The impact of demographic change on local and regional government

1 Introduction >2 Demographic Changes in Europe > 3 Demographic Change in Four Policy fields > 4 Summary and Conclusion> 5 Further Inquiry and Research Questions > 6 <strong>The</strong> Council <strong>of</strong> European Municipalities and Regions in a nutshellIn July 2005, a ministerial advisory board for old age issueswas also set up. In addition to the National Programme <strong>of</strong>Preparation for Ageing, the Czech Government adopted the“National Action Plan on Social Inclusion 2004-2006 (19) ”(in cooperation with the EU Commission). <strong>The</strong> plan addressesthe problems <strong>of</strong> poverty and social exclusion. It draws attentionto the issue <strong>of</strong> social inclusion in other important areaslike employment, social protection, health care, education,housing and the prevention <strong>of</strong> socially negative phenomena.Demographic situation in briefFinland<strong>The</strong> population <strong>of</strong> Finland was about 5.2 million in 2005.<strong>The</strong> reproduction rate has declined over the past 10 years from1.84 to 1.71, which is still one <strong>of</strong> the highest in EU butnevertheless a growing cause <strong>of</strong> concern (Statistics Finland2003). <strong>The</strong> median age is now at about 41, life expectancy isat the EU15 average <strong>of</strong> about 78, for males nearly 75, forfemales about 82 (20) .Finland has always been a country <strong>of</strong>emigration, there was nearly no immigration until themid-1980s. Since the 1990s, immigration has increased.Nevertheless the proportion <strong>of</strong> foreigners – 2% <strong>of</strong> thepopulation – is still very small compared to other EU memberstates. <strong>The</strong> most important group <strong>of</strong> immigrants are Russians.Since 1999, Finland has had integration legislation that imposesintegrative measures on immigrants (21). <strong>The</strong> objective is tokeep immigration to a low level.In Finland the contrast is enormous between urban/metropolitanand rural regions like the Helsinki metropolitan area andthe sparsely populated communities in the northern andeastern parts <strong>of</strong> the country. Peripheral communities strugglefor survival, facing a situation where population decline hascreated financial problems for local authorities due tooversized services and tight funding. Metropolitan areas,especially suburban communities, face the opposite situation,namely a growth in population resulting in a need to increasecapacity in educational and social services. (22)Demography-related national policiesIn Finland, as in the other Nordic countries, society traditionally<strong>of</strong>fers a variety <strong>of</strong> services to support children and families (23) .Many services are provided by local authorities because theyhave statutory responsibility for social, health and educationalservices. According to a family barometer set up by the FinnishPopulation League, people, who have completed their studiesand have a steady job are willing to have an average 2.4children in the family. Respondents gave credit to the day caresystems and the housing facilities provided by society. In orderto promote the family, the relevant services are free and thusaffordable for all. This is considered one <strong>of</strong> the basic featuresin “Nordic welfare society”.Voluntary welfare has a long tradition in Finland, and privateorganizations have started many programmes that have laterbeen established as public social services, especially forchildren and families. Organizations still play a major role insupplementing <strong>of</strong>ficial welfare for minors, old people andpeople with disabilities. Most <strong>of</strong> the services provided byprivate associations are organized by salaried employees.Organizations get a reasonable proportion <strong>of</strong> their fundingfrom public resources.<strong>The</strong> Finnish National Programme for Ageing Workers(FNPAW) is an integrated policy programme to promote theemployability <strong>of</strong> older workers in Western Europe. <strong>The</strong> maingoal <strong>of</strong> the FNPAW is to promote the employability <strong>of</strong> the over45 age group, to reduce exclusion and premature retirement.<strong>The</strong> Ministry <strong>of</strong> Social Affairs and Health, the Ministry <strong>of</strong>Labour and the Ministry <strong>of</strong> Education, in cooperation withmajor labour market organizations, are responsible for itsimplementation. Regional pilot training projects areorganized, to meet the need to update skills due to advancesin information technology and to develop innovative methodsfor training older workers. Specific measures to preventdiscrimination <strong>of</strong> older workers are also promoted. (24)(19) Ministry <strong>of</strong> Labour and Social Affairs, National Action Plan on Social Inclusion 2004-2006, Czech Republic, 2004 (http://europa.eu.int/comm/employment_social/soc-prot/soc-incl/nap_incl_2004_cz_en_version.pdf).(20) <strong>The</strong> World Factbook, Czech Republic (http://www.cia.gov/cia/publications/factbook/geos/ez.html#People).(21) Bundeszentrale für politische Bildung, Länderpr<strong>of</strong>il Finnland (http://www.migration-info.de/migration_und_bevoelkerung/artikel/030804.htm).(22) Sandberg, Siv, Local government in Finland, (Åbo Akademi University, Finland), p. 27 (http://www.abo.fi/fak/esf/lindman/<strong>of</strong>fentlig_forvaltning/word/Local%20government%20in%20Finland%20-%20Siv%20Sandberg.doc).(23) Taskinen, Sirpa, General Monitoring Report 2004 Finland, Families in Finland: Policies, challenges and opportunities (http://www.europa.eu.int/comm/employment_social/eoss/downloads/gm_04_Finland.pdf).(24) Ministry <strong>of</strong> Labour & Institute <strong>of</strong> Occupational Health, Ageing workers and changing working life, Helsinki, 1999.(25) <strong>The</strong> "middle variant" is based on the following assumptions: constant birth rate <strong>of</strong> an average 1.4 children per woman, increase in the life expectancy <strong>of</strong> a new-born boy to 81.1 years and <strong>of</strong> a new-born girlto 86.6 years by 2050, and an annual net immigration <strong>of</strong> about 200,000 persons.