipality should be eliminated. However, on the other hand, keeping Vilnius city municipality in the research is the way to show the distance from centre to the periphery region. In this comparison work Kaunas city municipality stands in the third position. Though, it should be stressed that with its socioeconomic indicators values are more common to Klaipėda city than to Vilnius city. In this paper work the biggest attitude should be paid to Klaipėda city and county. Thus, it should be noticed that the most recently presented statistical data show that in general Klaipėda county goes around Lithuanian average and lags behind Vilnius city municipality according to the chosen for the survey indicators 96

97 ISSN Regional Formation and Development Studies, No. 1 (6) values. However, the statistical data that present Klaipėda city are much more higher than Klaipėda county s data. Klaipėda city taking into account its statistical information stands in the second position overtaking Kaunas city and standing behind Vilnius. Klaipėda city municipality is the strong centre in Klaipėda county (according to the model in Fig. 1: Centre s centre ) that pulls ahead all the region. But these differences within the county would be unravelled in another article s section % of all Klaipėda county residents are living in rural area and it is around 20 % less comparing with Lithuanian average (Fig. 2). Unemployment rate in the county is 10 % less in comparison with average. Meanwhile in Klaipėda city this indicator is more than 20 % less than LT average. Klaipėda county (11 % higher than LT average) and Kalipėda city (42 % higher than LT average) have better indicators values if talking about the level of entrepreneurship. Moreover, in Klaipėda region the number of recipients of social assistance is around 20 % lower than LT average and in Klaipėda city even 45 % lower. While talking about foreign direct investment (FDI) it should be underlined that Klaipėda county receives around 15 % less comparing with LT average (Fig. 2). But if taking only Klaipėda city, the FDI indicator is relatively high (25.2 % higher than LT average). According to this indicator Klaipėda city oversteps Kaunas city and is competing with Vilnius city. Taking into account demographic indicators it might be also noticed the differences between these chosen for the survey Vilnius, Kaunas and Klaipėda cities, Klaipėda county and Lithuanian average (Fig. 3). Generally, the statistical data that provide the view of current demographic situation in Vilnius, Kaunas and Klaipėda cities, Klaipėda county or present the Lithuanian average are threatening. According to up to date numbers, natural increase (except Vilnius and Klaipėda cities) and net migration indexes that are counted for 1000 inhabitants are negative. As well, ageing index stresses the growing problematic situation while showing that there are more elderly people aged 60 and over than children under 15. This ageing problem is underlined by old-age pension beneficiaries and number of pupils in general schools indicators (Fig. 3). The best demographic situation as well as the socioeconomic is in Vilnius city municipality and this is directly connected with state capital status. The positive natural increase is detected only in Vilnius city which reaches 3.5 and Klaipėda city with 0.8 while the LT average is -2. Whereas, in Klaipėda county and Kaunas city the natural increase is higher more than 5 times comparing with Lithuanian average and reaches -0.3 in Klaipėda county and in Kaunas Nowadays the migration topic is quite common. This problematic topic is exceptional because of the growing emigration numbers. The statistical data showing the portrait of current Lithuanian migration situation are daunting. In 2010 the LT net migration average was -24. In Klaipėda county this number reached -25 while in Klaipėda city even more bigger counting -28,6. The worst numbers were detected in Kaunas city reaching -34. Only in Vilnius city the net migration indicator s value was better than LT average but still negative (Fig. 3). As it was already mentioned, the indicators are closely connected to each other. Therefore, the natural increase or net migration indicators values has an influence on ageing index, old-age pension beneficiaries or number of pupils in general schools indicators values. This connection might be disclosed by noticing that usually emigration is based on younger generation. Thus, the consequences might be seen in decreasing number of population. Moreover, the growing emigration and decreasing population amount increases the progressing number of elderly people and decreasing number of pupils at schools. The biggest problems appear when there is imbalance in the society: too many old people, too little children and not enough working people (tax payers). Lithuanian average ageing index is 144. Therefore, it means that for 100 children under 15 falls 144 elders. There are almost half more old-aged people comparing with children. The ageing index in comparison with LT average is lower in Vilnius city municipality (reaching 132), Klaipėda county (counting 134) and Klaipėda city (counting 143). Whereas in Kaunas city the aging index is higher and reaches

98 Gintarė Pociūtė THE PROBLEM OF KLAIPĖDA REGION PERIPHERALITY Figure 3. The comparison of demographic indicators between Klaipėda county, Vilnius and Kaunas cities municipalities and Lithuanian average Source: Lithuanian Labour Exchange, Counties of Lithuania, 2010; Statistical Yearbook of Lithuania, 2011; Economic and Social Development in Lithuania, 2011/12; Demographic Yearbook, The disparities within Klaipėda county While the general picture of Klaipėda county looks pretty good in the Lithuanian context with mostly all the indicators numbers above the state s average, the disparity s question within Klaipėda county is much more problematic. In this county might be underlined the districts with one of the worst rates in Lithuania (for example, Skuodas district, which according to model in Fig. 1 might be equalled to Periphery s periphery term) and at the same time with one of the best state s rates (for instance, Klaipėda city municipality Centre s centre ) (Mano finansai, 2012). Therefore, analyzing these Klaipėda county s districts separately would benefit in stressing the most sensible regions within this county. As well, the districts of the county are compared with Lithuanian average in order to estimate the peripherality level (Fig. 4; 5). It is essential to stress that Klaipėda city, Neringa and Palanga municipalities are the territories that differ from other this county s districts as these three municipalities are urban taking into account the lifestyle while other county s districts that are rural in there way of life. As well, Klaipėda city, Neringa and Palanga municipalities are the resorts that during the summertime attract a lot of holidaymakers. Moreover, Neringa municipality is the most exceptional in Klaipėda county according to the statistical data. The values of indicators presenting Neringa municipality are relatively high comparing not only with Klaipėda county districts but also with Lithuanian average or state s centres. However, it does not mean that Neringa municipality does not face with any problems and the living situation is the most favourable in all the Klaipėda county or even state. Probably it is even right to declare that the current statistical data does not reflect the real situation 98

99 ISSN Regional Formation and Development Studies, No. 1 (6) in this municipality. The situation in Neringa municipality is strained because of the economic profit while wealthy residents from other Lithuanian regions buy or invest in real estate in Neringa without a will to live there but only keep there estate as the summer houses. Such people register as Neringa municipality residents in order to get discounts while taking ferry or avoid the municipality entrance fee. On the other hand, taking into consideration the border cooperation Neringa municipality is open minded, interesting, active and attractive for investors, thus perfectly suitable for cooperation. Taking into account the cooperation question one of the possibilities to reveal the region s potential might be pointing out the level of entrepreneurship. This indicator underlines the residents activity level and susceptibility for development. Thus, the level of entrepreneurship is higher in the centres where residents usually seek for innovation. Meanwhile the rural or peripheral regions lack behind according to this indicator because these regions are more traditional and more passive for the novelty. Besides, the low level of entrepreneurship might be also determined by demographic indicators as when the population number is low and even decreasing there is no need to establish new enterprises. Therefore, the highest level of entrepreneurship in Klaipėda county might be noticed in Klaipėda city (42 % higher than average), Neringa (86.3 % higher than average) and Palanga (56.6 % higher than average) municipalities (Fig. 4). While the lowest level of entrepreneurship is detected in Skuodas (56.6 % less than LT average) and Šilutė (36.1 % less) districts (Fig. 4). Gross value added (GVA) created by municipalities in Klaipėda county are relatively low comparing with LT average. Only Klaipėda city s GVA is 25.2 % higher that Lithuanian average. The other districts have lower GVA that state s average. The lowest GVA in 2010 was detected in Neringa (31.8 % lower than average), Palanga (31 % lower) and Skuodas district (30.6 % lower) municipalities (Fig. 4). The highest unemployment rate in Klaipėda county is detected in Skuodas district (33.6 % higher than LT average), Palanga city (27.3 % higher) and Šilutė district (20 % higher). While the best situation is in Neringa municipality (60 % below LT average) and Klaipėda city (21.8 % below average). One of the reasons why the situation in this case in Neringa is the best is because of the registered people who mostly exist in statistical papers but actually work and live in Vilnius, Kaunas or other places. Meanwhile, V. Bortelienė (Bortelienė, 2012) prepared a research about Klaipėda city where she stresses that still existing positive numbers of current situation in Klaipėda city hide escalating problems. Currently unemployment rate in Klaipėda city in general number is 8.6 % which is above state s average and one of the highest in the county. But as the author points out, this indicator in Klaipėda city is growing not because of stable economy but mostly because of the terrifically vanishing the number of registered resident s. Therefore, high numbers of employment rate might be an alert of emigration. The best employment rate is counted again in Klaipėda city that is 11.8 % above LT average. It has to be noticed that this is the only municipality in this county that is above LT average. According to this indicator Neringa municipality stays behind other Klaipėda county s districts and is 20.7 % lower than Lithuanian average. This huge difference appears because most Neringa municipality residents own their business and work only during the summer time earning money for the rest of the year. The similar situation is with Palanga municipality that is lagging lacing 12.3 % behind LT average. In 2010 the biggest amount of foreign direct investment (FDI) lied in Klaipėda district and counted 28.2 % higher than LT average. As well 21.5 % higher than average FDI got Klaipėda city. Whereas, Skuodas and Šilutė districts seem to be less interesting for investors and were more than 90 % below LT average according to FDI indicator (Fig. 4). Statistical data show that Skuodas and Šilutė districts have the biggest amount recipients of social assistance benefits. According to this indicator Skuodas district oversteps LT average by 33.5 % and Šilutė district by 38.5 %. This indicator underlines the residents humble life conditions and problematic social situation. The minimal number (84.8 % less than LT average) of recipients of social assistance benefits is detected in Neringa municipality. This indicator and its value has direct link to unemployment rate and that is obviously noticed in the Fig

100 Gintarė Pociūtė THE PROBLEM OF KLAIPĖDA REGION PERIPHERALITY Figure 4. The comparison of socioeconomic indicators within Klaipėda county Source: Lithuanian Labour Exchange, Counties of Lithuania, 2010; Statistical Yearbook of Lithuania, 2011; Economic and Social Development in Lithuania, 2011/12; Demographic Yearbook, 2010 In Klaipėda county the most rural district is considered to be Skuodas district which oversteps LT average twice thus it is counted that the rural population in this district is % higher than LT average. The demographic situation within Klaipėda county is also controversial enough. There are huge differences in the municipalities while comparing indicators values (Fig. 5). If the Lithuanian average talking about natural increase indicator is -2.0 per 1000 population, in Neringa this indicator is positive and counts 3.2 per 1000 population. Positive natural increase is also in Klaipėda city (0.8) and Klaipėda district (1.6). While the lowest natural increase level is detected in Skuodas district and reaches even -6.5 per 1000 population (Fig. 5). Net migration indicator is the lowest in Šilutė municipality and counts per 1000 population while LT average is per 1000 population. The negative numbers declare unfavourable conditions for living and working. Meanwhile Neringa municipality counts positive migration net which reaches 40.0 per 1000 population. As it was mentioned, this high number is influenced by registered in this municipality but not constantly living but owning real estate residents. Above the LT average is also Klaipėda district municipality which counts per 1000 population. According to V. Bortelienė (Bortelienė, 2012) Klaipėda district municipality gets the higher values as this municipality receives more and more residents from Klaipėda city. Previous Klaipėda city s residents chose the comfortable life out of the city in growing new settlements in Klaipėda district municipality. This migration from Klaipėda city to the district appears a problem for the city municipality as the residents leaving city leave blank houses of flats. Moreover, the taxes that were paid by them to the city are now directed to the district municipality. 100

101 ISSN Regional Formation and Development Studies, No. 1 (6) Figure 5. The comparison of demographic indicators within Klaipėda county Source: Lithuanian Labour Exchange, Counties of Lithuania, 2010; Statistical Yearbook of Lithuania, 2011; Economic and Social Development in Lithuania, 2011/12; Demographic Yearbook, 2010 The ageing index declares the existing problem of growing number of elderly people but this is the problem relevant not only in this county but also in all the state, thus seeking for the solution should be based on state governance. The average ageing index in Lithuania is The worst situation according to this indicator in all Klaipėda county is noticed in Palanga municipality (175.0 per 1000 working age population) where old-age people are almost twice more than young or working residents (Fig. 5). As well, this index is high in Skuodas district (147.0 per 1000 working age population). The best situation is in Klaipėda district (114.0 per 1000 working age population) that is also connected with the immigration from the city and in Šilutė district (114.0 per 1000 working age population) which has high enough young children number (Fig. 5). Šilutė district has one of the lowest old-aged pension beneficiaries number s (222.0 per 1000 working age population) one of the highest counting the number of pupils in general schools (140.9 per 1000 population). According to old-age pension beneficiaries indicator, Skuodas district has the worst position in the county reaching per 1000 working age population while the LT average is per 1000 working age population (Fig. 5). Taking into account the demographic Klaipėda county situation it seems that the worst situation is in border districts Skuodas and Šilutė. Considering that the indicators underline peripherality, Skuodas and Šilutė districts would be noticed as peripheral regions in Klaipėda county. Conclusions Klaipėda county is relatively strong in Lithuanian context and according to the indicators chosen for the survey is most of the time above LT average and can compete with Lithuanian centres. Therefore, in general Klaipėda county can not be called peripheral region. However, despite the fact that Klaipėda county is one of the strongest ones in Lithuania, the differences within this county are big enough. The worst situation 101

102 Gintarė Pociūtė THE PROBLEM OF KLAIPĖDA REGION PERIPHERALITY and biggest deviation from Lithuanian average values are in Skuodas and Šilutė districts while the best indicators values are detected in Klaipėda city, Neringa and Palanga municipalities. Therefore, applying the CP model to Klaipėda county taking into account data provided by Department of Statistics of Lithuania, Klaipėda city, Neringa and Palanga municipalities would be seen as Centre s centres, whereas Skuodas and Šilutė districts would reflect another model s pole which is Periphery s periphery. These differences are mostly influenced by geographical location (border phenomenon) and strategically beneficial position (resorts, state sea port). It is essential to underline that it is not possible to evaluate objectively only via statistical data the region s peripherality and potential for cooperation. The statistics just gives the general view of the territory, whereas there are subjective features influenced by cultural, historical conditions or mental apprehension which should be also taken into account. There is no question if this Western Lithuanian region should cooperate with neighbour countries. The question is how the border-cooperation should be developed in order to benefit for all the cooperating countries and at the same time solving the rising problems of Klaipėda region. Should the cooperation be implemented only via centres while leaving aside the weakest county s regions? Or if we are talking about border-cooperation should the most serious action be taken in border regions in this case the peripheral regions excluding the centres? There are several scenarios how the border-cooperation might be realised and up to the county and district s governance decide the most suitable way. References Counties of Lithuania (2011). Lietuvos statistikos departamentas. Vilnius. Daugirdas, V., Burneika, D. (2006). Patterns and problems of peripheriality in Lithuania borderland of the EU. Europa XXI. Regional periphery in Central and Eastern Europe, Vol. 15, p Demographic Yearbook (2011). Lietuvos statistikos departamentas. Vilnius. Economic and Social Development in Lithuania2011/12. (2012). Lietuvos statistikos departamentas. Vilnius. Friedman, J. (1966). Regional development policy: a case study of Venezuela. Cambridge: MIT Press, 279 p. Jerabek, M. (2006). Research into peripheral areas in the Czech Republic changes in the landscape and land use in the model regions, Europa XXI. Regional periphery in Central and Eastern Europe, Vol. 15, p Knox, P. L., Marston, S. A. (2001). Places and Regions in Global Context. Human Geography. Prentice Hall: New Jersey, 526 p. Krugman, P., Venables A. (1995). Globalization and the Inequality of Nations, Quarterly Journal of Economics, Vol. 60, p Marada, M., Chromy, P. ir kt. (2006). Space polarisation and peripheral regions in Czechia. Europa XXI. Regional periphery in Central and Eastern Europe, Vol. 15, p Norkus, Z. (2009). Nepasiskelbusioji imperija. Vilnius: Aidai, 476 p. Pociūtė G. (2011). Periferinio regiono sampratos problema Lietuvoje. Annales Geographicae, Vol (1 2), p Portrait of the regions of Lithuania. (2006). Lietuvos statistikos departamentas. Vilnius, 154 p. Schmidt, M. H. (1998). An integrated systemic approach to marginal regions: from definition to development policy. Ed. Jussila et al. Perceptions of marginality: theoretical issues and regional perceptions of marginality in geographic space, p Statistical Yearbook of Lithuania. (2011). Lietuvos statistikos departamentas. Vilnius. Websites Bortelienė, V. Klaipėda nyksta ir skursta. Lietuvos žinios. (žiūrėta ). Department of statistics of Lithuania. (žiūrėta ). Lithuanian labour exchange. (žiūrėta ). Mano finansai. Swedbank Asmeninių finansų instituto buveinė internete (žiūrėta ). 102

103 ISSN Regional Formation and Development Studies, No. 1 (6) KLAIPĖDOS REGIONO PERIFERIŠKUMO PROBLEMA Gintarė Pociūtė Geologijos ir geografijos institutas (Lietuva) Santrauka Įprasta, kad didesnio dėmesio, investicijų, projektų ar bendradarbiavimo pasiūlymų susilaukia regionai, turintys gerą ekonominį, socialinį, demografinį, geografinį ar kitokį įvaizdį. Dažniausiai patrauklios tampa centrų vaidmenį atliekančios vietovės, tuo tarpu periferiniai regionai nustumiami į šalį. Tačiau egzistuoja dilema, kurios teritorijos įvardijamos kaip centrai, o kurios kaip periferija? Atsakymas į šį klausimą yra vienas šio straipsnio uždavinių. Periferiškumo fenomenui analizuoti autorė pasirinko keletą socioekonominių ir demografinių rodiklių, kurie, autorės nuomone, geriausiai identifikuoja teritorinius netolygumus atitinkamais aspektais. Svarbu pabrėžti, kad šiame darbe periferiškumas suvokiamas kaip neigiamas nuokrypis nuo vidurkinių reikšmių: taigi, kuo didesnis neigiamas nuokrypis nuo vidurkio, tuo didesnis periferiškumo laipsnis. Svarbu pastebėti ir tai, kad šiame darbe pateikiamas tik statistinis periferiškumo nustatymas, tuo tarpu visapusiškam periferiškumui nustatyti reikėtų remtis ir subjektyvumo turinčiais tyrimais: psichologinio suvokimo, istorinių ar kultūrinių elementų įtakos visuomenės nuomonei analize. Straipsnyje analizuojama Klaipėdos apskritis, kuri ganėtinai įdomi dėl savo įvairumo: čia veikia tiek valstybės lygmens centras, kuris aukštais socioekonominiais ir demografiniais rodikliais išsiskiria iš likusių apskrities savivaldybių, kartu ji yra viena silpniausių ir periferiškiausių savivaldybių valstybės lygmenyje. Šie skirtumai dažniausiai nulemti geografinės padėties: visoje Lietuvoje egzistuoja tendencija, kad pasienio regionai atsiduria periferinėje zonoje. Klaipėdos regiono periferiškumo klausimas analizuojamas lyginant šio regiono duomenis su Lietuvos vidurkinėmis reikšmėmis ir didžiaisiais Lietuvos miestais Vilniumi ir Kaunu, kurie valstybės lygmenyje atlieka centrų funkcijas. Gauti duomenys parodė, kad visų rodiklių aukščiausios reikšmės aptinkamos politinėje, ekonominėje, socialinėje bei geografinėje sostinėje Vilniaus mieste. Tuo tarpu Klaipėdos miestas, nors ir atsilieka nuo Vilniaus rodiklių, pralenkia Kauną ir pasižymi puikiais statistiniais rezultatais. Klaipėdos miestas, remiantis statistiniais rodikliais, gali būti įvardytas kaip strategiškai svarbus centras ne tik Vakarų Lietuvos, bet ir visos valstybės mastu. Žemiausios reikšmės teko ir labiausiai nuo Lietuvos vidurkinių reikšmių (t. y. periferiškiausi) Klaipėdos apskrityje atsilieka Skuodo ir Šilutės rajonai. Statistiniai duomenys pabrėžia vis didėjančias regione socialines ir demografines problemas, kurioms spręsti turi būti imtasi atitinkamų priemonių. Šie pasienyje išsidėstę regionai yra labiausiai nutolę nuo centro, todėl viena iš išeičių šiems regionams būtų užmegzti santykius su kaimyninės valstybės pasienio regionu. Taigi galima konstatuoti, kad Klaipėdos regionas yra tinkama erdvė bendradarbiavimo santykiams kurti ir plėtoti, turinti tiek socioekonominio, tiek demografinio potencialo. Tačiau iškyla diskusinis klausimas, į kurį vienareikšmiško atsakymo nėra: kaip reikėtų bendradarbiauti Vakarų Lietuvoje, kad būtų naudinga visoms bendradarbiaujančioms valstybėms, kartu būtų bandoma išspręsti vis aštrėjančias problemas, su kuriomis susiduria Klaipėdos apskrities rajonai? Ar bendradarbiauti turėtų tik centrai, eliminuojant silpnus, merdėjančius regionus, ar didesnis dėmesys galėtų būti skirtas būtent periferiniams regionams? Taigi yra keletas scenarijų, kuria linkme reikėtų plėtoti bendradarbiavimą, tik savivaldybių vadovams ir pačioms bendradarbiaujančioms struktūroms reikėtų apsispręsti, kurį iš tų scenarijų pasirinkti. PAGRINDINIAI ŽODŽIAI: Klaipėdos apskritis, centras ir periferija, periferinis regionas, bendradarbiavimas. JEL klasifikacija: R

104 Ilmars Purinsh, Toms Reizinsh, Girts Braslinsh, Natalja Svitlika DECISION-MAKING PROCESS IN CREDIT GRANTIG DECISION-MAKING PROCESS IN CREDIT GRANTIG Ilmars Purinsh 1, Toms Reizinsh 2, Girts Braslinsh 3, Natalja Svitlika 4 BA School of Business and Finance (Latvia), Ventspils University College (Latvia), University of Latvia (Latvia), BA School of Business and Finance (Latvia) Abstract In recent years many countries have experienced stagnation or even decline in the amount of mortgage credits granted to households. The credit-granting process has become significantly complicated, less transparent and excessively time consuming. This study seeks to define the improvement opportunities for credit granting through creation of a simple, transparent and accountable framework of decision-making process. To achieve this purpose the authors used qualitative method structured interview and graphical tools decision tree. The developed framework makes it possible to identify areas of the credit granting that might have potential for considerable improvements. The empirical results of the study indicate that decision-making process in credit granting has considerable potential for improvements. The developed framework is supposed to help commercial banks to improve the quality and efficiency of the decision-making process in the credit granting and reduce cost of credit granting process. This is possible to achieve by cutting down the duration time of alternative solutions with negative outcome credit denial. This research introduces a valuable framework of transparent and accountable model of decision-making process in the credit granting. The authors have found that the introduced framework is suitable not only for commercial banks but also for a wide range of organizations having similar complicated and multiple staged decision-making processes. KEY WORDS: lending, credit granting, process analysis, decision making JEL codes: C44, G21, M10 Introduction In recent years many countries experienced stagnation or even decline in the amount of mortgage credits granted to households. Statistic data processed by the Financial and Capital Market Commission (FCMC) of Latvia indicates that commercial banks of Latvia experience a decrease of households mortgage credit portfolio by 4.96 % in 2009, 5.7 % in 2010 and by 7.4 % in the first half of Partly his negative dynamic could be described by stiffened standards and regulation in credit granting over past three years. 1 Ilmars Purinsh BA School of Business and Finance (Latvia), Aspirant of Business Administration, scientific interest: international finances. ilmars@klinika.lv Tel.: Toms Reizinsh Ventspils University College (Latvia), Doctoral student of Business Administration, scientific interest: international finances. toms.reizins@gmail.com Tel: Girts Braslinsh University of Latvia (Latvia), Doctoral student of Economic, scientific interest: international finances. girts.braslins@inbox.lv Tel.: Natalja Svitlika BA School of Business and Finance (Latvia), Doctoral student of Business Administration, scientistic interest: international finances. natalja.svitlika@gmail.com Tel.: Association of Commercial Banks of Latvia: Bank performance data [on-line] Available at: lka/statistika/bankas/index2.php 104

105 ISSN Regional Formation and Development Studies, No. 1 (6) Households as well as bank officials admit that a credit-granting process has become more complicated, excessively time-consuming, and non-transparent compared to previous years. Bank officials explain it by significant changes that took place in commercial banks practices since the beginning of the crisis. Previously the power of credit granting decision-making was delegated to the middle managers of commercial banks, but currently a decision-making mandate is significantly reduced and only belongs to the credit committees. This paper seeks to define an opportunity for improvements of the credit granting process in commercial banks through the creation of a simple, transparent and accountable framework of the decision-making process. The developed framework is supposed to help commercial banks to improve the quality and efficiency of the decision-making process in the credit granting and reduce cost of credit granting process. The authors define the following objectives to reach the purpose of the study: 1. Transformation of complicated household mortgage credit granting process into a simple, transparent and accountable framework by using a graphical tool a decision tree. 2. Identification of problem areas of decision-making process in credit granting. 3. Development of practical recommendations for commercial banks for improvement of the decisionmaking process in credit granting. 4. Assessment of potential of the developed framework. To achieve the objectives of the study the authors defined four tasks: 1. Conduct structured interviews with loan officers from Latvian commercial banks. 2. Transform results of interviews to the credit granting decision-making tree and fix the time and probability of the each alternative solution. 3. Carry-out the verification of the developed credit granting decision-making tree. 4. Remark the results of the credit granting process decision-making tree. The rest of the paper is structured in the following way: Section 1 presents background of the research. Section 2 introduces the experiment carried out by the authors. The results of the study are presented in section 3. And finally, section 4 is devoted to the conclusions. 1. Background of the research The credit granting process, according to the structure suggested by the authors, consists of two interrelated components: credit granting policy (procedures) and decision-making. The credit granting policy (procedure) represents credit granting methodology to assess credit risk by establishing a wide range of requirements and standards for credit granting. Decision-making, in turns, represents a set of consistent and sequential actions that should be carried out by the loan officers in order to meet all standards and requirements established in the credit granting procedures. The main task of the decision-making process in credit granting is to obtain approval or denial of credit granting from relevant authority of commercial banks (in most cases the credit committees). The authors intention is to research decision-making issues of the credit granting process, because this component usually is neglected by commercial banks. And to the mind of the authors it is a mistake, because this component might have considerable potential for improvements of the credit granting process and therefore should be properly reflected and resolved. Credit granting is a trade-off between the perceived default risk of a credit applicant and potential returns from granting credit (Keasey, Veronesi, 2008: 18). Trade-off is a subjective and capacious criterion that is represented by credit risk management. Credit granting procedures of commercial banks include a wide range of requirements and standards aimed to establish boundaries on level of acceptable credit risk. Most of the requirements and standards of commercial banks are similar and include standards on market segment, quality and liquidity of property, its value, collaterals, loan limits, creditworthiness and credit reputation of a credit applicant. 105

106 Ilmars Purinsh, Toms Reizinsh, Girts Braslinsh, Natalja Svitlika DECISION-MAKING PROCESS IN CREDIT GRANTIG Reverting to the decision-making process of the credit granting the authors have observed lack of proper analysis and documentation of it in the procedures of commercial banks. At best commercial banks have made an attempt to reflect the credit granting process either in descriptive or visual way. However used for this purpose techniques such as flow-charts and Entity-relationship model are not sophisticated enough to provide comprehensive precept of complicated, multiple staged and diversified process of decision-making in credit granting process. Lack of proper reflection and documentation of decision-making process in credit granting implies that commercial banks have not paid detailed attention to that and might have little control over this process. As a result, the authors find that commercial banks might have opportunities for considerable improvement in decision-making process, which, in turns, would result in better efficiency of the whole credit granting process. Efficiency of the credit granting process could be measured by the time and labour costs spent on proceeding of a credit application. Knowledge and clear understanding of the decision-making process in credit granting could enlarge range of tools used by commercial banks to increase customer s satisfaction by achieving better efficiency and quality of the credit granting process. By highlighting the lack of proper analysis of decision-making in credit granting the authors set a task to develop a framework of decision-making process in credit granting using a decision tree concept that would bring required simplicity, transparency and accountability. After brief searching of current literature on credit granting process the authors have identified a lot of researches devoted to the credit risk management. At the same time there is a lack of researches devoted to the analysis of the decision-making process in credit granting. Therefore in this paper the authors introduce one of first empirical study on analysis of the decision-making process in credit granting and provide a valuable insight into acknowledgment of interdependencies, critical issues and areas for improvements in decisionmaking process of the credit granting. The finding of the study gives rise to a series of new researches. The empirical study of this paper is limited to the development of the framework of credit granting process that relates to only mortgage credit granted to households. The aim of this paper is not to introduce any new standards and requirements in credit risk management. The aim of this paper is to examine the decisionmaking process as a set of consistent and sequential actions that is carried out to reach decision on approval or denial of granting a credit and state recommendations for its improvements opportunities. 2. The Experiment Used by commercial banks techniques for reflection of the decision-making process such as flow-charts or Entity-relationship model are useful for training of new employees to introduce them with a general percept of the credit granting process. However, those techniques do not ensure feedback to commercial banks regarding time and resources spent to handle a credit application. But the weakest side of the used techniques is enclosed in their inability to describe whether the credit granting process is organized properly and in efficient way? And the authors find that a graphical tool, particularly a decision tree, as the proper concept that allows overcoming of drawbacks of above mentioned techniques. It enables transformation of the decision-making process of the credit granting into a simple, transparent and accountable framework. A ground of the authors certainty in graphical tool s relevance for solution of the defined problem is knowledge that a decision tree is an instrument that explicitly interprets any process and can be stated as a strategy where actions of decision makers can be determined, in the same time the stochastic state of nature can be kept as given. The main purpose of creating a decision tree is that afterwards the decision makers can easily decide how to act in each decision node and follow their decision further in depth. In that case, the pace of the process execution depends mainly on the state of nature. A decision tree provides the opportunity for decision makers to analyze and compare different paths of a decision tree. To achieve the task of the research, the authors have carried out the experiment based on the methodology provided by Reizinsh and Rutitis (Reizinsh, Rutitis, 2006: ), who introduced formalization of experts opinion method consisted of three iterations and reflected in Figure

107 ISSN Regional Formation and Development Studies, No. 1 (6) Figure 1. Formalization of the experts opinion Source: Reizinsh, Rutitis, 2006: The main goal of the experiment is to provide a theoretical background and develop a practically trustful and applicable transparent and accountable framework of decision-making process in credit granting. Taking into account that adopted methodology include qualitative methods structured interview with the experts. A structured interview is a valuable technique to gather as much information as possible, meanwhile sticking to the agenda of this research. So, the authors have interviewed the experts with more than 10 years of experience in credit granting field. Experts extensive experience in banking sector allowed the authors to gather valuable information and understanding of the decision-making process in credit granting and decrease subjectivity error typical for qualitative methods. During the 1 st iteration the expert performed a structured interview. During the interviews the selected experts provided the authors with the decisions that are involved in credit granting process. Results obtained from the interviews made it possible to draw an initial decision tree. The conducted interviews during the first iteration of experts opinion formalization has provided the authors with the exact sequence of decisions that take place in the credit granting process of commercial banks. It appeared that the credit granting process consists of 6 phases 1 st appointment, 1 st analysis of gathered data performed by a loan officer, intermediate, 2 nd appointment, 2 nd analysis of gathered data performed by loan officer, and, finally, credit committee which has mandate on credit approval or denial. There are numerous decisions in defined 6 phases of the decision-making process, which an applicant and a loan officer must carry out during each phase, before to reach approval and denial on credit granting. That makes a total of 40 statements to which an answer is required before decision-making process can be moved to the credit committee. At the end of the first iteration the authors have drawn an initial decision tree. The 2 nd iteration starts with the validation of the decision tree drawn during the first iteration. During this formalization stage the authors task is to define whether the developed initial decision-making tree corresponds to the decision-making process that takes place in credit granting. If not, proper adjustments had to been made. Validation of the drawn initial decision-making tree indicated certain difficulties with incorporation of dome of the experts answers into a decision tree and highlighted the necessity of adjustment regarding 107

108 Ilmars Purinsh, Toms Reizinsh, Girts Braslinsh, Natalja Svitlika DECISION-MAKING PROCESS IN CREDIT GRANTIG to the legislation issues. To overcome appeared drawbacks the authors were focused to trace adjustments and modifications that the experts had required under legislative framework. In addition, the experts were asked to paraphrase their statements that had been changed by the authors due to legislative framework during the first iteration. This stage of the formalization process proved to be most time-consuming, because before to come out with the validation results the authors had spend considerable amount of time on the explanation of the concept of a decision tree to the experts in order they can understand the task of validation. After the experts had been given the approval of the provided sequence of decisions in the credit granting process, the structure of the decision tree became stable and the third stage of the formalization can be performed. The 3 rd iteration is the essence of the carried experiment. During this stage the expert provided the authors with the empirical distribution of probabilities of each alternative branch of the developed decision tree. It was carried out through incremental evaluation and analysis of each of all 40 statements of the decision tree that belongs to a particular phase of the credit granting process. Afterwards a combined probability was formulated as a product of all probabilities enclosed in a particular decision tree branch. In the same way the experts shared their experience regarding the time required to perform tasks enclosed in each statement. In the end of the third iteration the authors calculated the cumulative time that describes particular decision tree branch. The formalization process was finalized by the development of the decision tree, which bring desired and expected transparency and accountability of a decision-making process in credit granting. 3. Results of the credit granting decision tree The carried out experiment brought clarity and complete understanding of the decision-making process, that take place in credit granting. Obtained knowledge allowed to develop a decision-making tree, which brought transparency and accountability to the decision-making process of the credit granting, as well as to define execution time of each particular outcome. The most important outcome gained from the transformation of the decision-making process into decision tree is development of a flexible framework, which encloses opportunity to analyze and evaluate decision-making process in credit granting from different sides. The developed credit granting decision-making tree happens to be excessively voluminous, which make its displaying in full rather complicated. Giving this limitation the authors presents only a tiny fragment of the developed credit granting decision-making tree, corresponding to 1 st appointment, in Figure 2. The developed decision-making tree of the credit granting process was subject of statistical and mathematical data processing. Figure 2. Graphical fragment of the credit granting decision-making tree 108

109 ISSN Regional Formation and Development Studies, No. 1 (6) The decision-making tree of the credit granting process consists of the decision nodes and sections of the decision nodes. Every decision of the credit granting decision-making process is described in terms of time it takes to make (reach) it and fixed probability of occurrence. The authors analysis of the developed credit granting decision-making tree is based on exploration of the core alternative solutions of the decision-making process. Decision tree branches were measured by the probability of the node of each event. Values of the decision tree branches have been determined by the common time capacity. Values of the event nodes have been disclosed as time instants of the credit granting process. The characteristics of the credit-granting decision tree shown in Table 1 illustrate that % of alternative solutions are solutions that theoretically might take place in the credit granting process, but according to the experts experience have never took place and their realization probability is close to zero. The authors called this group of alternative solutions as empty sets and have excluded them from further analyses due to lack of practical implementation. The largest share of alternative solutions in the developed decision-making tree belongs to the alternatives solutions that have been rejected and represent % form total number of alternative solutions. These alternatives solutions are characterized as alternative solutions that never take place in the credit granting process. The alternatives solutions characterized as realized represent % from the total number of the alternative solutions and are described as alternative solutions that are regular decisions in credit granting. Table 1. Characteristics of the credit granting decision-making tree Characteristics Results Rejected alternatives solutions % Realized alternative solutions % Empty sets % From the results of statistical analysis of the developed credit granting decision tree presented in Table 2 the authors found that a positive outcome, when credit granting is approved, take place in only % of cases. This statistically obtained result required additional verification due to suspiciously small rate of positive outcome. To verify the obtained result the authors refer to the credit granting statistic data provided by the experts. The experts statistic data on the credit granting identifies that 100 experts meetings with the credit applicants per month turn into only 15 signed loan agreements. The conducted verification confirmed that the developed framework of the credit granting decision-making process is proper and truthful. This made possible to conclude that the derived results are valid and can be used as credible data for further analysis. A negative outcome, when credit granting is denied, takes place in % of cases. The authors suppose that the improvement of the credit granting process can be achieved by decrease of time spent on coming up with a negative decision. The relived time can be redirected to serve larger number of the credit applicants. Table 2. Groups of alternative solutions Indicator Results Positive outcome (approval of credit granting) % Negative outcome (denial of credit granting) % Implementation of the developed credit granting decision-making tree would help commercial banks to identify irrational and time-consuming alternatives solutions (branches) in the decision making process of the credit granting. Identification of such alternative solutions, in turns, encloses considerable opportunity to improve the credit granting process. In order to set a time standard for optimal duration of the alternatives solutions, the authors have calculated several variables, including the maximum, the minimum, the average decision duration, the median, the 109

110 Ilmars Purinsh, Toms Reizinsh, Girts Braslinsh, Natalja Svitlika DECISION-MAKING PROCESS IN CREDIT GRANTIG mode and the weighted average of the time consumed to come out with a decision. The results of calculation are shown in Table 3. The calculated variables help to compare the decision-making duration of each alternative solution to other alternatives solutions in the same group or with alternative solutions form other group. Alternative solutions which decision-making duration exceeds the average duration have to become a subject for further analysis, because they are a source for improvements of whole decision-making performance in credit granting. The maximum time necessary to come out with a decision is 4064 minutes (8.47 working days), while the minimum time 3 minutes. The average time of decision-making duration of alternatives solutions is 2512 minutes (5 working days). The maximum duration of alternative solutions to come out with a positive decision takes 4064 minutes (8.47 working days), the minimum duration 564 minutes (1.18 days) and the average duration 2412 minutes (5.23 working days). As it can be seen the dispersion between the maximum time and minimum time spent to come out with a positive decisions is considerable. The mode of the positive decision is 1591 minutes (3.31 working days) and the median 2441 minutes or slightly more than 5 working days. Table 3. Decision-making duration of alternative solutions in the credit granting Groups of alternative solutions Variable Value minutes working days Overall in the credit granting Maximum duration process Minimum duration Average duration Positive decisions Maximum duration Minimum duration Average duration Mathematical expectation Median Mode Negative decisions Maximum duration Minimum duration Average duration Mathematical expectation Media Mode The maximum duration of the alternative solution to come out with a negative decision takes 3764 minutes (7.84 working days), but the minimum duration constitutes to 3 minutes and the average duration 2130 minutes (4.44 working days). The dispersion between the maximum and the minimum time consumed to come out with a negative decision is even bigger that in case with a positive decision. The mode of the negative decision of the alternatives solutions is 2431 minutes (5.07 working days) and the median 2081 minutes (more than 4 working days). The results demonstrate that the negative decision of alternative solutions can be reached faster that the positive decision of the alternative solutions (2412 minutes to 2130 minutes). The most frequently repeated duration time of the alternative solutions, presented by the mode, is considerably shorter for the alternatives solutions with a positive outcome than for the alternative solutions with a negative outcome (1591 minutes to 2431 minutes). As it was mentioned earlier so considerable dispersion between the maximum and the minimum duration time of the alternatives solutions is appropriate for both positive and negative decision branches. Therefore 110

111 ISSN Regional Formation and Development Studies, No. 1 (6) in order to set standards for optimal duration time of the alternative solutions, new variable should be introduced. The authors have calculated variable that is supposed to identify the highest probability and represent the most common duration time of the alternative solutions to reach the final decision credit granting approval or denial. The authors entitled this variable as the mathematical expectation. According to the data provided in Table 3 the mathematical expectation for the alternative solutions with a positive decision corresponds to 782 minutes or 1.63 working days, but in case of a negative decision corresponds to 107 minutes. These ranges should be considered as a standard for optimal duration of the alternatives solutions to come out with a decision. The alternative solutions that exceed the value of the mathematical expectation are subject to further detailed analysis and a source for improvements of the decision-making in credit granting process. The main agenda of the suggested analysis is determination of reasons that cause an increase of decision-making duration and develop recommendation for overcoming those challenges. Figure 3. Graphical representation of positive decisions in credit granting process Figure 4. Graphical representation of negative decisions in credit granting process The value of mathematical expectation of positive decisions and negative decisions of the alternative solutions indicates that a negative decision can be achieved faster than a positive decision. This should be considered as reasonable approach, because each minute spent to come out with a decision generates expenses and can be defined as a waste of time for both participants of the credit granting process commercial banks and credit applicants. A negative decision of the alternative solutions does not generate income for commercial banks and is waste of time for credit applicants. Therefore duration time of the alternatives solutions with a negative decision should take as less time as possible to ensure efficiency of the credit granting process. Conclusions In the framework of this research the authors have elaborated a decision-making tree provides an opportunity to analyze and evaluate the whole credit granting process. The experiment that was carried out demonstrates that the provided methodology of transformation of the complicated credit granting process into a decision tree is appropriate and relevant. The conducted verification of the developed decision-making tree proves that this way of reflection is credible and valuable for practical implementation by commercial banks. The reflection of the credit granting process as a decision tree ensures its transformation into easily understandable graphical diagram. The applied method made it possible to calculate the decision-making duration of each node, the cumulative time of each alternatives solution, as well as the probability of occurrence for each alternative solution s outcome. 111

112 Ilmars Purinsh, Toms Reizinsh, Girts Braslinsh, Natalja Svitlika DECISION-MAKING PROCESS IN CREDIT GRANTIG The developed credit granting decision tree provides a significant material for further analysis of the credit granting process, which might result in a wider range of recommendation for improvements of the process itself, process quality, efficiency and customer satisfaction. When a drawn decision tree becomes excessively voluminous and it graphical visualization is rather complicated, it can be revert to numerical matrix and its further analysis can be performed mathematically. The applied approach of the credit granting process s reflection made it possible to express a decisionmaking duration of each alternative solution in time units. This opportunity ensures accountability of the whole credit granting process and let to compare and evaluate a decision-making duration of alternative solutions in different profiles. The authors suggest comparing of decision-making duration of alternative solutions to a value of the mathematical expectation. Alternative solutions which cumulative time exceeds a value of the mathematical expectation for particular group of the alternative solutions (positive or negative outcome) most likely contains opportunities for improvements. Therefore, the improvement of the credit granting process can be achieved by finding, understanding and negotiating the reason of a decision-making duration of alternative solution that exceed the mathematical expectation. Main benefit of the elaborated framework is achieved transparency and accountability of the credit granting decision-making process and opportunities for its improvement. Time component of the credit granting process introduced by the authors is a key indicator in assessment of the costs caused by the process to commercial banks. Costs of the credit granting process can be expressed also in labour cost per hour. Adding the labour cost component to the credit granting decision-making tree makes it possible to calculate and set boundaries for costs that alternative solutions can generate within the credit granting process. This study presents one of a few researches of decision-making process analysis in the credit granting and provides material for further analysis and researches. The authors find that the presented framework of the credit granting process is helpful tool to overcome part of challenges existing in the credit granting process. The authors recommend using the introduced approach not only for the transformation of the credit granting decision-making process in commercial banks, but also in other organizations having the same multiple staged and complex decision-making process, for example in insurance, auditing companies and universities. References Association of Commercial Banks of Latvia. (2011). Data on banking performance [on-line] Available at: Association of Commercial Banks of Latvia. (2011). Macroeconomic review of Latvia, February [on-line] Available at: Coles, S., Rowley, J. (1995). Revisiting decision trees. Management decision, Vol. 33, No. 8, p Deutsche Bundesbank, Bank Statistics. [on-line] Available at: Federal Deposit Insurance Corporation, Statistics on Banking. [on-line] Available at: index.asp. Financial and Capital Market Comission, Credit Institutions Statistics. [on-line] Available at: statistics/credit_institutions/monthly_reports/. Financial and Capital Market Commission. (2010). Financial and Capital Market Commission operation strategy for years , FCMC. [on-line] Available at: Hartmann, W. (2009). Large enterprises are like nuclear power stations Bank to assess. Institute of Risk and Regulation IRM. Risk Manager, No. 21. [on-line] Available at: ttnews%5bcat%5d=118&tx_ttnews%5btt_news%5d=12362&tx_ttnews%5bbackpid%5d=161&chash=2e14b74e3d. International Monetary Fund, Crisis Assessment: IMF Support Helping Restore Growth but Key Risks Ahead. IMF Survey, April, [on-line] Available at: Jaunzems, A., Reizinsh, T. (2008). Pareto (m, s) efficient Sub-branches of the Decision Tree. Latvian University articles, 721.sej. Vadibas zinatne, lpp Keasey, K., Veronesi, G. (2008). Lessons from the Northern Rock Affair. Journal of Financial Regulation and Compliance, Vol. 16, p. 1,

113 ISSN Regional Formation and Development Studies, No. 1 (6) Kremer, J. (2011). Norway banks face tighter mortgage rules on record private debt. Bloomberg. [on-line] Available at: Liberty, J. M. (2005). How Does Organizational Form Matter? Communication, Distance and Soft Information. London Business School Papers, p Magee, J. F. (1964). Decision Trees for Decision Making. Harvard Business Review, July 1967, p Olivas, R. (2007). Decision Tree. A Primer Decision-making Professionals. Review, Vol. 5, 04/05/07, p Purinsh, I. (2010). Role of state regulator institutions over banks lending business. The 11th Annual Doctoral Conference of Faculty of Finance and Accounting Scientific Programme. University of Economics Faculty of Finance and Accounting, Prague. Purinsh, I., Rutitis, D. (2011). Decision making in Household Credit Granting Process. The 12 th Annual Doctoral Conference, Prague, p Reizinsh, T., Rutitis, D. (2006). Decision Tree as a Support Tool in Expert Team Decision Making. Management Theory and Practice: Synergy in Organization. Tartu, p The Bank of England. Statistical Releases. [on-line] Available at: The Bank of Latvia. (2011). Survey of banks results in lending to nonfinancial organizations and households in January [on-line] Available at: Sprendimų priėmimo procesas teikiant kreditus Ilmars Purinsh, Toms Reizinsh, Girts Braslinsh, Natalja Svitlika Finansų ir verslo administravimo mokykla (Latvija), Ventspilio universitetinė kolegija, Latvijos universitetas, Finansų ir verslo administravimo mokykla (Latvija) Santrauka Pastaraisiais metais dauguma valstybių išgyveno stagnaciją, kuri susijusi su kreditų nekilnojamajam turtui išdavimu namų ūkiams. Pripažįstama, kad kredito išdavimo procedūra dabar ilgesnė, sudėtingesnė ir ne tokia skaidri kaip anksčiau. Šiame straipsnyje, siekiant patobulinti kredito išdavimo procesą komerciniuose bankuose, sukurta paprasta ir suprantama sprendimų priėmimo schema. Šiame tyrime autoriai pateikia sprendimo priėmimo medį, kuris leidžia išanalizuoti ir įvertinti visą kredito išdavimo procesą. Atliktas eksperimentas parodė, kad sprendimų medžio taikymas vietoj sudėtingų kredito išdavimo procedūrų yra patikimas ir tinka taikyti komerciniuose bankuose. Sprendimų medžio analizė paremta alternatyvių sprendimų vertinimu sprendimo priėmimo procese, ji padeda nustatyti, kodėl pailgėjo sprendimo priėmimo procesas, ir parengti rekomendacijas, kaip to išvengti. Neigiamas sprendimas komerciniams bankams neduoda pelno ir nesuteikia išteklių asmenims, kurie siekia gauti kreditą. Taigi laikas, skirtas neigiamų sprendimų alternatyvoms svarstyti, turėtų būti kuo trumpesnis. Autoriai nurodo, kad pateikta kredito išdavimo schema tinka taikyti, siekiant įveikti kai kurias kredito išdavimo sprendimo priėmimo procese kylančias problemas. Autoriai rekomenduoja pateiktą prieigą naudoti ne tik sprendimo priėmimo dėl kredito išdavimo komerciniuose bankuose procese, bet ir kitose organizacijose, kurios taiko panašius daugiaetapius sprendimo priėmimo procesus, kur sąveikauja bent dvi šalys, pavyzdžiui, draudimo, audito bendrovėse ir universitetuose. PAGRINDINIAI ŽODŽIAI: paskolos, paskolų išdavimas, proceso analize, sprendimų priėmimas. JEL klasifikacija: C44, G21, M10 113

114 Arnaud Serry Circulation at Russian-Baltic states boundary: a cut and a seam Circulation at Russian-Baltic states boundary: a cut and a seam Arnaud Serry 1 CEDETE University of Orleans (France) Abstract Disintegration of the USSR and join of Baltic States to European Union made this one a border territory between Russia and EU. After the collapse of Former Soviet Union, the new boundary remained almost easy to cross. In the beginning of the 21th century, it became no more fuzzy but rather fixed. Since European enlargement that had taken place in 2004, the crossing has become more regulated. People need visas that meant administrative papers and cost. The evolution of cargo flows has been more contrasted. Economic policies, political stakes and traditional links, are elements to understand East Baltic area. Kaliningrad Oblast, the Russian exclave lying by the Baltic Sea, strengthens the interest of the purpose. KEY WORDS: circulation, border, Baltic States, discontinuity. JEL Codes: O180, R400 Introduction After the collapse of the USSR and the enlargement of the European Union to the Baltic, their eastern border became the border between Russia and EU. This paper focuses on flows of goods and persons through boundaries between Russia, and Baltic states (Estonia, Latvia and Lithuania). The purpose is to analyze the role of this boundary after the enlargement of the EU. Thus, the independence of the Baltic early in 1990 and EU enlargement of 1 May 2004, displaced the European Union border to the east, introducing a discontinuity in the area of the eastern Baltic. Meanwhile, this border improved, reactivated, and in particular by increased flows controls. However, this border space is an area of significant exchanges with Russia and Belarus, including trade, tourism and travel. Scale games are omnipresent in the apprehension of this new discontinuity and its impact on mobility and cross-border traffics. 1. The context The geographic characteristics of the region give to the Baltic-Russian border a central role in Russian international trade relations: spatial link between the northern, western, central and eastern Europe, trading hub are to define the Baltic sea. 1 Arnaud Serry University of Orléans, Department of Management, assoc. prof. dr., scientific interest: Logistics and Transport, Geography. arnaud.serry@univ-orleans.fr Tel.: + 33 (0)

115 ISSN Regional Formation and Development Studies, No. 1 (6) 1.1. Geographical The Russian-Baltic boundary appears as a specific space, at the intersection of two regions on the sidelines. Is it the margins of EU and the margin of Russian Federation? So is it only a periphery, or a new center? The peripherality of the region is tempered by the strong mesh that connects the main poles of the network. The Russian-Baltic boundary is a dynamic space, and also a margin, for several reasons that this area is conducive to innovation: y As in the periphery, it is less controlled than the central place; y New European frontier, it is a locus where the gradients are the strongest on the shorter distance; y Finally, many networks, physical and institutional, are crossing this space. This border is a discontinuity between two constructed territories. It causes differences and thus induces various spatial effects. It is also a limit in highly charged symbols and representations. But it doesn t juxtapose any difference in mesh or network, because they are largely inherited from the Soviet period. At late twentieth century, when the political discontinuities have moved, transportation networks have persisted. Transport contributes, therefore, to question boundaries Historical At the end of the Soviet period, Baltic States were mainly linked to USSR and COMECON Main international gateways were the ports. There were no international airlinks, just a few trains towards Eastern and Central Europe. In the early 90 s there was a drop of the links with Former Soviet Union due to several factors: economic collapse, social crisis, nationalism. In subsequent years, the situation has normalized, but 2004 enlargement of EU changes the nature of the border with FSU (Former Soviet Union). It displaced the European Union border to the East, introducing a discontinuity in this area of the eastern Baltic. Trade flows implications of the Baltic-Russian border are much less studied than geopolitics: for instance, Russia often uses energy products trade for political purposes Methods Paper deals with theoretical and empirical research. The approach is mainly through port and railway traffics for goods, and through air networks for passenger flows. This study is therefore based on rail and air transport statistics. It also relies on the analysis of transport networks and, more particularly, on regular international lines: trains, buses and air links. Furthermore, knowledge of the field strengthens the results and completes the reading of papers on the same theme. It makes possible the understanding of cross-border circulations in the region and helps to characterize them at different scales. Moreover, the mapping of traffic of people and commodities establish a new perception of the impact of the new EU border in the region. It reinforces the understanding of situation and spacializes it more clearly. 2. Cargo flows between Baltic States and Russia Baltic States are mainly transit territories for goods coming from or going to post-soviet states. So, the transport system is based on the complementarities of ports and railways. 115

116 Arnaud Serry Circulation at Russian-Baltic states boundary: a cut and a seam 2.1. The port system After the collapse of the USSR, half of the former Soviet port capacity of the Baltic sea was located outside Russia. In the mid-1990s, Russia had to find a safe and cheap way for its products to the Atlantic. Past the time of extreme nationalism, the Baltic economic actors have realized that their domestic market could not enough and they had to use the networks and relationships forged with neighboring Russia (Serry, 2011). So, the new border between former Soviet Republics has seen the revival of traditional commercial traffics. Today, the Baltic port range still keeps particularities of the Soviet system: y The purpose of the port system remains mostly similar: Exports of raw materials from Russia and the CIS countries and import of manufactured goods; y Transit flows remain the major components of port traffics. Four features define the evolution of maritime traffic in the Baltic Range: increasing traffic of crude oil, based on Russian exports, growth of container movements, increase of intrabaltic roll on roll of flows and geographical concentration of traffic in some ports. Today the main ports of the range are Saint-Petersburg and Primorsk oil terminal. There is a Baltic ports range with its own characteristics and a specific organization, in which the ports have linked commons with the combination of competition, complementarities and cooperation A Soviet inheritance: the large share of railway transportation The following table clearly shows the regional specificity in terms of freight transport (See Table 1): it is dominated by rail, especially for international circulation. Even if rail share in freight transport is decreasing, it is still higher than in the other EU countries. Road transport is yet minor and volatile. As statistics about road transport are not available, only rail transport is here analyzed. Table 1. Part of rail in fret transportation (%) EU Estonia Latvia Lithuania Source: Eurostat, Main international rail freight flows in the Baltic States concern Russia, as a result of port transit activities. For instance crude oil exported by Tallinn-Muuga is carried by rail from Russia. We can notice a spatial differentiation of intensity and distribution of international rail freight: y In Lithuania, flows exist with most post-soviet states (See Figure 1); y In Latvia, the distribution of flows is much more concentrated, with the absence of the Caucasus countries; y Estonia seems to be in an intermediate position. There is also a phenomenon of neighborhood, for example between Lithuania and Belarus (Klaipėda exports Belarus fertilizers to EU and USA). Apart traditional goods (metals, minerals, oil, etc.), a new kind of traffic dramatically increases: container flows. 2 Unfortunately there is little information on Russian operators and investors in the Baltic States ports. Russian actors are present, but they are discreet to avoid offending national sensitivities. 116

117 ISSN Regional Formation and Development Studies, No. 1 (6) Figure 1. Lithuanian international rail freight 2.3. Block-trains, the beginning of cooperation Ports, railway companies and new operators (shipping and stevedoring international companies) are setting up block-trains 3 between the Baltic States and FSU and China. Block-trains enable door-to-door delivery, safety and easy border crossing as well as customs procedures (CIS/EU border in 30 min). The most successful pattern is the shuttle train Viking, launched in 2003, between Klaipeda (Lithuania), Odessa and Illichivsk (See Figure 2), which carries about 40,000 TEUs per year. Railways and shipping companies, ports of Lithuania and Ukraine, cooperate to simplify customs procedures, so trains can travel in 52 hours the 1,734 kilometers that separate the two ports. Today, Georgia intends to join the Viking intermodal project. In addition, negotiations are underway with Moldova, Turkey, Syria, Azerbaijan, Finland, Sweden and Norway. 3 A block train, is a train in which all the wagons making it up are shipped from the same origin to the same destination, without being split up or stored en route. 117

118 Arnaud Serry Circulation at Russian-Baltic states boundary: a cut and a seam The Baltica transit is a twice weekly train-block service between Riga and Almaty (Kazakhstan). Transit time is 8 10 days. In Latvia, the train is operated by LDZ Cargo in cooperation with FESCO (Far Eastern Shipping Co) for the Russian part. Figure 2. Block-trains between Baltic States and CIS countries Nowadays, many projects appear. In 2012, Lithuanian and Russian railways are planning a container train Mercury between the ports of Kaliningrad and Klaipeda and logistics centers in Moscow. AS Baltic Rail wants to develop scheduled container trains from Šeštokai to St. Petersburg, Moscow and Central Asia. The choice of Šeštokai railway station is not trivial because it is the oriental terminus of European gauge railway lines. The idea is to make this technical constraint an asset for the development of network interoperability, particularly with the forthcoming opening of the Rail Baltica Cross border entrepreneurship The first economic opportunity lies in the existence of old economic partners. Trade relations have developed on a foundation derived from past acquaintances. The main advantages of trade between Baltic States 118

119 ISSN Regional Formation and Development Studies, No. 1 (6) and Russian and Belarusian border regions are to find raw materials at a lower price or find a larger market for goods, services, or tourism activities. Border trade is boosted by a multitude of regional companies. Business collaborations are more present in the border regions of the Baltic States than on their coastlines. Small structures benefit from the vagueness of the law to trade without taxes. These commercial flows regularly take the appearance of cross-border business cooperation, the most developed forms are: y Export of certain Baltic productions (dairy products, paints, packaging ); y Russian Imports of goods in the Baltic States (rubber, wood, fish, fuel ); y Recreation and accommodation for the Russian or Belarusian people; y Transport services (cars, people). The rapid economic development of the Baltic States has caused some differences in price levels, which favors the interest of entrepreneurs in cross-border trade, although the price difference has decreased. Moreover, the Baltic accession to the EU amended the legislation particularly with regard to imports from third countries. In contrast, the large Russian market remains attractive for Baltic businessmen. 3. People circulation particularities 3.1. Main international passenger flows In the region, means distribution of international transport of passengers is similar to the traditional division: domination of the air but rail and road has still a significant share. In the Soviet past, all the regular commercial flights in the Baltic republics airports were flown as domestic, inside USSR. After the independences the network changed dramatically. Today less than 20 % of the destinations of Baltic airports are located in FSU. A long time second after Vilnius, Riga airport is now the first one in the Baltic states for passengers carried and movements (4.6 million and in 2010 respectively). It is also the first by the number of FSU destinations. This is a consequence of the firm strategy of Air Baltic, the main air company in the region. It created a hub in Riga in 2004, working as a gate-way between EU and FSU (See Figure 3). During the 90 s flows and flights decreased even to 100 %. Many destinations in FSU were closed. In the beginning of the 21 st century, more flights are operated, mainly with the capitals (Moscow and Kiev). But flights to other towns are not yet re-operated. Priority for Baltic States air network is development of links with the EU. After exclusive links, to USSR, then to EU, Riga airport and Air Baltic intend to win a central position in the middle of the two regions. The Baltic Soviet republics were in direct railway connections with many towns of the USSR, even in its Asian territory. Those links disappeared in the beginning of the 90 s. Today, apart Kaliningrad, the only remaining trains travel to the capitals of the neighbor countries. Road transport is difficult to analyze due to lack of reliable information. I tried to use busses schedules, network maps and global statistics. Road transport seems to have an important place in cross-border flows, probably in relation with little cross-border business (See Figure 4). After the entrance of the Baltic States in the Schengen area, visas were introduced. Therefore regional international passenger flows decreased. 119

120 Arnaud Serry Circulation at Russian-Baltic states boundary: a cut and a seam Figure 3. Regular flights between Baltic States and FSU Source: Serry, Thorez, Figure 4. Lithuania, international busses Source: Serry, Thorez,

121 ISSN Regional Formation and Development Studies, No. 1 (6) But it is impossible, without personal enquiry at the border cross-points to evaluate individual car international flows. Obviously, there is a lot of Tchelnoki 4 from both side of the border Shuttle trade The opening of borders in the early 1990 s has instantly resulted in the development of a specific type of cross-border mobility. This is the small business or commercial tourism, also called suitcase trade. Border trade has mainly developed because of economic or fiscal differentials. Many people embrace the border to make money. To do this, some did not hesitate to travel hundreds of kilometers under very uncomfortable conditions. Hundreds of thousands of people have specialized in their suitcase using the slight differences in prices (see Table 2). Some goods are cheaper in Russia. The favourite products are cigarettes and vodka. All border regions have benefited from trade in goods. Table 2. Prices comparison August 2008 ( ) Finland Estonia Latvia Lithuania Russia Box of cigarettes Litre of petrol Source: Orcier, In fact, the phenomenon has different spatial effects like open sky markets or specific flows in some areas. Markets, mostly informal, are created along the borders, like in Gariūnai near Vilnius. Currently, this small business takes place mainly from Russia to the Baltic States, as a price difference persists. But the suitcase trade had to adapt to a new configuration from December 2007 and the entry of the Baltic States into the Schengen area. In many ways, the introduction of visas has been felt as a step backwards. So, the EU has allowed short-stay visas. Even so, this permit is limited to the border area. Last but not least, for those reasons, nowadays shuttle trade decreases. 4. Two particular situations 4.1. The case of Narva-Ivangorod The question of discontinuity is reinforced in some cases, particularly in a border town like Narva (67,000 inh.), the easternmost and second Estonian city. The city is 90 % Russian-speaking, situation inherited from the Soviet period. On the right bank of the river, lies Ivangorod, a small Russian town of 10,000 inhabitants (Orcier, 2009). Russian citizens of Narva, which have a permanent residence permit, can travel to Russia with their simple passport. Estonian citizens need a visa to cross the border. The price differences is generating constant back-and-forth border of the inhabitants of Narva (two million crossings each year). There is no city bus connecting Ivangorod to Narva. Thus, residents wishing to visit the other side must do it by foot. A passage and a checkpoint for pedestrians have been built. The border crossing in Narva is thus characterized by a continuous queue of pedestrians. Even if trade is now more difficult, it is estimated that only 5 % of people enter the Russia as tourists or for business. All others go to Ivangorod, where gas stations have sprung up, to buy petrol and then return to Narva. They are called benzovoz. A system of queuing tickets was established, with two ways to cross the border. The benzovoz can queue up at home. For this, they withdrew a ticket with their car registration 4 The term refers to inhabitants of border regions, who live traffic of vodka, cigarettes and fuel. 121

122 Arnaud Serry Circulation at Russian-Baltic states boundary: a cut and a seam number and their place in the queue. They follow the movement of the tail from their computer and, when their turn comes, they drive to the checkpoint, and then to Ivangorod. Narva-Ivangorod seems emblematic of an exceptional border situation because. It became a gateway to the European Union but a deadbolt for local population mobility Kaliningrad oblast After the independence of Lithuania, Kaliningrad became separated from the Russian Federation. The enclave raises many questions related to the problems of discontinuity: y Problems of territory discontinuity. For Kaliningrad oblast, crossing the borders does not necessary means going abroad, but going to the heartland; y Mobility freedom between the enclave and the Russian territory. Since 2007, all the habitants of Kaliningrad, need a Schengen visa to enter Poland and Lithuania; y Differences in prices and economic conditions on both sides of the border which can generate a vital cross-border trade. Although the standard of living in the enclave is greater than the Russian average, it remains well below Lithuanian and Polish ones. Suitcase trade, legal or illegal, was very well developed before EU enlargement. After EU enlargement, 2004 data s show the negative impact on border crossings. The number of persons crossing the border decreased by 9.1 million in 2002 to 7,000,000 in 2004 (see table 3). In fact, this decline is mainly due to the gradual decrease in the activities of border trade. It is mainly due to two following reasons: y first, stricter custom controls at borders and probably a decline in corruption due to the presence of the customs of other EU states; y secondly, the introduction of visa regime with Lithuania. Table 3. Border crossing evolution Border crossing (Millions) People Cars Source: Vinokourov, When speaking about circulation, the traditional means of transport between Kaliningrad oblast and the Russian Federation is train (about 70 % of total passengers in enquiry in 2005) 5. The need of transit visas impacted passenger practice towards air companies. In 2011, there are still 2 daily trains between Kaliningrad and Moscow, but not less than 10 daily flights. In addition, railway remains dominant for freight with a share of about 80 %. But fees for transit are higher for Russian imports and exports, than using Baltic States or continental Russian ports. Moreover, Russian shipping companies operate ro-ro and container ships between Ust-Luga and Kaliningrad in order to insure the supply of the oblast. As a final point about Kaliningrad, the border became a factor of territorial discontinuity for Russian Federation. It is a drawback to Russian flows. 5 International Organization for Migration, Vilnius office, Migration and transit as seen by Kaliningrad population, Representative public opinion survey of the Kaliningrad population,

123 ISSN Regional Formation and Development Studies, No. 1 (6) Conclusions The dichotomy of cross border circulations is evident: y Massive and long-distance trade flows, continental or intercontinental, are based on a specific transport system giving to the region a gateway vocation; y Short and diffuse traffics are needed for local people or regional development. As wrote Claude Raffestin 6, the border between Russia and the Baltic States has contradictory impacts: it is a cut and a seam. In a general evolution characterized by traffic drop in the early 90 s followed by recovery after 1999 and growth in the 2000 s, borders are easily crossed by international and transit flows organized by international operators. Business and practices are against political borders. Ports are positioned as gateways between Russia and Europe and participate in the building of a single integrated reticular regional space. At local scale the border became a frontier. Local mobility, especially cross-border practice, is now more difficult. We could conclude that the border is a seam in global transport system, but a cut in local mobility. There is an evident need of cooperation between EU and Russia to facilitate mobility and circulation of population across the border. References Guichonnet, P., Raffestin, C. (1974). Géographie des frontiers. Puf. Lobtach, A. (2005). Belarus on the EU borders: The impact of enlargement on trade and cross-border cooperation. Institute for world economies Working papers, 17 p. Orcier, P. (2009). Les recompositions territoriales dans la région de la Baltique orientale (Finlande, Estonie, Lettonie, Lituanie), Thèse de Géographie, Ecole Normale Supérieure Lettres et Sciences humaines, 447 p. Serry, A. (2011). La réorganisation portuaire de la Baltique orientale L émergence d une nouvelle région en Europe. Editions Universitaires Européennes, 376 p. Serry, A., Thorez, P. (2011). The Russian-Baltic states boundary: a limit between peripheries or a link between European Union and the post-soviet states. ASN Conference Twenty Years after 1991: The Reshaping of Space and Identity. Moscow. Vinokourov, E. (2007). L enclave russe de Kaliningrad: spécificité territoriale et intégration à l économie mondiale. Thèse de doctorat, Université de Grenoble, 409 p. cirkuliacija rusijos ir baltijos šalių pasienyje: APRIBOJIMAI IR SANDŪRA Arnaud Serry CEDETE Orleano universitetas (Prancūzija) Santrauka Šiame straipsnyje nagrinėjamas prekių ir žmonių judėjimas tarp Rusijos ir Baltijos šalių (Lietuvos, Latvijos ir Estijos). Straipsnio tikslas išanalizuoti šių ribų vaidmenį išsiplėtus Europos Sąjungai. Sugriuvus TSRS ir Baltijos šalims įstojus į ES, siena tarp šitų valstybių tapo riba, kuri skiria ES nuo Rusijos. Periferinės ES Baltijos šalys, kaip ir Vakarų Rusija, visada buvo tranzitinės teritorijos, kurioms buvo būdinga didelė žmonių ir prekių cirkuliacija. Baltijos šalys iš esmės ir liko tranzitinės teritorijos prekėms, 6 Raffestin, C. (1986). Éléments pour une théorie de la frontière. Diogène, n

124 Arnaud Serry Circulation at Russian-Baltic states boundary: a cut and a seam kurios juda iš ir į posovietines valstybes, jų transporto sistema paremta uostų ir geležinkelių suderinamumu. Ekonominė politika, politiniai sprendimai ir tradiciniai ryšiai leidžia geriau suprasti Rytų Baltijos regioną. Pagrindiniai krovinių srautai Baltijos šalyse juda iš Rusijos, tačiau ne tik svarbios ir Kaukazo bei Centrinės Azijos valstybės, susijusios su Baltijos šalimis. Regiono tarptautinio keleivių transporto sistema panaši į tradicinę: vyrauja oro transportas, nors išlieka svarbūs ir geležinkeliai bei kelių transportas. Atgavus nepriklausomybę, skrydžių skaičius iš Baltijos šalių nuolatos didėjo: Rygos oro uostas šiuo metu yra didžiausias keleivių vežėjas Baltijos šalyse. Būdingas savitas pasienio mobilumas: smulkiojo verslo arba komercinis turizmas. XXI a. pradžioje jis tapo nuolatinis, išsiplėtus ES sienos kirtimas labiau reguliuojamas. Žmonėms reikia vizų, kurių išdavimas susijęs su administraciniais dokumentais ir išlaidomis, taigi kirsti sieną tapo sudėtingiau. Tam tikrais atvejais, tokiais kaip Kaliningrado sritis ar Narva-Ivangorod miestai, siekiama gerinti padėtį. Taigi vietos lygmenyje siena tampa skiriamąja riba, kuri mažiau pastebima vertinant didesnės apimties ir nuotolių prekybos srautus. PAGRINDINIAI ŽODŽIAI: cirkuliacija, siena, Baltijos šalys, netolydumas. JEL klasifikacija: O180, R

125 ISSN Regional Formation and Development Studies, No. 1 (6) HINDRANCES AND SUGGESTIONS FOR SUSTAINABLE DEVELOPMENT OF LITHUANIAN COASTAL STRIP (ZONE) Eduardas Spiriajevas 1 Klaipėda University (Lithuania) Abstract In this article there are being analyzed the natural and social economic structures of Lithuanian coastal strip. The research is based on survey about the hindrances and proposed suggestions for sustainable development. There are presented authors results about geographic profile of Lithuania s coastal region, degree of exploitation and processes of spatial planning, suggestions for improvement of sustainable development of coastal strip. There are distinguished the types of bad examples as institutional, projects related, shortage of financial issues, private housing and the types of good examples as legislative, institutional, projects related, NGOs related for exploitation and sustainable development of coastal strip. KEY WORDS: sustainable development, Lithuania, coastal strip (zone). JEL Codes: Q01, Q20, Q56, R11, Y10, Y91. Introduction The researches of coastal strips (zones) and coastal regions is a topic of high importance among the countries of the Baltic Sea region. The master plans of coastal areas indicate the principles and recommendations for sustainable development in theory and practice. Particularly, the issue of sustainability always is a topic of discussions in territorial planning, regional formation and development studies. Due to that fact, there are appearing the contradictions between public and private interests. The visibility of them is obviously seen in natural, social economic environment of the coastal strips, areas, regions. The coastal strips are indicators like that show the efficiency of legislative system of the country, implementing the principles of sustainability and decisions of territorial planning, deficiencies of planning actions and positive solutions as the outcomes. The survey of Lithuanian coastal strip has been performed within the frames of the Baltic Green Belt project. The hindrances and suggestions for sustainable development are analyzed and described by author in geographic comparative context, distinguishing the natural and social economic differentiation of Lithuanian coastal strip, indicating the suggestions towards sustainability. The aim of research to analyze the causes of hindrances for coastal strip s development and to maintain geographic suggestions for implementation of sustainability for Lithuanian coast. There were used retrospective, comparative, statistical-mathematical, GIS and mapping, descriptive methods of research as well. The data in tables are calculated and re-calculated by author using different sources of previous studies, projects, reports, web-portals, satellite images. The article contains the analysis of geographic profile, degree of exploitation, existence of spatial planning measures and suggestions for sustainable coastal strip development. 1 Eduardas Spiriajevas Klaipėda University, Faculty of Social Sciences, Head of Department of Human Geography, Assoc. Prof. Dr., scientific interests: Social economic problems of border regions and their development, Impact of border as a barrier for cooperation of South-East Baltic regions, Impact of tourism for development of border regions and regional disparities of tourism development, Economic geographic differentiation of industries, Geographic problems of cultural heritage protection. geostudijos@gmail.com Tel.:

126 Eduardas Spiriajevas HINDRANCES AND SUGGESTIONS FOR SUSTAINABLE DEVELOPMENT OF LITHUANIAN COASTAL STRIP (ZONE) 1. Geographic profile of Lithuania s coastline and coastal region The Baltic coast of Lithuania extends to 91.6 km, and it is one of the shortest national coastlines in Europe. The northern part (46 km) of the Lithuanian Baltic coast belongs to three municipalities: Klaipėda city municipality, Klaipėda district municipality and Palanga municipality, and the southern part (45.6 km) belongs to Neringa municipality and Klaipėda city municipality as well. Klaipeda is the third largest city with inhabitants (2011) and the city is Lithuania s major seaport. Palanga is the biggest seaside resort with inhabitants (2011). Neringa is an elite seaside resort with 3600 inhabitant (2011). Klaipėda district municipality is adjoining area like and its administrative center Gargždai with inhabitants is situated inland (18 km eastwards from Klaipėda city), but this municipality has territorial access to the Baltic sea and the Curonian lagoon as well. In the western part of Lithuania reside about inhabitants (13.3 % of total population), in the meantime, along the coast (up to 5 km in land) there live nearly to inhabitants (7 % of total population). According to economic activities there are about SMEs, the economy of the region generates nearly to 12 % of Lithuania s GDP. The incomes from fishery industries generates nearly to 0.7 % of Lithuania s GDP as well (2011). The region is rich with natural recreational resources and cultural heritage. The industries of tourism serve about of national visitors and international visitors per year roughly. The most attractive sites are located on or nearby the Baltic coast: the Kuršių nerija national park, the Pajūrio regional park, Klaipėda, Palanga, Šventoji. The Lithuanian coastal strip belongs to the southeast Baltic region of graded coasts, which took their present shape during Pleistocene and Holocene. The morphological structure of the coast is rather simple. The southern half is formed by the Kuršių nerija (the Curonian Spit), a narrow concave peninsula separating the Kuršių marios (the Curonian Lagoon) from the Baltic Sea. The Kuršių nerija is a sandy stretch of land extending 98 kilometers, half of which belongs to Lithuania, the other half to Russia. The width of the peninsula varies from 400 m to 3.8 km. Four different dynamic types of coasts could be distinguished along the Lithuanian Baltic coast: 1. Slight accretion prevails between Nida and Juodkrante. Shoreline is relatively stable there. The beach is relatively wide, covered by medium-sized sand grains with admixture of gravel. It is framed by the 6 to 8 m high artificial foredune. The foredune is covered by marram grass, sea rocket and other perennial grasses, while the dune blow-outs are overgrown mainly by willows. The foredune was artificially created in the 19th century in order to protect coastal villages from the devastating sand drift. It stretches along the entire Lithuanian Baltic coast except few places north of Klaipėda. 2. The coastal strip between Juodkrantė and Melnragė is characterized by a relatively strong accretion. The average advance of the shoreline to the sea is up to 2 m there (except the places adjacent to the Seagate of the Klaipėda harbour). The beach is wide (50 70 m), covered by a wellsorted medium-sized sand. It is framed by a 12 to 14 m high artificial foredune. The nearshore is very shallow. 3. The coastal strip between Melnragė and Nemirseta is characterized by a moderate erosion and shoreline retreat up to 1 m annually. Glacial coastal scarps and bluffs prevail here covered with the sand of the Holocene Aeolian accumulation and forming coastal formations, which are unique for Lithuania. The height of the coastal cliff near the Olando Kepurė is up to 24.4 m at Karklė. The cliff is active, not covered by vegetation, with numerous traces of landslides and landslips, fallen trees and sliding bushes. The beach in the strip between Melnragė and Nemirseta is relatively narrow, m width, covered by mixed sediments, where the gravel prevails with admixture of medium-sized sand, pebble and boulders. Therefore, this area is one of the most important spawning places for the Baltic herring. 126

127 ISSN Regional Formation and Development Studies, No. 1 (6) Table 1. Geographic data of Lithuania s coastline and coastal region Length of national coastline Continental (northern) Share of coastal area in Lithuania The Kuršių nerija (southern) Share of coastal area in Lithuania National coastal zone in total with: 200 m inland 500 m inland National parks ThePajūrio regional park Protected area in total Protected area of territory Protected area in the Baltic sea Forested area Length of protected coastline Share of total national coastline Settlements Population The Kuršių nerija national park Protected area in total Protected area of territory Protected area in the Baltic sea Forested area Protected area in the Kuršių marios Length of protected coastline Share of total national coastline Settlements Population Municipalities Klaipėda city municipality Area (km²) Population Density of population Adjoining settlements on the coast Klaipėda district municipality Area (km²) Population Density of population (per km²) Palanga urban municipality Area Population Density of population Settlements Neringa municipality Area Population Density of population (per km²) Settlements 91.6 km 46 km 50.2 % 45.6 km 49.8 % 18.2 km² 45.3 km² ha ha ha 30 % 15 km 16.5 % Karklė, Kalotė, Nemirseta ha ha ha 75 % ha 45.6 km 49.8 % Nida, Juodkrantė, Preila, Pervalka km² per km² Melnragė, Giruliai 1336 km² km² 79 km² (km²) Šventoji, Būtingė 94.4 km² per km² Nida, Pervalka, Preila, Juodkrantė Source: Elaborated by Spiriajevas, North of Nemirseta the grading of the coast during the series of the Baltic Sea transgressions all through the Holocene created favorable conditions for sand accretion. The shoreline is relatively stable (except the places adjacent to the Palanga pier and Butingė waste-water discharge pipeline). The beach is relatively wide 127

128 Eduardas Spiriajevas HINDRANCES AND SUGGESTIONS FOR SUSTAINABLE DEVELOPMENT OF LITHUANIAN COASTAL STRIP (ZONE) (50 90 m), covered by a well-sorted medium-sized sand. The beach is framed by the 3 to 6 m high artificial foredune. The foredune is covered by marram grass, sea rocket and other perennial grasses, while the dune blow-outs are overgrown mainly by willows. Therefore, this area is also among the most suitable spawning places for the Baltic herring. The major landmarks of this area are two parabolic dunes: the Birutė hill and the Nagliai hill reaching 20 m altitude (Povilanskas, Urbis, 2004; Povilanskas, 2002; Dubra, Grecevičius, Dubra, 2011; Grigelis, 2000; Methods for Conflicts..., 2006; Schernewski et al., 2004; Žilinskas, 2005; 2008; 4th NATIONAL Report ). 2. Degree of exploitation of the coastal strip The exploitation of the coastal strip is appropriate for industrial, fishing and recreational actions mostly. Most of them are concentrated on the northern part of coastline, i.e. from Klaipėda seaport up to Būtingė oil terminal close to Latvia, and both objects are considered as the main hot spots on Lithuanian coast. The rest of area remained unexploited intensively and some of them are under protection. The starting places for local fishing enterprises are in Melnragė, Karklė, Nemirseta, Šventoji, Juodkrantė, Nida, but there are no proper jetties and their installations for fishing activities. The fishing boats are being kept on the beach or they are being transported inland and outland from various keeping places nearby the settlements. The recreational exploitation is the following: 1. The northern part of coastal strip is in intensive recreational use, mainly by recreationist on the beach. During the summer season the biggest territorial congestion of recreationists is appropriate for Melnragė, Giruliai, Palanga and Šventoji, as well on the northern part of the Kuršių nerija so called Smiltynė, which territorially belongs to Klaipėda city municipality. 2. The coastal strip of Palanga resort is in intensive use. Especially, during the summer season, during one day the beaches of Palanga are being visited nearly to visitors per day. 3. More extensive use of recreational resources is appropriate for the Kuršių nerija. Relatively high ferry fares for cars transporting through the Kuršių marios (approximately 12 Eur per car) and collections of ecological fees (approximately 8 Eur per car), makes the park more attractive for wealthy national and foreign visitors. The beaches of Smiltynė are very popular among the inhabitants of Klaipėda city; they are less crowded and distinguished for better quality of sand and cleaner water. The rest of coastal strip is under the law of protection, except fishing by quotas is permitted. Hereby, in the law of Seaside Strip issued in 2002, there are noted that the building activities are not permitted closer than 100 m before the coastline of the Baltic Sea, and no closer than 50 m before the coastline of the Kuršių marios, except the buildings, installations devoted for infrastructural and public needs (piers, wavebrakers, harbours needs and etc.). The action of exploitation for private housing is permitted only if there were old homesteads that need to be rejuvenated, restorated, and it is not permitted to increase the space of the homesteads in comparison to the previous ones. According to the intensity of exploitation of private housing in coastal strip, there are performed ranking of settlements, indicating the change in number and in time. The change of rejuvenation intensity (in decreasing order) of private housing on Lithuanian coast ( ) is the following: y The northern part of coastal strip: Palanga, Šventoji, Melnragė, Giruliai, Karklė, Nemirseta; y The southern part of coastal strip: Nida, Juodkrantė, Pervalka, Preila, Smiltynė, Alksnynė. Depicting rejuvenation intensity of private housing only 200 m inland from the Baltic Sea, the settlements of Šventoji and Karklė experienced the most intensive mentioned process. The use of coastal zone for private housing might be estimated only on expert level, because in Lithuania there is no trustworthy data. 128

129 ISSN Regional Formation and Development Studies, No. 1 (6) Figure 1. Areas of beaches in intensive use in Lithuania s coastal strip Source: Elaborated by Spiriajevas, Nowadays, the exploitation is oriented to industrial reclamation of coastal strip, including the littoral zone. In general, coastal strip is not adjusted for the servicing of marine recreational needs. There is still the lack of piers, not sufficient infrastructure for sustained access to the sea (especially in the northern part). There is a lack of renting of marine recreational equipment and bicycle, marine recreational services for visitors, catering services, informational infrastructure on the sites, parking places, other services for public needs (public transport, drinking water sources). In the future, the small harbour installations are planned to build up in Karklė and Nemirseta. Where is permitted, the areas are urbanized intensively and in state owned forests the building of new additions is not permitted. Estimating the exploitation of coastal strip according to mentioned activities, there are presented the following data: Table 2. Data about the degree of exploitation of coastal strip 500 m inland Klaipėda Oil Terminal Būtingė Oil Terminal Small harbours installations Beaches in intensive recreational use Recreational infrastructure 43,34 ha 0,86 ha 0,30 ha 119,82 ha In continental part 59,16 ha In the Curonian Spit 60,66 ha 8,77 ha 129

130 Eduardas Spiriajevas HINDRANCES AND SUGGESTIONS FOR SUSTAINABLE DEVELOPMENT OF LITHUANIAN COASTAL STRIP (ZONE) Natural areas under protection Hydrotechnical installations Settlements Other former military buildings 2750 ha The Pajūrio regional park 750 ha The Kuršių nerija national park 2000 ha 1,5 ha 151,37 ha 4 ha Source: Elaborated by Spiriajevas, In Lithuania there were no any small harbours installations and private pier, and until now they aren t built. There are no any proper conditions for amateur fishermen activities. Palanga resort does not provide any marine recreational services for visitors and the Palanga Bridge could have provide the function as the pier as well, but there are no entrepreneurs wishing to undertake the services of marine recreation. Concerning the distribution of protected area on Lithuanian coast, the network of protected areas is rather dense. The Kuršių nerijos national park is involved in the heritage list of UNESCO. The Nemunas Delta regional park (by the Kuršių marios) is involved in the group of wetlands that are protected by RAMSAR convention. All the national parks and reserves including their aquatories in the Baltic Sea and the Kuršių marios included in the NATURA 2000 for protection of birds species. Relatively, all the protected areas are devoted for protection of natural habitations within NATURA 2000 (exept the central and southern aquatories of the Kuršių nerija national park). Concerning the dredging actions, the most active processes of dredging are appropriate within the Klaipėda strait for operation of shipping, and in the proximity to the Būtingė oil terminal for operation of oil transportation. The both places are considered as the hot spots on Lithuanian coast. The aquatory close to the Būtingė oil terminal is not under protection, but the northern part of the Kuršių nerija is close to the Klaipėda strait is under protection of NATURA Concerning the national legal system and spatial planning system both have procedures that guarantee the biodiversity, recreational and ecosystem values will be protected and takes seriously into account at all new proposals for exploitation in the coastal strip (0 200 m and up to landwards and in the same area (0 500 m) seawards. The strong mandatory rules for biological and ecological inventories studied. Generally, the system of legislation concerning environmental protection in Lithuania is developed rather sufficient. In some cases the laws are even to strict to perform any economic activities in protected areas. Otherwise, most of the laws are being kept with no fully involved regulations, because the capabilities of state authorities are not sufficient to keep all the validations or to supervise them in the reality. One of the reasons is that the competencies of public administration are still remaining too weak and besides they are facing the contradiction between public and private interests. The following findings considered concerning the interaction between exploitation and protection of coastal strip: y In the aquatory of the Pajūrio regional park there is being protected boulders sites between Karklė and Giruliai, wherein is the main spawning place of fish communes; y Lithuanian coastal strip is important for birds wintering (on Lithuanian coast for wintering there are being gathered about 10 % of the total population of Siberian eider ducks); y The main fishing areas in intensive use are in the distance of 2 km seawards from the coastline, in the meantime extensive fishing areas are in the distance of 500 m seawards from the coastline; y Amount of fishermen is decreasing annually, thus the scopes of traditional fishing is decreasing as well. 130

131 ISSN Regional Formation and Development Studies, No. 1 (6) Figure 2. The National parks and reserves in Lithuania s coastal strip Source: Elaborated by Spiriajevas, The coastal strip of Lithuania is protected rather sufficient by legislation and by practical solutions as well. The efficiency of practical solutions depends on the responsibilities and competencies of the administrations of national parks. The main goal of the Programme for the Lithuanian Coastal Strip Management (Lithuanian continental coast of the Baltic Sea) is to save natural complexes of the coastline and create optimal conditions for the sustainable use of natural resources. According to carried out interview of the Pajūris regional park administration (8 th November, 2011), concerning the plans for coastal development, there were determined the following findings: y Legislative basis for coastal strip protection is sufficient. The coastline is under protections of Coastal Strip Law (2002). The coastal strip is a state owned land, where any possible economic activity is being strictly regulated; y For the protections of coastal strip there are being adjusted different laws and the documents of territorial planning; y Insufficient functional use of public and private buildings and their architectural expression is not strictly determined by laws and general plans; y Coastal strip is developing for recreational purposes, new additions performs the function of second homes (in Nida, Juodkrantė, Giruliai, Palanga, Šventoji); 131

132 Eduardas Spiriajevas HINDRANCES AND SUGGESTIONS FOR SUSTAINABLE DEVELOPMENT OF LITHUANIAN COASTAL STRIP (ZONE) y In the areas that are outside the national parks, the new additions have no appropriate architectural style (in the surrounding of 2 3 homesteads there are built the blocks of flats, which do not match the harmony of coastal landscape itself. y Architects ignore different measures of laws and regulations concerning protection of coastal strip as an integrated system; y Environmental protection is sufficiently regulated by laws. The core problem is undeveloped centralized sewage system in villages and blocks of dwellings. Most of them have installed autonomous sewage equipments. y The capacities of public infrastructure are to low to serve the needs of locals. y The Law on Coastal Strip protection occurs the area about 100 m inland, that is state owned, but some exceptions exist in Karklė (one dwelling house is built almost on the dune, and due to coastal erosion the local cementary is situated to close to the sea. Also, conflicts of illegal new additions in the Kuršių nerija near the coast of the Kuršių marios in Preila and Pervalka). y Possible negative impact on coastal protection can make planning development of the ports in Melnragė and Šventoji; y The status of deep water port and its perspective still remains undetermined. Better solution for place in Būtingė. y Priority has to be given for infrastructural projects, than for construction projects. y Better solution to leave territories without intervention until the infrastructure will be developed. Development of coastal strip has to be in parallel to development of infrastructure. y Concerning the protection of biodiversity, the suggested way of urbanization has to be in dot-like manner, i.e. some places are developed, and in the meantime some of them have to be remaining pristine. Between the dots of urbanization there has to be distinguished space for extensive exploitation. y Along the Lithuanian coastal strip there are two national parks that keep the balance between urban development, exploitation of resources and environmental protection. y The network of protected areas tries to sustain exploitation of territories (including their aquatories); y Rather intensive fishing and to small fishes population. There are legislative regulations concerning fishing periods, the use of nets and the size of eyes in the nets. In the Pajūrio regional park there are situated nature reserve of Placio lake, Olando Kepurė, Nemirseta and Šaipiai landscape, Karklė botanical-zoological, Karklė talasological (in the aquatory) and Karklė ethnocultural reserves, recreational and agro territories. In the Kuršių nerija national park there are situated Naglių and Gobšto nature reserves, Lapnugario, Juodkrantės, Karvaičių, Parnidžio landscape reserves as well. Both national protected areas (including their aquatories as well) are involved in Natura Since 2011 there were approved the special plan for development of continental part of coastal strip. 3. Existence of spatial planning in the coastal zone Questions of spatial planning in the coastal strip of Lithuania always have been on a high level of importance. As it is known, during the Soviet period the Neringa peninsula had the status of semi-closed area. The visiting was allowed only having issued permission for visiting of relatives, friends. The recreational facilities were limited. The sites like Juodkrantė, Nida used to be to accept the visitors only with invitations, which have been planned at least 6 months in advance. Thus, the amount of visitors to peninsula was controlled rather strong. Otherwise, Neringa as well as other places like Karklė, Nemirseta and Šventoji had the status of border areas that were watching and controlling by the Soviet regime, and these areas were semi-closed for visitors as well. Nevertheless, the spatial planning existed in terms of planned economy. For the needs of local inhabitants there were devoted the following places like Smiltynė (beaches), Melnragė (housing and beaches), Giruliai (beaches, campsites for teenagers (so called pioneers) (in Giruliai was established the 132

133 ISSN Regional Formation and Development Studies, No. 1 (6) sanatorium for kids and teenagers for heeling of tuberculosis). Palanga resort was very popular among all the inhabitants of Lithuania, especially during the summer time. At that time Palanga played an important role performing the functions of wellness, heeling, there were operated sanatoriums, pool with warmed-up sea water. Since Lithuania regained the independence, the coastal areas faced a plenty of conflicts in the process of regaining the land, houses as a property that was owned before the 2 nd World war. The conflicts between public and private interests in coastal region always have been the question of high importance on national level. The tendencies of market economy put aspects of chaotic territorial development, i.e. regained land, houses as a private property attracted new inhabitants (owners) that had no previous experience how to deal their lifestyle in coastal zone, in use of resources. The remaining of Soviet public infrastructure lost their physical shape and value. The new additions of public infrastructure started to appear at once. Recently, the natural process of market makes permanent penetration for intensification of urbanized process that leads towards congestion of urban structures in areas where that process is possible according to national relevant laws. In the entire coastal area Palanga and Klaipėda, both are two separate places with dot-like principle of urban development around their axes. The rest of the areas are appropriate for extensive exploitation. The Kuršių nerija has only 2 % of urbanized territory and there is kept the balance between urban development and environmental protection, balance between functional balance and traditional architecture. In the general plan of Lithuania the coastal strip is distinguished as an important areal for sustainable development. For the continental part of coastal strip prepared integrated plan for exploitation, environmental protection, formation directions of landscapes and other measures for development. Particularly, every municipality has confirmed general and detail plans of their areas. The general plan of coastal strip is a legal basis towards territorial sustainability, i.e. planning of new territorial projects, strategic documents, allocation of financial support of EU funding, adjusting public and private interests, etc. 4. Suggestions for sustainable coastal strip development The core problem The coast and coastal strip both have still rather weak approach as an integrated territorial system. Even the perception of coastal region faces the lack of public and institutional approach in public administration. Thus, the infrastructure is being developed apart from integrated approach of coastal zone management. Territorial planning decision makers face the contradiction between public and private interests, even though there are confirmed general plans and detail plans, the separate private interests are prevailing especially in unprotected areas of coastal strip (Melnragė, Giruliai, Šventoji). Mandatory specific planning for coastal zone management has to be the legal measure for sustainable development. Thus, the approach towards ICZM (Integrated coastal zone management) has to be integrated. The suggestion for improvement towards sustainability The elaboration and legislative approval of the scheme within the action of public administration on municipal and national levels will make the implementations of ICZM principles more transparent. The duties of responsibilities have to be shared and clearly defined within institutions on municipal and national levels. The core problem The process of development of settlements also has no clear vision, because the developing settlements, villages are overtaking the urban culture and life style, thus they are not preserving rural culture, but becoming a part of cities. The suggestion for improvement towards sustainability For urban planning in coastal areas has to be elaborated clear vision in perception of coastal landscape related to traditional and re-establishing historical architectural style with strict legislative regulations. The priority for public needs has to be over private interests. 133

134 Eduardas Spiriajevas HINDRANCES AND SUGGESTIONS FOR SUSTAINABLE DEVELOPMENT OF LITHUANIAN COASTAL STRIP (ZONE) The core problem In the coastal areas, traditional businesses have been fishery and cattle-breeding. Now the cattle-breeding is almost disappeared and does not play the role of incomes for locals. Traditional fishery business is becoming weak due to the lack of proper installations, state support, quotas for fishing, almost lost fishing habits. Also, the self-cost of traditional fishing became too high and unprofitable. The suggestion for improvement towards sustainability The former plots for cattle-breeding have to be kept using available methods of sustainability, i.e. introducing sheeps and goats as alternatives. The government has to recognize traditional fishing on the same level as traditional handicrafts that are recognized as alternative economic activities in rural areas. In the meantime these activities are eligible for state support as heritage. The core problem The plots for agriculture are not in use by farmers. Just some of them are in extensive use. The agriculture as an economic activity lost its value and its importance as the source of incomes. Especialy, in the northern part around Nemirseta, Karklė there are some gazing plots for sheeps, goats and horses. This action was introduced by different EU environmental projects for prevention of gazing plots against the processes of grass over. In other places are prevailing the meadows covered by chickweeds. The locals are not undertaking the farming activities due to the need to use the areas for second homes. Therefore, the state has to take care of natural trim. The suggestion for improvement towards sustainability The private areas in the coastal territories that are not well kept, there have to be implemented legislative measures with defining more transparent responsibilities of land owners. The experience for implementation of principles of IZCM has to share noting transparent outcomes of the actions. There has to be elaborated monitoring system with description of good and bad examples and shared experience. There has to be generated the joint master plan for monitoring and transparent methodology for assessment of risen up changes and their peculiarities not only in nature, but in socio-economic processes as well. The suggestion to prepare the study about desolate buildings and objects of infrastructure in former borderlands and it must have a clear vision for readjusting of these constructions for recreational and other public needs (in general, along the entire coastal strip of Lithuania, there are counted 55 desolate ownerless buildings). There is suggested to elaborate thematic atlas about different processes of coastal development and comparative descriptions with cartographic representations. Conclusions The bad examples on sustainable development and exploitation of the coastal strip are distinguished into the following types: y Institutional the lack of inter-institutional share of responsibilities that is a cause of the problems related to ICZM. y Projects related the plans to build up the deep water harbour in Melnragė that is a cause of broking up of sustainable development of coastal strip. y Shortage of financial issues due to shortage of financial issues, the local authorities are able to execute the fixings of dunes only in critical spots. The self-cost for the reinforcements of the dunes on the coastal strip is for about EUR per 1 km of coastline. y Private housing it is appropriate for sites where were re-established the rights for the private property. There were issued the permits for reconstruction of the buildings and in many cases the process of reconstruction did not match the peculiarities of coastal landscape and morphological processes. In some places after the rejuvenation of buildings and enlargements of their yards, there were closed public accesses to the beaches. Some of accesses became narrowed. Thus, ignoring the public interests, some plots of them became semi-private, what do not match the national legislation. 134

135 ISSN Regional Formation and Development Studies, No. 1 (6) The good examples on sustainable development and exploitation of the coastal strip are distinguished into the following types: y Legislative the basis for environmental protection is rather sufficient and diversified. Lithuania had ratified and accepted the majority of international conventions and on the base of them elaborated the additions for national legislation of environmental protection for the coastal zone. y Institutional the role is different according to the capabilities of public administrations, but the administrations of the natural parks are in a very principle in dealing with many solutions concerning the protection of coastal zone, and they have a strict legislative approach towards implementation of any solutions. y Projects related the actions towards protection and development of the coastal areas are being implemented by different institutions (municipalities, agencies of environmental protection, institutions of research and higher education, local communities and NGO s as well. During the period of on the continental part of coastal zone there were implemented the projects related to tourism system development, preservation of flora and fauna, implementation the principles of sustainable rural development and land use, project related to artificial nourishment of the aquatories and beaches by sand, reinforcement of dunes using geotextile and natural materials, development of recreational infrastructure using natural materials, and other educational projects. y NGOs related the actions supports the dissemination of information about the hot spots in the coastal zone, represents the societal interests in protection of public needs in the parts of coastal zone that devoted for industrial use. One of the most well know NGO in western Lithuania related to protection of Lithuanian coastal zone is ecological club Žvejonė established in Klaipėda and is in intensive action since 1993 for green movements. References Dubra, V., Grecevičius, P., Dubra, J. (2011). Current Changes of Sandy Seashore of Lithuania within the Impact of Natural and Anthropogenic Processes. Littoral 2010, Grigelis, A. (2000). Implications of Accelerated Sea Level Rise (ASRL) for Lithuania. Proceedings of SURVAS expert workshop on European vulnerability and adaptation to impacts of accelerated Sea-Level Rise (ASLR). Hamburg, Germany, June, Methods for Conflicts Resolutions at Lithuanian Coastal Zone. Project COASTMAN. (2006). Povilanskas, R. (2002). EUROSION Case study. Klaipeda: EUCC Baltic Office. Povilanskas, R., Urbis, A. (2004). National ICZM strategy and initiatives in Lithuania. Schernewski, G., Löser, N. (eds.) (2004). Managing the Baltic Sea. Coastline Reports, No. 2, p Žilinskas, G. (2005). Trends in dynamic processes along the Lithuanian Baltic coast. Acta Zoologica Lituanica, Vol. 15, No. 2. Žilinskas, G. (2008). Distinguishing priority sectors for the Lithuanian Baltic Sea coastal management. Baltica, Vilnius, Vol. 21 (1 2), p th NATIONAL Report of the Republic of Lithuania to the Convention on Biological Diversity. The Ministry of the Environment of the Republic of Lithuania. (2009). 135

136 Eduardas Spiriajevas HINDRANCES AND SUGGESTIONS FOR SUSTAINABLE DEVELOPMENT OF LITHUANIAN COASTAL STRIP (ZONE) LIETUVOS PAJŪRIO JUOSTOS DARNIOS PLĖTROS KLIUVINIAI IR PASIŪLYMAI, kaip jų išvengti Eduardas Spiriajevas Klaipėdos universitetas (Lietuva) Santrauka Lietuvos Baltijos jūros kranto ilgis yra 91,6 km vienas trumpiausių tarp Europos valstybių. Šalies pajūrio juosta (kranto zona) labiausiai naudojama pramonės poreikiams, žvejybai, rekreacijai. Daugelis šių ekonominių veiklų sutelktos šiaurinėje pajūrio juostos dalyje, t. y. nuo Klaipėdos uosto iki Būtingės naftos terminalo, šalia Latvijos pasienio. Šie abu pramonės objektai ir jų teritoriniai kompleksai yra pagrindiniai ekologinės rizikos skleidėjai Lietuvos pajūryje. Kitoms pajūrio teritorijoms būdinga ekstensyvi ekonominėūkinė plėtra. Iš esmės Lietuvos pajūrio juosta nepritaikyta jūrinei rekreacijai plėtoti, trūksta prieplaukų, sutvarkytos viešosios infrastruktūros ir priėjimų prie jūros (ypač šiaurinėje dalyje), taip pat jūrinės rekreacijos, dviračių nuomos ir maitinimo paslaugų, informacijos infrastruktūros lankomose vietovėse, kitų viešųjų paslaugų (viešojo transporto, įrengtų geriamojo vandens šaltinių, higienos įrenginių). Rinkos sąlygos ir dėsniai skatina urbanistinių procesų skverbimąsi į pajūrio teritorijas, dėl ko didėja urbanistinių struktūrų koncentracija, todėl pati pakrantė ir pajūrio juosta tampa problemiška teritorine sistema. Net šalies viešojo administravimo sistemoje pastebima pakrančių regiono, pakrančių teritorijos, kranto zonos, pajūrio juostos sąvokų tapatybės problema. Remiantis atlikto tyrimo rezultatais, nustatyti gerosios ir blogosios praktikos pavyzdžiai, susiję su pajūrio juostos ūkiniu naudojimu. Išskirti 4 blogosios praktikos pavyzdžių tipai, susiję su institucijų veikla, stambios infrastruktūros investicijų projektų įgyvendinimu, finansinių išteklių trūkumu, privačios nuosavybės teisėmis. Išskirti ir 4 gerosios praktikos pavyzdžių tipai, susiję su įstatyminės bazės pakankamumu, institucijų veikla, investicinių projektų įgyvendinimu, nevyriausybinių organizacijų veikla. Svarbiausi pasiūlymai dėl darnios plėtros apima siūlymus sukurti pajūrio juostos stebėsenos sistemą, kur būtų kaupiami gerosios ir blogosios praktikos faktai, susiję su pajūrio juosto ūkiniu naudojimu. Siūloma sudaryti ir teminį atlasą, kuris vaizduotų skirtingus pajūrio juostos plėtros procesus, tai sudarytų sąlygas atlikti palyginamąją analizę su kartografinio atvaizdavimo priemonėmis. PAGRINDINIAI ŽODŽIAI: darni plėtra, Lietuva, pajūrio juosta (zona). JEL kodai: Q01, Q20, Q56, R11, Y10, Y

137 ISSN Regional Formation and Development Studies, No. 1 (6) Verslo bendradarbiavimas Klaipėdos regiono ir latvijos pasienyje Ligita Šimanskienė 1, Darius Burgis 2, Diana Līduma 3, Māra Zeltiņa 4 Klaipėdos universitetas (Lietuva), Liepojos universitetas (Latvija) Anotacija Straipsnyje nagrinėjamas organizacijų bendradarbiavimas pasienio regionuose, pristatomi Klaipėdos regiono organizacijų apklausos dėl bendradarbiavimo su Latvijos organizacijomis rezultatai. Nustatyta, kad bendradarbiaujama nepakankamai, tačiau yra nemažai organizacijų, kurios tokiu bendradarbiavimu suinteresuotos. Siekiant išsiaiškinti, kas trukdo bendradarbiavimą plėtoti, nustatyta, kad užsienio kalba tokia kliūtimi negali būti laikoma, nes jos nemokėjimas sukelia problemų tik mažai daliai regiono organizacijų. Kaip didžiausią kliūtį galima įvardyti informacijos apie galimybes plėtoti verslą ir bendradarbiauti su Latvijos organizacijomis trūkumą. Siekiant šias kliūtis pašalinti, siūloma daugiau dėmesio skirti informacijos apie bendradarbiavimo galimybes regione sklaidai. PAGRINDiniai žodžiai: Klaipėdos regionas, Latvija, bendradarbiavimas, pasienis. JEL klasifikacija: R, F230. Įvadas Pasaulinės ekonomikos globalizacija daugelyje šalių skatina decentralizacijos ir dereguliacijos procesus, dėl kurių vis didesnį vaidmenį vaidina pagal individualų modelį besivystantys regionai (Šimanskienė, Vaitekūnas, Bučinskas, 2006). Tačiau regionų plėtros kontekste dažnai užmirštamas ekonominis potencialas, kylantis iš bendradarbiavimo tarp įvairių verslo šakų organizacijų. ES šalių narių ir kitų Europos valstybių tarpregioninis bendradarbiavimas sukuria prielaidas šių regionų ekonomikos ir rinkos plėtrai, politiniam stabilumui bei saugumo politikai įtvirtinti, padeda išvengti neigiamų regionų savitarpio konkurencijos padarinių. Ypač aktualus tampa pasienio regionų bendradarbiavimas (Česnavičius, Stanaitis, 2008, Kosiedowski, Stanaitis, 2009). Svarbi užduotis šiuo atveju sukurti institucinius mechanizmus tarpregioniniam organizacijų bendradarbiavimui skatinti. 1 Ligita Šimanskienė socialinių mokslų daktarė, profesorė. Klaipėdos universiteto Socialinių mokslų fakulteto Vadybos katedra. Mokslinės kryptys: organizacinė kultūra, konfliktai organizacijose, komandinis darbas, regionų plėtra. El. paštas: ligita_simanskiene@yahoo.com Tel.: Darius Burgis asistentas. Klaipėdos universiteto Socialinių mokslų fakulteto Vadybos katedra. Doktorantas. Vytauto Didžiojo universiteto Ekonomikos ir vadybos fakulteto Vadybos katedra. Mokslinės kryptys: krizinių situacijų valdymas, informacinių technologijų taikymas valdyme. El. paštas: darius@itinovacijos.lt Tel.: Diana Līduma lektorė. Liepojos universiteto Gamtos ir socialinių mokslų fakultetas. Ekonomikos krypties magistrė. Mokslinės kryptys: verslo ekonomika, logistikos valdymas, regionų plėtra. El. paštas: diana_liduma@inbox.lv Tel.: Māra Zeltiņa asistentė. Liepojos universiteto Gamtos ir socialinių mokslų fakultetas. Daktarė (biologijos mokslai). Mokslinės kryptys: aplinkosaugos vadyba, darni plėtra, regionų plėtra. El. paštas: mara.zeltina@liepu.lv Tel.:

138 Ligita Šimanskienė, Darius Burgis, Diana Līduma, Māra Zeltiņa Verslo bendradarbiavimas Klaipėdos regiono ir latvijos pasienyje Šis straipsnis paremtas tyrimo, kuris atliktas rengiant projektą Regionų verslo plėtros skatinimo metodologinių pagrindų kūrimas (LT-LV [LV-LT/1.1/LLIII-152/2010]), duomenimis. Juo siekiama pagerinti verslo aplinką, skatinti verslumą Lietuvos ir Latvijos pasienio regionuose (Klaipėdos ir Kuržemės regionai). Pagrindinė problema, su kuria susiduria Lietuvos ir Latvijos pasienio regionas, žemas konkurencingumas, o vienas iš būdų jį padidinti aktyvinti pasienio regionų organizacijų bendradarbiavimą. Šio straipsnio objektas: Klaipėdos regiono ir Latvijos organizacijų bendradarbiavimas. Tikslas: ištirti Klaipėdos regiono organizacijų bendradarbiavimą su Latvijos organizacijomis. Uždaviniai: 1. Ištirti teorines organizacijų bendradarbiavimo pasienio regionuose prielaidas. 2. Įvertinti Klaipėdos regiono ir Latvijos organizacijų bendradarbiavimo lygį. 3. Nustatyti, kas trukdo bendradarbiauti. 4. Nustatyti, kas gali paskatinti aktyviau bendradarbiauti. Metodai: mokslinės literatūros analizė ir apibendrinimas, tyrimas atliktas taikant anketinės apklausos metodą. 1. Teorinės tyrimo prielaidos Siena intuityviai suvokiama kaip riba, skirianti dvi ar daugiau skirtingais požymiais pasižyminčių teritorijų. Anot T. Komornicki, ši riba gali būti teisinė, administracinė, infrastruktūros, ekonominė ar psichologinė (remiantis Michalski, 2008). Dažnai viena riba skatina kitų atsiradimą, bet gali paskatinti ir bendrą veiklą, kuri nulemtų viso pasienio regiono vystymąsi ir jame veikiančių organizacijų konkurencingumo didėjimą (Dolzblasz, Lesniak, 2005). Siekiant plėtoti pasienio regionų organizacijų bendradarbiavimą būtinos tam tikros sąlygos. Informacinės komunikacijos technologijos (IKT) gali būti pagrindinė sąlyga, būtina, norint koordinuoti skirtingose geografinėse vietovėse esančių individų ir organizacijų veiklą, taigi jas galima laikyti tarptautinio ir regioninio bendradarbiavimo pagrindu (Czochanski, 2006; Contractor, 2007). IKT ne tik palengvina apsikeitimo informacija tarp skirtingose geografinėse vietovėse esančių organizacijų procesą, bet ir leidžia sukurti modernias koordinavimo sistemas, kurios užtikrina tinklinių organizacijų veikimą (Burgis, Ribačonka, 2011). Kita svarbi sąlyga, nulėmusi tarptautinį bendradarbiavimą verslo srityje, anglų kalbos tapimas visuotinai priimta bendravimo priemone. F. J. Contractor (2007) nurodė, kad 85 procentai tarptautinių asociacijų vartojo anglų kalbą kaip pagrindinę bendravimo priemonę, o 33 procentai bendrauja tik anglų kalba. Kalbant apie posovietinio bloko valstybes ir regionus reikėtų paminėti, kad ilgą laiką pagrindinės tarptautinio bendravimo priemonės vaidmenį čia atliko rusų kalba, dažnai jos svarba skatinant bendradarbiavimą jaučiama ir dabar. Organizacijų bendradarbiavimas tampa esmine naujo verslo organizavimo modelio globalioje ekonomikoje dalimi. Šiandien didžiausi ekonominiai dariniai yra ne multinacionalinės korporacijos, bet globalūs verslo tinklai, kuriuos sudaro vienu metu ir konkuruojančios, ir bendradarbiaujančios organizacijos (Castells, 2005). Pastebėtina, kad intensyvėjo tiek vertikalus (bendradarbiaujančios organizacijos užima skirtingas tiekimo grandinės pakopas), tiek horizontalus (susivienijimus vienija partneriai, kurie sutelkia jėgas ir turimus išteklius toms pačioms verslo funkcijoms įgyvendinti) bendradarbiavimas (Contractor, 2007). Tuo tarpu A. Saxenian (1994) teigia, kad skatinant darnią klasterių plėtrą, regioniniai horizontalūs lankstūs tarporganizaciniai tinklai, sujungiantys mažas ir vidutines organizacijas, yra daug svarbesni nei vertikalia integracija besiremiantis bendradarbiavimas. T. Arita ir kt. (2006), tyręs Japonijos organizacijas, nustatė, kad bendradarbiauti su kitomis institucijomis linkusios organizacijos, tikėtina, augs sparčiau nei bendradarbiauti nelinkusios. Ypač svarbus horizontalus bendradarbiavimas tarp skirtingų verslo šakų organizacijų ir universitetų. Svarbus vaidmuo šiame procese tenka valstybinėms institucijoms, pavyzdžiui, P. L. Chee (1984), tyrinėjęs ASEAN organizacijų bendradarbiavimą, siūlo regioniniame lygmenyje valstybei koordinuoti savo veiksmus skatinant verslą. Kiekvienoje šalyje galėtų būti paskirta institucija ar agentūra, kurios pagrindinis uždavinys būtų koordinuoti regioninį bendradarbiaujančių organizacijų tinklą, kuris skatintų keistis informacija ir puoselėti naujus bendradarbiavimo ryšius. 138

139 ISSN Regional Formation and Development Studies, No. 1 (6) 2. Klaipėdos regiono ir Latvijos organizacijų bendradarbiavimo tyrimas Anketinei apklausai atlikti sudarytas klausimynas, tyrimo imtis apskaičiuota pagal Panioto formulę (Kardelis, 2005). Kadangi tyrimas buvo atliekamas Klaipėdos, Kauno ir Kuržemės regionuose, o apklausiami šiuose regionuose veikiančių organizacijų vadovai, tiriamąją populiaciją sudarė trijuose regionuose veikiančios organizacijos, konkrečiai: = Įrašę duomenis į Panioto formulę gauname tyrimo imtį: n = 1/(0,05² + 1/43268) = 396,336, taigi norint gauti rezultatus, kurių patikimumas būtų 95 %, reikia apklausti 396 organizacijų vadovus trijuose regionuose. Siekiant patikimesnių rezultatų nuspręsta apklausti 450 organizacijų. Padalijus gautą skaičių iš trijų, gautas organizacijų, kurias reikia apklausti kiekviename regione, skaičius 150. Kad būtų tiksliai atskleista bendra regiono situacija, nuspręsta atsižvelgti į organizacijų ekonominės veiklos šaką, tai yra tam tikros ekonominės veiklos šakos organizacijų, kurios turi būti apklaustos Klaipėdos regione, skaičių lemia šios šakos santykis tarp visų organizacijų, veikiančių Klaipėdos regione (žr. 1 lentelę). 1 lentelė. Organizacijų, kurias būtina apklausti Klaipėdos regione, skaičius pagal ekonominės veiklos šaką Ekonominės veiklos šaka Organizacijų regione skaičius % Būtinų apklausti organizacijų skaičius Žemės ūkis, miškininkystė ir žuvininkystė 187 1,82 3 Pramonė 862 8,4 13 Aplinka ir energetika 69 0,67 1 Statyba 996 9,71 15 Prekyba ,44 35 Paslaugos ,72 49 Finansinė ir draudimo veikla 64 0,62 1 Viešasis administravimas 46 0,44 1 Švietimas 357 3,48 5 Sveikata ir socialinis darbas 288 2,8 4 Kita ,84 24 IŠ VISO Šaltinis: Statistikos departamentas prie Lietuvos Respublikos Vyriausybės, Apklausoje dalyvavo 159 organizacijos, kurios turėjo nurodyti savo ekonominės veiklos grupę. Klaipėdos regione dauguma organizacijų užsiima paslaugų teikimu ir prekyba (atitinkamai 33,5 % ir 23,5 %), šios dvi grupės kartu sudaro 56 % visų regione apklaustų organizacijų, taigi tyrimo požiūriu ši organizacijų grupė yra pati svarbiausia. Kitos veiklos šakos, būdingos Klaipėdos regionui, pramonės ir statybos sektoriai, kuriuose apklausta atitinkamai 7,0 % ir 7,5 % veikiančių organizacijų. 12,0 % apklaustų organizacijų nurodė kitą veiklos šaką, tačiau daugeliu atvejų šias organizacijas būtų galima vertinti kaip kitas paslaugas teikiančias organizacijas. Apklaustų organizacijų skaičius ir pasiskirstymas pagal veiklos šaką atitinka tyrimo metodologijoje apskaičiuotą imtį (apklaustos 159 organizacijos, imtis 150) bei pasiskirstymo pagal ekonominės veiklos šakas Klaipėdos regione santykį. Daugelis tyrime dalyvavusių organizacijų yra smulkios, jose dirba mažiau nei 10 darbuotojų (mikroįmonės), tai sudaro 61,1 % visų apklaustų organizacijų. 18,9 % apklaustų organizacijų priskirtinos mažų įmonių kategorijai, jose dirba nuo 10 iki 50 darbuotojų. Net 80,3 % tyrime dalyvavusių organizacijų turėjo mažiau kaip 50 darbuotojų, tai atitinka bendrą regiono tendenciją, kad didžiąją dalį organizacijų sudaro smulkiojo ir vidutinio verslo organizacijos. Vis dėlto apklausoje dalyvavo ir 10,2 % didelių organizacijų, kuriose dirba daugiau kaip 250 darbuotojų. Panašią tendenciją matysime ir vertindami tyrime dalyvavusias organizacijas pagal jų metinę apyvartą. 77,4 % tyrime dalyvavusių organizacijų metinė apyvarta nesiekia 7 milijonų litų, 89,2 % organizacijų metinė apyvarta neviršija 24 milijonų litų. Apie 6,9 % atsakiusiųjų nurodė, kad jų metinė apyvarta yra tarp 24 ir 138 mln. Lt. Tik 3,8 % atsakiusiųjų nurodė, kad metinė apyvarta didesnė kaip138 mln. Lt. 139

140 Ligita Šimanskienė, Darius Burgis, Diana Līduma, Māra Zeltiņa Verslo bendradarbiavimas Klaipėdos regiono ir latvijos pasienyje Atsižvelgiant į tai, kiek metų veikia tyrime dalyvavusios organizacijos, jos pasiskirstė gana tolygiai: didžioji dalis organizacijų veikia nuo vienerių iki dešimties metų, 34 % organizacijų jau veikia ilgiau kaip vienuolika metų. Apibendrinant galima teigti, kad tyrime dalyvavusių organizacijų pasiskirstymas pagal ekonominės veiklos šaką, darbuotojų skaičių ir metinę apyvartą atitinka Klaipėdos regiono organizacijų pasiskirstymą pagal šiuos parametrus, be to, apklaustos įvairios gyvavimo trukmės organizacijos, o tai leidžia teigti, kad gauti duomenys tinkamai atskleis bendrą Klaipėdos regiono situaciją regioninio bendradarbiavimo aspektu. Nors Lietuva ir Latvija yra mažos ir panašiai ekonominiu požiūriu išsivysčiusios kaimynės, dažniausiai jos ieško partnerių didesnėse rinkose, kaip Europos Sąjungos šalys, Rusijos Federacija ar panašiai. Todėl tyrimo metu gauti rezultatai, kad tik 18,2 % apklaustų organizacijų turi partnerių Latvijoje, nenustebino (žr. 2 lentelę). 2 lentelė. Klaipėdos regiono ir Latvijos organizacijų bendradarbiavimas Ar turite verslo partnerių Latvijoje? Organizacijų skaičius Procentas Neatsakė 3 1,9 % Taip 29 18,2 % Ne ,9 % Iš viso ,0 % Kaip matome iš pateiktų duomenų, 29 verslo organizacijos turi verslo partnerių Latvijoje, tačiau pažiūrėję, su kokiomis veiklos šakomis bendradarbiaujama (3 lentelė), pamatysime, kad šios įmonės užmezgusios 42 bendradarbiavimo ryšius su įvairių verslo šakų organizacijomis Latvijoje. Tai rodo, kad dalis verslo organizacijų bendradarbiauja su keliomis skirtingose šakose veikiančiomis organizacijomis. Manome, kad tokios geros bendradarbiavimo patirties reikėtų paskleisti ir kitoms verslo organizacijoms, kad jos matytų tokio bendradarbiavimo naudą. 3 lentelė. Klaipėdos regiono organizacijų partneriai Latvijoje pagal ekonominės veiklos šakas Ekonominės veiklos šakos Atsakymai Partnerių skaičius Procentais Žemės ūkis, miškininkystė ir žuvininkystė 1 2,4% Pramonė 5 11,9 % Aplinka ir energetika 1 2,4 % Statyba 3 7,1 % Prekyba 12 28,6 % Paslaugos 8 19,0 % Finansai ir draudimas 1 2,4 % Viešasis administravimas 2 4,8 % Švietimas 7 16,7 % Sveikata ir socialinis darbas 2 4,8 % Iš viso ,0 % Daugiausiai partnerių turima Latvijos prekybos (28,6 %), paslaugų (19,0 %) ir švietimo (16,7 %) sektoriuose. Akivaizdu, kad būtent šios sritys yra lanksčiausios, labiausiai ieškančios naujų rinkų, galimybių. Partnerių Latvijoje turinčių Klaipėdos regiono organizacijų bendradarbiavimo pobūdis pavaizduotas 4 lentelėje. 140

141 ISSN Regional Formation and Development Studies, No. 1 (6) 4 lentelė. Klaipėdos regiono ir Latvijos organizacijų bendradarbiavimo pobūdis Bendradarbiavimo pobūdis Atsakymai Organizacijų skaičius Procentai Žaliavų pirkimas 5 11,4 % Prekių pirkimas 8 18,2 % Paslaugų pirkimas 15 34,1 % Gamyba 3 6,8 % Bendri prekybos kanalai 8 18,2 % Kita 5 11,4 % Iš viso ,0 % Remdamiesi gautais duomenimis matome, kad bendradarbiavimo pobūdis atitinka esamų partnerių šakas: paslaugų pirkimas (34,1 %), prekių pirkimas (18,2 %) ir bendri prekybos kanalai (18,2 %). Mažiausiai bendradarbiauja gamybos įmonės. Penkios organizacijos, pasirinkusios variantą kita, nurodė atitinkamai: transporto paslaugos (šį atsakymą reikėtų dėti prie paslaugų pirkimo, taigi ši bendradarbiavimo rūšis padidėtų iki 36,36 %); akademinis bendradarbiavimas ; inovacijos ; bendra tiriamoji veikla. Akademinį bendradarbiavimą ir bendrą tiriamąją veiklą, kaip bendradarbiavimo pobūdį, nurodė švietimo srityje veikiančios organizacijos, akivaizdu, kad tai labai svarbi bendradarbiavimo kryptis. Bendradarbiavimą inovacijų srityje nurodžiusi organizacija yra verslo paramos agentūra, tai puikus skirtingų šalių organizacijų bendradarbiavimo pavyzdys. 5 lentelė. Klaipėdos regiono organizacijas dominantys partneriai Latvijoje pagal ekonominės veiklos šakas Domintų šių šakų partneriai Atsakymai Skaičius Procentai Žemės ūkis, miškininkystė ir žuvininkystė 5 4,5 % Pramonė 12 10,9 % Aplinka ir energetika 8 7,3 % Statyba 12 10,9 % Prekyba 21 19,1 % Paslaugos 29 26,4 % Finansai ir draudimas 6 5,5 % Viešasis administravimas 3 2,7 % Švietimas 8 7,3 % Sveikata ir socialinis darbas 1 0,9 % Kita 5 4,5 % Iš viso ,0 % Kaip matome iš 5 lentelėje pateiktų duomenų, Lietuvos verslininkai norėtų daugiau bendradarbiauti su įvairių verslo šakų partneriais. Palyginę šiuos duomenis su ankstesniais duomenimis (kuriose šakose organizacijos turi partnerių), pamatytumėm, kad siekiama turėti daugiau partnerių nei turima dabar visose šakose. Tai rodo, kad galima ir reikia toliau plėtoti kaimyninių šalių bendradarbiavimą. Būtina tų verslo šakų verslininkams padėti daugiau sužinoti apie galimus bendradarbiavimo būdus įvairiose verslo šakose. Lietuvos verslininkai nori bendradarbiauti žemės ūkio srityje: nustatytas 1 bendradarbiavimo ryšys, norima penkių; pramonėje nuo 5 bendradarbiavimo ryšių iki 12 norimų; aplinkos ir energetikos srityje nuo 1 bendradarbiavimo ryšio iki 8 norimų; statybos versle nuo 3 bendradarbiavimo ryšių iki 12 norimų; prekyboje nuo 12 bendradarbiavimo ryšių iki 21 norimų; paslaugų sektoriuje nuo 8 bendradarbiavimo ryšių iki 29 norimų; finansų ir draudimo šakose nuo 1 bendradarbiavimo ryšio iki 6 norimų; viešojo administravimo nuo 2 bendradarbiavimo ryšių iki 3 norimų; švietime nuo 7 bendradarbiavimo ryšių iki 8 norimų. Bendras Klaipėdos regiono organizacijų domėjimasis partneriais Latvijoje pavaizduotas 6 lentelėje. 141

142 Ligita Šimanskienė, Darius Burgis, Diana Līduma, Māra Zeltiņa Verslo bendradarbiavimas Klaipėdos regiono ir latvijos pasienyje 6 lentelė. Partneriais Latvijoje besidominčios Klaipėdos regiono organizacijos Ar Jus domintų verslo partneriai Latvijoje? Organizacijų skaičius Procentas Neatsakė 3 1,9 % Taip 68 42,8 % Ne 88 55,3 % Iš viso ,0 % Kaip matome iš pateiktų duomenų, 42,8 % Klaipėdos organizacijų norėtų bendradarbiauti su Latvijos organizacijomis, tai galima vertinti kaip gana didelę dalį. Teigiamai nuteikia ir tai, kad šiuo metu partnerių Latvijoje turi 18,2 % visų tyrime dalyvavusių organizacijų, norėtų turėti 42,8 %. Kaip matome, šis skaičius išaugo daugiau negu dvigubai. Jei šios verslo organizacijos pradėtų bendradarbiauti su kaimyninės šalies verslininkais, būtų akivaizdi ekonominė nauda tiek Lietuvos, tiek Latvijos ekonomikai. Turint omenyje tokį didelį turinčių ir norinčių turėti partnerių Latvijoje skirtumą, galima daryti prielaidą, kad egzistuoja tam tikri bendradarbiavimą ribojantys veiksniai, vienas jų pavaizduotas 7 lentelėje. 7 lentelė. Informacijos apie verslą Latvijoje stoka Ar Jums pakanka informacijos apie verslą Latvijoje (įstatymai, mokesčiai, ir kt.)? Organizacijų skaičius Procentai Neatsakė 7 4,4 % Taip 44 27,7 % Ne ,9 % Iš viso ,0 % Didžioji dalis respondentų teigė, kad informacijos jiems nepakanka, prisiminus, kad dalis respondentų nesiekia turėti partnerių Latvijoje, galima būtų teigti, kad menkas susidomėjimas gali būti susijęs su informacijos apie verslo galimybes trūkumu. Manome, kad papildoma informacija skatintų verslininkus pagalvoti apie perspektyvą plėsti verslą / paslaugas kaimyninėje šalyje. Turėtų būti daugiau galimybių sužinoti verslo naujienas, kas vyksta Latvijoje, taip būtų sudarytos sąlygos naujiems verslo santykiams. Bendradarbiavimą įvairiose verslo šakose puoselėja 29 organizacijos, o 108 verslo organizacijos teigia, kad joms reikia papildomos informacijos, taigi dar yra galimybių verslo informaciniams centrams ar vietos savivaldybėms aktyviau skleisti informaciją. Bendradarbiavimą regione galėtų stabdyti ir užsienio kalbos nemokėjimas. Respondentų atsakymų į šį klausimą pasiskirstymas pavaizduotas 8 lentelėje. 8 lentelė. Užsienio kalbos nemokėjimas, kaip kliūtis plėtoti verslą Latvijoje Ar užsienio kalba yra kliūtis plėtoti verslą Latvijoje? Organizacijų skaičius Procentai Neatsakė 3 1,9 % Taip 44 27,7 % Ne ,4 % Iš viso ,0 % 27,7 % respondentų teigė, kad tai trukdo plėtoti verslą, tačiau didžiosios respondentų dalies teigimu, tai ne kliūtis. Kadangi tiek Lietuva, tiek Latvija yra nedidelės šalys, jų gyventojai priversti mokytis užsienio kalbų. Tradiciškai vyresnioji karta moka rusų kalbą, beje, abiejose šalyse dalis vietos gyventojų (piliečių) yra kitataučiai: rusai, baltarusiai, ukrainiečiai, todėl gali susikalbėti šia kalba. Jaunesnioji karta dažniausiai moka anglų kalbą, tai pasaulyje pripažinta verslo kalba, todėl verslo organizacijos randa galimybių bendrauti. Be abejo, kiekviena šalis turi savitą kultūrą, istoriją ir kalba, kaip priemonė jai išreikšti, yra ypač svarbus 142

143 ISSN Regional Formation and Development Studies, No. 1 (6) elementas, padedantis sukurti nuoširdumo atmosferą. Jeigu žmonės nemoka kalbėti kurios nors šalies gimtąja kalba, sumažėja galimybių visiškai laisvai išreikšti mintis, poreikius, lūkesčius versle, suvokti tautinį identitetą, norint geriau pažinti partnerį. Tačiau plėtojant verslą tai dažniausiai nėra esminė problema, nebent tai būtų verslas, nukreiptas tik į vietinę rinką, tada mokėti vietinę kalbą būtų būtinybė. 9 lentelėje matome Klaipėdos organizacijų informacijos dėl verslo galimybių Latvijoje poreikį gimtąja kalba. 9 lentelė. Informacijos dėl verslo galimybių Latvijoje poreikis lietuvių kalba Ar Jums reikia informacijos apie verslo galimybes Latvijoje lietuvių kalba? Organizacijų skaičius Procentai Neatsakė 3 1,9 % Taip 82 51,6 % Ne 74 46,5 % Iš viso ,0 % Nors didžioji dalis respondentų teigė, kad kalbos nemokėjimas nėra kliūtis plėtoti verslą, tačiau 51,6 % vis dėlto norėtų turėti informacijos apie verslo galimybes Latvijoje lietuvių kalba. Tai dar kartą patvirtina, kad informacijos trūkumas yra akivaizdus. Išanalizavus verslo šakas ir darbuotojų skaičių jose galima konstatuoti, kad didžioji dalis yra mažos įmonės, kurios turi apie 10 darbuotojų. Tokie rezultatai yra žemės ūkio, miškininkystės ir žuvininkystės verslo, aplinkos ir energetikos, finansų ir draudimo, viešojo administravimo organizacijose. Pramonės, prekybos ir paslaugų verslo organizacijos buvo įvairaus dydžio (ir smulkios, ir vidutinės, ir didelės). Švietimo, socialinio darbo ir sveikatos verslo organizacijos buvo arba mažos, arba jose dirbo daugiau kaip 250 darbuotojų. Ši informacija tyrimui taip pat svarbi, nes reikia žinoti, kaip pateikti informaciją verslo šakų atstovams, kad ją suprastų, o svarbiausia gautų. Jeigu organizacijos labai didelės, dėl gausaus įvairios informacijos kiekio informacija apie verslo galimybes Latvijoje gali ir nepatekti ten, kur priimami sprendimai dėl galimo bendradarbiavimo. Rezultatai rodo, kad didžioji dalis apklaustų organizacijų veikia nuo 7 iki 10 metų. Tik viena organizacija dirbo metus. Didžiausias pasiskirstymas prekybos ir paslaugų organizacijose, jos visos dirba daugiau negu metus laiko, kai kurios daugiau kaip 11 metų. Todėl galime teigti, kad tai patirties turinčios organizacijos, sugebėjusios išlikti per ekonominę krizę. Puiku, kad šios organizacijos ieško bendradarbiavimo galimybių ne tik savoje, bet ir kaimyninėse šalyse. Rezultatai rodo, kad organizacijų, kurios turi verslo partnerių Latvijoje, metinė apyvarta yra tiek pat įvairi, kaip ir organizacijų, kurios neturi verslo partnerių Latvijoje. Reikia tik priminti, kad organizacijų, turinčių verslo partnerių, skaičius gerokai mažesnis, bet ir ten yra organizacijų, kurios viršija 138 mln. litų apyvartą. Tiek organizacijose, kurios turi verslo partnerių, tiek organizacijose, kurios jų neturi, darbuotojų skaičius yra vienodas. Todėl negalime teigti, kad tik mažos ar didelės organizacijos linkusios bendradarbiauti, tai labiau priklauso nuo organizacijos įgyvendinamos strategijos. Įdomu pažymėti, net 82,8 proc. tyrime dalyvavusių organizacijų, turinčių verslo ryšių su kaimynine šalimi, teigia, kad joms reikia informacijos apie verslo galimybes Latvijoje lietuvių kalba. Taigi galime teigti, kad tokiu bendradarbiavimu šios organizacijos patenkintos, tiesiog nori dar daugiau sužinoti ir praplėsti bendradarbiavimo galimybes. Tuo tarpu organizacijos, turinčios verslo partnerių Latvijoje, apskritai dėl informacijos apie verslo galimybes Latvijoje stokos nesiskundžia ir didelio poreikio tam neturi. Bendros informacijos apie verslo galimybes Latvijoje labiau norėtų organizacijos, kurios šiuo metu nebendradarbiauja su kaimyninės šalies verslo organizacijomis. Organizacijos, kurias domintų verslo partneriai Latvijoje, teigia, kad joms reikia informacijos apie verslo galimybes Latvijoje. Įdomu paminėti, kad net tos organizacijos, kurios teigia nesidominčios verslo partneriais Latvijoje, teigia, kad joms trūksta informacijos apie verslo galimybes kaimyninėje šalyje. Reikia pažymėti, kad organizacijas, kurias domina galimybė rasti verslo partnerių Latvijoje, iš tiesų nelabai stabdo latvių kalbos nemokėjimas. Tik 14 galimybe bendradarbiauti su Latvija besidominčių verslo organizacijų nurodė, kad kalbos nemokėjimas yra kliūtis, tuo tarpu net 53 verslo organizacijos tokios kliūties neįžvelgia. 143

144 Ligita Šimanskienė, Darius Burgis, Diana Līduma, Māra Zeltiņa Verslo bendradarbiavimas Klaipėdos regiono ir latvijos pasienyje Išvados Organizacijų bendradarbiavimas sudarant horizontalius tinklus yra vienas pagrindinių naujo verslo modelio globaliame pasaulyje bruožų. Organizacijų bendradarbiavimas yra vienas jų plėtrą skatinančių veiksnių. Tikėtina, kad sparčiau vystantis organizacijoms gerės ir bendra pasienio regionų ekonominė situacija, mažės socialinė ir ekonominė atskirtis. Palankias sąlygas šalių organizacijų bendradarbiavimui sudaro IKT paplitimas ir anglų, kaip universalios, kalbos vartojimas. 18,2 % tyrime dalyvavusių organizacijų nurodė turinčios verslo partnerių Latvijoje, daugiausia bendradarbiaujama prekybos (28,6 %), paslaugų (19,0 %) ir švietimo (16,7 %) sektoriuose. Tai, kad labiausiai bendradarbiauja prekybos ir paslaugų organizacijos, lemia ir bendradarbiavimo pobūdį: paslaugų pirkimas (34,1 %), prekių pirkimas (18,2 %) ir bendri prekybos kanalai (18,2 %). Kaip papildomos bendradarbiavimo sritys nurodyti akademinis bendradarbiavimas, bendradarbiavimas inovacijų srityje ir bendra tiriamoji veikla. Atliekant tyrimą paaiškėjo, kad nors šiuo metu Klaipėdos regiono ir Latvijos organizacijų bendradarbiavimas nėra intensyvus, egzistuoja didelis tokio bendradarbiavimo poreikis: net 42,8 % tyrime dalyvavusių organizacijų norėtų bendradarbiauti su Latvijos organizacijomis, tai yra beveik du kartus daugiau nei bendradarbiauja šiuo metu, ši tendencija pastebima visose ekonominės veiklos šakose. 27,7 % respondentų teigia, kad užsienio kalbos nemokėjimas trukdo bendradarbiauti su Latvijos organizacijomis. Kadangi tiek Lietuva, tiek Latvija yra nedidelės šalys, jų gyventojai priversti mokytis užsienio kalbos. Tradiciškai vyresnioji karta moka rusų kalbą, jaunesnioji dažniausiai moka anglų kalbą, kuri pasaulyje pripažinta kaip verslo kalba, todėl verslo organizacijos paprastai suranda galimybių bendrauti. Didesnė kliūtis Klaipėdos regiono ir Latvijos organizacijų bendradarbiavimui yra informacijos apie verslo vykdymo sąlygas Latvijoje trūkumas. Net 67,9 % tyrime dalyvavusių organizacijų nurodė, kad tokios informacijos jiems trūksta, taip pat išsakytas pageidavimas tokios informacijos gauti lietuvių kalba. Siekiant paspartinti Klaipėdos regiono ir Latvijos organizacijų bendradarbiavimą reikėtų daugiau informacijos apie verslo plėtojimo galimybes Latvijoje, jei įmanoma tokia informacija turėtų būti prieinama lietuvių kalba, reikėtų koordinuojančio didesnio abiejų valstybių institucijų vaidmens, kurti horizontalius bendradarbiavimo tarp valstybės, švietimo ir verslo organizacijų tinklus, tinklinių organizacijų veikloje galėtų dalyvauti ir partneriai iš Latvijos. Literatūra Arita, T., Fujita, M., Kameyama, Y. (2006). Efects of Regional Cooperation Among Small and Medium-sized firms onf their Growth in Japanese Industrial Clusters. RURDS, Vol. 18, No. 3 p Castells, M. (2005). Tinklaveikos visuomenės raida. Kaunas: Poligrafija ir informatika. Chee, P. L. (1984). Small Enterprises in ASEAN: Need for regional co-operation. ASEAN Economic Bulletin, p Contractor, F. J. (2007). Interorganizationai Cooperation and Our Manifest Destiny: an evolutionary perspective. Futures Research Quarterly, Vol. 23, Issue 2, p Czochanski, J. T. (2006). IT technologies and systems as factors contributing to developing integration and co-operation in Baltic Sea Region. Baltic Europe from idea to reality, p Česnavičius, D., Stanaitis, S. (2008). Prigraničnoje ekonomičeskoje sotrudnečestvo v kontekste Evropeiskoj integracii (Primer Litvy). Problemy V spolpracy Gospodarczej V regionie Baltyckim V kontekšcie integracji Europejskiej, s Dolzblasz, S., Lesniak, M. (2005). Conditions of competitiveness in the borderlads in the context of European integration. Problems of regional and local development in Polish, Russian and Lithuanian parts of South Baltic arc., p Kardelis, K. (2007). Mokslinių tyrimų metodologija ir metodai. Kaunas: Technologija. Korneyevets, V. (2004). Kaliningrad oblast as a region of co-operation in the Baltic region. In: T. Palmowski (ed.). The framework of regional development in cross- border areas of north-eastern Poland and the Kaliningrad oblast. Gdynia-Pelpin, s Lepik, K. (2009). Euroregions as mechanisms for strengthening cross-border cooperateon in the Baltic Sea region. TRAMES: A Journal of the Humanities & Social Sciences, Vol. 13 Issue 3, p Michalski, T. (2008). Global, continental and regional context of the functioning of new European borders. Tiltai, Nr. 1, p

145 ISSN Regional Formation and Development Studies, No. 1 (6) Saxenian, A. (1994). Regional Advantage: Culture and Competition in Silicon Valley and Route 128. Cambridge, MA: Harvard University Press. Statistikos departamentas prie Lietuvos Respublikos Vyriausybės. (2010). Ūkio subjektai. Pagrindiniai duomenys. Šimanskienė, L. (2007). Research of Regional and Territorial Development problems including the initiatives of Cross Border Cooperation in fields of Science and Technologies. Establishment of the Bipolar Area of Science and Research Klaipeda-Kaliningrad. Scientific analytical reports. Klaipeda: Klaipeda University, p Šimanskienė, L., Vaitekūnas, S., Bučinskas, A. (2006). Regional problems of Lithuania in the context of the EU. In: W. Karaszewkiego, S. Kunikowskiego (eds.). Polityka Rozwoju Europy Srodkowo-Wschodniej. Aspekty makroekonomoczne i regionalne. Wloclawek: Lega Oficina Wydawnicza, p Business cooperation in the cross-border of KlaipĖda region and Latvia Ligita Šimanskienė, Darius Burgis, Diana Līduma, Māra Zeltiņa Klaipėda University (Lithuania), Liepaja University (Latvia) Summary In this article we analyse the cooperation of business organisations of Klaipėda region with Latvian organizations. One of the main problems of this region, located in the cross-border with Latvia, is low competiveness of its organisations and high levels of unemployment. One of ways of coping with this problem is promoting the cooperation between organisations in the region among themselves and also with organisations in neighbouring Latvia. In this article we present the results of the research done in 2011 among top managers of organizations in Klaipėda region, the aim of the research and also this article is to examine the state of cooperation between organizations of Klaipėda region and Latvia. The tasks of the article are: 1) to analyse the theoretical premises for cooperation in cross-border regions; 2) determine the level of cooperation of organisations from Klaipėda region and Latvia; 3) determine the obstacles for cooperation; 4) establish the measures that could stimulate more active cooperation of organisations of Klaipeda region and Latvian organizations. To achieve these goals we used the analysis of scientific literature and survey research. A total of 159 organisations took part in the survey, to better reflect the real situation in the region, we decided to survey organizations according to their branch of economic activity, that is the number of organizations surveyed in each branch of economic activity was determined by the proportion of organizations in specific branch of economic activity among total number of organizations in the region. Most organizations that participated in the survey are engaged in services and trade, 33.5 % and 23.5 % respectively. Most of the organizations that participated in the research have fewer than 10 employees (micro enterprises), they constitute of 61.1 % of all questioned organizations, 18.9 % are small enterprises employing between 10 and 50 employees. Even 80.3 % of organizations participated in the research had fewer than 50 employees % of surveyed organizations had annual turnover below 7 million LTL. The distribution of enterprises by number of employees and by the annual turnover of the organizations that participated in the survey correspond with the actual situation in Klaipėda region, where most of the organizations are small and medium enterprises, mostly engaged in services and trade branches of economic activity. After analysing the scientific literature and the data from the survey research we came to the following conclusions: Cooperation by forming horizontal networks is one of the main aspects of doing successful business in a globalised world. Cooperation between organizations is one of stimulating factors of their development, this could lead to the improvement of overall economic and social situation in the region. Two of the most 145

146 Ligita Šimanskienė, Darius Burgis, Diana LīDuma, māra ZeLtiņa Verslo bendradarbiavimas Klaipėdos regiono ir latvijos pasienyje important factors that facilitate the international cooperation between organizations are the spread of information communication technologies and the establishment of English language as a universal mean of communication in the business world % of organizations that took the survey declared that they have business partners in Latvia, the sectors where most of cooperation takes place are trade (28.6 %), services (19.0 %) and education (16.7 %). The type of cooperation corresponds to the branch of economic activity of the partners, most common are purchase of services (34.1 %), purchase of goods (18.2 %) and common channels of trade (18.2 %), as additional areas of cooperation respondents determined the academic cooperation, cooperation in the area of innovations and joint research activities. After analysing the data from the survey it became evident, that although the level of cooperation between organizations of Klaipeda region and Latvia is quite low, there is a big need for such kind of cooperation, 42.8 % of all the organizations that took the survey stated that they would like to cooperate with Latvian organizations and that is more than twice the number of organizations that are currently cooperating, this tendency can be seen in all branches of economic activity. only 27.7 % of the respondents stated that the lack of knowledge of foreign language is an obstacle to cooperate with Latvian organizations. Because Latvia and Lithuania are both small countries their people are forced to learn foreign languages. Traditionally the older generation knows Russian and the younger employs English, which is a universal language for doing business internationally, this, is why most of organizations in the region find one or another way to communicate with Latvian organizations. The bigger obstacle for organizations of Klaipeda region to cooperate with Latvian organizations is the lack of information about Latvian business (tax, legal rules, etc.). Even 67.9 % of the organizations that took part in the survey stated that they lack such information and also stated the need of such information in Lithuanian language. To facilitate the cooperation of organizations from Klaipeda region and Latvia, more information about Latvian business should be provided; if possible it should be in Lithuanian language. There also should be a bigger coordinating role of government institutions from both countries in forming the horizontal cooperation networks, especially between organizations from business, government and science sectors, partners from Latvia could participate in those networks, making them more productive. KEY WoRDS: Klaipeda region, Latvia, cooperation, cross-border. JEL codes: R, f230. Acknowledgment This paper is written using data from project formation of methodological framework of regional business growth promotion (LT-LV) (Project Nr. LV-LT/1.1/LLIII-152/2010). 146

147 ISSN Regional Formation and Development Studies, No. 1 (6) PRACTICE OF CROSS BORDER COOPERATION IN CAPACITY BUILDING PROJECT: ENSURING SUSTAINABLE DEVELOPMENT Rasa Viederytė 1, Giedrė Strakšienė 2 Klaipėda University (Lithuania) Abstract The article presents the practice of Capacity Building project (CBP) activities underlining the sustainable development importance in the context of Cross Border Cooperation, which was implemented in Denmark, Germany, Poland, Sweden and Lithuania. The article is based on the analysis of statistical data and South Baltic Program documents adopted by the European Commission. The knowledge and experience of CBP formulated in this paper could be useful for future capacity building initiatives in the South Baltic region or in other territorial cooperation programmes. Article authors were official representatives of this project in Lithuania Region and actively participated during the Capacity Building project activities implementation process, took responsibilities during the interview and questionnaire givens collecting in Lithuania, were mentoring the Rent-of-Expert process and made individual consultations, organized trainings and workshops. KEY WORDS: Cross Border Cooperation, Capacity Building project, South Baltic Programme. JEL codes: O19, O22, O31, O57. Introduction The EU Strategy for the Baltic Sea Region is described in three documents: (1) a Communication from the European Commission to the Council and the European Parliament, (2) an associated Action Plan which complements the Communication, presented to the Council and European Parliament at the same time and (3) a Working Document of the European Commission s Services which presents the background, approach and content of the strategy. The priority areas are organized into four thematic pillars and one horizontal section. It is important to appreciate, however, that this is only for ease of analysis. In fact, every pillar relates to a wide range of policies and will have impacts on the other pillars: they are interlinked and interdependent. Each priority area starts with a presentation of the issue providing background information on the topic. Then, the hotspots (main problems) are indicated and the added value of the action for the Baltic Sea Region is presented. The priority areas are implemented through detailed actions which are explained. Some actions are strategic for the Baltic Sea Region as they are designed to address specific and important issues for its regions, citizens and enterprises. Others are cooperative, meaning they are based on the benefits in improving cooperation on issues where Member States and stakeholders are ready to do so. In some cases, actions might 1 Rasa Viederytė Klaipėda University, project Management Department, the head of project Management Department. Scientific interest: management of projects. rasa.viederyte@ku.lt Tel.: Giedrė Strakšienė Klaipėda University, project Management Department. Scientific interest: management of projects. giedre.straksiene@ku.lt Tel.:

148 Rasa Viederytė, Giedrė Strakšienė PRACTICE OF CROSS BORDER COOPERATION IN CAPACITY BUILDING PROJECT: ENSURING SUSTAINABLE DEVELOPMENT require a change in the policy orientation or national legislation of the Member States in the Baltic Sea Region. In others, they require financing which could be provided by private or public funding (EU, national, regional or local funds). All actions should be understood without prejudice to the existing exclusive Community competences (Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions concerning the European Union Strategy for the Baltic Sea Region Action Plan (2009). The period of brings several major changes to the South Baltic Programmes dealing with the territorial co-operation in the European Union. Most importantly the territorial co-operation objective includes three main aspects: y development of economic and social cross-border activities (cross-border cooperation); y establishment and development of transnational co-operation, including bilateral co-operation between maritime regions; y increasing the efficiency of regional policy through interregional promotion and cooperation, the networking and exchange of experiences between regional and local authorities (interregional cooperation). The South Baltic Programme is developed right on this initiative. In formal terms it is the so called multilateral cross-border co-operation Programme created on the maritime border between the Southern Baltic Sea regions. In practical terms the South Baltic Programme is a completely new co-operation area where cross-border co-operation structures have not been developed to the full scale yet. The programme area, however, shows strong cross-border links developed through cooperation in Euroregion Baltic, Euroregion Pomerania, the South Baltic Four Corners Cooperation and many bilateral initiatives. These initiatives managed to contribute to stronger connection and economically beneficial development of neighbouring areas, and therefore may form a fundament for the programme actions. Considering the new changes in the Programme was started the Capacity Building project, that aims were to attract better the main target group (newcomers, especially from local authorities and NGO s) to the South Baltic Programme and to strengthen their capacity to prepare and later to implement good projects within the Programme. The project realised the afore-mentioned aims through three principal activity strands: y National trainings an introduction to international project development, addressed mainly to beginners; y Cross-border workshops addressed to beneficiaries with an identified project idea for a project within the South Baltic Programme; y Rent-an-expert facility individual advisory services on project development. Problem. Various cross-border initiatives were provided within the South Baltic Programme, but there s no evaluation on the program applying abilities and knowledge, based for starting to participate in the Program. Capacity building project (CBP) was launched to help with the South Baltic Programme participation issues, by providing real help on how to start project planning process, how apply the proposal, where to look for partners, etc. It is also believed that the knowledge and experience of CBP formulated in this paper could be useful for future capacity building initiatives in the South Baltic region or in other territorial cooperation programmes. In addition, the findings of this paper could potentially be used to better tailor ETC programmes in the next funding periods. There s question how Capacity Building project ensure sustainable development at least among countries-participants. Purpose of article: to disclose practice of Capacity Building project emphasizing the sustainable development in the context of Cross Border Cooperation. The research objectives are: theoretically substantiate the concept of Capacity Building project in the South Baltic programme, empirical surveying barriers and support for project development and to compare results. 148

149 ISSN Regional Formation and Development Studies, No. 1 (6) The following methods were applied: analysis of scientific literature and documents, questionnaire-in written; interview-in-written, statistical analysis of data. 1. The concept of Capacity Building project Capacity Building Project (CBP), realized within the South Baltic Programme, was launched to help potential beneficiaries of the Programme in the preparation and implementation of cross-border projects. The project arose from the analysis of results of the two first application rounds within the South Baltic Programme, which showed that there was a strong interest and demand for funding cross-border co-operation among local public authorities, publicly owned corporations, regional public authorities, universities and non-governmental organizations. However, there was a significant discrepancy between the number of applying institutions and the number of successfully applying institutions. Although many projects presented valuable ideas, their quality was not sufficient to receive funding. This proved that there was an apparent lack of knowledge and experience in cross-border projects development among the Programme s potential beneficiaries. The Capacity Building Project aimed to bridge this gap through various trainings and tailored assistance and to facilitate development of joint project proposals of cross-border character. The aim of the Capacity Building Project was to support participation in the South Baltic Programme, particularly among local authorities and NGOs who constitute the target group of the Project. Capacity Building was offering the following free-of-charge services: 1. Training on project development trainings in national languages, introduced the participants to a variety of tools and methods used to identify, develop and manage projects; the participants learned how to generate project ideas, identify partners, plan and prepare projects, estimate costs etc; 2. Cross-border workshops the workshops were addressed to beneficiaries who have already identified concrete ideas for development of projects within the SB Programme; participation in the workshops prepared beneficiaries for concrete cooperation in joint projects 3. Individual project consultations potential beneficiaries could receive free-of-charge consultations on project development. Beginners were given guidelines and tools necessary for project development during national trainings. More advanced beneficiaries took part in the cross-border workshops, were they received structured feedback on their ideas from a panel of experts. Many projects received support under the Rent-an-Expert service: they were supported in the development of their project idea by either an external expert or a mentor from the CBP team Training sessions The CBP on 2010 started training sessions for potential programme beneficiaries. The goal of the training is was develop skills and knowledge of the potential programme beneficiaries which lead to their increased participation in the SBP. Trainings were held in national languages, in groups of 15 up to 25 people. The trainings were delivered by Action Learning method, i.e. participants were working with case studies and exercises to allow them to understand the process of project development. The participants learned how to generate project ideas, identify partners, plan and prepare projects, estimate costs etc. There were 3 one-day training sessions planned in all partner countries. In September and October partners of the Capacity Building Project, with the help of Regional Contact Points, organized trainings for the beneficiaries of South Baltic Programme. Fifteen training sessions were held in all Programme countries: 3 in Lithuania (Kretinga, Klaipeda and Taurage), 3 in Denmark (2 on Zealand and 1 in Ronne), 3 in Germany (in Rostock), 4 in Sweden (in Kalmar, Blekinge, Skane and Kronoberg). The participants included representatives of regional administration, municipalities, NGOs, museums and universities and various associations. The trainings were moderated by Capacity partners. 149

150 Rasa Viederytė, Giedrė Strakšienė PRACTICE OF CROSS BORDER COOPERATION IN CAPACITY BUILDING PROJECT: ENSURING SUSTAINABLE DEVELOPMENT The trainings concentrated on the development of international projects, with special focus on SBP. They were delivered by Action Learning method, i.e. participants worked with case studies and practical exercises that allowed them to understand the process of project development. The trainers introduced the participants to general skills on project development and management such as creating a Gannt chart or planning activities and basic knowledge about projects as such. The participants learnt about the specific features of South Baltic projects and equipped with this knowledge they stared working on own project ideas. They defined objectives and results and learnt how to frame them into South Baltic Programme. Some activities were devoted to the identification of project activities and outputs. Trainers explained also how to find partners and form partnership. These training sessions were addressed to beginners, with little experience in international project development. Most of the material presented was in national languages, though texts from real applications were kept in English, in Sweden, in German, in Lithuanian and in Danish. A very practical and hands on material was produced by the Capacity Building Project and used during all trainings. Since many of our interviewees considered the application process as complicated, our training materials highlighted some important parts of the application form, to get rid of the perception of it being more complicated that it really is. Trainees were introduced to basic concepts of project development. The national training conducted by the partners in the SBP CAPACITY project has been well received and evaluated by the participants. Project have trained about 270 persons in the entire region, out of which 88 in Sweden, 66 in Poland, 43 in Lithuania, 42 in Denmark, and 28 in Germany. Project administration group hoped that the basic project development skills will allow them to develop new projects and applications for future calls. The implementation of the national training package that was planned within CAPA- CITY means that this part has been completed Workshops For those who have already got some project ideas, project conducted two cross-border workshops in Klaipeda (29 participants) and in Gdynia (43 participants). The two workshops were also received extremely well, and participants met new potential partners, learnt from each others experiences and got professional advice from experts. All in all, they had a chance to get the feeling that developing projects in the South Baltic Programme is not so extremely difficult. From October 21st lunch till October 22nd lunch, 2011 the first Capacity Building Project crossborder workshop took place in Klaipeda, Lithuania. The workshop gathered 29 participants from all countries in the area of the South Baltic Programme; beneficiaries that wanted to have their project ideas assessed and discussed by a panel of experts and Partners from the Capacity Building project. The work for the participants had started prior to the workshop itself. The beneficiaries had worked with their project ideas, presented them in writing and prepared 10 minutes presentation. Most had used the template for structuring a project idea provided by the Capacity Building Project. All participants were eager to have their feedback. The experts pointed out both strengths and weaknesses with the presented projects, one by one and also made recommendations. It became obvious that many projects had similar weaknesses; some comments could be expressed more in general. Quite a few also needed to extend their partnership, and thanks to the fact that all participants had listened to all projects some projects got offers from other participants that knew organizations back home that probably would be interested to join. Contact details were exchanged. Some projects did not fit into the South Baltic Project at all, mainly because they were more local, had no cross-border value. These projects were recommended other funding possibilities to start with, and later on extend, in many cases interesting scopes, to include a wider geographical area. To make a budget is not always easy. 150

151 ISSN Regional Formation and Development Studies, No. 1 (6) 1.3. Individual consultations If beneficiaries felt that trainings and workshops were not enough, they were taking individual project consultations. Capacity Building pool of experts consisted of 50 professional consultants who were ready to offer their knowledge and experience to help develop project idea into a good project application. The consultations were free of charge. All beneficiaries had to do was fill an on-line application form available on website and submit before the deadline. Provided that application was approved, an expert was allocated to beneficiary to guide through the process of preparing the application. If beneficiaries had some problematic question or uncertainty, before asking for full scale Rent-an-Expert service, beneficiaries were always welcome to ask Project Contact in them country for mentoring assistance. 2. Analysis of barriers for Project development To achieve its objectives the CBP carried out an analysis aimed at identifying the obstacles and needs of support among the Programme s potential beneficiaries. The analysis was based on the results of questionnaires and interviews. It aimed to shed some light on the barriers that hamper a smooth development of projects and thematic areas the beneficiaries are most interested in. The analysis was carried out in two steps. The first step was a standardized web-based or printed closedquestion questionnaire. The broad group of potential Programme beneficiaries were encouraged to fill-out the questionnaires in order to define specific reasons for a lack of their activity in the international programmes and SBP in particular. In total 220 questionnaires were analysed (22 of which 20 were New comers (NC) from Denmark, 36 (30 = NC) from Germany, 51 (46 = NC) from Lithuania, 71 (62 = NC) from Poland, 38 (26 = NC) from Sweden and two unidentified both of which were NC) The second step was followed by deeper interviews with selected potential beneficiaries in each country. The interviews were conducted both through face-to-face meetings and over the phone. The analysis was made, taking into consideration all aspects of the cross border projects development and implementation. In total 56 interviews were conducted 10 in Denmark, 10 in Germany, 16 in Lithuania, 10 in Poland and 10 in Sweden. In the questionnaire issues related to the thematic areas as well as the greatest barriers were being investigated for potential beneficiaries especially newcomers. The general applicants including those with more experience and knowledge of the programme are also asked. The questionnaire was structured into four main parts. The first one was about the thematic areas that the potential beneficiaries are interested in. The second part examined the familiar of the SB program in the regions. The third and four parts focused on the barriers that people encounter when they apply and implement projects and what support they need. 3. The obstacles for participating in the SBP It is of great importance for the Capacity Building Project to have identified the barriers for participation within the South Baltic Programme. In order for the project to help newcomers overcome their main obstacles the input from this part of the analysis has been very valuable and useful when developing the training materials. The question posed in the questionnaire: What do you perceive as the main obstacles for participation in international projects (You may select several obstacles, please prioritize them by selecting a number from 1 5, where 5 means the biggest obstacle) The barriers for participation within the South Baltic programme differ between the countries. The below statistics will provide an overview of the most important issues in each country: Denmark, Germany, Lithuania, Poland and Sweden. 151

152 Rasa Viederytė, Giedrė Strakšienė PRACTICE OF CROSS BORDER COOPERATION IN CAPACITY BUILDING PROJECT: ENSURING SUSTAINABLE DEVELOPMENT f. not in national language e. Application process complicated d. We do not know how to find partners c. financial capacity to pre-finance b. financial capacity to co-finance a. not enough human resources 0% 20% 40% 60% 80% 100% Figure 1. Denmark: Main obstacles for participation in projects identified by Danish beneficiaries Source: Analysis of Barriers for Project Development, 2011 For the Danish respondents the English language (as official programme language) does not discourage potential participants from taking part of the programme to a significant extent. The main barriers rather consist of the lack of human resources, the financial capacity to pre-finance and co-finance and the difficulties of the application process. Three obstacles stood out among the Danish interviewees: Finding partners overseas, the financial issue (the uncertainty of getting money back but also the need of having a great liquidity to begin with) and the lack of time and capacity. It was also considered hard and complicated to apply for EU-funding both due to the complexity, hard conditions and lack of knowledge of the programme but also because of national laws. Accounting was also considered to be an obstacle. Most of the Danish interviewees considered it to be possible to overcome some of the barriers themselves through capacity building and by using the right people within the organization and finding the right partners to fill the gaps. Regarding the co-financing it was argued that this is mostly a problem for smaller organizations and they won t be able to conquer this obstacle themselves. Most of the Danish Interviewees welcomed external assistance only one claimed that assistance wasn t needed to overcome the barriers (the barriers mentioned by this person was finding partners and liquidity). The desired support was mainly guidance in general (dialogue with authorities, the JTS or help from rentan-expert which sounded very good and was a good idea ) and help with the budget. f. Application documents not in national language e. Application process too complicated d. how to find partners c. no financial capacity to pre-finance b. financial capacity to co-finance a. not enough human resources 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 % Figure 2. Germany: Main obstacles for participation in projects identified by German beneficiaries Source: Analysis of Barriers for Project Development,

153 ISSN Regional Formation and Development Studies, No. 1 (6) In Germany three obstacles stood out as very problematic: The financial capacity is the main problem (pre-financing and co-financing being rated as the two greatest barriers to overcome). These are closely followed by the lack of human resources which more than 30 % of the respondents considered to be of very high importance. The application process and how to find partners were considered as barriers but to a significantly less extent. The smallest barrier to overcome for the German respondents was that the application documents are not translated into the national language. Two out of 10 German interviewees not commented on the main obstacles. The most obstacles were to acquire money for pre-finance, co-finance and lack of support from regional decision-makers. The barriers mentioned were: language difficulties, no transparent work of administration, dread of competition, third party founds hardly expected, finding partner, cooperation partner structure, contacts, guidelines, competences and resources in term of time and personnel. Most of the German interviewees claimed that the language obstacles could be overcome by themselves for example through dialogue. However most of them stated that they would also need assistance from regional decision-makers, partners. f. Application documents not in national language e. Application process too complicated d. how to find partners c. financial capacity to pre-finance b. financial capacity to co-finance a. not enough human resources % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Figure 3. Lithuania: Main obstacles for participation in projects identified by Lithuanian beneficiaries Source: Analysis of Barriers for Project Development, 2011 The greatest obstacles for the Lithuanian respondents were financial capacity to pre-finance and financial capacity to co-finance. The rest of the barriers mentioned were considered less important and were almost equally ranked. About one third of the interviewed did not know which the main obstacles could be or chose not to answer the question. Of those who answered the main issue was co-financing followed by workload and lack of information. Other reasons mentioned were negative institutions, lack of partners, short time to prepare, lack of experience, unclear forms and a different culture of communication. The answers to whether these barriers could be overcome by the organizations themselves were quite varying. While a few considered it to be possible by strengthening the English skills for example some said it might be possible but very difficult and others considered it to be out of their power. Regarding assistance to overcome the barriers it was agreed by all who answered that question that external support was important. None of the Lithuanian interviewees had considered applying for the SBP but later refrained from it. 153

154 Rasa Viederytė, Giedrė Strakšienė PRACTICE OF CROSS BORDER COOPERATION IN CAPACITY BUILDING PROJECT: ENSURING SUSTAINABLE DEVELOPMENT f. Application documents not in national language e. Application process too complicated d. how to find partners c. financial capacity to pre-finance b. financial capacity to co-finance a. not enough human resources 0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Figure 4. Poland: Main obstacles for participation in projects identified by Polish beneficiaries Source: Analysis of Barriers for Project Development, 2011 Once again the financial aspects (pre-financing and co-financing) were identified as the biggest obstacles, but in relation to the other countries none of the barriers stood out to the same extent in Poland. All were considered to be of relatively high importance. Few of the Polish interviewees had refrained from applying for funding with in the South Baltic Programme. For those who had the main reason seemed to be lack of partners or other problems which were not related to the programme itself. They perceived the main obstacles to be staff shortages, trouble finding partners and the language barrier. It was also evident that the focus had been on other projects (mostly infrastructure) where funds were tied up which had led to a lack of funds. It was evident that the obstacles were not considered possible to overcome without external assistance, but it wasn t clear who should be responsible, and of what. Consultancy companies, institutions and advisory bodies were suggested to mediate contacts, and give support in the creation and implementation of the project. Although most of the interviewees could not point at any specific barriers during the application process a few were mentioned; language barriers, communication barriers (no cooperation with partners from abroad) and trouble formulating the application. f. Application documents not in national language e. Application process too complicated d. how to find partners c. financial capacity to pre-finance b. financial capacity to co-finance a. not enough human resources 0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % Figure 5. Sweden: Main obstacles for participation in international projects identified by Swedish beneficiaries Source: Analysis of Barriers for Project Development, 2011 Similar to the situation in Denmark the usage of English is not considered to be an important barrier and neither is finding partners. The main obstacle for the Swedish respondents is the lack of human resources. 154

155 ISSN Regional Formation and Development Studies, No. 1 (6) Overall, lack of time seemed to be the key-problem. Whether it is needed to familiarize oneself with the programme, to find partners or to write an application the interviewee s organizations simply didn t have the time or were resistant to take the risk of investing large amounts of time into a project. Language- and cultural differences were also problems as well as difficulties in writing an application and meeting the high demands of the programme. It was believed that there is a mental barrier when it comes to international programmes (due to ignorance and lack of experience) which could be bridged by providing information and marketing the benefits of international projects and by educating potential beneficiaries in understanding the rules and regulations and adjusting an application to these. The Capacity Building initiative is much welcomed, but those familiar with the South Baltic Programme also point out that the contact points have been very supportive and helpful in the past. Most agreed that external support is needed to overcome the main barriers. Some of the interviewees were specific with what support they desired. The suggestions ranged from help to focus the project and help with writing an application to getting help with leading the project and reimbursements for translators (since they quickly eat up the budget). There was also a request to target information so that when a measure related to certain issues comes up information regarding this would be directed to those concerned, they argued that there is limited time to cover what s happening and relevant information often drowns among the massive amounts of information they receive. However no one had a clear idea of who should provide these services and whom should be responsible. Suggestions ranged from the contact points, the JTS, and the Capacity building projects to the county councils or special consultants. Another barrier mentioned was that it is hard to find partners and once you have it s hard to get them together to talk the project over thoroughly. Money for pre-meetings is needed. In more than one case the SBP had been considered but didn t seem to be the most strategic choice when applying for funds. Regional funds often seemed to be a wiser choice for many reasons: No language- and cultural barriers. The international dimension sometimes demanded that the project became bigger than necessary. Others had decided not to apply in the SBP because their partners had found the programme timeconsuming and the application process difficult in the past. 4. The most useful supports Out of the 220 questionnaires reviewed 199 would be more interested in applying for funds from the SBP if they got support. Below the answers are first specified by country and finally what the newcomers have identified as the most useful support. The question posed in the questionnaire: which type of support is the most useful for your organization in order to apply to South Baltic Programme? In Denmark the greatest needed for support seems to be during the budget preparations. Information on the application procedure is another issue where the need of assistance is evident. The third most important area for support is getting help to find relevant partners followed by description of activities. The two remaining issues (developing a complete application and tailoring a project idea) do not need as much support. This is particularly true for tailoring the project idea which was only identified as a barrier by approximately 10 % of the Danish respondents. Nothing stood out when the Danish interviewees considered which type of support would be most useful for their organization in order to apply to the south Baltic Programme. Three people mentioned Finding Partners and two rent-an-expert. The rest of the suggestions were only mentioned by one person: Developing a project idea; formulating the project idea; Dialogue with JTS and CP s; Time management; Matching the programme; Budget and Technical information. The support was mainly needed in the beginning while addressing the above issues, finding partners, developing the project idea etc. Few of the interviewees could consider paying for support, among those who couldn t one stated that he would if there was a guarantee that the application would be approved. During the application process the main barrier seemed to be related to partners. Mentioned problems were; finding them in the first place, getting everyone together, the wishes and needs of many organizations, communication with partners and getting the process to flow and partners who quit the last minute. Other obstacles mentioned were formulating the application, waiting for a long time 155

156 Rasa Viederytė, Giedrė Strakšienė PRACTICE OF CROSS BORDER COOPERATION IN CAPACITY BUILDING PROJECT: ENSURING SUSTAINABLE DEVELOPMENT without getting any response and not being able to do anything in the meantime. A few people didn t have any experience and chose not to comment although one pointed out that it looked extensive and bureaucratic. Almost none of the Danish interviewees had received support previously. Those who had experienced it had done so through partners, programme administration, volunteers and internal capacities. In Germany once again budget preparations are in greatest need of support. Developing a complete application, tailoring a project idea and describing the activities are also important. The development of a complete application is higher ranked in Germany than in other countries. From the analysis we can also draw the conclusion that all areas of support are generally of high importance. The most useful support for the interviewees organizations were conditions for entrance, search for partners and help with the application process, budget planning, accounting and reporting, hence most support was needed in the beginning. Only two out of 10 interviewees would not be willing to pay for support although one of them came with the reservation of it depending on the financial situation. The mentioned bottlenecks during the application procedure were guarantee of partners and red tape (excessive regulations). Most of them had received external support previously (one mentioned that it was through external agencies, one mentioned from ViaBalticaNordica, BSR Innoreg, BalticBiogas) in the areas of funding, content and the application process. Both perceived it as a positive experience such as pleasant, good advice and very helpful. In general they felt that they had received good assistance. In Lithuania the help with the budget preparations are again the most useful support. The other predefined barriers all seem to be in need of assistance and are of almost equal importance. Generally all areas are of importance for the Lithuanian respondents. Mostly the Lithuanian interviewees desired advice and consultations in general. The areas specifically mentioned were formulating and framing the idea, financial matters, preparing proposals and drafting trainings. Help with translations was another suggestion. Most of the interviewees wished for quite extensive support throughout the application process. It is possibly because of their lack of knowledge about the programme. The people who had been specific all agreed that the support beginning was the most important reasons mentioned were that they needed help to formulate a clear idea to begin with since the rest is based on this. They also mention that having trainings in preparations of the application would be useful. However, only two have stated that they are willing to pay for such support. Only three people reported that they considered there to be bottlenecks during the application process. These mentioned the language barrier and the lack of knowledge and partners. In Poland the main field of support identified by the polish respondents is Providing information on application procedure. Similarly to the other countries the budget preparation is mentioned as one of the greatest barriers to overcome. But all areas pre-defined were acknowledged as important. There was a desire from the interviewees to receive consultations throughout the process of creating and implementing the project, especially in the beginning with the writing and help in finding information on the application procedure. Many also wished for help in finding partners. Although the support was much desired only two out of the ten would be willing to pay for assistance. All of the polish interviewees had experience of support from previous projects and had perceived it as expected. In Sweden the support in budget preparations was highly prioritized by the Swedish respondents. The second highest priority was help in finding partners and providing information on the application procedure. Developing a complete application was ranked as the biggest obstacle when taking only the highest scores into account, but when taking the second highest scores into account it loses its importance slightly. To have someone review/examine the application and make sure you have framed the project in accordance with the Programme measures and used clear wording etc. was mentioned more than once, as was budgeting. Help with the application and how to structure and facilitate results was also mentioned. Educations also came up. A project school about intercultural communication was suggested and also an inspirational day with information and education to show the benefits of cross-border cooperation. Guidance was considered necessary to overcome the mental barriers. 156

157 ISSN Regional Formation and Development Studies, No. 1 (6) Most interviewees would like to receive support in the beginning and the only processes mentioned specifically were writing the application including a budget and the process from generating the idea to writing the application. The interviewees would generally be willing to pay for support if the benefits exceeded the costs, but they were clear about this matter being a question for the management to prioritize. Figure 6. Needs for support in project development indicated by newcomers Source: Analysis of Barriers for Project Development, 2011 In Denmark Providing information on application procedure and Developing parts of application (budget preparation) stood out. In Germany Tailoring project idea had the highest score In Lithuania Developing parts of application (budget preparation), Helping to find partners and Tailoring project idea had almost the same high score. In Poland Providing information on application procedure got a higher score than the other options. In Sweden Developing parts of application (budget preparation) got the highest score closely followed by Helping to find partners and Developing complete application Here are a few examples of other suggestions of support mentioned: accounting follow-up; project management; financial support; translation into English. 5. Quality analysis of CBP services Quality analysis was based on feedback and opinions received from project beneficiaries, external experts and CBP team. In order to get a broad picture of all services our project offered, 4 questionnaires were developed: 1. Post-training questionnaire distributed among national trainings participants; 2. Post-workshop questionnaire distributed among the participants of cross-border workshops; 3. Rent-an-Expert evaluation questionnaire for experts and mentors; 4. Rent-an-Expert evaluation questionnaire for beneficiaries distributed among Lead Beneficiaries of projects who received expert/mentoring support. The aim of the training (a) and workshop (b) questionnaires was to determine whether these events proved useful for the beneficiaries. They focused on the concept and structure of these events, usefulness 157

158 Rasa Viederytė, Giedrė Strakšienė PRACTICE OF CROSS BORDER COOPERATION IN CAPACITY BUILDING PROJECT: ENSURING SUSTAINABLE DEVELOPMENT of presented material and topics covered. Beneficiaries were also encouraged to share their suggestions for possible improvements and any other observations they might have. Rent-an-Expert (c) and Mentoring (d) questionnaires were structured into two main parts. The first one focused on the cooperation between the beneficiary and expert/mentor. The second part examined the procedures of Rent-an-Expert service and the quality of CBP support in the arrangement of experts/mentors help. In total 243 questionnaires were analyzed: 139 post-training questionnaires, 64 workshop questionnaires, 19 questionnaires from Rent-an-Expert users and 21 questionnaires from experts and mentors. The results were similar in all countries covered by the analysis that is why no country division is used in presenting the results. However, if any serious discrepancies were revealed in any of the examined aspects, this is taken into account and presented accordingly. The CBP supported its beneficiaries through three types of activities: national trainings, cross-border workshops and Rent-an-Expert facility. All these services were designed based on the beneficiaries needs identified in the Analysis of Barriers. Conclusions 1. The interviews mirror the questionnaires quite well when it comes to the thematic areas if the different measures. The deviations are explained by the relatively small number of people interviewed in comparison with the number of people who filled out the questionnaire. 2. After analysing the interviews the conclusion follows that the answers to most of the issues touched upon in the questionnaire and during the interviews are evident for most EU-funded programmes and not only the South Baltic Programme. 3. After analysing both the questionnaires and interviews it was evident that there was a contradiction regarding the English language as a barrier in the application process. While the questionnaires showed that this was not really a problem the interviewees on the other hand identified this barrier as an important one. This contradiction could be explained by the lack of language skills among the human resources. Even though there is enough staff in a company there is still a lack of human resources if they do not have the relevant skills. The lack of human resources was a far bigger issue in the questionnaire than the English language but the two might be related which would explain the deviations between questionnaire and interview results. While the questionnaire points out lack of human resources the interviewees state the English language to be a barrier as well. The reason might be that the human resources don t have relevant skills, such as English. 4. In the interviews those who couldn t point out any specific barriers where in many cases the same people who had no experience in the application process. 5. All areas of support are generally important in the South Baltic Programme. Since it is assumed there is a need for long-term support to build up capacity. References About Capacity Building project. (2010). Website: Analysis of Barriers for Project Development. (2011). Website: /pdf/analysis_report.pdf Capacity Newsletters Nb. 1, 2 and 3. ( ). Website: Communication from the Commission to the European Parliament, the council, the European Economic and Social Committee and the Committee of the Regions concerning the European Union Strategy for the Baltic Sea region Action Plan. (2009). European Commission. Brussels, SEC (2009) 712/2. EU Strategy for the Baltic Sea Region. (2010). Website: ec258 a9fcaf239cc55d53363 Galimi paramos gavėjai ir partneriai. (2010). Website: /galimi- paramos -gavejai- partneriai. html Management extra. Project management. (2007) Elsevier. 158

159 ISSN Regional Formation and Development Studies, No. 1 (6) Orr, A. D. (2007). Advanced project management: a complete guide to the key processes, models and techniques. London and Philadelphia: Kogan page. Self-evaluation report of the Capacity Building Project. (2011). South Baltic Cross-border co-operation programme Operational programme approved by the European Commission on 20th December. (2007). Website: =176 South Baltic Cross-border Co-operation Programme , Programme Manual, 8th Call for Proposals. (2007). Website: South Baltic publications. (2011). Website: Young, T. L. (2006). Successful project management. 2 edition. London and Philadelphia: Kogan page. TARPTAUTINIO BENDRADARBIAVIMO PRAKTIKA GEBĖJIMŲ UGDYMO PROJEKTO ATVEJU: ILGALAIKĖS PLĖTROS UŽTIKRINIMAS Rasa Viederytė, Giedrė Strakšienė Klaipėdos universitetas (Lietuva) Santrauka Straipsnyje analizuojama Pietų Baltijos regiono strategija Europos kontekste, apžvelgiama Pietų Baltijos programa, skirta spartinti šio regiono plėtrą, didinant jo konkurencingumą ir žmonių bei institucijų integraciją. Atsižvelgiant į Pietų Baltijos programos prioritetus, joje gali dalyvauti projektai, kuriais skatinamas ekonominis konkurencingumas: verslumo plėtra, aukštojo mokslo ir darbo rinkos integracija ir transporto prieinamumas, bei nagrinėjamos Baltijos jūros aplinkos valdymo, energijos taupymo, atsinaujinančios energetikos, gamtinio ir kultūrinio paveldo naudojimo regioninei plėtrai temos, įgyvendinamos vietos bendruomenių iniciatyvos. Siekiant ugdyti pareiškėjų gebėjimus, PB programos dalimi tapo projektas Gebėjimų ugdymas. Šio projekto (CAPACITY) tikslas padėti potencialiems paramos gavėjams (ypač naujokams iš regioninių savivaldybių ir NVO) plėtoti labiau susijusias su realiu įgyvendinimu ir geriau parengtas projektų paraiškas. Straipsnio tikslas gebėjimų ugdymo projekto pavyzdžiu akcentuoti tvarų vystymąsi tarpvalstybinio bendradarbiavimo praktikos kontekste. Tyrimo uždaviniai: teoriškai pagrįsti Pietų Baltijos programos Gebėjimų ugdymas projekto koncepciją, atlikti empirinę dalyvavimo projektuose barjerų ir paramos analizę ir palyginti skirtingų šalių atsakymų rezultatus. Taikyti šie darbo metodai: mokslinės literatūros ir dokumentų analizė, klausimynas ir interviu raštu, statistinė duomenų analizė. Įgyvendinant Gebėjimų ugdymo projektą buvo organizuojami mokymai pareiškėjams nacionalinėmis kalbomis, tarptautiniai mokymai, sudaryta galimybė nemokamai gauti ekspertą konsultuotis dėl projekto paraiškos rengimo. Iš viso apmokyta apie 270 asmenų visame regione, iš jų: 88 Švedijoje, 66 Lenkijoje, 43 Lietuvoje, 42 Danijoje ir 28 Vokietijoje. Tikimasi, kad įgyti pagrindiniai gebėjimai, kaip rengti projektą, leis plėtoti naujas projektų idėjas ir teikti paraiškas ateityje, paskelbus naujus kvietimus. Gebėjimų ugdymo projekto partneriai, padedant Regionų kontaktiniams atstovams, savo šalyse surengė praktinius mokymus potencialiems Pietų Baltijos programos projektų pareiškėjams. Net 15 mokymo sesijų suorganizuota įvairiose Pietų Baltijos programos šalyse: 3 Lietuvoje (Kretingoje, Tauragėje ir Klaipėdoje); 3 Danijoje (2 Zealand ir 1 Ronne); 3 Vokietijoje (Rostock); 4 Švedijoje (Kalmar, Blekinge, Skane ir Kronoberge). Mokymų sesijų dalyviai susirinko iš regioninių apskričių, nevyriausybinių organizacijų, 159

160 Rasa Viederytė, Giedrė Strakšienė PRACTICE OF CROSS BORDER COOPERATION IN CAPACITY BUILDING PROJECT: ENSURING SUSTAINABLE DEVELOPMENT muziejų, universitetų ir kitų organizacijų. Jiems vadovavo Capacity Building projekto partneriai. Mokymai skirti tarptautinių projektų plėtrai, akcentuojant pagrindines Pietų Baltijos programos idėjas. Užsiėmimų metu taikyti aktyvaus mokymosi (angl. Action Learning) metodai, t. y. dalyviai mokėsi analizuodami konkrečius studijų atvejus ir praktinius pavyzdžius, kurie leido jiems suprasti ir numatyti projekto plėtros procesą. Mokymų konsultantai/ekspertai lavino pagrindinius dalyvių gebėjimus, kaip plėtoti ir rengti projektą, pavyzdžiui, tokius kaip struktūros kūrimas, veiklos planavimas, pagrindinių žinių apie projektą teikimas ir pan. Kad mokymų metu būtų veiksmingai perteikta informacija, 2010 m. rugsėjį išleistas naujas leidinys (mokymo medžiaga), kaip plėtoti projekto idėją, parengti projekto paraiškos veiklų bei biudžetines dalis, kaip susirasti partnerių ir pan. Siekiant sukurti efektyvias priemones ir metodus, vykdytas empirinis tyrimas (interviu ir klausimynas), kurio tikslas išsiaiškinti, kas trukdo plėtoti projektus, kokios pagalbos pageidautų pareiškėjai. Pagrindiniai projektų plėtros barjerai yra šie: nepakankamas anglų kalbos mokėjimo lygis, nepakankami organizacijų žmogiškieji ištekliai, problemos dėl avanso teikimo ir kofinansavimo, bendrosios informacijos apie Pietų Baltijos programą, partnerių stoka ir kt. Pagrindinės pageidaujamos pagalbos sritys: projekto idėjos generavimas, projekto biudžeto sudarymas, partnerių paieška, bendravimo tarp skirtingų šalių partnerių palaikymas ir puoselėjimas, informacija apie paraiškų pateikimo ir vertinimo procesus. PAGRINDINIAI ŽODŽIAI: tarptautinis bendradarbiavimas, gebėjimų ugdymo projektas, Pietų Baltijos programa. JEL kodai: O19, O22, O31, O

161 ISSN Regional Formation and Development Studies, No. 1 (6) DARBUOTOJŲ DARBO MOTYVACIJOS IR PASITENKINIMO DARBU SĄSAJOS Daiva Viningienė 1 Klaipėdos universitetas (Lietuva) Anotacija Straipsnyje aptariama darbuotojų motyvavimo ir pasitenkinimo darbu samprata, reikšmė, teoriniai aspektai. Straipsnyje siekiama atskleisti, kaip motyvacija ir pasitenkinimas darbu susiję. Keliama teorinė prielaida, kad darbo motyvacijos lygis ir darbuotojų pasitenkinimas savo darbu yra tiesiogiai susiję. Ši prielaida patvirtinama tyrimu. Tyrimo rezultatai rodo, kad siekiant organizacijoje sukurti vieningą motyvacijos ir pasitenkinimo darbu sistemą, reikėtų atlikti papildomus kokybinius tyrimus, kurie atskleistų, kokie motyvuojantys veiksniai didina Lietuvos organizacijų darbuotojų pasitenkinimą darbu. PAGRINDINIAI ŽODŽIAI: darbuotojai, motyvacija, pasitenkinimas darbu, sąsaja. JEL klasifikacija: M000 Įvadas Lietuvos darbdaviai vis labiau kreipia dėmesį į savo darbuotojus, jų lūkesčius ir pasitenkinimą darbu. Tai svarbu siekiant užtikrinti savo įmonės produktyvumą, veiklos efektyvumą, teigiamą įtaką regiono ekonomikai, nes taip stengiamasi išlaikyti gerus specialistus, kuriamas teigiamas organizacijos klimatas. Straipsnyje atskleidžiama problema: dėl nepakankamai motyvuotų darbuotojų ir menko jų pasitenkinimo darbu didėja darbuotojų kaita organizacijose, o tai lemia vis didėjančias organizacijos išlaidas dėl naujų darbuotojų paieškos. Darbuotojai, kaip žmogiškieji ištekliai, yra vienas svarbiausių ekonominių veiksnių, turintis įtakos organizacijų veiklos rezultatams. Lietuvai įstojus į Europos Sąjungą, nemažai įvairių sričių specialistų išvyko iš Lietuvos į kitas šalis. Svarbus uždavinys ne tik įmonių, bet ir valstybės mastu, kaip išlaikyti darbingus žmones Lietuvoje ekonominiu sunkmečiu. Apie ilgalaikes plėtros perspektyvas mąstančios organizacijos stengiasi išlaikyti esamus darbuotojus ir ypatingą dėmesį skiria jų motyvacijai, nes dėl migracijos darosi vis sunkiau rasti kvalifikuotų, motyvuotų darbuotojų. Visoms įmonėms darbuotojų motyvacija yra aktuali, nes ne tik didina dirbančiųjų pasitenkinimą darbu, bet ir teikia apčiuopiamos naudos: produktyvesnis darbas, geresnis įmonės įvaizdis, patrauklios darbo vietos, noras išlaikyti darbo vietą, garantuotos pajamos, užimtumas. Visa tai užtikrina stabilų regiono ekonominį vystymąsi. Jei darbuotojas nejaučia pasitenkinimo darbu, nėra pakankamai motyvuotas, jis gali pasirinkti kitą, patrauklesnę organizaciją. Taigi darbdaviui kyla dilema, kaip nepatirti nuostolių dėl darbuotojo išėjimo, juk į jį buvo mažiau ar daugiau investuota, o dėl naujo darbuotojo paieškų vėl bus patiriamos papildomos išlaidos, radus tinkamą darbuotoją, į jį darbdavys turės vėl investuoti. Įmonių vadovai turėtų ieškoti būdų, kaip sumažinti darbuotojų kaitą įmonėje, kas leistų taupyti su darbuotojų samda susijusias išlaidas. Tačiau nepaprasta nuspręsti, kaip išlaikyti darbuotoją organizacijoje, nes atlyginimas nėra vienintelis kriterijus. Galima teigti, 1 Daiva Viningienė Klaipėdos universiteto Socialinių mokslų fakulteto Vadybos katedra, asistentė. Mokslinės kryptys: personalo valdymas. El. paštas: v.daiva@gmail.com Tel.:

162 Daiva Viningienė DARBUOTOJŲ DARBO MOTYVACIJOS IR PASITENKINIMO DARBU SĄSAJOS kad svarbu surasti kompleksą motyvavimo priemonių, kurios tiktų daugumai įmonės darbuotojų, kad jų kaita būtų minimali. Svarbu tinkamai įvertinti, kas gali paskatinti darbuotojus, sudominti siekti įmonės tikslų, suderinti įmonės ir darbuotojo asmeninius interesus. Šio straipsnio objektas darbuotojų motyvacija ir pasitenkinimas darbu. Tikslas: atskleisti darbo motyvacijos ir pasitenkinimo darbu sąsajas prekybos sektoriaus organizacijose. Uždaviniai: y išnagrinėti darbuotojų motyvacijos ir pasitenkinimo darbu sąsajų teorinius aspektus; y nustatyti prekybos sektoriaus organizacijose darbuotojų motyvacijos ir pasitenkinimo darbu ryšį. Tyrimo metodai: lyginamoji mokslinės literatūros analizė, anketinis tyrimas, duomenų sisteminimas ir grupavimas, apibendrinimas. Tyrimo duomenims apdoroti naudotas SPSS programinis paketas. Atliekama pradinė analizė, taikoma aprašomoji statistika: a) duomenys pateikiami grafiškai; b) apskaičiuojamos pagrindinės charakteristikos, duomenų statistiniam ryšiui nustatyti taikyta koreliacinė analizė. Vidurkiams palyginti naudotas t testas ir dispersinė analizė. 1. Darbuotojų motyvacijos ir pasitenkinimo darbu sąsajos teorinis aspektas Straipsnyje motyvavimas analizuojamas kaip procesas, susiejantis individo interesus ir organizacijos galimybes. Kitaip tariant, įmonė skatina individą duodama tai, ko reikia norint patenkinti jo poreikius, o darbuotojas už tą gerovę atsilygina siekdamas bendrovės tikslų. Keliama teorinė prielaida, kad motyvacijos lygis ir darbuotojų pasitenkinimas savo darbu veikia vienas kitą, t. y. yra tiesiogiai priklausomi. Kai kalbama apie motyvaciją gerai dirbti, turimi omenyje veiksniai, skatinantys darbuotis: darbo užmokestis, pagarba, karjeros didinimo galimybė, kūrybinė atmosfera, premijos ir pan. Tačiau motyvaciniai veiksniai skirtingus žmones motyvuoja nevienodai, todėl darbdaviams privalu žinoti kai kurias subtilybes. Vienas svarbiausių veiksnių, lemiančių darbo motyvaciją, yra darbo užmokestis. Darbuotojui svarbus faktinis darbo užmokesčio dydis ir tai, kad jaustųsi gavęs teisingą atlygį už darbą. Atlyginimas turi užtikrinti žmogaus saugumo ir tikrumo jausmą. Jei už darbą atsiskaitoma neteisingai arba nesąžiningai, asmuo jaučia nuoskaudą, kuri reiškiasi kaip nenoras stengtis darbe ir siekis keisti darbą. Taigi motyvacijos reikšmę rodo pasekmės, kai skatinimo sistemos nėra arba ji neveiksminga. Jei darbuotojo pastangos lieka nepastebėtos, jis jaučia nepasitenkinimą darbu, pradeda galvoti apie esamos darbo vietos keitimą. Motyvuotas darbuotojas jaučia didesnę atsakomybę įmonei ir klientams, pasitenkinimą darbu. Nemažai autorių motyvacijos sąvoką sieja su asmens poreikiais ir motyvais, nuo kurių priklauso individo veiksmai, elgesys darbe. K. Lukoševičius, B. Martinkus teigia, kad motyvacija tai žmogaus norai ir poreikiai (Lukoševičius, Martinkus, 2001, p. 101). Pasak R. C. Appleby (2003), motyvacija vadinami individo polinkiai, troškimai, paskatos ir poreikiai, kurie nukreipia, kontroliuoja arba paaiškina žmogaus elgesį. P. Zakarevičiaus teigimu, motyvavimas tai veiksnių, skatinančių darbuotojus geriau atlikti jiems pavestus darbus (pareigas), išaiškinimas ir poveikio priemonių, būdų, aktyvinančių veiklą šių veiksnių pagrindu, sugalvojimas bei panaudojimas (Zakarevičius, 2008, p. 79). JAV ekonomistai J. A. F. Stoner, R. E. Freeman, D. R. Gilbert (2000) motyvacijai įmonėje skiria gana svarbų vaidmenį, nes motyvacija padeda vadovams tvarkyti darbo santykius organizacijose: jei vadovai žino, kas skatina žmones dirbti, jie gali pritaikyti darbo užduotis ir atsilyginimą taip, kad priverstų juos tikėti. Nemažai autorių motyvacijos sąvoką sieja su asmens poreikiais ir motyvais, nuo kurių priklauso individo veiksmai, elgesys darbe metais atlikę tyrimą dvylikoje Lietuvos gamybos įmonių ir apklausę 559 įvairių lygių vadovus tyrimo autoriai V. R. Kulvinskienė ir A. Marčinskas daro išvadą, kad vadovų motyvavimą tirti metodologiškai sudėtinga dėl dvilypio jų vaidmens: vadovas vienu metu yra ir motyvacijos objektas, ir subjektas. Kitaip tariant, jis yra motyvuojamas, kartu turi motyvuoti ir savo pavaldinius. Vienas iš šiuolaikinių požiūrių polinominė teorija, teigianti, kad motyvavimą sudarančių elementų reikšmės per laiką gali kisti. Teorijos autorius M. Priemoli (2003) pateikia gana paprastą darbuotojo motyvacijos pavyzdį. Teigiama, kad darbuotojo motyvaciją lemia šie veiksniai: atlyginimas (20 %) + viršininkas 162

163 ISSN Regional Formation and Development Studies, No. 1 (6) (50 %) + įtaka (10 %) + darbo grafikas (10 %) + darbo atmosfera (5 %) + bendradarbiai (5 %). Jie veikia skirtingai. Taigi pasirinkto darbuotojo atveju labiausiai motyvuoja dirbti viršininkas, tada reikšmingumo požiūriu atlyginimas, įtaka, darbo grafikas, atmosfera ir bendradarbiai. Anot M. Premoli (2003), darbuotojo motyvacija priklauso nuo gyvenimo ir karjeros fazės. Jei darbuotojas ką tik baigė universitetą ir tai jo pirmi žingsniai įmonėje, svarbiausias motyvuotojas bus viršininkas. Motyvai keičiasi: jei darbuotojas ima paskolą namui pirkti, svarbiausia tampa alga; jei turi vaikų, svarbiausiu veiksniu gali tapti darbo grafikas. Dauguma žmonių, įsisukę į gyvenimo ir pragyvenimo rutiną, nesvarsto pasitenkinimo darbu klausimo. Šiandien, ekonominiu sunkmečiu, svarbu turėti darbą ir jo neprarasti tokios pagrindinės tendencijos visuomenėje. Jos sunkiai siejamos su pasitenkinimu darbu, veiksmingumu darbe ar darbdavio lūkesčiais. Reikėtų aptarti, kas yra pasitenkinimas darbu. Tai žmogaus emocinė reakcija į savo darbą. Kiekvienas atėjęs į darbą (Jonaitytė 2007) atsineša savo vertybes. Jeigu darbe puoselėjamos tos pačios vertybės, jaučiamas pasitenkinimas. Žmonių požiūriai į tai, kas svarbu, ir į tai, kas teikia pasitenkinimą, labai skirtingi. Pasitenkinimas ar nepasitenkinimas darbu individo nuostata į savo darbą neabejotinai vienas dažniausiai studijuojamų organizacinės elgsenos dalykų. D. W. Organ ir T. S. Bareman teigia, kad iki 1950 metų vadybos literatūroje dažniausiai vartota moralės sąvoka iš karinės terminologijos (Taločkienė 2002). Kadangi praktikoje taikytos nuotaikos, moralinės būklės matavimo priemonės perimtos iš psichologijoje taikomos nuostatų skalių aiškinimo technikos, ilgainiui nuotaiką, moralinę būseną pakeitė nauja nuostatos dėl darbo sąvoka. Vėliau ši sąvoka pradėta interpretuoti kaip lygis, kiek patenkinami individo poreikiai darbe. Dėl to sąvokos nuostata dėl darbo ir pasitenkinimas darbu tapo sinonimais (Taločkienė 2002). J. R. Schermerhornas, J. G. Huntas ir N. R. Osbornas (2004) pateikia kiek išsamesnį apibrėžimą: Pasitenkinimas darbu nulemia, kokio stiprumo teigiamas arba neigiamas emocijas žmogus patiria dėl savo darbo. Tai santykinai pastovi nuostata arba emocinė reakcija į užduotis bei į fizines ir socialines darbo sąlygas (Chomentauskienė, 2008, p. 142). Apibendrinant galima teigti, kad nuostatos yra vertinamojo pobūdžio tai palankūs arba nepalankūs pareiškimai apie objektus, žmones ar įvykius. Nuostatos atskleidžia, ką žmogus dėl kažko jaučia. Sakydamas man patinka mano darbas, išreiškia nuostatą dėl savo darbo. Žmogus gali turėti tūkstančius nuostatų, tačiau šiuo atveju dėmesys sutelkiamas tik į labai ribotą skaičių su darbu susijusių nuostatų, tai: pasitenkinimas darbu, įsitraukimas į darbą ir įsipareigojimas organizacijai (Robbins Stephen, 2003). Pasitenkinimo darbu pasekmės lygiai taip pat svarbios, kaip ir veiksniai, lemiantys pasitenkinimą ar nepasitenkinimą. Viena pasekmių pasitenkinimas darbu ir produktyvumas. Iš pirmo žvilgsnio atrodytų viskas pozityvu: darbuotojas patenkintas darbu, jam sukurtos puikios sąlygos, todėl savaime suprantama, kad produktyvumas turėtų būti užprogramuotas. Deja, atsitinka taip, kad turėdamas patogią aplinką darbui darbuotojas pradeda užsiimti asmenine veikla. Teigti, kad pasitenkinimas darbu visada lems produktyvumą, negalima. Šiuo metu manoma, kad ne pasitenkinimas lemia darbo produktyvumą, o produktyvumas pasitenkinimą (Robbins Stephen, 2003). Ryšys tarp pasitenkinimo darbu ir savanoriškos darbuotojų kaitos nenustatytas. Viena grupė tyrinėtojų nustatė, kad metų moterų pasitenkinimas darbu joms juos keičiant išsilaiko vienodame lygyje. Kita vertus, kuo ilgiau jos dirba viename darbe, tuo mažesnė savanoriško išėjimo iš darbo galimybė. Didesnis darbo stažas vienoje organizacijoje mažina nepasitenkinimą darbu ir tarp dirbančių vyrų. Šiuo atveju iškyla dar vienas veiksnys įsipareigojimas organizacijai, kuris svarbus pasitenkinimo darbu ir savanoriškos darbuotojų kaitos santykyje. Kitas veiksnys šalies ekonomika. Jei ji yra aukšto lygio ir maža bedarbystė, darbuotojų kaita didėja, nes žmonės ieško galimybių įvairiose organizacijose. Net jei darbuotojai ir patenkinti savo darbu, jie tiki pažadais, kad kitur bus geriau. Kita vertus, jei darbą sunku susirasti, kas būdinga ekonominiam sunkmečiui, nepatenkinti darbuotojai ir toliau čia dirbs. Daugelis pritaria nuomonei, kad kiekvienai organizacijai svarbu, kad darbuotojai būtų patenkinti savo darbu. Bet kai kurie kritikai tam nepritaria, jie remiasi tuo, kad kol kas įrodytas visiškai nedidelis tiesioginis teigiamas efektas (Taločkienė, 2002). Apibendrinant, reikėtų atkreipti dėmesį, kad veiksniai, darantys įtaką pasitenkinimui darbu, bei pasitenkinimo pasekmės yra labai įvairūs, kaip ir motyvacijų teorijos. Taigi visuomenę sudaro individai su labai 163

164 Daiva Viningienė DARBUOTOJŲ DARBO MOTYVACIJOS IR PASITENKINIMO DARBU SĄSAJOS skirtingais poreikiais, lūkesčiais ir asmenybinėmis savybėmis. Ieškant bendrų sprendimų, kaip kurti motyvavimo sistemą konkrečioje įmonėje, pirmiausiai reikia susiformuoti šiuolaikišką ir kūrybišką, gal ne visai tradicišką poziciją, kuri galėtų būti lemiamas veiksnys, užtikrinantis įmonės sėkmę. Taigi motyvuoti žmonių elgesį, nukreipiant įmonei ar organizacijai svarbia kryptimi, yra labai svarbu. Ir nors vidiniai bei išoriniai veiksniai, lemiantys žmogaus elgesį darbe, yra sugrupuoti ir teoriškai paaiškinti, realybėje juos paaiškinti gana sunku. Beje, anksčiau analizuotos teorijos turi ir savo kultūrinį atspalvį, todėl lietuvių visuomenei tiesiogiai netaikytinos. Prieš aptariant motyvacijos ir pasitenkinimo darbu sąsajas, reikėtų trumpai apžvelgti situaciją Lietuvoje. Lietuvos įmonėse ir organizacijose vis didesnis dėmesys skiriamas darbuotojų poreikiams bei lūkesčiams, vis dažniau taikomos priemonės, kurios galėtų padidinti darbuotojų pasitenkinimą darbu. Besiformuojantys rinkos santykiai neišvengiamai turėtų keisti ir Lietuvos dirbančiųjų vertybių sistemą, vis dėlto ryški išlieka elgsena, kai nepasitikima savo jėgomis, trūksta suinteresuotumo, iniciatyvos, savikritiškumo. Aukštas nedarbo lygis ir žemas pragyvenimo lygis yra viena priežasčių, lemiančių Lietuvos darbuotojų žemą vidinę motyvaciją. Pasak N. Vasiljevienės (2007), Lietuvos kultūrai svetima sėkmės, pasitikėjimo savo jėgomis etika, čia akcentuojami suvaržymai ir nuolankumas. Nuolankumo matmenį kultūroje sustiprino fatalizmo idėjos, kurios skatina pasyvumą. Apibendrinant teorinius samprotavimus ir Lietuvoje atliktų tyrimų išvadas, galima teigti, kad visuomenėje, kuriai būdingi pasyvesni individai, negalime taikyti motyvacijos standartų, taikomų aktyviems individams. Apibendrinant galima teigti, kad skyriaus pradžioje iškelta prielaida, jog motyvacija ir pasitenkinimas darbu tiesiogiai susiję, pasitvirtino. Pasitvirtino ir tai, kad motyvavimo priemonės turi sudaryti vieningą, bet kiekvienai įmonei ar organizacijai skirtą individualią sistemą, kuri, be abejonės, priklauso nuo organizacijos vizijos, tikslų ir kultūros. 2. Prekybos sektoriaus darbuotojų motyvacijos ir pasitenkinimo darbu ryšio tyrimo analizė Atliktas kiekybinis tyrimas, kreipiant dėmesį į koreliacijas, nes siekiama atskleisti ryšį tarp prekybos sektoriaus darbuotojų motyvacijos ir pasitenkinimo darbu. Tyrimui naudota P. E. Spectoro pasitenkinimo darbu skalė (angl. Job Satisfaction Survey JSS). Metodika vertina dalykinį pasitenkinimą darbu. Lietuvišką skalės variantą, autoriui leidus, parengė P. Žakaitis ir M. Rugevičius (2004). Skalę sudaro 9 subskalės, pagal kurias įvertinamas pasitenkinimas šiais dalykiniais darbo aspektais: atlygiu, paaukštinimo galimybėmis, vadovavimu, papildomomis lengvatomis, kolegomis, pripažinimu komandoje, veiklos sąlygomis, veiklos turiniu, bendravimu. Darbo motyvacijos tyrimui pasirinktas motyvacijos darbe nustatymo testas (darbuotojų motyvacija remiantis F. Herzbergo dviejų veiksnių teorija). Kiekvienas teiginys reiškia tam tikrą motyvacijos veiksnį: finansinį, pripažinimo ir dėkingumo, atsakomybės, santykių su vadovu, karjeros, rezultatų, darbo turinio, bendradarbiavimo. Šis testas gali padėti nustatyti darbo motyvacinių veiksnių stiprumą. Formuluojamos šios tyrimo hipotezės. 1 hipotezė. Kuo didesnis pasitenkinimas darbu, tuo didesnė darbo motyvacija. 2 hipotezė. Didesnį darbo stažą turintys darbuotojai pasižymi didesniu pasitenkinimu darbu, o trumpiau dirbantieji aukštesniu motyvacijos lygiu. Tyrimas buvo atliekamas 2011 m. lapkričio gruodžio mėnesiais. Kaip respondentai pasirinkti Klaipėdos apskrities statybinių medžiagų prekybos įmonių darbuotojai: vadovai (41,9 %) ir pavaldiniai (58,1 %). Apklausti 105 respondentai. Tyrime dalyvavo 54,3 % moterų ir 45,7 % vyrų. Šiame tyrime dalyvavo daugiausia metų respondentai. Jie sudarė 41,9 % apklaustųjų. 20 % dalyvaujančiųjų buvo metų asmenys. Trečioji, didžiausia, grupė buvo vidutinio amžiaus žmonės (41 50 metų), kurie sudarė 18,1 %. Gauti duomenys rodo, kad ketvirtadalis (24,8 %) respondentų turi mažesnį nei 5 metų darbo stažą, 21,0 % apklaustųjų sudarė asmenys, kurių darbo stažas 6 10 metų. Likusieji pasiskirstė panašiai: 19,0 % metų, 164

165 ISSN Regional Formation and Development Studies, No. 1 (6) 18,1 % daugiau kaip 20 metų ir 17,1 % metų. Galima teigti, kad tyrime dalyvavo pakankamą darbo patirtį turintys asmenys. Šiame tyrime gauti rezultatai atitinka nustatytus vidinio suderinamumo rodiklius (nuo 0,60 iki 0,82). Taigi gauti rezultatai yra patikimi, nes pasitenkinimo klausimyno kronbacho alfa (Cronbach alfa) 0,638; motyvacijos klausimyno 0, pav. Tiriamųjų motyvacijos veiksnių išreikštumo lygio vidurkiai Šaltinis: sudaryta straipsnio autorės, remiantis tyrimo duomenimis Analizuojant motyvacijos veiksnių vidurkius didžiausios reikšmės yra ties finansiniu veiksniu 21,13 ir darbo turinio veiksniu 20,61 balo, tai rodo, kad šie veiksniai, darbuotojų nuomone, yra svarbiausi. Mažiausiai svarbūs darbuotojams atrodo karjeros (vidurkis 14,3 balo), pripažinimo ir dėkingumo (vidurkis 15,11 balo). Toliau analizuojami tyrimo rezultatai, gauti iš pasitenkinimo darbu ir motyvacijos klausimyno. Baigiamojo darbo temai atskleisti išsikeltos kelios tyrimo hipotezės. 1 hipotezė. Kuo didesnis pasitenkinimas darbu, tuo didesnė darbo motyvacija. Šiai hipotezei tikrinti panaudotas Pirsono koreliacijos koeficientas, kuris rodo, ar yra ryšys tarp dviejų požymių. Koreliacijos koeficientas r įgyja reikšmes nuo -1 iki 1: kuo arčiau 1, tuo ryšys stipresnis. Neigiamas r rodo atvirkštinį ryšį, teigiamas tiesioginį. Rezultatų reikšmingumo lygmuo žymimas p, jeigu p <0,05, taigi ryšys tarp dviejų požymių yra statistiškai reikšmingas. Ryšys tarp pripažinimo ir dėkingumo bei finansinės motyvacijos yra atvirkštinis (r = -0,327, p = 0,001). Taigi kuo svarbesnis pripažinimas ir dėkingumas, tuo mažiau svarbus finansinis motyvas ir atvirkščiai respondentams, kurie nurodė, kad darbe jiems svarbus finansinis motyvas, pripažinimas ir dėkingumas nėra svarbus. Ryšys tarp atsakomybės ir finansinės motyvacijos yra atvirkštinis (r = -0,431, p = 0,000). Gauti tyrimo rezultatai atskleidė, kad asmenims, prisiimantiems atsakomybę darbe, darbo užmokesčio kėlimas, premijos ir kiti materialiniai skatinimai didelės reikšmės jų darbo rezultatams neturi. Kuo svarbesnis finansinis veiksnys, tuo mažiau svarbi atsakomybė. Santykių su vadovu ir atsakomybės ryšys yra atvirkštinis (r = -0,394, p = 0,000). Todėl galima teigti, kad kuo svarbesni santykiai su vadovu, tuo mažiau svarbus atsakomybės motyvas. Arba atvirkščiai, kai respondentams svarbi atsakomybė, geri santykiai su vadovu nėra svarbūs. Ryšys tarp karjeros ir santykių su vadovu yra atvirkštinis (r = -0,317, p = 0,001). Kuo svarbesnė respondentams karjera, tuo jiems mažiau svarbūs santykiai su vadovu. Kur kas svarbesni santykiai su vadovu tiems respondentams, kuriems karjeros siekimas nėra labai svarbus. 165

166 Daiva Viningienė DARBUOTOJŲ DARBO MOTYVACIJOS IR PASITENKINIMO DARBU SĄSAJOS Ryšys tarp rezultatų ir finansinio motyvo, pripažinimo, atsakomybės, santykių su vadovu, karjeros motyvų nėra reikšmingas, nes p (reikšmingumas) yra didesnis nei 0,05. Reikšmingi ryšiai tarp darbo turinio ir santykių su vadovu (r = -0,444, p = 0,000) bei rezultatų (r = -0,262, p = 0,007) yra atvirkštiniai. Tiriamiesiems, kurie akcentavo, kad jiems svarbus darbo turinys, santykių su vadovu ir rezultatų motyvas yra mažiau svarbus. Tyrimo rezultatai atskleidė reikšmingą atvirkštinį ryšį tarp bendradarbiavimo ir finansinės (r = -0,424, p = 0,000) bei karjeros (r = -0,527, p = 0,000) motyvacijos. Kuo svarbesnis bendradarbiavimas, tuo mažiau svarbūs finansinis ir karjeros motyvai. Pripažįstantieji bendradarbiavimą (darbą komandoje, su kolegomis) nesureikšmina materialinio motyvo ir galimybės siekti karjeros. Ryšys tarp pasitenkinimo darbu ir finansinės, karjeros bei darbo turinio motyvacijos yra tiesioginis kuo didesnis pasitenkinimas darbu, tuo svarbesnis finansinis, rezultatų ir darbo turinio motyvas. Gauti tyrimo duomenys neleidžia šių rodiklių interpretuoti kaip statistiškai reikšmingų (p <0,05), nes reikšmingumo rodikliai yra statistiškai nereikšmingi, gauti p rodikliai yra didesni už 0,05. Taigi pirmoji hipotezė (kuo didesnis pasitenkinimas darbu, tuo didesnė darbo motyvacija) nepasitvirtino, nes ryšiai tarp pasitenkinimo darbu ir motyvacijos veiksnių nereikšmingi. Tyrimu siekta sužinoti, ar skiriasi vadovaujančio personalo ir pavaldinių motyvacija bei pasitenkinimas darbu. Analizuojant gautus duomenis matyti, kad vadovų ir pavaldinių motyvacijos ir pasitenkinimo lygis reikšmingai nesiskiria. Vadovų ir pavaldinių motyvacijos veiksnių vidurkiai įgijo didžiausias reikšmes ties finansiniu (vadovai 19,91, pavaldiniai 22,02), darbo turinio (vadovai 19,93, pavaldiniai 21,10) ir rezultatų (vadovai 19,55, pavaldiniai 17,70) veiksniais. 2 pav. Vadovų ir pavaldinių motyvacijos veiksnių vidurkių palyginimas Šaltinis: sudaryta straipsnio autorės, remiantis tyrimo duomenimis T testo rezultatų lentelėje pateiktos p reikšmės rodo, kad vadovaujančių asmenų ir pavaldinių statistiškai reikšmingai (p = 0,04) skiriasi tik rezultatų veiksnio vertinimas. Rezultatai vadovaujantiesiems asmenims yra svarbesni (vidurkis 19,55) nei pavaldiniams (vidurkis 17,70). Finansinis, pripažinimo ir dėkingumo, atsakomybės, santykių su vadovu, karjeros ir kiti veiksniai nerodo reikšmingo skirtumo tarp vadovaujančių asmenų ir pavaldinių. Darytina išvada, kad reikšmingo skirtumo tarp vadovaujančiųjų asmenų ir personalo motyvacijos bei pasitenkinimo darbu nėra, nes šių darbuotojų statistiškai reikšmingai skiriasi tik rezultatų veiksnio vertinimas. 2 hipotezė. Didesnį darbo stažą turintys darbuotojai yra labiau patenkinti darbu, trumpiau dirbantieji pasižymi aukštesniu motyvacijos lygiu. 166

167 ISSN Regional Formation and Development Studies, No. 1 (6) 1 lentelė. Darbo stažo ir pasitenkinimo darbu bei motyvacijos koreliacinė analizė Veiksniai Finansinis Pripažinimo ir dėkingumo Atsakomybės Santykių su vadovu Karjeros Rezultatų Darbo turinio Bendradarbiavimo Pasitenkinimas Koreliacijos koeficientas r Darbo stažas Rezultatų reikšmingumo lygmuo p r -0,019 p 0,851 r 0,101 p 0,306 r -0,002 p 0,986 r 0,051 p 0,603 r -0,360 p 0,000 r 0,087 p 0,375 r 0,029 p 0,766 r 0,173 p 0,078 r 0,207 p 0,034 Šaltinis: sudaryta straipsnio autorės, remiantis tyrimo duomenimis Tyrimo duomenų koreliacinė analizė išryškino du svarbiausius veiksnius, kurie reikšmingai susiję su darbo stažu. Tai karjera ir pasitenkinimas. Gauti duomenys rodo atvirkštinį ryšį tarp karjeros ir darbo stažo: kuo didesnis darbo stažas, tuo mažiau svarbi karjera (r = -0,360, p = 0,000). Tuo tarpu pasitenkinimo ir darbo stažo ryšys yra tiesioginis: kuo didesnis darbo stažas, tuo labiau asmuo patenkintas darbo vieta, darbu (r = 0,207, p = 0,034). Galima teigti, kad ilgiau dirbantys asmenys jaučia didesnį pasitenkinimą darbu, nei asmenys, turintys mažesnį darbo stažą. Antroji hipotezė (didesnį darbo stažą turintys darbuotojai labiau patenkinti darbu, o trumpiau dirbantieji labiau motyvuoti) pasitvirtino iš dalies. Koreliacinė analizė atskleidė, kad darbo stažo ir pasitenkinimo darbu ryšys yra tiesioginis ir statistiškai reikšmingas. Tuo tarpu daugelio motyvacijos veiksnių ir darbo stažo ryšys nereikšmingas (išskyrus karjeros veiksnį). Apibendrinant tyrimo rezultatus, atkreiptinas dėmesys į tai, kad tiriama konkreti žmonių grupė, užsiimanti statybinių medžiagų realizavimu, čia priimti standartai pasiteisina ne visada. Beje, įvertinant situaciją reikia atkreipti dėmesį ir į tai, kokioje politinėje ir ekonominėje atmosferoje respondentai pildė anketas. Galbūt tiriamųjų atsakymus lėmė ir neigiamas požiūris į sunkmetį, kylantis nerimas dėl išlikimo, apatija. Atliekant tyrimus pasitaiko atvejų, kad respondentai savo motyvus kartais nutyli, anketas pildo neatidžiai ar nenuoširdžiai. Tai galima interpretuoti įvairiai, tačiau ryšys tarp pasitenkinimo darbu ir finansinės, karjeros bei darbo turinio motyvacijos yra tiesioginis: kuo didesnis pasitenkinimas darbu, tuo svarbesnis finansinis, rezultatų ir darbo turinio motyvas. Pasitenkinimas darbu šiuo atveju gali būti lyg kūrybinio potencialo paskata, leidžianti siekti didesnio atlygio, demonstruoti savo galimybes, generuoti naujas idėjas, tikintis teisingo atlygio už darbą, įvertinimo ir darbo turinio kaitos. Tačiau gauti tyrimo duomenys neleidžia šių rodiklių interpretuoti kaip statistiškai reikšmingų. Tie respondentai, kuriems svarbus bendradarbiavimas, kur kas mažiau sureikšmina materialinį motyvą arba karjeros siekimą. Bendradarbiauti linkę žmonės tenkina partnerystės ir bendravimo poreikį, tai svarbu kiekvienam individui. Draugiški ir palaikantys kolegos skatina pasitenkinimą darbu bendrai sukurtu rezultatu ir produktu. Be abejonės, verta atkreipti dėmesį, kad bendradarbiavimas svarbus visuomeniškiems 167

168 Daiva Viningienė DARBUOTOJŲ DARBO MOTYVACIJOS IR PASITENKINIMO DARBU SĄSAJOS žmonėms, kur kas mažiau individualistams, kurie puikiai jaučiasi dirbdami vieni. Vadovas turėtų pasirinkti tokį darbo stilių, kad būtų sukurta tinkama atmosfera ir tiems, kurie yra linkę bendradarbiauti, ir tiems, kurie turi kitų motyvų. Ne visus tyrimo rezultatus įmanoma interpretuoti tik teoriškai, svarbu įvertinti vidinius ir išorinius veiksnius, tiriamosios grupės poreikius politiniame-ekonominiame šalies fone bei psichologinį žmonių nusiteikimą. Ar galima būtų teigti, kad vadovaujantieji darbuotojai pasižymi aukštesniu motyvacijos ir pasitenkinimo darbu lygiu, eiliniai darbuotojai žemesniu? Tyrimo rezultatai, gauti tiriant finansinius, pripažinimo, atsakomybės, dėkingumo, santykių su vadovu, karjeros veiksnius, reikšmingo skirtumo tarp vadovaujančiųjų asmenų ir pavaldinių neatskleidė. Tačiau statistiškai reikšmingai skiriasi vadovaujančių asmenų ir pavaldinių rezultatų veiksnio vertinimas. Hipotezė, teigianti, kad didesnį darbo stažą turintys darbuotojai labiau patenkinti darbu, o trumpiau dirbantieji labiau motyvuoti, pasitvirtino iš dalies. Tai iliustruoja tyrimo rezultatai: ilgiau dirbantys asmenys jaučia didesnį pasitenkinimą darbu, nei asmenys, turintys mažesnį darbo stažą. Mažesnį stažą dažniausiai turi jauni žmonės, neseniai baigę mokymo įstaigą, pradėję savarankišką gyvenimą, turintys sėkmingo (finansinė nepriklausomybė) gyvenimo planą, kuriam įgyvendinti reikia, geriausiu atveju, teisingo darbo užmokesčio, kuris, be abejonės, siejamas su pripažinimu, įvertinimu ir karjera. Didesnį darbo stažą turintiesiems tai gali būti jau praėjęs etapas: sukurta buitis, užauginti vaikai ir pan. Saviraiškai ir savirealizacijai belikęs darbas, kuriame žmogus randa bendraminčių, pramogą, kūrybinio potencialo įgyvendinimo sąlygas, kelia didžiulį pasitenkinimą. Tačiau gali būti ir atvirkščiai: jeigu žmogus dirba iš įpročio, nes nieko kito, mano, nemoka daryti, jeigu praeityje savęs nerealizavo, t. y. nebuvo įvertintas ar pripažintas, pasitenkinimo darbu nejaus. Tyrimo rezultatai, leidžiantys daryti išvadą, kad kuo didesnis darbo stažas, tuo mažiau svarbi karjera, gana įtikinami. Išvados Teorinė prielaida, kad darbo motyvacijos lygis ir darbuotojų pasitenkinimas savo darbu veikia vienas kitą, t. y. tiesiogiai priklausomi, pasitvirtino. Darbuotojų motyvavimo sistemos kūrimas konkrečioje įmonėje ar organizacijoje turi remtis konkrečiais darbuotojų tyrimais, įmonės ar organizacijos tikslais, kultūra ir galimybėmis. Atliktas motyvavimo ir pasitenkinimo darbu kiekybinis tyrimas, kuriam pasirinkti Žemaitijos regiono statybinių medžiagų parduotuvių darbuotojai (vadovai ir pavaldiniai), iš dalies patvirtina arba paneigia darbe iškeltas hipotezes. Vieningos motyvacijos ir pasitenkinimo darbu sistemos kūrimas turi būti ne tik savalaikis, bet ir labai dinamiškas, šiuolaikiškas. Motyvavimo priemonių taikymas organizacijoje yra ribotas ir darbuotojai dėl to yra mažiau patenkinti savo darbu, tai sietina su pakankamu / nepakankamu darbuotojų motyvavimu. Pasitenkinimas darbu lemia ne tik aukštesnę darbo kokybę, bet ir organizacijos darbuotojų lojalumą. Tuo tarpu žemas pasitenkinimo lygis rodo, kad organizacijoje yra tam tikrų personalo problemų. Prekybos sektoriuje atliktas tyrimas atskleidė ryšį tarp pasitenkinimo darbu ir motyvacijos. Tyrimo duomenys rodo, kad tarp pasitenkinimo darbu ir motyvacijos veiksnių yra koreliacija, bet ji nėra statistiškai reikšminga. Palyginus darbo motyvacijos ir pasitenkinimo darbu lygį, atsižvelgiant į statusą, darbo stažą ir išsilavinimą, paaiškėjo, kad tiriamoje grupėje tai nėra pagrindiniai veiksniai. Reikšmingas skirtumas tarp vadovų ir pavaldinių atskleistas vertinant rezultatų veiksnį: vadovaujantiesiems asmenims rezultatai yra svarbesni nei pavaldiniams. Hipotezė, kad didesnį darbo stažą turintys darbuotojai pasižymi didesniu pasitenkinimu darbu, o trumpiau dirbantieji aukštesniu motyvacijos lygiu, pasitvirtino iš dalies. Koreliacinė analizė atskleidė tiesioginį reikšmingą ryšį tarp darbo stažo ir pasitenkinimo darbu: didesnį darbo stažą turintys darbuotojai jaučia didesnį pasitenkinimą darbu. Taigi, nors kiekvieno asmens atliekamos veiklos motyvacija yra asmeniška ir unikali, vis dėlto yra tam tikrų dėsningumų, kurie leidžia išskirti motyvų grupes ir kurti darbuotojų motyvavimo sistemas. Šios sistemos leidžia įmonei išlaikyti darbuotojus ir skatina juos efektyviai dirbti. Įmonės vadovų dėmesys ir išlaidos, 168

169 ISSN Regional Formation and Development Studies, No. 1 (6) skirtos darbuotojų motyvacijai didinti, visada atsiperka, o darbuotojai skleidžia teigiamą informaciją apie įmonę ir išlieka lojalūs savo organizacijai. Siekiant sukurti efektyvią motyvacijos ir pasitenkinimo darbu sistemą tirtose organizacijose, rekomenduojama atlikti papildomų kokybinių tyrimų, kurie atskleistų konkrečius veiksnius, motyvuojančius ir keliančius pasitenkinimą darbu Žemaitijos regiono statybinių medžiagų pardavėjams. Literatūra Appleby, R. C. (2003). Šiuolaikinis verslo administravimas. Vilnius: Charibdė. Chomentauskienė, R. (2008). Žmonės organizacijos turtas. Prieiga internetu: Grauslytė, D. (2008). Darbuotojų motyvacijos modelis. Prieiga internetu: Jonaitytė, A. (2007). Į darbą kaip į šventę. Pasitenkinimas darbu. Prieiga internetu: Jonušienė, D. (2008). Nuo ko priklauso pasitenkinimas darbu. Prieiga internetu: Kulvinskienė, V. R., Marčinskas, A. (2002). Gamybos vadovų motyvacinės orientacijos. Inžinerinė ekonomika, Nr. 4(30). Kaunas: Technologija. Lukaševičius, K., Martinkus, B. (2001). Verslo vadyba. Kaunas. Kauno technologijos universitetas. Marcinkevičiūtė, L. (2008). Darbuotojų motyvavimo modeliai. Tiltai, Nr. 1 (34), p Klaipėda: KU. Premoli, M. (2003). Motivation: The Polynomial Theory. Star Tribune Sales and Marketing Published. Prieiga internetu: Robbins, S. P. (2003). Organizacinės elgsenos pagrindai. Kaunas: poligrafija ir informatika. Stoner, J. A. F., Freeman, R. E., Gilbert, D. R. (2000). Vadyba. Kaunas: poligrafija ir informatika. Taločkienė, V. (2002). Pasitenkinimo darbu veiksniai. Prieiga internetu: full/3d eb Vasiljevienė, N. (2006). The new managerial technologies and processes of ethics institutionalisation. Tiltai, Nr. 34, p Klaipėda: KU. Zakarevičius, P. (2008). Modernios organizacijų valdymo teorijos. Kaunas: poligrafija ir informatika. Žilinskas, V. J., Zakarienė, J. (2007). Darbuotojų skatinimas aktuali mokslo ir praktikos problema. Tiltai, Nr. 3 (40), p Klaipėda: KU. employees relationship between work motivation and job satisfaction Daiva Viningienė Klaipėda University (Lithuania) Summary The task set was to research and find out information about work motivation and job satisfaction relationships. Achievement of the objectives was formulated as follows: to examine workers motivation and job satisfaction of theoretical aspects of a motivation and job satisfaction in selected organizations, to establish a link between them, compared to male and females groups based on motivation and job satisfaction levels and a comparison of work motivation and job satisfaction levels, depending on service status, seniority and education. Themes and challenges in the disclosure have set itself five hypotheses: the higher job satisfaction rates, the greater the motivation to work, the rank and file workers lower; greater length of service personnel with a higher job satisfaction, and shorter working a higher motivation level. PE Spector used in the study of job satisfaction scale, motivation at work test and demographic questionnaire. The choice of building materials stores in the region of Klaipėda: personnel, managers and subordinates. Interviewed total of 105, out of which 57 were female and 48 male, ages between years 169

170 Daiva Viningienė DARBUOTOJŲ DARBO MOTYVACIJOS IR PASITENKINIMO DARBU SĄSAJOS old, 24.8 % of respondents had up to 5 years work experience, 21.0 % of the respondents were people who had 6 10 years work experience. Most of the interviewed were people with higher education. The larger percentage were subordinate workers (58.1 %), the remaining (41.9 %) were higher position workers such as managers directors. During this task an analysis of employees motivation, the significance of the organization, disclosed the essential aspects of the theory of motivation, the diversity of measures of reasoning, an introduction to the concept of job satisfaction, job satisfaction analysis of determinants and consequences. After the motivation and job satisfaction survey, the following were revealed concerning the motivation and job satisfaction and access to defy or partially confirmed the hypothesis raised by the work is as follows: a comparison of work motivation and job satisfaction levels, depending on the status, work experience, showed that the group is not the major factors of job motivation and job satisfaction. KEY WORDS: job motivation, job satisfaction, employees. JEL codes: M

171 ISSN Regional Formation and Development Studies, No. 1 (6) PLACE MARKETING StraTEGY OF LATGALE REGION DEVELOPMENT Jekaterina Vozņuka 1 Baltic International academy (Latvia) Abstract In this paper the author has developed place marketing strategy model for Latgale region that could be used as the base for working out programs of social and economic development. The author defines essence and specific of the marketing places conception, analyses Latgale region as marketing object based on segmentation and research of target markets. Interrogatory methods were used to investigate target audience of the region. The results of analysis of Latgale region and the results of the research of its target markets became empirical base for Latgale region place marketing strategy model. The developed place marketing strategy for Latgale region is based on regular and systematic investigation of the condition of the territory and its development tendencies in order to take rational decisions and to choose the priority development directions in the conditions of limited resources in accordance with real or potential demand of the target markets and to allocate the existing resources for its satisfaction. KEW WORDS: development, target market, positioning, place marketing. JEL codes: R190, R580, M310 Introduction Today the non-homogenous regional development is one of the most significant problems in many countries. In the conditions of economic crisis the situation in low-developed regions becomes even more complicated. The growing competition, the increase of social problems, the deficit of financial support and disbalance of budget enhance the problem. In these conditions the change of approaches and paradigms is essential both in economics and management as the perception of humans, their behavior and motives have changed. The understanding of the aforementioned situation enables to find new resources and opportunities. Economic crisis makes corrections in development programs and scenarios, and only appropriate strategies, adjusted to current situation, will matter. To stimulate regional development and to remedy crisis situation, it is possible to use marketing approach, considering the advantages of territory as a project that certain target audiences are interested in. Place marketing is a little developed economic tool in Latvia and a new direction of Latvian economic science. The problem of the use of place marketing in Latvia is topical due to several reasons. First of all, globalization and capital integration process is developing; secondly, the competition between different territories for resources and buyers increases; thirdly, the EU regulations stimulate free circulation of capital, goods and people and, therefore, it becomes significant to pay more attention to place marketing sphere; fourthly, there are internal problems in the country, including the above mentioned non-homogenous development of Latvian regions as well as low loyalty of population to the regions, a high level of migration etc.; fifthly, a complicated economic situation in the country requires the search of new development approaches. 1 Jekaterina Voznuka Baltic International academy, docent, doctoral degree in Economics (Dr. oec.), marketing consultant. Scientific interest: marketing strategy. katja.bki@inbox.lv Tel.:

172 Jekaterina Voznuka PLACE MARKETING SRTATEGY OF LATGALE REGION DEVELOPMENT The level of regional economic development is characterized by the following indicators: gross domestic product, the number of economically active companies, the amount of non-financial investments, population and the rate of unemployment. According to the most of these indicators, Latgale region has the lowest position amongst the other regions of Latvia, despite the fact that the guidelines of regional development of Latvia were approved and the conception of regional development policy was adopted more than ten years ago. The object of the research is Latgale region of Latvia. The purpose of the article is to research the opportunities of the use of place marketing in Latgale region development. In order to achieve this purpose, the following tasks have been set up: 1. To analyze the opportunities of the use of place marketing in the development of territories by generalizing and comparing modern place marketing conceptions and developing a precise overall marketing technology for use in territory development programs; 2. To research Latgale region as a marketing object and to analyze the target markets of the region and their needs; 3. To analyze the real and potential product of Latgale region from the standpoint of households, business environment representatives and visitors; 4. To develop place marketing strategy model for Latgale region, aimed at the stimulation of its social and economic development, by generalizing and systemizing theoretical and practical information, based on the results of the conducted researches. In the research conventional theoretical and empirical qualitative and quantitative methods have been used, including informative analysis and generalization of monographs and other sources; comparative analysis and synthesis method; processing of statistical data, using comparison analysis; researches, based on secondary information; interrogation by using questionnaires and focus groups, based on descriptive and analytical statistical method. 1. Place Marketing Conception In the conditions of limited resources one of the main territory management tools is the improving of the quality of the existing resources ad the creation and attraction of new resources. The enhancement of the level of territory development can be achieved, using marketing approach. The novelty of place marketing conception is related to the fact that the territory is considered not as an administrative unit, but also as an economic subject and object that satisfies the needs of external and internal audience in order to increase its wealth. Based on the research and generalization of place marketing conception (Ashworth, Voogd, 2007; Kotler, 2004; Olins, 2003) and definitions, the author suggests the following interpretation: place marketing is a target-oriented action that includes market research, product planning, creation, management and promotion in the market in order to satisfy the needs of interested target audiences and to achieve the objectives of the territory, related to its economic and social development (Вознюк, 2008: 283). The target markets of place marketing cover a very wide scope of audiences, as different features of territory and the objects of different spheres can draw one s attention depending on the objectives (Kotler, 1993: 22 33). From the author s point of view, first of all target markets should be distinguished depending on their objective related to the territory; in order to facilitate segmentation process, the author suggests to consider the target markets, taking into account their location in the territory our out of the territory. Therefore the target markets can be classified to internal and external markets, as shown in the scheme, developed by the author (Figure 1). Inside of each target market several segments can be distinguished, that could be considered as actually or potentially attractive for the territory, and visa versa the segments that consider the territory as attractive for their specific objectives. At the same time one should recognize that the advantages of one of the same territory cannot be interesting for all markets. The so-called non-differenced marketing strategy is not available for small territories with limited resources and weakly exposed potential, low competitiveness and economic development. 172

173 ISSN Regional Formation and Development Studies, No. 1 (6) Target markets of the territory External markets Internal markets Investors The companies outside the territory (within the borders of the internal market of another territory, international markets) Visitors (tourists, job seekers, business trips; trips, aimed at the investigation of opportunities of the territory etc. Companies (production, IT, trade, services and other branches) Residents (workers of different qualifications, students, pensioners, businessmen etc.). Figure 1. Target Markets in Place Marketing Source: Praude, Vozņuka, 2008: 105 The author suggests using the marketing complex approach 4P (Product, Price, Place, Promotion) in place marketing, taking into account the particularities and specifics of territory. Product is the variety of resources and products of the territory, their amount and quality the target markets are interested in. As an example, geographic location, nature objects, infrastructure, living standards, business activity and many other advantages that can stimulate the interested groups to use the territory for their objectives can be mentioned. The determination of product price depends on the particularities of the consumers of this territory. For households these are life values, the level of income and social benefits as well as the value of specific products. For tourists service prices as well as the presence and availability of cultural and historical monuments will matter. Potential investors will consider the attractiveness of the value of the available resources, tax rates, the features of local legislation and regulations that impose limitations or stimulate investments etc. Product place is the concentration and availability of material resources, intellectual and technological potential for interested groups and their locations. It should be taken into account that it is impossible to move the product (territory advantage) and to offer it to potential consumers within the same territory. A reverse process takes place, i.e., the consumers should move around in order to get the product of the territory. An exception is the activities of territory in export market, however, even in this case the location of territory is of great importance as the distance from it and the expansion of the covered markets influence the price of the product, therefore the territory can reduce the competitiveness of its product. Product promotion is a complex approach of marketing communications that includes the creation of information and distribution channel, its content, form, bearer, amount and implementation time. The working out and planning of place marketing strategy, aimed at region development, is based on extended researches in different fields. The directions of the researches (Figure 2) determine marketing planning stages. 173

174 Jekaterina Voznuka PLACE MARKETING SRTATEGY OF LATGALE REGION DEVELOPMENT Planning stages Territory analysis The research of competitive environment Determination of target market, segmentation and analysis The determination of territory products Territory positioning The development of place marketing strategies and programs The development of observation and control mechanisms Figure 2. Place Marketing Conception Development Stages Source: the scheme is developed by the author Compared to strategic planning, that is widely used in the working out of territory development strategies and in regional policy, the place marketing conception is more oriented in market demand, adjusted to market conditions and, therefore, in author s opinion, can provide more efficient results. 2. The Analysis of Latgale Region as Place marketing Object and its Target Markets In the analysis of Latgale region as place marketing object the main attention was paid to the segmentation of target markets of the region and the analysis of real and potential product of Latgale region from the standpoint of households, business environment representatives and visitors. In the process of development of place marketing strategy for households target market, first of all, one should determine the possible product of the territory, i.e., the advantages and disadvantages that can satisfy the needs of the households for the place of residence, or, on the contrary, create negative attitude and stimulate them to change their place of residence. In order to research the households attitude and their satisfaction with their place of residence, interrogations have been made in focus groups and using questionnaires (quota selection method, the selection scope 400 respondents). The analysis of the results has showed that the contentment with the place of residence is determined by many factors. The following factors are the most important ones: y The existence of working places; y The availability and quality of medical services; y Ecologically sound environment; y Good condition of roads and the availability of urban amenities; y Security and low crime level. At the same time, along with social and economic indicators satisfaction with the place of residence is also influenced by the features that mostly relate to human communication environment, affinity, nationality and mother tongue. The correspondence of all factors to Latgale region has been evaluated. The results show that the total level of evaluation of the factors that determine satisfaction with the place of residence in Latgale is lower 174

175 ISSN Regional Formation and Development Studies, No. 1 (6) compared to the households demands. Such factors as the existence of working places and good condition of roads and the availability of urban amenities do not correspond to the situation in the region at all these are on the last positions; amongst the most demanded factors only ecologically sound environment has been treated as the feature that corresponds to Latgale district. The availability and quality of telecommunications, bank services and consulting as well as the existence of preschools are the closest ones to the households requirements in terms of situation evaluation; however, it should be noted that these features have a moderate influence on the satisfaction of people with their place of residence. Despite the fact that the largest part of population associate Latgale with their home and Motherland, the level of loyalty can hardly be considered as high, as a total of approximate 35% of respondents consider the opportunity to leave Latgale. Based on the analysis of the factors that determine satisfaction with the place of residence and the features of Latgale region in respondents opinion, the author concludes: Latgale as a place of residence is evaluated negatively as the most significant factors that determine the satisfaction of people with their place of residence in respondents valuations are amongst the deficiencies of the region. No doubt, in case the territory does not have any other real advantages the strategy of region positioning as a place of residence can be based on the features of secondary importance (for example, quality of telecommunications and bank services), creating the demand for these features, emphasizing their importance and necessity. This technology is based on reorientation of public opinion and attention to other less important aspects in order to switch attention from problematic branches and to gain time for liquidation of negative features. It is not expedient to assume the probability of sustainable success without changes in living conditions of Latgale region, implementing the strategy, based on the features of secondary importance, as well as to hope for endless loyalty of population. The mentioned problematic issues stimulate the development of negative image of Latgale region, as perceived by the population, and require a prompt solution, as all these directions have a great importance in the planning of region development strategy. The behavior and activities of local and foreign businessmen, export and investors target markets are interconnected; therefore the author analyzed these markets jointly. Business activity is the main condition of the increase of economic development of the region. The general economic situation in Latgale is described with the same tendency as is in the country overall, both in terms of economic growth and crisis. However, economic situation in Latgale is worse than in Latvia overall. Today the local businessmen perceive ambiguously not only business development, but also existence in Latgale. Unfavorable forecasts, the general reduction of economic activity as well as the drop in purchase power of the households enhance the negative attitude of businessmen and their willing to search for the solution of this unfavorable situation. As a rule, amongst the most important factors for local and foreign businessmen, export and investors target markets the following factors can be distinguished: the conditions of business startup and favorable business environment and tax system; the situation in labor market and the availability of labor force; the level of development of infrastructure and bank sector and the availability of finance; competitiveness policy and the efficiency of normative acts and courts country; the policy of development of small and middle enterprises (SME) and public organizations, acting in the interests of businessmen and in order to provide support for business development. Most of the mentioned factors are not exposed in territory level and are related to the overall territory of the country, therefore they cannot objectively distinguish Latgale region in any terms (positive or negative) amongst the other regions of Latvia and they should not be considered as the factors, determining business development in Latgale. However, there are also other objective factors that can influence the competitiveness of Latgale region as a place for business location amongst the other regions of the country. According to the results of the analysis there are the following advantages for business environment in Latgale region: y Business development traditions: experience and the availability of qualified labor in different branches of national economy; y Geographic location. 175

176 Jekaterina Voznuka PLACE MARKETING SRTATEGY OF LATGALE REGION DEVELOPMENT The territory can assign to business development traditions leading role in the determination of territory product, as the development of certain branches in the region does not only influence the direction of business image development, but also points to the experience and the existence of qualified labor in national economy branches. Amongst the major branches wood processing, metal processing and food processing industry as well as furniture production, transportations and transit can be mentioned. Geographic location of Latgale region is an objective advantage that can be used for many different business activities (export stimulation, the foundation of co-products and additional products manufacture and investments in these companies etc.). At the same time transportations and transit should be considered as one of the most important factors in the determination of the supply of place marketing product of the region. Amongst the other regions of Latvia, Latgale has all rights to be considered as the most promising region in terms of tourism development. The region offers various recreation options, especially active recreation outdoors and rural tourism. The natural conditions and historical traditions of Latgale region also influence the development of tourism sphere and the formation of a certain image in terms of visiting and resting in the region. One of the types of tourism that is developing in Latgale and is primarily associated with this region is rural tourism. The analysis of supply of Latgale companies, working in tourism sphere, enables to conclude that they try to use the potential of nature, as recreation in Latgale is mostly related to rural tourism and outdoor activities. Overall, the following Latgale region positioning features can be distinguished: y Latgalian language; y The land of blue lakes; y Picturesque landscapes; y Ceramics the traditional business card of Latgale; y Aglona church (is amongst the top 10 tourism objects in Latvia). The information on Latgale region as a resting place, provided by mass media, is limited and monotonous and it does not contain any special features that could make people interested to spend time in Latgale. The activities of public and private sector in this field are not coordinated, both work on its own. In order to determine and investigate the target market of potential visitors of Latgale region, the author used an interrogation, based on determinate selection. The analysis of motivation of spending free time in Latgale shows that the main motive is related to outdoor resting. Next significant motives are active resting, interesting excursions as well as beautiful and clean environment. If such motives as resting at the lake or river coincide with the components of Latgale region product and could be used in positioning, then active resting and interesting excursions should be considered as a potential component of the product and segment that is based on these motives and represents potential market audience. The main motive to spend free time in Latgale region has been fully justified, as this is also the main association with Latgale as the land of blue lakes. The strong association with the land of blue rivers points to a certain image, based on natural resources that in turn determine the main positioning component. Secondly, negative associations are mentioned relatively more seldom by the residents of the other regions of Latvia this means that such significant factors as low level of infrastructure development and low living standards do not influence the image of Latgale region so far. 3. Place marketing objectives and marketing complex of Latgale Region Despite the crisis situation, the author thinks that Latgale region still has potential that can be used for its development. No doubt, the accrued problems considerably exceed the opportunities to solve them; therefore it is extremely important to determine the priority directions correctly and to allocate resources for the activities that are the most advantageous in terms of territory development and profitability. In the conditions of limited resources the development of territory can be achieved by using place marketing conception and working out development strategy on its base. 176

177 ISSN Regional Formation and Development Studies, No. 1 (6) In author s opinion, the formulation of place marketing objectives for Latgale region could be the following: y To provide the maintenance of real products, improving their quality and availability; y To retain the existing consumers by enhancing the level of satisfaction of their needs; y To develop relations with place marketing activities intermediaries and facilitators (specialized institutions on the level of region, state level and international level); y To increase the portion of attracted and retained consumers in each target market; y To enhance the level of loyalty of consumers of territory products; y To investigate the tendencies of region image formation in different audience and to make efforts to improve it; y To develop and create new product components according to the needs and demand of target markets. Based on the main marketing mix elements ( 4P ), planning territory development strategy on the base of place marketing conception, in author s opinion, it is expedient to pay attention to the mentioned strategic objectives as they determine the direction of development, the specifics of strategy and its realization opportunities (potential). When planning the development of place marketing strategy for Latgale region related to internal markets households and companies, it should be taken into account that the territory products these audiences are interested in are related to several conditions in terms of life comfort, ability to work and development standpoint. Today the region can offer the following real products to the households: y Ecologically sound environment; y School and educational establishments, their high quality; y The availability and quality of banks and other financial services; y Life together with relatives and friends. When developing the most demanded product components, real product should be maintained as supported in order not to loose it in the most pessimistic case. In present situation, in order to develop the image of the region, these real features should be used in positioning process, as they, in spite of their secondary meaning according to the residents valuations, enable to create basis for positive image of Latgale region. The product strategy, related to business audience requires the biggest attention and resources to be involved. It is explained by the fact that Latgale region cannot offer to business target markets any especially attractive features. The location of the region at the border is traditionally used for transit (in other words, due to the absence of alternative), however, the completion of this function is also on a rather low development level, that in turn impacts the formation of business image of the region. Therefore today real product in this market today is formed by just one component geographic location that is important for certain branches, for export or transit. All the other territory product components that could be interesting for business market segments are to be developed. Recreation outdoors forms a real product for both real and potential visitors of the region, as there are market expansions opportunities the product can be promoted outside of Latvia. The rural tourism feature of Latgale region, compared with the supply of other territories of Latvia, is based on multiple lakes and the best remembered by many people name the land of blue lakes, as well as such features as different culture (as it is believed that the region has not only its own language, but also its specific cultural traditions). As the analysis of the results of researches showed, the following components of potential product related to the target segments of recreation enthusiasts and tourists should be developed: y Fascinating tour, based on visiting significant places; y Event marketing. Taking into account the specifics of territory and its products, the development of product distribution channels strategy is not demanded, as the product is related to the location of territory and a reverse process takes place interest audiences should come for the product. The second issue how advantageous, convenient and available in terms of geographic location the product is situated and can be accessed, taking into account the conditions of 177

178 Jekaterina Voznuka PLACE MARKETING SRTATEGY OF LATGALE REGION DEVELOPMENT infrastructure development and transport connection. An interested person should make certain efforts, spend some resources as well as apply some skills and qualifications in order to visit some significant place, move to a new place of residence or to locate a production workshop in a certain territory. This aspect, related to marketing complex element place, points once more to the interrelation and sometimes integrity of marketing complex elements. Pricing strategy is one more important part of marketing complex and a very complicated component, as the revenues of territory directly depend on price. A clever pricing, from one side, helps the territories to compete between each other for the attraction of target markets, but, from the other side, on regional level pricing policy is mostly determined by state policy and in some cases it is impossible to offer to the interested audiences price advantages. At the same time the status of backward territories of Latgale region with a low level of social and economic development enables to hope for both governmental support and a wider use of European funds allocations for the realization of their programs that are fully or partly aimed at the achievement of place marketing objectives. Promotion strategy is developed in order to provide the target markets with information on territory product. This strategy requires decision taking on the use of the main types of marketing communication, i.e., advertisement, sales promotion or stimulation measures, public relations, direct marketing and personal sales/servicing. The main communication objectives related to the target markets of Latgale region can be defined as follows: y For the households target market: to provide people with a certain understanding of their place of residence, the advantages and disadvantages of the region and an adequate valuation of them; y For business environment target market: to inform on advantages of the region in terms of realization of business activity, based on competition and using marketing mix components price and placement. For the target market of visitors and recreation enthusiasts: to stimulate them to spend their free time in Latgale, therefore the main communication tools are related to sales promotion technologies. In Table 1 the model of place marketing strategy development for Latgale region is given, based on the results of the researches. Table 1. Place Marketing Strategy Model for Latgale region Target market Population (households) Business audience Visitors/ recreation enthusiasts Segmentation criterion People, living in the territory of the region (real consumers) Businessmen, export market, investors Place of residence: Latgale, other regions of Latvia, foreigners Objective To retain in the territory To develop relation and to attract To increase the number of segments Positioning, based on territory product Clean environment and beautiful landscapes The availability and quality of modern services Motherland, relatives and friends The proximity of the markets of the EU and CIS countries Cheap and highly qualified labor Hospitable land of blue lakes with ecologically sound environment, its own language and cultural traditions Territory image creation strategy Image reformation Image development Image improvement and enhancement Communication types Educative, explaining and persuasive Informing Stimulating Source: the table is composed by the author In present situation the objective of place marketing of Latgale region is based on retention of the target market, using the according products. These products obviously meet the requirements of the target markets 178

179 ISSN Regional Formation and Development Studies, No. 1 (6) only partly, however, the creation of new products requires time and resources, but the loss of segments of the target markets in current economic and social situation endangers not only the development opportunities of the territory, but also its survival. 4. Positioning strategy and image of Latgale region Positioning strategy can be distinguished separately, as it has its own specifics in place marketing. When forming the position of territory, one should choose only those facts and events that correspond to the interests of each determined and deeply researched audience. Based on product strategy and the results of the research, the comparison of real and desired position, the analysis of association rows, territory advantages and opportunities and tendencies of its development, the author has developed the main positioning components for each target market: 1) For households target market: y The land of blue lakes, clean environment and beautiful landscapes; y Motherland, relatives and friends; y The availability and quality of modern services. 2) For business environment target market: y The proximity of the market of the EU and CIS countries; y Cheap and highly qualified labor; y Priority branches: logistics, wood processing, food industry, metal processing, rural tourism. 3) For visitors target market: y The land of blue lakes and ecologically sound environment; y Own language and cultural traditions; y Hospitality. The results of the research showed that the image of Latgale region is negatively evaluated by the households as the most important features that are necessary in order to provide that a person is satisfied with his or her place of residence are amongst the disadvantages of the region they are not developed or are lowdeveloped. This makes the base for the conclusion on image creation strategy and the most complicated task for its implementation to reform the image of the region. The region is evaluated more positively by potential visitors and recreation enthusiasts, but recreation place position is not that strong and cannot attract enough visitors. Therefore image strategy for this target market is to improve and enhance favorable attitude to the region. In business sphere Latgale region is evaluated ambiguously that point to a contradiction in region image. This in turn does not stimulate a stable interrelation with this sector s representatives that could provide the region with the results of positive long-term cooperation and development. Therefore image development strategy for this target market requires initial efforts image conception development and formation. Territory image formation technology is based on the chosen position, as its components make the major platform the territory image is formed around. The achievement of balance between the real and desirable position is the first step in image formation process. It is followed with the promotion of position, using integrated marketing communication. 5. Integrated marketing communication Integrated marketing communication reflects the essence of place marketing strategy, joining together both all elements of conception and separate activities, that in certain conditions get transformed to competitive advantages or emphasize and draw attention to the components of product, offered by the territory, the target markets are interested in. 179

180 Jekaterina Voznuka PLACE MARKETING SRTATEGY OF LATGALE REGION DEVELOPMENT No doubt, one cannot affirm that marketing communication programs, aimed at the presentation of the region, information of different audiences and drawing their attention, have not been used in Latgale region before. Latgale region participates in several projects, especially based on near-border cooperation. This opportunity obviously influences region development and enables to find new approaches as ideas. However, from place marketing standpoint the following negative aspect should be mentioned: the participation of regional administration and organizations in the projects is not structured and non-systemized that, in author s opinion, does not stimulate the formation of identity of the region, even more it creates an uncertain image that often contains ambiguous formulations and mottos. The author can explain it with the lack of unified conception and the variability of authorized organizations, amongst which each organization has its own opinions on Latgale image creation and the opportunities and ways of its development. Therefore the activities that directly or indirectly perform the functions of impact on target markets, are not coordinated and, due to the mentioned deficiencies, are not only unable to draw attention to the region, but also can reduce interest due to this uncertainty, especially in cases of repeated appeal. Based on the conception of the choice of integrated marketing communication tools and taking into account the main directions of the developed Latgale region place marketing strategy, a model of planning of marketing communication distribution tools is suggested in Table 2. As can be seen in table 2, nearly in all cases the traditional communication tools TV as well as printed press newspapers and magazines can be used. The organization of special events and taking part in these events is specific depending on the segment, as for local population these could be local public events, for business environment representatives visiting presentations, participation in thematic exhibitions and other events that can provide direct contact, but for visitors it could be the organization of attractions and participation in thematic tourism exhibitions. At the same time Internet is of great importance, not only based on the features of the target markets of the region and communication objectives of the target markets, but also taking into account the role of Internet and its obvious advantages in terms of information distribution, the coverage of audience and interest to the home pages, banners and other tools. Table 2. The Planning of Integrated Marketing Communication Distribution Tool Target market Local population Business environment Visitors Target market segments With positive/ neutral attitude With negative attitude Audience with previous experience, relatively informed Audience with low information level Audience with previous experience, relatively informed Audience with low information level To inform, to educate, to explain and to persuade To inform, to draw attention To inform, to draw attention, to stimulate actions Communication objective To enhance or to create positive attitude Communication distribution tools TV, radio, newspapers and magazines, outdoor advertisement, special events, Internet To change negative attitude TV, newspapers and magazines, special events, Internet To improve the attitude TV, radio, newspapers and magazines, outdoor advertisement, special events, Internet, printing production and souvenirs To create positive attitude To enhance recognisability and to improve positive attitude To create recognisability and positive attitude Source: the table is composed by the author TV, newspapers and magazines, special events, Internet, printing production and souvenirs TV, radio, newspapers and magazines, outdoor advertisement, special events, Internet, printing production and souvenirs TV, newspapers and magazines, special events, Internet, printing production and souvenirs 180

181 ISSN Regional Formation and Development Studies, No. 1 (6) Conclusions Based on the research, conducted in scope of the research, the author has made the following conclusions. In order to reduce the lag between Latgale region and the other regions of Latvia and to stimulate its social and economic development, it is necessary to use place marketing approach in the working out of region development strategy, based on the determination of real advantages of the region and their positioning according to the needs of the target markets. As the result of research and generalization of theoretic formulizations of place marketing, the author has systemized and supplemented marketing conception that can be used as a base for planning territory development strategy. Place marketing is a target-oriented activity that includes market research, product planning, creation, management and promotion in the market in order to satisfy the needs of interested target audiences and to achieve the objectives of the territory in economic and social development. The main feature of place marketing conception is its orientation on different target markets. The objective of market segmentation is to determine the relatively homogenous needs for the territory of each interested group, as each group can be interested in certain advantages or, in terms of place marketing, it can demand a certain product, offered by the territory. Latgale region has the lowest position amongst other regions of Latvia, as general development is usually evaluated, based on social and economic indicators, that, in turn, has a significant impact on primary attitude base and territory image formation. These indicators provide objective information; however, the target markets are interested in some specific features of the territory that are impossible to reflect objectively in statistical data. These features have been determined by the results of interrogatory researches and used as a base in development of the place marketing strategy. The place marketing of Latgale region is based on the supply of real territory product to the target markets as well as the development of potential product and the promotion of attractive features in order to inform the target market on distinctive advantages of Latgale region. Today Latgale region can offer the following real products: y For households target market: ecologically sound environment; schools and educational establishments, their high quality; the availability and quality of banking and financial services as well as telecommunications; the place where relatives and friends live; y For the businessmen s target market (business environment): geographic location, traditions of production; y For the visitors target market: resting outdoors. y Based on the analysis, the author has developed the following recommendations for Latgale region local government: y To use place marketing conception for territory management, creating supply that the existing or potential residents, businessmen, investors and the visitors of territory need and are interested in; y To determine the segments of external and internal target markets of territory, including real, potential and desirable, and to research their needs, interests, priorities and expectations; y To analyze the resources of territories, to plan their development and improvement in accordance with the needs of the target markets; y To concentrate place marketing activities on priority groups: households and businessmen, involving both groups in cooperation as well as to inform them on the activities and results; y To monitor place marketing elements on continuous base, starting from products and services and ending with tourism communication, to coordinate it so that all products of the territory can be recognized outside the territory. References Ashworth, G., Voogd, H. (2007). Place Marketing: Marketing in the Planning and Management of Places. Routledge. Kotler, P. (2004). Attracting investors: a marketing approach to finding funds for your business. Hoboken: Wiley. Kotler, P. (1993). Marketing Places: Attracting Investment, Industry, and Tourism to Cities, States, and Nations. Free Press. 181

182 Jekaterina Voznuka PLACE MARKETING SRTATEGY OF LATGALE REGION DEVELOPMENT Olins, W. (2003). Wally Olins on brand. London: Thames and Hudson. Praude, V., Vozņuka, J. (2008). Classification of Target Market and Features of Segmentation in Marketing Places. Ekonomika, Nr. 81, p Vilniaus universitetas. Schiff, M., Winters, A. L. (2003). Regional Integration and Development. Oxford University Press. Vaidere, I., Vanags, E., Vanags, I., Vilka, I. (2006). Reģionālā politika un pašvaldību attīstība Eiropas Savienībā un Latvijā. Rīga: Latvijas Universitātes Akadēmijas apgāds, Latvijas Statistikas institūts. Vozņuka, J. (2008). Latgales reģiona iedzīvotāju dzīves vietas izvēles faktoru analīze. Latvijas Universitātes raksti. Ekonomika, t. 7, 737.sējums, lpp Вознюк, Е. (2008). Маркетинговый подход к стратегическому планированию территории. Current Issues of the Economy and the Management of Business, University of Economics Varna, Jubilee Scientific and Practical Conference, Juna 2008, p Панкрухин, А. П. (2006). Маркетинг территорий. 2-е изд., дополн. СПб.: Питер. LatgalOs regiono vietos RINKODAROS strategija Jekaterina Voznuka Tarptautinė Baltijos akademija (Latvija) Santrauka Skatinant regionų plėtrą galima pasinaudoti rinkodaros priemonėmis, vertinant teritorijos privalumus, kurie svarbūs tikslinei auditorijai. Investuotojų ir turistų pritraukimas, gerų verslo sąlygų vietos verslininkams užtikrinimas taip pat priklauso nuo rinkodaros, todėl jos strategijos rengimas šiuo metu ypač svarbus valstybiniame, regiono ir miesto lygmenyse. Vietos rinkodara tai veiksmai, apimantys rinkos tyrimus, produkto kūrimą, valdymą ir rėmimą rinkoje, siekiant patenkinti vartotojų poreikius tam tikroje teritorijoje. Efektyvi vietos rinkodara pritrauktų atitinkamų vartotojų grupę į jų poreikius tenkinantį regioną. Vietos rinkodaros koncepcija gali padėti pasiekti rezultatą, nes ji nukreipta į rinkos poreikius tam tikros vartotojų grupės poreikių nustatymą, kuriuos tenkinant naudos turėtų tam tikra teritorija. Nevienalytė Latvijos regiono plėtra yra viena pagrindinių šiandienos problemų. Latgalos regionas užimą paskutinę vietą tarp kitų Latvijos regionų. Ištyrus šį regioną nustatyta, kad jis visiškai pasirengęs taikyti vietos rinkodaros koncepciją, kuriant regiono plėtros programas. Latgalos regione sunkiai tenkinami vietos gyventojų ir verslininkų poreikiai, nes svarbiausi šios tikslinės rinkos veiksniai regione išvystyti silpniausiai. Kiek geriau tenkinami atvykstančiųjų į Latgalą poreikiai. Verslo aplinkos produktą sudaro geografinė padėtis, gamybos tradicijos ir rekreaciniai ištekliai Latgalos regione. Efektyvus šių produktų valdymas, pozicionavimas ir rėmimas skatintų pagrindinės tikslinės rinkos pritraukimą ir taip prisidėtų prie socialinio ir ekonominio regiono vystymosi. Latgalos regiono vietos rinkodaros strategijos modelis parengtas visoms tikslinėms rinkoms ir apima tokius elementus kaip: segmentavimas, tikslai, pozicionavimas, regiono vystymosi krypčių ir gairių rengimas, bendri komunikacijos kanalai ir priemonės vykdyti integruotą rinkodaros komunikaciją. PAGRINDINIAI ŽODŽIAI: vystymas, tikslinės rinkos, pozicionavimas, vietinė rinkodara. JEL klasifikacija: R190, R580, M

183 ISSN Regional Formation and Development Studies, No. 1 (6) LIETUVOS INOVACINĖS VEIKLOS TENDENCIJOS IR TOBULINIMO GALIMYBIŲ ANALIZĖ EUROPOS SĄJUNGOS KONTEKSTE Vytautas Jonas Žilinskas 1, Jelena Dementjeva 2 Klaipėdos universitetas (Lietuva) Anotacija Pagrindinė politikos Europos Sąjungos regionų plėtros problemai spręsti dalis turėtų būti atitinkama regionų raidai skirta inovacijų politika, numatant joje įvairias regioninio ir tarptautinio konkurencingumo inovacijų srityje plėtojimo formas, tinkamas skatinti socialinę ir ekonominę raidą. Šiuo metu Lietuva Europos Sąjungos kontekste yra tarp pradedančiųjų inovatorių ir savo inovacinę veiklą plėtoja lėčiausiai. Straipsnyje nagrinėjama inovacijų svarba siekiant šalies konkurencingumo, analizuojama inovacinio indekso, kaip matavimo priemonės, struktūra, vieno iš prioritetinių Europe 2020 tikslų siekimo rodikliai, atliekama Lietuvos inovacinės veiklos tendencijų, stipriųjų ir silpnųjų pusių analizė, pateikiamos tobulinimo gairės siekiant regioninio ir pasaulinio konkurencingumo. PAGRINDINIAI ŽODŽIAI: inovacija, Europe 2020, suminis inovacijų indeksas, konkurencingumas. JEL klasifikacija: O300, O310, O330. Įvadas Europos Sąjungos regionų plėtros problemai spręsti būtinos kompleksinės priemonės, apimančios socialinės ir ekonominės politikos sritis. Todėl būtina skatinti verslą, užtikrinti užimtumą, didinti konkurencingumą Europos Sąjungos šalies narės vidaus ir užsienio rinkose, diegti aukštąsias technologijas, gerinti produktų ir paslaugų kokybę. Visa tai turi būti įgyvendinama kiekvienos šalies nacionalinės regionų plėtros politikos pagrindu. Straipsnio autorių nuomone, pagrindinė tokios politikos dalis turėtų būti atitinkama regionų raidai skirta Lietuvos inovacijų politika, numatant pastarojoje įvairias regioninio ir tarptautinio konkurencingumo inovacijų srityje plėtojimo formas, tinkamas skatinti šalies socialinę ir ekonominę raidą. Pažymėtina, kad Lietuvoje inovacinei veiklai skiriamas nepakankamas dėmesys, ypač inovacinėms idėjoms ir naujoms žinioms, kurios tiktų organizacijoms, generuoti ir komercializuoti. Mokslinė problema: remiantis Europos Sąjungos statistiniais duomenimis (Innovation Union Scoreboard, 2012), Lietuva patenka į pradedančiųjų inovatorių (angl. Modest innovators) grupę ir nurodoma kaip lėčiausiai inovacinę veiklą plėtojanti šalis. Todėl norint užtikrinti šalies konkurencingumą Europos Sąjungos rinkoje, būtina atlikti Lietuvos inovacinės veiklos tendencijų analizę ir numatyti galimas tobulinimo gaires. 1 Vytautas Jonas Žilinskas Klaipėdos universiteto Socialinių mokslų fakulteto Vadybos katedra, prof. dr. Mokslinės veiklos kryptis: mokslo tiriamosios ir eksperimentinės plėtros darbų rengimo skatinimas, optimalių sprendimų priėmimas, techninės kūrybos metodų taikymas, kuriant intelektinės nuosavybės objektus. El. paštas: zilinskas.vytautas@gmail.com Tel.: Jelena Dementjeva Klaipėdos universiteto Socialinių mokslų fakulteto Vadybos katedra, asistentė, doktorantė. Mokslinės veiklos kryptis: kūrybos vadyba. El. paštas: jelena.dem@gmail.com Tel.:

184 Vytautas Jonas Žilinskas, Jelena Dementjeva LIETUVOS INOVACINĖS VEIKLOS TENDENCIJOS IR TOBULINIMO GALIMYBIŲ ANALIZĖ EUROPOS SĄJUNGOS KONTEKSTE Tyrimo objektas m. Lietuvos inovacinės veiklos tendencijos. Tikslas: numatyti Lietuvos inovacinės veiklos tobulinimo galimybes užtikrinant konkurencingumą Europos Sąjungos rinkoje. Uždaviniai: y išanalizuoti inovacijų svarbą regioninei plėtrai teoriniu aspektu; y atlikti Lietuvos inovacinės veiklos Europos Sąjungos kontekste analizę bei identifikuoti šios veiklos stipriąsias ir silpnąsias puses. Tyrimo metodika: nagrinėjant inovacijų svarbą šalies konkurencingumui didinti analizuoti Lietuvos (Jakubavičius, 2003; Melnikas, 2004a; Melnikas, 2004b; Kasperavičius, 2004; Valentinavičius, 2006; Žilinskas, 2007; Strazdas, 2010; Baležentis, 2011; Tvaronavičius, 2011) ir užsienio mokslininkų (Coconete, 2003; Howkins, 2007; Журавлев, 2008) tyrimų rezultatai. Lietuvos inovacinės veiklos analizei atlikti, stipriosioms ir silpnosioms pusėms šioje srityje nustatyti naudoti LR Statistikos departamento, Europos Sąjungos Eurostat statistiniai ir Europos Sąjungos inovacijų integralinės švieslentės (angl. Innovation Union Scoreboard) duomenys. 1. Inovacijų svarba regioninei plėtrai Kiekviena šalis, siekdama ekonominės plėtros ir integruotis tiek į Europos Sąjungą (ES), tiek ir į pasaulinę ekonomiką, turi plėtoti savo ekonominę, socialinę veiklą. Mokslininkai (Howkins, 2007; Журавлев, 2008; Baležentis, 2011; Tvaronavičius, 2011) pažymi, kad vienas veiksmingiausių modernizacijos būdų inovacijų paieška ir diegimas. Pastaruoju metu inovacijos samprata labai išsiplėtė. Ji suvokiama ne tik kaip technologinės naujovės, sukurtos atliekant sudėtingus mokslinius tyrimus, bet ir kaip rinkodaros, proceso, valdymo metodų, produktų naujovės (Jakubavičius, 2003; Melnikas, 2004b; Kasperavičius, 2004; Valentinavičius, 2006; Žilinskas, 2007; Strazdas, 2010; Baležentis, 2011; Tvaronavičius, 2011). Inovacijų būtinybę lemia trumpėjantis prekių ir paslaugų gyvavimo ciklas, naujų investicijų, kurios skatina organizacijas ne tik teikti esamas prekes ir paslaugas į rinką, bet ir ieškoti būdų, kaip jas tobulinti, pritraukimas. Inovacijos traktuojamos kaip organizacijos galimybė įgyti konkurencinį pranašumą, kita vertus, jos įvardijamos kaip vienas pagrindinių nacionalinės ir globalios ekonomikos augimo veiksnių (Tvaronavičius, 2011). Kaip pažymi A. Jakubavičius (2003), ES mokslinių tyrimų ir plėtros kooperacijos programa EUREKA inovaciją traktuoja kaip procesą, kuriame atliekant tyrimus gautos žinios ir inovacinės idėjos transformuojamos į naujus produktus ar paslaugas. Iš esmės inovacija tai sėkmingas naujų idėjų, metodų ir technologijų komercinis pritaikymas, pateikiant rinkai naujus arba patobulintus produktus ir/ar procesus. Tyrimai / inovacijos (angl. research/innovation) apima naujų prekių ir paslaugų kūrimą (European Comission, 2012), kuris lems ekonomikos plėtrą, darbo vietų kūrimą ir skatins socialinius pokyčius. V. Tvaronavičiaus (2011) teigimu, mokslinėje literatūroje inovacijos sutelkiamos ties šiais dviem svarbiausiais aspektais: pirma, tai būdas organizacijoms išlikti ir tapti konkurencingomis konkrečiose rinkose; antra, tai vienas pačių svarbiausių nacionalinių ir globalių bendrųjų ekonomikos augimą skatinančių veiksnių. Ekonominio bendradarbiavimo ir plėtros organizacija (EBPO angl. OECD), kaip pažymi S. Valentinavičius (2006), siūlo inovacijas taip klasifikuoti: mokslo, gamybos, paslaugų srities inovacijos. Inovacijos gamyboje klasifikuojamos į technologines ir netechnologines. Technologinės inovacijos yra trijų rūšių: 1) produkto inovacijos apima tiek technologiškai naujus, tiek technologiškai pagerintus produktus; 2) proceso inovacijos naujus gamybos būdus (technologijas), gamybos organizavimo metodus bei kitus produktų ir procesų pokyčius; 3) inovacinė veikla apima naujų žinių generavimą ir įgijimą, kitus gamybos proceso rengimo ir tobulinimo darbus bei naujų arba patobulintų produktų rinkodarą. Kalbant apie Lietuvos inovacinę veiklą Europos Sąjungos (ES) kontekste svarbu apibrėžti inovacijų vietą ES plėtros procese. Aktuali yra šio dešimtmečio augimo strategija Europe Nuolat kintančiame pasaulyje ES ekonomika turėtų būti labiau apgalvota, darnesnė, tvaresnė, visa apimanti. Tai leistų ES ir kie- 184

185 ISSN Regional Formation and Development Studies, No. 1 (6) kvienai jos valstybei narei (ES-27) pasiekti aukštą užimtumo, našumo ir socialinės sanglaudos lygį. Europe 2020 strategijoje keliami penki ambicingi 2020 metais pasiektini tikslai, susiję su gyventojų užimtumo, inovacijų, švietimo, socialinės įtraukties ir klimato, energijos sritimis, kurių įgyvendinimą rodo aštuoni pagrindiniai rodikliai, pateikti oficialiame ES Komisijos tinklapyje (European Comission, 2012). Europe 2020 tikslų siekiama ir į juos atsižvelgiama tiek nacionaliniu, tiek ES lygiu. Straipsnio autorių nuomone, ypač svarbus Europe 2020 iškeltas strategijos tikslas, susijęs su inovacijų plėtra, kuri leidžia užtikrinti Lietuvos konkurencingumą regioniniu ir pasaulio mastu. Inovacijų integralinėje švieslentėje (IIŠ, angl. Innovation Union Scoreboard IUS), kuri yra Europos inovacijų švieslentės (angl. European Innovation Scoreboard EIS) tęsinys, pateikiamas suminis (kompleksinis, integralinis) inovacijų indeksas (SII). Jis apima 25 rodiklius, kurie rodo ES šalių narių nacionalinius mokslinių tyrimų ir inovacijų veiklos rezultatus. Galimas SII ribų svyravimas tarp 0 ir 1 (Innovation Union Scoreboard, 2012). Atliekant ES-27 valstybių narių inovacijų diegimo rezultatų lyginamąjį vertinimą bei šių šalių mokslinių tyrimų ir inovacijų sistemų pranašumų bei trūkumų analizę, IIŠ yra stebėsenos priemonė, skirta padėti analizuoti Europe 2020 programos įgyvendinimo rezultatus. SII sudarytas iš šių dalinių vertinimo sričių (1 pav.): vykdytojai (angl. Enablers), organizacijų veikla (angl. Firm Activities) ir rezultatai (gaviniai) (angl. Outputs). Vykdytojai, t. y. žmogiškieji ištekliai, atviros ir patrauklios tyrimų sistemos, finansų ir paramos sistema, aprobuoja inovacijas įmonių išorinėje aplinkoje. Organizacijų veiklą apima rodikliai, susiję su organizacijų investicijomis į tyrimus ir diegimą, ryšiais ir verslininkyste bei intelektiniu kapitalu. Rezultatai matuojami per dvi dimensijų sritis inovatorius ir ekonominį poveikį. Suminis inovacijų indeksas (SII) Vykdytojai Organizacijų veikla Rezultatai Žmogiškieji ištekliai Investicijos į tyrimus ir diegimą Inovatoriai Atviros ir patrauklios tyrimų sistemos Ryšiai ir verslininkystė Ekonominis poveikis Finansų ir paramos sistema Intelektinis kapitalas 1 pav. Suminio inovacijų indekso (SII) struktūra Šaltinis: Innovation Union Scoreboard, 2012 Europos Sąjungos šalys skirstomos į keturias grupes, atsižvelgiant į naujovių diegimo apimtis: inovacijų lyderiai (angl. Innovation leaders), inovacijų sekėjai (angl. Innovation followers), vidutiniai inovatoriai (angl. Moderate innovators), pradedantieji inovatoriai (angl. Modest innovators). Remiantis Inovacijų integralinės švieslentės SII ir Europe 2020 inovacijų strateginio tikslo rodiklių analize, toliau pateikiamos Lietuvos inovacinės veiklos pagrindinės tendencijos, nustatomos silpnosios ir stiprio- 185

186 Vytautas Jonas Žilinskas, Jelena Dementjeva LIETUVOS INOVACINĖS VEIKLOS TENDENCIJOS IR TOBULINIMO GALIMYBIŲ ANALIZĖ EUROPOS SĄJUNGOS KONTEKSTE sios sritys bei siūlomos inovacinės veiklos gerinimo galimybės siekiant užtikrinti šalies konkurencingumą ES kontekste. 2. Lietuvos inovacinės veiklos Europos Sąjungos kontekste tyrimo rezultatai Analizuojant Lietuvos inovacinės veiklos tendencijas ES kontekste iš pradžių svarbu nustatyti, į kokią grupę patenka mūsų šalis ir kokia inovacijų kūrimo, diegimo bei plėtros situacija kitose ES-27 šalyse. Pagal inovacijų diegimo apimtis ES-27 taip skirstomos (2 pav.): y Danija, Suomija, Vokietija ir Švedija yra inovacijų lyderiai; y Austrija, Belgija, Kipras, Estija, Prancūzija, Airija, Liuksemburgas, Nyderlandai, Slovėnija ir Didžioji Britanija inovacijų sekėjai; y Čekija, Graikija, Vengrija, Italija, Malta, Lenkija, Portugalija, Slovakija, Ispanija vidutiniai inovatoriai; y Bulgarija, Latvija, Lietuva ir Rumunija pradedantieji inovatoriai. Pradedantieji Vidutiniai Inovacijų Inovacijų inovatoriai inovatoriai sekėjai lyderiai 2 pav. ES-27 suminis inovacijų indeksas, 2011 m. Šaltinis: Innovation Union Scoreboard, 2012 Kaip matyti (2 pav.) iš suminio inovacijų indekso (SII), Lietuva patenka į pradedančiųjų inovatorių grupę, kuri įvardijama kaip lėčiausiai inovacinę veiklą plėtojanti šalis (augimo reitingas 0,7 proc.), lyginant su ES šalių vidurkiu. Lietuva, užimdama 25 vietą (SII 0,227) tarp 27 ES šalių, gerokai atsilieka nuo ES šalių vidurkio (0,516). Tai rodo, kad šalies inovacinė veikla plėtojama gana ribotai. Analizuojant inovacijų augimo tempus ES šalyse (1 lentelė) matyti, kad sparčiausiai inovacijos plėtojamos Suomijoje, Kipre, Estijoje, Slovėnijoje, Maltoje, Portugalijoje ir Bulgarijoje, lėčiausiai Danijoje, Švedijoje, nors šios šalys yra inovacijų lyderės, taip pat Liuksemburge, Didžiojoje Britanijoje, Graikijoje, Ispanijoje ir Lietuvoje. Akcentuotina, kad Lietuvoje iš visų ES-27 šalių inovacijų diegimo tempai yra patys lėčiausi. 186

187 ISSN Regional Formation and Development Studies, No. 1 (6) Lentelė 1. Inovacijų diegimo tempai Grupės Inovacijų lyderiai Inovacijų sekėjai Vidutiniai inovatoriai Pradedantieji inovatoriai Diegimo tempai* Dideli Vidutiniai Lėti 1,0 proc. Suomija (FI) Vokietija (DE) Danija (DK) Švedija (SE) 2,4 proc. Kipras (CY), Estija Austrija (AT), Belgija (BE), Liuksembugras (LU), (EE), Slovėnija (SI) Prancūzija (FR), Airija (IE), Didžioji Britanija (UK) Nyderlandai (NL) 2,5 proc. Malta (MT), Portugalija (PT) Čekija (CZ), Vengrija (HU), Italija (IT), Lenkija (PL), Slovakija (SK) 4,4 proc. Bulgarija (BG) Latvija (LV), Rumunija (RO) Graikija (GR), Ispanija (ES) Lietuva (LT) * Vidutinis metinis augimo tempas apskaičiuotas per pastarųjų penkerių metų laikotarpį. Šaltinis: Innovation Union Scoreboard, 2012 Palyginimas tarptautiniu mastu. Kitų Europos šalių, kurios nepriklauso ES, inovacinės veiklos rezultatai rodo, kad Šveicarija yra inovacijų lyderė, Islandija viena iš inovacijų sekėjų, o Kroatija, Norvegija ir Serbija vidutinės inovatorės. Buvusi Jugoslavijos Respublika, Makedonija ir Turkija yra pradedančiosios inovatorės. Kroatijos, Serbijos ir Turkijos SII augimo tempai gerokai viršija ES-27 SII vidurkį. Lyginant ES-27 su pagrindiniais tarptautiniais konkurentais (3 pav.) matyti, kad JAV, Japonijos ir Pietų Korėjos inovacinės veiklos tendencijos pranašios į ES-27 vykstančius inovacijų kūrimo, plėtros ir diegimo procesus. Tai lėmė Pietų Korėjos ekonominis augimas, JAV ekonominis stabilumas ir Japonijos ekonominis nuosmukis. Pasaulio inovacijų lyderių JAV ir Japonijos SII rodiklis aukštesnis už ES-27 suminį inovacijų indeksą. Tai lėmė didesnės verslo išlaidos moksliniams tyrimams ir diegimui, glaudus viešojo ir privataus sektorių bendradarbiavimas, pasireiškiantis per šių sektorių bendrąsias mokslines publikacijas, užsienyje uždirbtų pajamų apimtis iš licencijų ir patentų, didelį pateiktų patentų paraiškų skaičių. Pietų Korėja, vis labiau pranokstanti ES-27, labiausiai skatina investuoti verslo sektoriuje į mokslinius tyrimus ir technologijų plėtrą (MTTP). ES-27 pasižymi inovacinės veiklos pranašumu, lyginant su Australija, Kanada ir visomis BRICS šalimis (Brazilija, Rusija, Indija, Kinija ir Pietų Afrika). JAV Japonja Korėja ES-27 Kanada Australija Rusija Kinija Indija Brazilija Pietų Afrika 3 pav. Pasaulio šalių ir ES-27 suminis investicijų indeksas, 2010 m. Šaltinis: Innovation Union Scoreboard,

188 Vytautas Jonas Žilinskas, Jelena Dementjeva LIETUVOS INOVACINĖS VEIKLOS TENDENCIJOS IR TOBULINIMO GALIMYBIŲ ANALIZĖ EUROPOS SĄJUNGOS KONTEKSTE Pagal Europe 2020 programą kiekviena ES šalis narė iki 2020 m. turi investuoti į mokslinius tyrimus ir technologijų plėtrą (MTTP) ne mažiau kaip 3 proc. nuo šalies BVP (LR Statistikos departamentas, 2012). 4 pav. ES-27 bendrosios vidaus išlaidos MTTP, proc. nuo BVP Šaltinis: sudaryta autorių, remiantis: Eurostat. Science and Technology, 2012 ES statistikos duomenimis (Eurostat. Science and Technology, 2012), Europos Sąjungos šalys MTTP per pastarąjį dešimtmetį skiria tik 1,8 2 proc. nuo bendrojo vidaus produkto (4 pav.). 5 pav. Lietuvos bendrosios vidaus išlaidos MTTP, proc. nuo BVP Šaltinis: sudaryta autorių, remiantis: Eurostat. Science and Technology, 2012 Lietuvoje bendrosios vidaus išlaidos MTTP yra tik 0,6 0,7 proc. nuo šalies BVP (5 pav.), tai labai žemas rodiklis lyginant bendrai su ES-27 (apie 2 proc.) ir su numatytu strateginiu tikslu (3 proc.). 188

189 ISSN Regional Formation and Development Studies, No. 1 (6) 6 pav. ES-27 bendrosios vidaus išlaidos MTTP 2010 m., proc. nuo BVP Šaltinis: sudaryta autorių, remiantis: Eurostat. Science and Technology, 2012 Iš 6 paveikslo matyti, kad numatytą Europe 2020 inovacijų skatinimo tikslą jau pasiekė Suomija, Švedija ir Danija. Suomijos bendrosios išlaidos MTTP 2010 m. siekė beveik 4 proc. šalies BVP. Lietuva pagal šį rodiklį yra 20 vietoje iš 27 ES šalių. Labiausiai atsilieka Kipras ir Rumunija. Palyginus Europos Sąjungos išlaidų apimtis moksliniams tyrimams ir technologijų plėtrai su JAV ir Japonijos išlaidomis MTTP, galima matyti, kad m. Japonijos rodiklis buvo didžiausias ir pakilo nuo 3 iki 3,5 proc. nuo šalies BVP, o JAV rodiklis svyravo nuo 2,5 iki 2,7 proc. (7 pav.). ES inovacinės veiklos plėtros proceso požiūriu akivaizdžiai atsilieka. Svarbi ir apyvartos apimtis iš inovacijų. 8 paveiksle matyti, kad ES-27 šalių m. apyvarta iš inovacijų vidutiniškai buvo apie 13 proc. visos apyvartos. Palyginus Baltijos šalis matyti, kad lyderė yra Estija (vidutiniškai apie 12 proc.), antroje vietoje Lietuva (vidutiniškai apie 11 proc.), Latvija trečioje vietoje (vidutiniškai apie 5 proc.). Išanalizavus bendras ES-27 inovacinės veiklos tendencijas svarbu nustatyti, kokiose srityse šalys lyderės yra ypač aktyvios ir kokios yra silpnosios Lietuvos pusės. 9 paveiksle matyti, kad aukšti inovacijų lyderių verslo sektoriaus investicijų į inovacinę veiklą ir intelektinio kapitalo rodikliai, kiek žemesni žmogiškųjų išteklių, finansų ir paramos sistemos, ryšių ir verslininkiškumo bei ekonominio poveikio rodikliai. Inovacijų sekėjų gana gerai išplėtota atvira ir patraukli tyrimų sistema, aukštas ryšių ir verslininkiškumo rodiklis. Vidutiniai inovatoriai turi gana gerą ekonominio poveikio rodiklį, o pradedančiųjų inovatorių gana aukštas žmogiškųjų išteklių rodiklis, žemiausi ryšių ir verslininkiškumo bei tyrimų sistemų rodikliai. 189

190 Vytautas Jonas Žilinskas, Jelena Dementjeva LIETUVOS INOVACINĖS VEIKLOS TENDENCIJOS IR TOBULINIMO GALIMYBIŲ ANALIZĖ EUROPOS SĄJUNGOS KONTEKSTE 7 pav. JAV, Japonijos ir ES bendrosios vidaus išlaidos MTTP, proc. nuo BVP Šaltinis: sudaryta autorių, remiantis: Eurostat. Science and Technology, pav. Apyvarta iš inovacijų, proc. nuo bendros šalies apyvartos Šaltinis: sudaryta autorių, remiantis Eurostat. Science and Technology, 2012 Remiantis anksčiau pateiktais statistiniais duomenimis ir detalizuotais ES Inovacijų integralinės švieslentės duomenimis (Innovation Union Scoreboard, 2012, p. 14), skiriamos šios Lietuvos inovacinės veiklos stipriosios ir silpnosios pusės: stipriosios žmogiškieji ištekliai (daug aukštąjį išsilavinimą turinčių žmonių, mokslo daktarų); silpnosios (mažos investicijos į MTTP nuo BVP, menkos privačių įmonių investicijos į naujoves, nepakankamai išvystyta tyrimų sistema, patenkinamai išvystyta finansų ir inovacijų paramos sistema, silpni ryšiai ir verslininkiškumas, mažas inovacinių organizacijų skaičius, menkas darbo jėgos įdarbinimas inovacijoms imliuose sektoriuose, menkas vidutinių ir aukštų technologijų produkcijos eksportas, mažai perkama (neperkama) užsienio licencijų ir patentų). 190