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Shrinking Smartly in Estonia

Preparing Regions for Demographic Change

Many lower density regions in the OECD face shrinkage, with projections suggesting that half of Europe will need to manage decline in remote regions by 2050. Half of Estonia’s counties experienced population decline greater than 25% since 1991. Shrinkage leads to problems including lower municipal revenues, ageing, and greater per capita costs of service and infrastructure provision. Estonia is also the most carbon-intensive economy in the OECD, and heavily utilises its forests and land. To tackle these challenges, the report provides analyses in a number of policy areas to respond to demographic change in a smart and sustainable manner. A policy framework that emphasises a spatially oriented, coordinated approach for responding to shrinkage is developed. The report provides policy recommendations to make land use more efficient and spatial planning more coherent. It suggests ways to improve the transfer system and strengthen the municipal revenue base while encouraging inter-municipal cooperation. It also discusses education, the municipalities’ largest spending responsibility, providing recommendations that adapt the school network to shrinkage while ensuring access to high-quality education for all students.

Available from February 18, 2022

In series:OECD Rural Studiesview more titles

TABLE OF CONTENTS

Foreword
Abbreviations and acronyms
Executive summary
Assessment and recommendations
Setting the scene
Adapting land use and spatial planning to shrinkage in Estonia
Financing local public services and infrastructure in Estonia: Challenges and ways forward
The present and future provision of education in Estonia
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