City development strategy

Petrozavodsk Strategic development plan for the period until 2010
Basic outlines

September, 18^th, 2003 Viktor Maslyakov, the mayor of Petrozavodsk signed the Order on working out Petrozavodsk Strategic development plan development for the period up to the year 2010. The task of coordinating the work on elaboration of the Strategic development plan was assigned to the Center for Perspective Planning of Petrozavodsk City Administration. September, 25^th 2003 the first meeting of the Steering board took place, gathering the representatives of federal and local authorities, public organizations, City Council, private businesses, scientific organizations. The Steering board presented a program for the Strategic plan elaboration.
     At the same time, an Analytical board was set up with the purpose of collecting analytical information. During 2 months 14 meetings of the Analytical board took place, a city poll was organized. As a result, a 90-page document with analytical information was produced. The first presentation and discussion of analytical materials was organized at the second meeting of the Steering board November, 21^st   2003. Altogether 14 presentations were held for the representatives of the city organizations, institutions, authorities.
     At the different stages of the Strategic plan elaboration total of app. 800 people participated in the process, including respondents of the poll. June, 1^st 2004 the draft of Petrozavodsk Strategic development plan for the period up to 2010 was handed over to the Mayor Viktor Maslyakov. Almost immediately the Mayor signed the Order on launching the process of the public discussion of the draft document.
     June, 2004, a brochure was published, outlining the thesis of the Strategic plan. Full text is available on the official Internet site of Petrozavodsk City Administration.     
     August, 31^st 2004 a draft Strategic plan was discussed at the session of the Government of the Republic of Karelia. Upon the session’s results, an Order of the Head of the Republic of Karelia was issued, dedicated to the priority areas of cooperation in the city between the Government of the Republic of Karelia and Petrozavodsk City Administration.
     October, 2004 the Strategic plan was updated with newly elaborated implementation mechanisms.
     October-November 2004 the document was discussed at the session of Petrozavodsk City Council, January 21^st 2005 public hearings were held and Petrozavodsk Strategic Development plan until 2010 was approved. 

The Strategic development plan in brief

3 basic scenarios of the city development could be discussed:

1.  Resources and raw materials scenario, under which the Republic of Karelia and the city of Petrozavodsk develop as territories, specializing in supplying  resources and raw materials for domestic and foreign markets. In this case the city will not be able to preserve the gained advantages while its attractiveness for foreign investors will noticeably decrease

2. Industrial and transit scenario, with Petrozavodsk falling into the sphere of interest of North European countries as a territory for running the production sites, which are not profitable for Europe for ecological or any other reasons.    In other words, Petrozavodsk becomes a chain in  the existing channel of international entrepreneurship. Advantages for this scenario allow to solve  some essential problems, like increasing the employment rate, increasing the tax revenue income, etc. However, in the long run, this scenario will not lead to any substantial rise of the city’s economic potential, as the city itself will not be able to enjoy control over the ‘added value” 

3.  Innovation scenario, with Petrozavodsk getting engaged in the system of international and interregional division of labor, at the same time pursuing own priorities and interests. The difference of innovation scenario from the  industrial and transit scenario will be based both on the territory’s economic specialization (rather innovation and services than transit and industry) and presumed markets (rather domestic than European)

The mission of Petrozavodsk and desired image of the city

The mission of Petrozavodsk is to create conditions for development, adaptation and promotion to Russia the high quality living standards.

Petrozavodsk in the year 2010:

• A university city, one of humanitarian (educational, scientific, cultural and public) centers of Russia
• A city with the developing innovation, post-industrial economy, successfully promoting to the Russian markets locally produced products, services, technologies and brands
• A comfortable and accomplished city with the growing welfare of the population and continuously advanced standards of the city life

Five main strategic goals of the city development

Strategic goals for Petrozavodsk development are determined by the following questions: in which way should the city’s social system be arranged? What is the economic basis for the city’s strategic development? What is the geopolitical basis of the city? What kind of management structure is required for that purposes? What kind of status and image does Petrozavodsk need?

1. Reduction of poverty and increasing living standards of the citizens. The preconditions for the goal's achievement are:

• stimulation of the citizen's economic activity;
• increasing the competitiveness of the city's economy;
• strengthening the tax discipline;
• development of differential and targeted social security system for the most indigent groups of people (veterans of war and labor, people with limited abilities, orphan children);
• development of public mutual aid;
• promotion of social partnership between the society, authorities and business.

2. Increasing capitalization level of the city area, industry branches and separate structures. Preconditions for the goals' achievement:

• development of market institutions (first of all based on land and property markets);
• development of local entrepreneurship
• attracting large Russian and international business-groups for creating new and reconstructing old productions oriented towards the Russian markets;
• introduction of project-mode methods for managing humanitarian (social and public) sphere of the city's life.

3. Active participation in the processes of North-European integration. Preconditions for goal achievement:

• Increasing cooperation in the sphere of culture and education;
• adaptation and introduction on the territory of Petrozavodsk ecological, technological, managerial and other North European standards;
• active participation in the system of international division of labor through development of specialized productions and by means of international cooperation in promoting new technologies, goods and services.

4. Co-ordination of interests of the city communities and consolidation of their efforts in the process of solving the problems of the city's strategic development. Preconditions for the goal achievement are:

• co-ordination of methods and consolidation of efforts with federal and local authorities when solving the city problems;
• increase the activeness and the role of the citizens and public organizations in solving the city problems through defining their fields of responsibility;
• raise the authorities' mobility and competence, increase social and territorial responsibilities of business as a basis for their further dialogue;
• development of professionalism and corporate culture of employees in municipal sector

5. Building up and strengthening the city status:

• in the Republic of Karelia - as the capital and leader of the region, as Karelian "window" into modern global postindustrial world;
• in the North-West Federal district - as a center of the contemporary "services economy";
• in Russian Federation - as one of humanitarian, innovation centers of the country;
• in countries of Scandinavia - as an active participant and attractive partner in the North European integration processes, as a territory promoting new standards and actively introducing new goods, technologies and brands into the Russian market.

Planned indicators of the Strategic Plan implementation

The following figures will be considered a key indicators of the Strategic Plan successful implementation:

• 2-times growth of the gross local product;
• 3-times increase of investments into the city economy;
• 2-times increase of the per capita income (with an allowance for the inflation rate);
• raising the scope of residential construction by the year 2010 up to 100 thousand sq. m. per year, setting into operation of 400 thousand sq. m. by the year 2010;
• increase the rate of working-age population, employed in small business up to 50 % of economically active population;
• increase the economic efficiency when utilizing the capacities of big industrial enterprises - 1,5-times increase of the amount of workers;
• increase the off-budget investments into the city's social sphere up to 100 ml rubles (app. in 3 times);
• increase the charity rate of the city business up to 50 ml rubles per year (app. a 10-times growth);
• increase the incoming tourist flow up to three times of the current level;
• construction and launching of the waste processing plant;
• construction and launching of the second block of sewage-treatment facilities of "Vodokanal" ("Water channel");
• "locking" of gas-supply system of the city;
• construction of the new trolleybus "ring": Center - Perevalka - Drevlyanka - Kukkovka - Klyuchevaja;
• solving of the problem of flooded basements and "leaking" roofs, at the expense of "major repairs" budget line;
• construction of large concert and entertainment complex;
• mounting of 50 new children's playgrounds.

Main project directions of the Strategic Plan:

1. Development of residential construction;
2. "New economy" for the city;
3. Development of the city's "human capital";
4. The city for the citizens: housing and utilities, public services and amenities, transport, public safety;
5. Petrozavodsk - a university and youth city;
6. Development of the local governance system.

Basic content and tasks of project directions

1. Development of residential construction

All-Russian national project  "Available housing" offers a new look at the problem of residential building. It is reasonable to assume that the citizens’ estimates of city’s perspectives and authorities’ efficiency will be directly linked to the pace of residential building and increasing of its availability in the nearest future.

The tasks of project direction:

• Increase the minimal volume of residential construction by 2010 up to 100 thousand sq. m. per year;
• search and introduction of new financial and economic schemes of residential construction, essentially raising the housing availability for the citizens;
• search and implementation of new normative schemes of resettlement of slum dwellings;
• development of engineering services for residential construction in new residential districts of the city (Drevlyanka-5) and for individual constructions;
• raising of "transparency" and facilitation of decision-making procedures in the city building sphere.

2. "New economy" for the city

         It is important to introduce and to settle in public mind new economic priorities, based on clear understanding of existing competitive advantages and on the task of raising the territory’s level of capitalization. The main factor of the growth of capitalization level is availability of competitive and high quality goods and services for external markets.

The tasks of project direction:

• launching production of perspective construction materials and technologies (for example, wood-frame house construction), based on advanced technologies of processing the existing natural resources (timber, stone);
• creating conditions for "service economy" development - tourism, information technologies, education, consulting, etc;
• support to establishment and development of innovation productions working on the basis of new scientific and technical achievements;
• development of SME in food, light industry and other spheres of activity;
• support of large-scale transport projects - railroad communication (electrification of railways, route "Petrozavodsk - Joensuu" and others), highway communication (highway "Urals - Finland"), airway communications (transit flights through Petrozavodsk), waterways (lakes, rivers, seaways);
• support to initiatives on including city's industrial enterprises in national or international corporations.

3. Development of city's "human capital"

At a time of tough competition between the territories for the investment resources, the human capital tends to be considered as a main prerequisite (or restraint) for the territory’s development. This direction includes projects on development of the city’s social sphere as the main factor of the territory’s attractiveness.

The tasks of project direction:

• support of professional skills development (aspiration for better knowledge and competence) and introduction of new methods of work into the city's social sphere (including new information technologies);
• increase interaction between municipal, federal and local levels of social sphere management;
• introduction of tendering procedures for allocating the budget resources and using mechanisms of the "social order";
• upgrading the project-work culture among the employees of the social institutions with the purpose of rising the investments rate for social programs;
• development of social partnership between the representatives of business structures and the local government;
• development of paid services system in the social sphere;
• increase the level of social protection for budget workers;
• assist the citizens in creating conscious and effective individual and family strategies, aimed at family support, development of education etc.;
• working out and realization of programs, aimed at promotion of "public participation" in solving socially significant problems (guardianship, volunteers movement and so on).

4. The city for the citizens

Essential improvement of city environment for the citizens may be realized under the condition of implementation of large investment projects, upgrading the city's infrastructure.
The tasks of project direction:

• Decrease the overhead costs and increase the quality of communal services and public transportation by means of creating conditions for the necessary competition and control level;
• providing for investment attractiveness of housing & utilities and public transportation sectors;
• modernization of housing & utilities and public transportation;
• creating conditions for financial and economic rehabilitation of municipal organizations, communal and public transportation services, accomplishment of the city area;
• increase the level of social protection for the indigent groups of population when purchasing communal and public transportation services;
• improvement of interaction with the community, creating conditions for reinforcement of people's participation in accomplishing and equipping making their flats, porches and yards;
• systematic implementation of existing programs on upgrading the city accomplishment;
• implementation of ecological projects, aimed at improving the quality of the drinking water, decrease the air pollution, utilization of waste products.

5. Petrozavodsk – a university and youth city

IContemporary global economy is the economy built on the knowledge. It means that advanced educational system as such attracts and promotes perspective economic projects. It is essential that the existing experience in the field of education, youth matters, generated by Karelian Scientific Center of Russian Academy of Science, Petrozavodsk State University and other institutions of higher education, their active participation in social, economic and political life of Petrozavodsk and Karelia need to be further facilitated, supported and developed.

The tasks of project direction:

• creating conditions for "service economy" development (different kinds of consulting services, information technologies, education etc.);
• creating conditions for emerging and development of new innovation productions, basing their activity on the latest scientific innovations technologies;
• continuous work on adaptation of curricula in Petrozavodsk secondary schools and institutions of higher education to European standards;
• development of infrastructure of scientific and educational tourism
• implementation of special programs for increasing housing availability for young families; • development of youth employment markets;
• prevention measures for reducing juvenile delinquency, alcohol and drug abuse;
• increase the youth participation in the city’s public life
• reduce youth unemployment rate, increase the amount of young people engaged in season works;
• working out the support mechanisms for the young people willing to start own business;
• elaborating a system of drawing non-budget funds within the framework of the city youth policy.

6. Development of the local governance system.

The main idea of development of the local governance system is creation of an efficient system of involving and active participation of the population in solving the city problems.

The tasks of project direction:

• Facilitation of social activeness of the population;
• improving existing and establishing new mechanisms of interaction between the municipal authorities and representatives of federal and regional authorities;
• revision of structure of municipal property in connection with new law of the Russian Federation "On the general principles of organization of the local governance", re-incorporating some municipal enterprises as joint stock companies, selling share of municipal properties;
• Improving the existing and establishing new "negotiation grounds" with business community;
• Elaboration of normative documents, aimed at increasing the authority’s transparency and openness, “legalization” of interest-lobbying by the different city communities;
• Promotion of national and religious tolerance;
• development of international and inter-regional cooperation;
• improvement of management system in the city Administration, including IT development;
• establishing of open municipal statistics system in the city Administration.

Petrozavodsk City Administration Center for Perspective Planning
+7 8142 71 33 73 e-mail