Towards a Baltic Sea Region Strategy in Critical ... - Helsinki.fi

CHAPTER I: INTRODUCTION
The region is generally regarded as one of those benefiting from globalization,
although it also faces problems. All the societies in the region are characterized by
a high educational level and high degree of the use of information and
communication technologies (ICT). Businesses in the BSR have adapted well to
the global pressures by adopting flexible strategies. Many fields of economy
especially between the Nordic countries are deeply integrated, and establishing
large Nordic or BSR-wide companies in such fields as ICT, flight transport or
banking and financing has been a general trend already for over a decade. Yet the
region looks rather heterogenic when considering its dominant branches of
employment in comparative terms (Figure 5).
While being something of a success story, the BSR’s relative importance in
the European economy is not outstanding but remains important, the aggregated
GDP being about 16 per cent of the total EU value. If measured by such criteria as
stock exchange figures, it seems clear that the region is somewhat marginalized in
the European economy (Figure 6). In terms of the international division of labour,
the region is characterized by an image of high-tech innovation-based industries –
with major ICT companies such as Ericsson and Nokia having their headquarters
in the region. However, the other side of the coin from the whole BSR perspective
is Russia, whose economy and especially exports is characterized by the
overwhelming size of energy and other low-value-added raw materials; but in
terms of CIP, this is noteworthy as Russia is a major oil and gas exporter to the
European Union.
From the perspective of EU integration, this is a region with a mixture of
new, old and older EU countries, plus some non-EU countries. Germany is one of
the founding members of the current EU, Denmark became EU member in 1973,
Finland and Sweden in 1995, and Estonia, Latvia, Lithuania and Poland in 2004.
Norway has participated in the Single Market through the European Economic
Area (EEA) since 1994, and in practice closely follows EU policies in many other
fields, being also a non-EU member participant of the Schengen agreement. The
relations between Russia and the EU are regulated by the Partnership and
Cooperation Agreement (PCA) and the further development of these relations is
currently supposed to take place by creating the so-called Four Common Spaces of
economy, internal security, external security, and culture, science and education. 10
All the BSR countries are members in the United Nations (UN) and many
specialised UN-related organizations that are relevant in terms of this study, such
as the International Maritime Organization (IMO), International Atomic Energy
Agency (IAEA), or International Civil Aviation Organization (ICAO), and thus are
parties either in various multilateral policy frameworks or regulated through them
by hard and soft international law. As to North Atlantic Treaty Organization
(NATO), who has its own CIP strategy (see below), Denmark, Estonia, Latvia,
10 The PCA was signed in 1994, ratified in 1997, came into force in January 1998 and was
supposed to be a 10-year treaty up to December 2007. As the negotiation of a new agreement had
not been able to be started between the EU and Russia due to political difficulties (Polish veto),
the PCA will supposedly be prolonged a year at time until a new agreement is signed. The Four
Common Spaces are: Common Economic Space; Common Space of Internal Security; Common
Space of External Security; Common Space of Culture, Education and Science. Joint Road Maps
have been prepared and accepted by the parties in May 2005 to enhance cooperation and
regulative harmonisation in these fields.
NORDREGIO REPORT 2007:5 13