Reykjavík – IcelandReykjavík – Iceland

The Little-Big CityBy Stefán Ólafsson

My topicsMy topics

Reykjavík in the World – General Background Development and Population

– Size, composition and migration – Prospects for the regions– New problems

The changed global environment– New role for cities and regions:

Competitiveness– New Strategies– New Visions for Reykjavík

Reykjavík in the WorldReykjavík in the World

Reykjavík is ... • Half-Way to America –geographically and socially• Individualistic – Against Authority• Work oriented – Innovative• Fast Developer• Affluent• New Rich: Materialistic – Consumerist• Modern and Globalized• Sustainable• Secure and Civilized• But catching up – with modern problems

Reykjavík amongst the Nordic CitiesReykjavík amongst the Nordic Cities

0

100000

200000

300000

400000

500000

600000

700000

800000

City only

Population

Densely populated in City, Towns, Villages and Farms

This is how we like to think of Iceland:

R

eykjavík area

This is how the population is distributed

62

6 5 3 3

94

8

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70

RVIK RN VL VF NV NE AL SL

Population of the Major Regions, %

Growing Share of Reykjavik Population

7 7 7 8 10 12

1823

3236

45

51 53 5357

62

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1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

%

Reykjavík Area as a % of total population

Development

Close to 70% live in the Faxaflói Bay-AreaClose to 70% live in the Faxaflói Bay-Area

Satisfaction with Living Conditions in RegionsSatisfaction with Living Conditions in Regions

57

45

3848

54

43

5051

% of population satisfied with 24 components of Living

Conditioons in their region. SÓ, Survey data from 1997.

Satisfaction in the RegionsSatisfaction in the Regions

People in Reykjavík are more satisfied with...

• Employment opportunities and pay• Housing conditions• Culture, leisure and life styles amenities• Communications• Commerce and private services

People in the Provinces are more satisfied with...

• Environmental conditions• Weather• Public services (health care, schools, etc.)

Prospects for the RegionsProspects for the Regions

•If satisfaction with living conditions of the home region is a good predictor of migration tends in the future, as it has been in the past, then the prospects for

some of the smaller provincial communities are not good.

•Larger towns have a better chance,especially Akureyri and a few others

•Net migration to the Reykjavík area will continue at a high level.

Changes: Growth of Multi-Culturalism

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1930 1940 1950 1960 1965 1973 1980 1990 2000

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Number of foreigners (colums, left axis)

Foreigners as % of populations (line, right axis)

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Kaupmannahöfn Helsinki Osló Reykjavik Stokkhólmur

0-6 ára

7-19 ára

20-64 ára

65 og eldri

%

Relatively young population

Age Distribution 1998, %

Spacious Housing (rooms %, 1998)

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Kaupmannahöfn Helsinki Osló Reykjavik Stokkhólmur

1-2 herbergi

3 herbergi

4 eða fleiri

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4+

31-2

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45% population 25-64 with 13+ years of education

High Educational Level

City regions

Reykjavík is a Car-Dominated City

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60Cars per 100 inhabitants 1999-City Regions

Future Prospects for ReykjavíkFuture Prospects for Reykjavík

GlobalizationNew Economy Some strategiesCompetitivenessQuality of life

New Global EnvironmentNew Global Environment

Increasing flow of capital, firms, labour, goods and services, information and tourists >>>Increased contacts, proximity, and speed >>> New ways of doing, living and organizing

Marketization + ICT Increasing role of competitiveness Nations, Cities and Regions must be

competitive Cities and Regions are becoming prime actors

New Global EnvironmentNew Global Environment

New industries grow in importance (Cf. Castelles and Sassen)– Knowledge industries and ICT– Finance, Insurance– Business services

Global Cities are enhanced (the major centers of global corporations, the network nodes of the Global Economy)-NY, London, Paris, Tokyo, LA ...

Medium size cities and regions must build some strength to compete in the global environment>>>What strategies for Reykjavík?

Strategies and Visions for ReykjavíkStrategies and Visions for Reykjavík

Some examples: Improve what we already do well-use ICT more

in old industries, upgrade skills and improve marketing and networking, tourism...

Invest more abroad (in fishing etc...) Create an Export Processing Zone (EPZ) Create a Tax Heaven/Offshore Financial

Center in Reykjavik Build a Cluster of Knowledge Industries

I. Export Processing Zones-StrategyLow taxes; Low pay; Special freedom for Foreign firms

I. Export Processing Zones-Strategy

Iceland has used this strategy for utilizing its rich energy resources (hydro-electric power and geothermal power)

by building its...• Energy-Intensive Industry

•Aluminium•Ferro-Silicon

•Presently there are plans for expansion and a new plant

II. Tax Heaven / Offshore Financial II. Tax Heaven / Offshore Financial Center-StrategyCenter-Strategy

Corporation Taxes down to 18% in 2001 Further steps?

Anguilla, Antigua, Madeira, Aruba, Malta, Bahamas, Mauritius, Barbados, Monaco, Belize, Montserrat, Bermuda, Netherlands Antilles, British Virgin, Panama, Cyprus Puerto Rico, Cayman Islands, St Kitts And Nevis, Cook Islands, St.Vincent, Dublin, Switzerland, Gibraltar, The Isle Of Man, Guernsey, Turks And Caicos, Hong kong, Uruguay, Jersey, Vanuatu, Labuan, Western Samoa, Liechtenstein, Luxembourg

Ypres

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•

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Nice

Grenoble

Prague

Province of CarinthiaLudwigshafen

Heidelburg

Frankfurt

Oulu

Helsinki

Teulouse

Strasbourg

Sophia Antipolis

Paris/Evry

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• •

• • •

•

•

•

•

Kista/Stockholm

Amsterdam

DublinLimerickCork

Manheim

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•

•

•

•

•

• • •

Glasgow

Cambridge

Edinburgh

ValaisBarcelona

• •

Newport/Gwent/South Wales

M4 Corridor, West of London

Baden-Württemberg

Copenhagen/Malmö

Saxony

Bavaria/Munich

Flanders

Thames Valley

Dresden/Elbe River Valley

Trondheim

• • •

• • •

•

•

Ypres

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•

•

• •

• • •

•

Nice

Grenoble

Prague

Province of CarinthiaLudwigshafen

Heidelburg

Frankfurt

Helsinki

Teulouse

Strasbourg

Sophia Antipolis

Paris/Evry

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• •

• • •

•

•

•

•

Kista/Stockholm

Amsterdam

DublinLimerickCork

Manheim

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•

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•

• • •

Glasgow

Cambridge

Edinburgh

ValaisBarcelona

• •

Newport/Gwent/South Wales

M4 Corridor, West of London

III. Main High-Tech Clusters in Europe

Baden-Württemberg

Copenhagen/Malmö

Saxony

Bavaria/Munich

Flanders

Thames Valley

Dresden/Elbe River Valley

Trondheim

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• • •

•

•

About 10% of all the Science Parks in Europe 2000

Knowledge Industry ClusterKnowledge Industry ClusterIceland lags behind in New Economy Industries

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5

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Agric. F

ishin

g

Man

ufact

uring

Construct

ion

Comm

erce

Comm

unicat

ion

Finan

ce,b

usiness s

erv.

Other s

ervic

es

Other,

unknown

Copenhagen %

Helsinki %

Oslo %

Reykjavík %

Stockholm %

III. Knowledge Industry Cluster-StrategyIII. Knowledge Industry Cluster-Strategy

The University of Iceland is organizing a Science Park on the campus site, in the center of Reykjavík

A total of 14 buildings, 58.000m2, will be built, adjacent to Decode Genetics Inc.

Buldings will be let out to knowledge firms and institutions, including foreign ones

An Incubation Center will be located in the park

University of Iceland Science Park

University of Iceland Science ParkUniversity of Iceland Science Park

Some Strengths of ReykjavíkSome Strengths of Reykjavík

Human resources– Educated– Work oriented; Entrepreneurial culture; Flexible

Favourable business environment– Taxes low; Office rents low; Easy start-ups– Regulations light; EU access good– Flexible labour market

Strong ICT infrastructure– Computer and Internet use very high+cheap

Some Weaknesses of ReykjavíkSome Weaknesses of Reykjavík

Small home market Remote location Too much reliance on fishing sector Economic fluctuations Weak national currency

Life Satisfaction is High in IcelandLife Satisfaction is High in Iceland

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Little-Big CityLittle-Big City

Sum

• Reykjavík is a Small-Medium Sized City• Has a Big Role in Iceland - as a Capital City• Is Quite Modern and Advanced• Has Some Strengths – Some Weaknesses• Feels Big and Satisfied with Life

Will we succeed in the new century?