Measure 4.3. Socioeconomic impact of cultural environment. Introduction 1. Culture is a substantial resource for fostering socioeconomic development of regions, growth, employment, competitiveness and quality living environment. Cultural environment and accessibility of cultural values plays significant role in attraction of qualified labor force as well as contributes to innovative entrepreneurship, investments and life quality, including promotion of high quality urban environments complying the aims of Lisbon agenda. The significant role of culture is underlined both in the 151 article of Treaty of European Community and European Community strategic guidelines (2006/702/EK). Taking into consideration that the socioeconomic potential of cultural environment is insufficiently used, as it is mentioned in SWOT analysis, this measure aims to increase and promote more effective use of it, stimulate supply of quality cultural services, promote quality living and working environment and economic activity in order to balance development between regions and the capital Riga.. Aim of the measure 2. The aim of the measure is promote quality living and working environment, stimulate , investments, attraction of qualified labor force and employment, balance growth and employment strategies and territorial cohesion by more effective use of the socioeconomic potential of cultural environment thus rising attractiveness of regions. Within the measure investments will be made in restoration of cultural heritage maximizing use of its socioeconomic potential, in creation of new socioeconomic important cultural infrastructure in development centers thus enhancing culture’s direct and indirect impact on the promotion of economic development. Justification and description of the measure 3. Poor cultural environment is one of the main reasons that trigger economically active individuals to shift to more attractive living space1. More than half of the population thinks of culture and history elements and events as one of the most valuable and attractive factors of living environment2. 4. Comparative analysis on consumption of culture in different fields in EU 25 carried out by EUROSTAT3 shows that the most marketable activities in Latvia are concerts, theaters and visits to cultural objects. Only in three EU member states demand for concerts and in six EU member states demand for visits to cultural monuments exceeds Latvia in the field. Research shows that the most promising of cultural clusters in consumption segments are related to modern culture industry and cultural heritage based activities4. State President Strategic Analysis Strategic Commision Research „Latvia and Free Movement of Labour Force: Ierland Example” 2 Latvia. Economic Development Review 2004/ 2005, Regional Capacities, Aija Zobena, Riga, UNDP, Social and Political Research Institute, University of Latvia, 2005 3 European Communities. Cultural Statistics in Europe. An overview. 29/03/07. 4 Roberts Ķīlis, Culture Consumption in Latvia, Riga 2006 1 5. Latvia has relatively high density of state protected cultural heritage objects – 8 428 items per 64 589 square meters with a little more than 2 300 000 million inhabitants in the country. The number and quality of cultural heritage objects as well as consumers interest indicates the development potential of the resource as well as the importance of its preservation. The economic potential of cultural monuments is insufficiently used because of monuments’ and related infrastructure’s poor condition. Services related to cultural heritage objects give positive effect both to quality of living environment and development of connected economic sectors (e.g. tourism, hospitality, public catering, construction etc.) maximizing the socioeconomic potential of cultural monuments and fostering territorial cohesion. In order to maximize socioeconomic potential of cultural heritage and stimulate territorial development, investments shall be made with a view to enhance innovative, educational, scientific and other sustainable activities that would give positive impact to regional development centers in a long run. 6. Higher average gross salary, which grew from 109.6% to 116.55% in year 2004 2005, has enabled inhabitants spends more on recreation and culture. The spending has risen from 6.2 % to 6.7 %5. Higher income has also changed people’s consumption habits – demand for more diverse and higher quality cultural products increases. Access to quality and innovative services is limited by lack of appropriate infrastructure in the regions thus diminishing regional attractiveness, causing brain drain - especially of young and qualified professionals with children. Taking into account lack of appropriate infrastructure for various public, social and entrepreneurship activities outside the capital Riga and density of population there is a necessity for appropriate investments targeted in the regions. Multifunctional mutually non-competing centers shall be created in order to balance development of the regions. The network of multi- functional centers would provide functions of culture, education and social integration, recreational activities, seminars and conferences, gatherings of different social and interest groups as well as activities connected to entrepreneurship and other purposes in order to maximize utilization capacity and investment return. Target groups of the measure 7. Target groups of the measure are inhabitants, municipalities, entrepreneurs, nongovernmental organizations. Framework of policy planning documents 8. Strategy section of the National Strategic Reference Framework year 2007 – 2013 suggests that quality cultural environment and developed cultural infrastructure is an important precondition for sustainable and well-balanced territorial development, offering personal growth possibilities during one’s lifetime as well as economic 5 CSB data welfare. Culture has the potential to retain and generate new working places within cultural sectors and other sectors not directly related to culture. 9. In terms of providing more attractive environment for entrepreneurship The Lisbon National Reform Program of Latvia 2005 – 2008 anticipates implementation of coordinated sectoral and regional policies, ensuring favorable conditions for the creation and development of cultural products and services, tourism and cultural tourism. The National Development Plan 2007 – 2013 identifies that quality cultural environment is formed by well maintained and accessible cultural heritage, traditions and creative activities being an important precondition for sustainable and balanced territorial development. The National Development Plan and the long term National Policy Guidelines 2006 – 2015 designate access to minimum basket of cultural services in all the territory of Latvia. Previous support 10. During the programming period of European Union Structural Funds 2004 – 2006 within 1.1.5. activity „Development of Tourism Products and Tourism Infrastructure Increasing the Economic Potential of the Cultural Heritage” of Single Programming Document support was available for creation and development of cultural heritage based tourism products as well as modernization and creation of tourism infrastructure thus preserving and increasing economic potential of cultural heritage. Interest about the activity was very high – more than hundred project proposals were submitted and support was given approximately to every tenth project. Great deal of the rejected projects related to important Latvian and European cultural heritage objects with high socio-economic and tourism potential. Synergy 11. Measure “Socio-economic Impact of Cultural Environment” complements Operational Program’s “Infrastructure and Services” measure “Tourism”. Measure “Tourism” int. al. aims to promote cultural tourism destinations and development of related economic activity and its target audience is local and foreign tourists. “Socioeconomic Impact of Cultural Environment” aims to promote living and working environment, territorial cohesion, access to more quality cultural services, economic diversification, and attractive environment for investments as well as prevention of brain drain and depopulation. Within the measure “Socioeconomic Impact of Cultural Environment” it is planned to invest in restoration of single cultural heritage objects, measure’s “Tourism” activity “Development of Nationally Important Tourism Products by Conservation, Restoration and Adjustment of Urban Planning Monument Infrastructure” is targeted to investments in complex development of tourism product infrastructure in urban planning territories , including adjustment of historical city environment. In order to avoid overlapping of the two measures, projects will be assessed according to criteria depending on their impact on tourism development (within the measure “Tourism”) or on their impact to regional development (within the measure “Socioeconomic Impact of Cultural Environment”). Within implementation of the measures mutual coordination will take place: projects based on the same cultural heritage objects will not be allowed to apply for financial support within both measures. 12. The measure complements “Latvian Rural Development Strategic Plan 2007 – 2013” support measure “Quality of Living Environment and Diversification of Economy in Rural Areas” financed activities in rural territories that are targeted to promotion of accessibility to cultural services for rural population, economic development and other activities in related areas. Measure “Socio-economic Impact of Cultural Environment” does not support activities in rural areas but shall focus on development of cultural environment in the development centers of national and regional importance. 13. Cross border and transnational cooperation programs 2007 – 2013 aim to support preservation of tangible and intangible cultural heritage and creation of new cultural tourism products as a substantial factor for promotion of quality living environment and sustainable development in frontier areas. It is planned to support modernization of small cultural infrastructure in frontier areas. 14. Within the framework of European Community program “Culture 2007 - 2013” cultural cooperation on European level will be strengthened by promoting transnational mobility of cultural operators and transnational circulation of works and cultural and artistic products exchange. 15. Within the framework of European Economic Area Financial Mechanism and Norwegian Financial Mechanism support is given to priority „Preservation of European Cultural Heritage” that is targeted to preservation of certain cultural heritage objects with projects in limited specific areas. Within the framework of Swiss Confederation’s Financial Instrument support to culture might be given under Priority “Initiative of Regional Developments in Peripheral or Underdeveloped Regions”. 16. National program “Heritage – 2018. Cultural Infrastructure Development Program 2006. – 2018” aims to improve and modernize state’s owned cultural infrastructure objects that are used by state’s cultural institutions till year 2018. 17. In compliance with the 24th article of Latvian state law “Preservation of Cultural Monuments” the state aid program (“Cultural monument’s redemption program”) is developed with aim to support research, conservation and to limited extent restoration of cultural heritage objects in exceptional cases. Compliance with horizontal priorities 18. Within the measure support will be given to projects assessing their compliance to all horizontal priorities taking into account project proposal assessment criteria: “Project proposal will give positive effect to at least two Operational Program’s “Infrastructure and Services” horizontal priorities reaching aims”. Balanced territorial development 19. In order to provide balanced territorial development and even distribution of investments, within activity 4.3.1. Projects outside the capital Riga and Riga region will be supported; within activity 4.3.2. – at least two projects in every region will be supported; within activity 4.3.3. – at least one project in every region will be supported. Macroeconomic stability 20. Support will be given to projects taking into account such criteria as planned cultural service’s socioeconomic return, capacities to attract private investments and generated working places. It is planned to invest evenly during the whole programming period. Sustainable development 21. The measure will promote sustainable development because it requires minimum of natural resources and gives positive impact to the environment. Equal opportunities 22. Taking into consideration employment structure within the sphere of culture, the measure will give positive impact to women employment. Within the project selection criteria of the measure particular requirements that will provide accessibility of results for wider public (incl. people with special needs) will be taken into account. Information society 23. Within the framework of the measure public accessibility to information on culture and cultural educational processes and services will be promoted. Riga’s international competitiveness 24. The measure will implicitly promote Riga’s international competitiveness giving an opportunity for foreign tourist attraction. Taking into consideration that central transport infrastructure is based in Riga (bus terminal, airport, rail way) and relatively short distances between Riga and regions it is predicted that foreign tourist routes will be mostly related to Riga. Activities 25. 1st activity. Creation of multifunctional centers of national and regional importance. 26. Aim of activity: to improve cultural environment and promote attractiveness of regions, for life and work in order to attract qualified labor force, stimulate economic activities of territories and ensure multifunctional infrastructure for services and cultural, educational, recreational actives , public events entrepreneurship and business activities as well as public services and other activities. 27. Target groups: inhabitants, municipalities, entrepreneurs, non-governmental organizations 28. 2nd activity Restoration of cultural heritage objects with substantial socioeconomic importance 29. Aim of activity: restoration of cultural heritage objects that can serve as substantial factor for economic regeneration of territories, promotion of their attractiveness as well as provision of favorable climate for living, working and economic activity 30. Target groups: inhabitants, municipalities, entrepreneurs, non-governmental organizations 31. 3rd activity: Support for cultural monuments private owners in restoration and preservation of cultural heritage by effective use of its socio-economic potential 32. Aim of activity: to ensure preservation, accessibility and socioeconomic use of privately owned cultural heritage objects with public function 33. Target groups: inhabitants, municipalities, entrepreneurs, non-governmental organizations