BSR Policy Briefing 6/2023

Developing the economic competence in Åland: Recommendations and key learning points for policymakers
By Anna Lundgren and Jukka Teräs

The autonomous region of Åland is situated between Finland and Sweden.  Throughout history the economy has been closely related to shipping and lately also to tourism. The economy and labour market in the region were heavily affected during the Covid-19 pandemic and the subsequent travel restrictions.  In this article, we explore the economic competence in Åland through the lens of a framework by Carlsson and Eliasson (1991) which contains four capabilities: strategic or selective capability, organisational capability, technical or functional capability and learning capability. The analysis is based on the implementation of the EU Structural Funds Programme in Åland (2014-2020). We find several examples of how the programme and financed projects have contributed to raising the economic competence in Åland along the four capabilities, as well as examples of how micro-level economic competence is linked to macro-level economic development of the region. However, current megatrends such as demographic change, globalisation, digitalisation and climate change are only reflected in the programme and projects to a limited degree. These should be further emphasized in future programs and in building economic competence in Åland due to their long-term importance as well as a stronger focus on sustainability and inclusivity. Furthermore, to release the systemic benefits, the linking between the micro-level and macro-level could be further emphasized.

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