Ministry of Agriculture and Forestry Hallituskatu 3 A , Helsinki FI-00023 Government, Finland mmm.fi ISBN: 978-952-366-380-0 PDF ISSN: 1797-397X PDF Countryside renewing with the times – Rural policy programme 2021–2027 PUBLICATIONS OF THE MINISTRY OF AGRICULTURE AND FORESTRY 2022:13 MARI KATTILAKOSKI, ANTONIA HUSBERG, HANNA-MARI KUHMONEN, JUHA RUTANEN, HILKKA VIHINEN, PÄIVI TÖYLI, TARJA LUKKARI, EMILIA OSMONEN, TAINA VÄRE, CHRISTELL ÅSTRÖM XXXXXXX XXX X xxxxxxxxx Countryside renewing with the times Rural policy programme 2021–2027 Mari Kattilakoski, Antonia Husberg, Hanna-Mari Kuhmonen, Juha Rutanen, Hilkka Vihinen, Päivi Töyli, Tarja Lukkari, Emilia Osmonen, Taina Väre, Christell Åström Ministry of Agriculture and Forestry Helsinki 2022 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry CC BY-NC-ND 4.0 ISBN pdf: 978-952-366-380-0 ISSN pdf: 1797-397X Layout: Government Administration Department, Publications Helsinki 2022 Finland Publication distribution Institutional Repository for the Government of Finland Valto julkaisut.valtioneuvosto.fi Publication sale Online bookstore of the Finnish Government vnjulkaisumyynti.fi https://julkaisut.valtioneuvosto.fi/ https://vnjulkaisumyynti.fi/ Description sheet 14 July 2022 Countryside renewing with the times Rural policy programme 2021–2027 Publications of the Ministry of Agriculture and Forestry 2022:13 Publisher Ministry of Agriculture and Forestry Author(s) Mari Kattilakoski, Antonia Husberg, Hanna-Mari Kuhmonen, Juha Rutanen, Hilkka Vihinen, Päivi Töyli, Tarja Lukkari, Emilia Osmonen, Taina Väre, Christell Åström Editor(s) Mari Kattilakoski, Antonia Husberg, Hanna-Mari Kuhmonen Group author Rural Policy Council Language English Pages 88 Abstract The Rural Policy Programme for the years 2021–2027 is the working programme for the National Rural Policy. It is implemented under the leadership of the Rural Policy Council and in broad cooperation with different stakeholders. In the Rural Policy Programme diverse rural areas are distinguished as a national success factor. Rural areas offer a base, resources and solutions for good life, innovation, entrepreneurship and a sustainable society. The programme highlights that rural areas offer solutions to the sustainability crisis. The goal for rural policy is for Finland to be developed as a whole by strengthening place based possibilities. The strategic focal points of the programme are interdependence, environmental justice and a new knowledge-based economy, which cut across the different themes in the programme. The five themes in the Rural Policy Programme are: y Increased added value through sustainable use of natural resources y Rural actors – a part of the solution that is sustainable transition y Strengthening competitiveness and vitality y Ensuring a smooth everyday life y Strengthening inclusion and a sense of community in rural areas The programme consists of 73 measures associated to the themes above. The implementation of the programme and its measures is evaluated every two years. Keywords Rural policy, countryside, rural development, rural livelihoods, place based policy, sustainable development, know-how ISBN PDF 978-952-366-380-0 ISSN PDF 1797-397X Reference number Project number MMM024:00/2021 URN address https://urn.fi/URN:ISBN:978-952-366-380-0 Kuvailulehti 14.7.2022 Ajassa uudistuva maaseutu Maaseutupoliittinen kokonaisohjelma 2021–2027 Maa- ja metsätalousministeriön julkaisuja 2022:13 Julkaisija Maa- ja metsätalousministeriö Tekijä/t Mari Kattilakoski, Antonia Husberg, Hanna-Mari Kuhmonen, Juha Rutanen, Hilkka Vihinen, Päivi Töyli, Tarja Lukkari, Emilia Osmonen, Taina Väre, Christell Åström Toimittaja/t Mari Kattilakoski, Antonia Husberg, Hanna-Mari Kuhmonen Yhteisötekijä Maaseutupolitiikan neuvosto Kieli englanti Sivumäärä 88 Tiivistelmä Maaseutupoliittinen kokonaisohjelma vuosille 2021–2027 on kansallisen maaseutupolitiikan toimintaohjelma. Sitä toteutetaan maaseutupolitiikan neuvoston johdolla sekä laajassa yhteistyössä eri sidosryhmien kanssa. Maaseutupoliittisessa kokonaisohjelmassa monimuotoinen maaseutu nähdään kansallisena menestystekijänä. Maaseutu tarjoaa alustan, resursseja ja ratkaisuja hyvälle elämälle, innovatiivisuudelle, yrittäjyydelle ja kestävälle yhteiskunnalle. Ohjelmassa korostetaan, että maaseudulla on tarjota ratkaisuja kestävyyskriisiin. Maaseutupoliittisena tavoitteena on, että Suomea kehitetään kokonaisuutena vahvistaen paikallislähtöisiä mahdollisuuksia. Ohjelman strategisina kiintopisteinä ovat keskinäisriippuvuus, ympäristöoikeudenmukaisuus ja uusi tietotalous, jotka läpileikkaavat ohjelman teemoja. Kokonaisohjelman viisi teemaa ovat: y Luonnonvarojen kestävästä käytöstä enemmän lisäarvoa y Maaseudun toimijat osana kestävän siirtymän ratkaisua y Kilpailukyvyn ja elinvoiman vahvistaminen y Sujuvan arjen varmistaminen y Osallisuuden ja yhteisöllisyyden vahvistaminen Ohjelmassa on kaikkiaan 73 teemoihin liittyvää konkreettista toimenpidettä. Kokonaisohjelman toimeenpanoa ja tavoitteiden saavuttamista seurataan ja arvioidaan kahden vuoden välein. Asiasanat maaseutupolitiikka, maaseutu, maaseudun kehittäminen, maaseudun elinkeinot, paikkaperustaisuus, kestävä kehitys, osaaminen ISBN PDF 978-952-366-380-0 ISSN PDF 1797-397X Asianumero Hankenumero MMM024:00/2021 Julkaisun osoite https://urn.fi/URN:ISBN:978-952-366-380-0 Presentationsblad 14.7.2022 Landsbygd som förnyas i tiden Landsbygdspolitiskt helhetsprogram 2021–2027 Jord- och skogsbruksministeriets publikationer 2022:13 Utgivare Jord- och skogsbruksministeriet Författare Mari Kattilakoski, Antonia Husberg, Hanna-Mari Kuhmonen, Juha Rutanen, Hilkka Vihinen, Päivi Töyli, Tarja Lukkari, Emilia Osmonen, Taina Väre, Christell Åström Redigerare Mari Kattilakoski, Antonia Husberg, Hanna-Mari Kuhmonen Utarbetad av Landsbygdspolitiska rådet Språk engelska Sidantal 88 Referat Landsbygdspolitiska helhetsprogrammet för åren 2021–2027 är nationella landsbygdspolitikens verksamhetsprogram. Det förverkligas under ledning av landsbygdspolitiska rådet och i brett samarbete med berörda parter. I det landsbygdspolitiska helhetsprogrammet ses den mångsidiga landsbygden som en nationell framgångsfaktor. Landsbygden erbjuder en plattform, resurser och lösningar för ett gott liv, innovativitet, företagande och ett hållbart samhälle. I programmet framhävs att landsbygden har att erbjuda lösningar till hållbarhetskrisen. Landsbygdspolitikens målsättning är att Finland utvecklas som enhelhet och genom att förstärka platsbaserade möjligheter. Programmets strategiska fixpunkter är ömsesidigt beroende, miljörättvisa och ny kunskapsintensiv ekonomi. Dessa är genomgående i programmets teman. Helhetsprogrammets fem teman är: y Högre mervärde genom hållbar användning av naturresurser y Landsbygdens aktörer som en del av lösningen på en hållbar övergång y Stärkande av konkurrenskraft och livskraft y Tryggande av en fungerande vardag y Stärkande av delaktigheten och gemenskapen Programmet omfattar 73 konkreta åtgärder förknippade till ovannämnda teman. Helhetsprogrammets implementering och förverkligande av målsättningarna följs och utvärderas med två års mellanrum. Nyckelord landsbygdspolitik, landsbygd, landsbygdsutveckling, landsbygdens näringar, platsbaserad politik, hållbar utveckling, kunnande ISBN PDF 978-952-366-380-0 ISSN PDF 1797-397X Ärendenummer Projektnummer MMM024:00/2021 URN-adress https://urn.fi/URN:ISBN:978-952-366-380-0 Table of contents Foreword.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 Premises of the policy programme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 1.1 Phenomena directing future rural policy.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.2 Finland’s diverse countryside.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.3 Rural policy in the political sphere. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1.4 Place-based policy and development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2 Vision, focal points and objectives of the rural policy.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2.1 Interdependence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.2 Environmental justice.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2.3 A new knowledge economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 3 Themes and measures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 3.1 Added value through the sustainable use of natural resources.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.1.1 Managing and using nature and the environment sustainably.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.1.1.1 Forest use and agriculture.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3.1.1.2 The built environment and cultural environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 3.1.1.3 Water bodies and waterways.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3.1.2 Increasing local added value in the use of natural resources.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3.1.3 Promoting well-being from nature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 3.2 Rural actors – a part of the solution that is sustainable transition. . . . . . . . . . . . . . . . . . . . . . . . . 31 3.2.1 Building a sustainable food system.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3.2.2 Promoting decentralised bioenergy production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.2.3 Developing sustainable tourism.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 3.2.4 Strengthening national security of supply.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 3.3 Strengthening competitiveness and vitality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 3.3.1 Promoting competitiveness and vitality through effective connections.. . . . . . . . . . . . . . . . . . . . . . . . . . . 38 3.3.1.1 Developing a transport system that serves rural areas .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 3.3.1.2 Ensuring comprehensive telecommunications networks in rural areas.. . . . . . . . . . . . . . . . . 39 3.3.2 Responding to the transformation of work by developing competence and approaches .. . . . . . . 40 3.3.3 Creating preconditions for location-independent work.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 3.3.4 Promoting the creation of higher added value at the local level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 3.3.5 Strengthening sustainability and the regional economy through public procurement.. . . . . . . . . . 44 3.3.6 Smart adaptation as an alternative strategy for diminishing regions .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.4 Ensuring a smooth everyday life. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 3.4.1 Safeguarding services with new operating models and through cooperation . . . . . . . . . . . . . . . . . . . . 47 3.4.1.1 Developing multi-service centres.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 3.4.1.2 Promoting the availability and accessibility of health and social services .. . . . . . . . . . . . 50 3.4.1.3 Ensuring contact instruction for children and young people.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 3.4.1.4 Supporting diverse cultural and leisure time activities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 3.4.1.5 Developing sustainable transport services.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 3.4.1.6 Ensuring infrastructure necessary for everyday life.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 3.4.1.7 Developing operating models and networks for everyday security.. . . . . . . . . . . . . . . . . . . . . 56 3.4.2 Strengthening communal activities that promote well-being.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 3.4.2.1 Strengthening the role of the rural civic society in promoting welfare. . . . . . . . . . . . . . . . . 58 3.4.2.2 Promoting social service production and social entrepreneurship.. . . . . . . . . . . . . . . . . . . . . . 59 3.5 Strengthening inclusion and a sense of community in rural areas. . . . . . . . . . . . . . . . . . . . . . . . 60 3.5.1 Strengthening communality and civic activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 3.5.2 Ensuring opportunities to participate and impact.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 3.5.3 Supporting the role of rural residents in the sustainability transition.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 4 Implementation and monitoring of the policy programme.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 4.1 Implementation of the policy programme.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 4.2 Monitoring the implementation of the policy programme.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 References.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Appendix 1. Environmental impact assessment of the rural policy programme 2021–2027 (EIA). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Appendix 2. Gender impact assessment of the rural policy programme 2021–2027 (GIA).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 8 Publications of the Ministry of Agriculture and Forestry 2022:13 F O R E W O R D Dear reader, I encourage you to take a moment and immerse yourself in the opportunities provided by Finland’s diverse rural areas. Finland’s rural areas provide the keys to a better future for all of us, and we must make use of them all to achieve a fair transition to a sustainable society. “Countryside renewing with the times” is the seventh rural policy programme. It has been drawn up for the period 2021–2027. The policy programme is the working programme for the Rural Policy Council set up by the Government. The programme provides information about what kind of national rural policy is required due to ongoing developments, particularly the sustainability crisis, the ageing and declining population, digitalisation, location-independent work, increasing multilocality of people and also the changing preferences associated with housing. It also brings perspective to drafting local and regional policies. Finland is a country with vast rural areas. Nearly every municipality in Finland include rural areas. 20 per cent of Finns consider themselves rural residents, while 37 per cent perceive themselves as both rural and urban. Rural areas are subject to great expectations. According to the Rural Barometer 2020 study commissioned by the Rural Policy Council and produced by the Natural Resources Institute Finland, 68 per cent of Finnish citizens expect that the role of rural areas will be emphasised in the future. 68 per cent of the citizens also believe that rural areas provide a good operating environment for innovative entrepreneurship. More than 80 per cent want rural areas to be accessible to everyone, and 61 per cent perceive the countryside as a place for a good life. One in three citizens consider rural areas as an important environment for their self-expression in the future. An important question is how decision-makers and local government officials respond to citizens’ expectations of rural areas and strengthen rural areas as an environment for a good life. Citizens want there to be population in different areas and also for different areas to be treated equally. The equality of opportunities must be visible in different regions. However, the Rural Barometer shows that 62 per cent find that the policy measures related to climate change do not treat rural areas and cities equally. Only 14 per cent believe 9 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 that the policy measures are fair from a rural perspective. Citizens strongly believe that everyone should have the right to live where they want (85 per cent) and that rural areas should be developed as a resource for the whole of Finland (81 per cent). Only 22 per cent of the citizens are in favour of limiting access to public services in remote areas, while 63 per cent are against it. Similarly, restricting construction in sparsely populated areas does not gain the citizens’ support (61 per cent). Instead, they find that life in rural areas must be developed to be increasingly environmentally friendly (60 per cent). The vision of the policy programme notes that diverse rural areas are a national success factor and that they offer a base, resources and solutions for a good life, innovation, entrepreneurship and a sustainable society. The vision emphasises that the practical implementation of a good rural policy requires recognising the diversity of rural areas in politics and in preparation of matters. How can national success be achieved? The answer lies in cooperation and in solutions that take local needs, resources and opportunities into account. The transition to a carbon-neutral society requires extensive discussion that highlights the perspectives of day-to-day life and entrepreneurship in rural areas and the impacts of decisions in different regions. Rural policy is based on a place-based approach. Place-based policy means that the different conditions, needs and resources of different places are identified and taken into consideration in the preparation and implementation of policy and development measures. The need for place-based policy and solutions will be emphasised in the future, especially due to changes in the operational environments of municipalities and regions. This requires a change in the way we think and act, and in the policy instruments we set forth and use. Rural policy promotes change especially through guidance by information, such as research-based policy recommendations. Finland does not consist of a single rural area; instead, the country has different areas and places where people, families and communities spend their daily lives in a variety of operational environments. Rural areas have diverse livelihoods and actors – people of different ages and backgrounds as well as various sets of skills. The transition to sustainability cannot be achieved without them. Rural policy has taken an active role in involving people of different ages and backgrounds in constructive discussion on rural areas and also between rural and urban areas. Increasing shared understanding enables us to make a smoother transition towards more sustainable solutions. Indeed, the policy programme has been prepared in extensive cooperation between the actors involved in rural policy and the development of rural areas – from villages to the central government. Young builders of our future have also participated in the preparation of the Rural Policy Programme. 10 Publications of the Ministry of Agriculture and Forestry 2022:13 How we develop, strengthen and safeguard the conditions related to operational environments and competence, and how we empower the people of rural areas is central in order to ensure that the countryside can lead the way toward a sustainability transition. Thank you very much to everyone involved in preparing this programme! The programme is now complete and the time has come for its implementation. I hope everyone is enthusiastic and committed to implementing the programme’s objectives and measures – let’s do it together! Jari Leppä Minister of Agriculture and Forestry, Chairperson of the Rural Policy Council June 2021 11 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 1 Premises of the policy programme The Earth is incapable of producing renewable natural resources or handling greenhouse gas emissions at the pace set by humankind and the economic system. This is a worldwide phenomenon that has led to a global sustainability crisis. Finding a way to manage this crisis is one of the key political and economic issues of our time. Rural areas can provide solutions for this. Rural areas offer a platform, space, resources and alternative models for a good life, innovation, sustainable entrepreneurship and society. Managing the sustainability crisis requires continuous guided and societal change based on sustainable development. This is also the case in the UN 2030 Agenda for Sustainable Development, which politically binds Finland. The objective of the agenda is to safeguard the conditions for a good life for current and future generations. The environment, people and the economy must be taken into account equally in all societal decision-making and economic activities. This change requires courage from decision-makers and those involved in preparing measures. Finnish rural areas have plenty of resources that are scarce from a global perspective: renewable natural resources, clean air, water, productive land and environments that support health and well-being. We must cherish them. The overall sustainability of the use of resources located in rural areas must be ensured. The OECD1 emphasises that future rural policy must acknowledge key sustainable development objectives, such as preventing and mitigating the negative impacts of climate change (adaptation), poverty reduction and gender equality. The OECD stresses that pursuing and achieving sustainable development goals (SDGs) requires a holistic approach as well as participation and action at the local level. The seventh rural policy programme provides information about what is required by the ongoing developments in Finland’s national rural policy. The societal development paths that direct rural policy include particularly the management of the sustainability crisis, the changing socio-economic structure, digitalisation and location-independent 1 OECD Regional Development Ministerial (2019). Principles on Urban Policy and on Rural Policy. Megatrends: Building Better Futures for Regions, Cities and Rural Areas. Organisation for Economic Co-operation and Develop- ment (OECD) https://www.oecd.org/regional/ministerial/documents/urban-rural-Principles.pdf https://www.oecd.org/regional/ministerial/documents/urban-rural-Principles.pdf https://www.oecd.org/regional/ministerial/documents/urban-rural-Principles.pdf https://www.oecd.org/regional/ministerial/documents/urban-rural-Principles.pdf https://www.oecd.org/regional/ministerial/documents/urban-rural-Principles.pdf 12 Publications of the Ministry of Agriculture and Forestry 2022:13 work, increasing multilocality, and changing preferences for living and increasing interest in rural areas. The COVID-19 pandemic will also have a long-term impact on rural development, accelerating particularly the above-mentioned development paths. 1.1 Phenomena directing future rural policy The management of the sustainability crisis is, first and foremost, a matter of change towards sustainable low-carbon economy and activities. We must aim at conditions where the use of natural resources does not exceed biocapacity and where we safeguard biodiversity. This requires a fundamental change in the prevailing societal structures and functions. We must reduce the use of non-renewable natural resources and replace it with the sustainable use of renewable natural resources. The transition to a sustainable society requires abandoning old ways of doing things and learning new ones, both in decision-making and in day-to-day life. Solutions suitable for rural areas must be sought and introduced in sustainable housing, mobility, service production and food and energy production. The socio-economic structure of rural areas is affected by not only demographic developments, but also by issues related to the level of education and employment structure. In many rural municipalities, the population is shrinking and ageing as a result of a declining birth rate, migration loss and an increase in people’s life expectancy. The population development of rural municipalities is particularly affected by young people and women moving away from the areas, difficulties in finding employment in a rural areas as well as the focusing of immigrant integration efforts and related services into urban areas. Changes in the permanent population structure are reflected in the available jobs, education and services and, ultimately, the unequal development of regions. Natural demographic development is also visible as a labour shortage in rural areas, which will affect industries such as the social welfare and healthcare sector in the next ten years. Digitalisation and location-independence are closely linked to the ongoing transformation of work and to new ways of arranging, producing and using services. Digitalisation provides new ways to study, work and engage in entrepreneurship independent of location. People will have more opportunities for choosing their place of residence and work based on their personal preferences. The COVID-19 pandemic has accelerated the increase in location-independent work: during the outbreak, an estimated 1.2 million Finns worked remotely. Increasing multilocality is visible in the daily lives and future prospects of more and more people. Living in multiple locations related to the transformation of work and seasonal work as well as preferences related to leisure time particularly increase the 13 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 versatile use of rural areas. New types of actors and activities emerge in rural areas as they gain increasingly diverse meanings. Multi-locality also affects the vitality of municipalities and areas. Identifying its effects on the demand for both public and private services and the use of infrastructure gains increasing significance in the context of policy preparation. There is a need for further research related to multi-locality and for the development of statistics on the monitoring of multi-locality as well as for better consideration of these data in decision-making. More and more Finns, including young people, are interested in rural living. The trends and value basis of young people show changes that are closely related to rural areas and the opportunities they offer. Research2 indicates that many young people have dreams related to sparsely populated rural areas in particular. It is important to respond to the demand concerning rural areas and to promote the mainstreaming of these trends. Many perceive rural areas as a place for a good life. It is valued as a safe and spacious living environment close to nature where people can express themselves and be part of a community. Although more and more people are interested in opportunities for ecological living, the poor availability of housing creates concrete challenges for those interested in relocating to a rural area. The COVID-19 pandemic has affected the activities of people and businesses. The tourism and restaurant sectors have particularly struggled. On the other hand, there is for instance a new-found interest in rural tourism. While the pandemic will eventually pass, the approaches used to manage it (e.g. restrictions on mobility and recommendations and regulations related to remote work and studying) are highly likely to continue to have an impact on society in the long term. These have already influenced the operating approaches and culture related to remote work. Assessing the impacts on a longer-term requires societal and location-aware monitoring and research. 1.2 Finland’s diverse countryside Good rural policy requires recognising the diversity of rural areas. The Finnish countryside is a mosaic of different areas, places, environments, communities and people. Rural areas account for 95 per cent of Finland’s surface area. The Rural Barometer regularly examines Finns' views on ruralities. Nature, traditions, communality and diligence are characteristics strongly associated with rural areas. Rural areas are also increasingly perceived as a resource for the future. 2 Rural Barometer 2020 (in Finnish), Ruralization research and innovation project (2019–2023) https://www.maaseutupolitiikka.fi/uploads/MANE-raportit/Maaseutubarometri-2020-osa-1.pdf https://ruralization.eu/ 14 Publications of the Ministry of Agriculture and Forestry 2022:13 Finland’s diverse rural areas Statistically speaking, rural areas are described and classified in rural policy using national urban–rural classification based on geospatial data (Finnish Environment Institute 20203), which is independent of the administrative boundaries of the regions (Figure 1). The classification divides areas based on population, labour, commuting and construction data as well as road network and land use data into three urban and four rural categories: local centres in rural areas, rural areas close to urban areas, rural heartland areas, and sparsely populated rural areas. It is important to recognise that the conditions in each rural area are different. It is also important to note that the rural areas within these categories are also diverse. Local centres in rural areas refer to small towns, municipal centres and village centres located outside larger urban areas. Around 6 per cent of Finland’s population, approx. 310,100 people, live permanently in these centres. Rural areas close to urban areas are close to urban regions in terms of both their physical location as well as their functions. These rural areas are connected to the functional commuting area of a city or town. Around 7 per cent of Finland’s population, approx. 400,000 people, live permanently in these rural areas. Rural heartland areas are characterised by intensive land use and/or a versatile economic and relatively densely populated structure at the local level. Around 10 per cent of Finland’s population, approx. 530,000 people, live permanently in rural heartland areas. Sparsely populated rural areas are regions where diverse activities have not focused on specific areas or these are small and located far away from one another. Most of these land areas are forested. Around 5 per cent of Finland’s population, approx. 280,000 people, live permanently in sparsely populated areas. The population numbers are presented by category of region in Figure 2, which also shows the peri-urban area (approx. 600,000 people), the outer urban area (approx. 1.3 million people) and the inner urban area (approx. 2 million people). 3 Helminen, Ville, Kimmo Nurmio & Sampo Vesanen (2020). Kaupunki-maaseutu-alueluokitus 2018 - paikkatietopohjaisen alueluokituksen päivitys (in Finnish). Finnish Environment Institute reports 21/2020. http://hdl.handle.net/10138/315440 http://hdl.handle.net/10138/315440 http://hdl.handle.net/10138/315440 15 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 Figure 1.  Urban–rural classification (source: Finnish Environment Institute 2018) Finnish Environment Institute Inner urban area Outer urban area Peri-urban area Local centres in rural areas Rural area close to urban area Rural heartland area Sparsely populated rural area 16 Publications of the Ministry of Agriculture and Forestry 2022:13 Figure 2.  Population by area (source: Statistics Finland 2018) 1.3 Rural policy in the political sphere Rural policy is part of national regional development, which also includes urban policy and island policy. Rural policy can be divided into broad and narrow rural policy (Figure 3). It is implemented at all regional levels (international, national, regional, local) and is manifested in the everyday lives of citizens living in different areas. Anyone who makes decisions and carries out measures that affect the opportunities of living, engaging in entrepreneurship and operating in different rural areas carries out and practices rural policy (see information box on page 15). Broad rural policy refers to a way of thinking and operating in which rural areas, residents, communities, entrepreneurs and operational environments are made visible in the preparative work within different administrative branches and in the decision-making at different regional levels (national, regional, municipal). It covers national policy programmes and policies representing the various administrative branches of different Rural areas Inner urban area Outer urban area Peri-urban area Local centres in rural areas Rural area close to urban area Rural heartland area Sparsely populated rural area Urban areas 17 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 ministries, including the State budget. Coordination is an important part of broad rural policy. Stakeholders work together to achieve societal goals with relevance to rural policy. Narrow rural policy includes instruments and measures with the precise purpose of developing rural areas. The European Agricultural Fund for Rural Development is the main single instrument. It is used to fund the measures carried out under the Rural Development Programme for Mainland Finland. In the future, similar measures will be included in the national strategic plan of the EU’s Common Agricultural Policy (CAP). Villace action supported by State aid is also a key instrument within narrow rural policy. The Rural Policy Council (MANE) set up by the Government is responsible for coordinating the development measures of broad and narrow rural policy. The focus is on broad rural policy. The aim is to direct and enhance the policy measures targeting rural areas and related resource use. 18 Publications of the Ministry of Agriculture and Forestry 2022:13 Figure 3.  Broad and narrow rural policy - rural policy in the political sphere 1.4 Place-based policy and development A place-based approach is the starting point for rural development and rural policy both internationally (OECD) and nationally. Place-based policy and development mean that the different conditions, needs and resources of different places are identified and taken into consideration in the preparation and implementation of policy and development measures. Local centres in rural areas Rural area close to urban area Rural heartland area Sparsely populated rural area Pu bl ic , p riv at e, th ird a nd fo ur th s ec to r Actors and levels International National Regional Local/Municipal Local/Village Citizens Broad rural policy Narrow rural policy • Municipal policy, tax policy and budget • Climate policy • Housing policy and land use and construction policy • Social, health and welfare policy • Policy to strengthen vitality and innovation development • Environmental policy and sustainable development • Education, training and cultural policy • Transport and communication strategy • Regional development • EU co-funded measures •National R&D projects in rural areas •Funds for developing sparsley populated rural areas •Community-led local development (CLLD/Leader) •Municipal strategies and programmes •Village action 19 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 Traditional policy measures fail to respond adequately to the different and rapidly changing needs of regions. A place-based approach4 makes it possible to respond to increasingly differentiated regional development through targeted and tailored actions. This improves the relevance and effectiveness of policy and development work and gives people and businesses in different regions equal opportunities to participate in wider social and economic networks and systems. Place-based development is based on extensive cooperation between different actors and levels. The approach emphasises networking activities, a cross-administrative method and cross-sectoral cooperation. It integrates new actors and resources in the development efforts and enables making use of the whole potential of the region, such as a municipality and/or a region. The need for place-based policy and solutions will be emphasised in the future, especially due to changes in the operational environments of municipalities and regions. However, this requires a change in the way we think and act, and in the policy instruments we use. Rural policy promotes change, especially through information guidance such as research- based policy recommendations. 4 Luoto, Ilkka, Mari Kattilakoski & Peter Backa (2016). Näkökulmana paikkaperustainen yhteiskunta. Publications of the Ministry of Employment and the Economy 25/2016 (in Finnish). https://julkaisut.valtioneuvosto.fi/handle/10024/75129 https://julkaisut.valtioneuvosto.fi/handle/10024/75129 https://julkaisut.valtioneuvosto.fi/handle/10024/75129 https://julkaisut.valtioneuvosto.fi/handle/10024/75129 20 Publications of the Ministry of Agriculture and Forestry 2022:13 2 Vision, focal points and objectives of the rural policy The Rural policy programme (hereinafter referred to as the programme) is the working programme of the national rural policy. The programme is implemented under the leadership of the Rural Policy Council, particularly through the secretariat, thematic networks and research and development projects, but also in extensive cooperation with rural policy stakeholders. The programme sets objectives and determines theme-based measures for their achievement in an aim to develop rural areas changing with the times. At the same time a balanced development of the entire country is promoted. The objectives and measures are guided by the vision for rural policy, presented in the information box below. The time span of the programme (2021–2027) extends beyond a single government term and is consistent with the funding cycle of the European Union (hereinafter referred to as the EU). Where applicable, the objectives set in the programme will also be promoted through international cooperation. Vision for rural policy Diverse rural areas are a national success factor. They provide a platform and solutions for a good life, innovation, entrepreneurship and a sustainable society. Finland is developed as a whole by strengthening place based opportunities. The programme and the vision that guides it are based on a strategy prepared by an extensive group of researchers, ”Maaseutu kestävyysmurroksen tuulenhalkojaksi” (“Rural areas as forerunners in the sustainability transition”; in Finnish)5. Interdependence, 5 Maaseutu kestävyysmurroksen tuulenhalkojaksi. Maaseutupolitiikan strategia 2021–2027. (maaseutupolitiikka. fi, in Finnish) https://www.maaseutupolitiikka.fi/uploads/MANE-raportit/Maaseutupolitiikan-strategia-vuosille-2021-2027-FINAL.pdf https://www.maaseutupolitiikka.fi/uploads/MANE-raportit/Maaseutupolitiikan-strategia-vuosille-2021-2027-FINAL.pdf https://www.maaseutupolitiikka.fi/uploads/MANE-raportit/Maaseutupolitiikan-strategia-vuosille-2021-2027-FINAL.pdf https://www.maaseutupolitiikka.fi/uploads/MANE-raportit/Maaseutupolitiikan-strategia-vuosille-2021-2027-FINAL.pdf 21 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 environmental justice and the new information economy serve as strategic focal areas. Strategic focal points lead the way towards the vision of the programme. 2.1 Interdependence Interdependence refers to a way of thinking and an approach that involves examining issues comprehensively in an effort to understand connections between them. In this programme, interdependence is particularly considered from three perspectives: the link between our well-being and nature, interdependencies between different regions and cross-sectoral cooperation. The starting point is an understanding of how our well-being is closely connected to nature and biodiversity. Ecosystem services maintained by nature are essential for life on Earth. Human activity and maintaining well-being must be adapted to the limits posed by ecological sustainability. This must be reflected in all social and economic activities and decision-making. It is also important to understand that there are interdependencies between the development of different areas. Finland’s large rural areas, extensive archipelago, municipal centres of various sizes and urban areas are all parts of a symbiosis, in which they both need and complement each other. Sub-regional centres and the development of them play for example an important role as service centres for the surrounding rural areas. The inter-regional interdependencies become stronger as multilocality and location- independent work become increasingly common. The immaterial and material resources located in rural areas are increasingly connected not only to regional but also to national and global networks of expertise, production and cooperation. Maintaining and developing societal functions and services requires closer cooperation between sectors and different actors. In addition to the public sector, the private sector and civil society play an important role in promoting livelihoods and employment and also in the provision of services in rural areas. A sustainable democratic society needs a strong civil society, while a strong civil society needs a public sector that supports and enables inclusion, activity and partnership. 22 Publications of the Ministry of Agriculture and Forestry 2022:13 Rural policy objective for 2027 Finland is developed as a whole, taking into account the interdependencies between humans and nature and between different regions and sectors. The aim is to build a holistically sustainable society based on the consideration of local needs and conditions, and strengthening of local resources. 2.2 Environmental justice In the programme, environmental justice represents an extensive perspective on the transition to sustainability. At its core lies fairness between different actors, places and generations. Environmental justice is centred around the preservation of natural ecosystems and the social and regional distribution of the benefits and potential disadvantages arising from the use of natural resources. In this programme, environmental justice is also linked to a broader perspective of fairness, according to which the rights and opportunities of of rural residents concerning housing, basic services, income opportunities as well as mobility must be secured. Most of Finland’s natural resources are located in rural areas. The use of natural resources must be based not only on the preservation of ecosystems and biodiversity, but also on the consideration of local conditions, different actors and livelihoods in the rural areas. The perspective of environmental justice emphasises socially sustainable processes in the utilisation of natural resources. Different actors must have sufficient opportunities to participate in and influence decision-making concerning their own living environment. Rural policy objective for 2027 Finland is developed as a whole. The use of natural resources located in rural areas is responsible and fair, and takes into account local environments, conditions, actors and livelihoods. The preconditions for a good life, entrepreneurship and smooth day-to-day life are secured in all parts of the country. 23 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 2.3 A new knowledge economy The knowledge economy of rural areas is strongly linked to natural environments and the ability to combine different types of information: high-tech expertise, research data, and practical and local knowledge. A knowledge economy based on rural material and immaterial resources, and diverse knowledge must be lifted to the forefront of global value chains. Knowledge economy is based on a population with a high level of education, high skill professions, research and development as well as economic activities at the higher level of global value chains. Traditionally, high tech and industries such as marketing, finance and insurance, and consulting have been linked to the knowledge economy. It will increasingly be linked to the resource-efficient use of natural resources and technological innovations and associated services related to it. Innovations and a growth of the degree of processing are in rural areas dependent on available social and human capital. Finland’s knowledge economy has been developed through public investments with a strong focus on university cities. As a result, these public funds have produced region specific competitive advantages and created elements of regional inequality. The transition to a sustainable society requires that national policies also connect rural areas and actors to the knowledge economy and innovation activities as well as funding linked to it. This is important, because private investments follow public ones, and these are increasingly needed in rural areas. Decision makers must create prospects for investing in the knowledge economy of rural areas as part of the policies designed to bring about sustainable economy. Rural policy objective for 2027 Finland is developed as a whole. Material and immaterial resources located in rural areas are combined with diverse knowledge and skills. The new knowledge economy of rural areas is brought to the forefront of global value chains. People, communities and entrepreneurs in rural areas and new professionals relocating there produce solutions for a sustainable economy. 24 Publications of the Ministry of Agriculture and Forestry 2022:13 3 Themes and measures The vision and strategic focal points set out in section 2 guide the themes and measures presented in this section. The strategic focal points (see sections 2.1 to 2.3) cut across the themes and measures of the programme with different emphases (Figure 4). Figure 4.  Vision, focal points and themes of the Rural policy programme 3.1 3.2 3.3 3.4 3.5 Vision for rural policy Focal point 1: Interdependency Fo cal p oint 2 : E nvir onmental ju stic e Fo ca l p oi nt 3 : N ew k no w le dg e ec on om y Themes and measures Diverse rural areas are a national success factor Strengthening inclusion and a sense of community in rural areas Added value through the sustainable use of natural resources Rural actors – a part of the solution that is sustainable transition Strengthening competitiveness and vitality Ensuring a smooth everyday life 25 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 3.1 Added value through the sustainable use of natural resources Everyone benefits from thriving natural and cultural environments. We can continue to create opportunities for a good life in the future by adapting people’s activities and consumption to the limits set by ecological sustainability, by fostering biodiversity, and by managing and using nature sustainably. Thriving natural and cultural environments increase interest in rural living. They also provide opportunities for business activities in rural areas. It is important that independent research data is available to support the development of operating models and business activities. The Sustainable Growth Programme for Finland6 supports ecologically, socially and economically sustainable growth. The programme aims to accelerate the green transition, i.e. the structural change in the economy towards a carbon-neutral welfare society. The productivity and sustainable growth is strengthened through increasing the emploment rate and competence level. The task of the rural policy is to promote the sustainable and socially and regionally fair use of natural resources. Its task is also to highlight the perspectives of rural residents, communities and entrepreneurs, especially in matters concerning livelihoods and land use. 3.1.1 Managing and using nature and the environment sustainably 3.1.1.1 Forest use and agriculture Our relationship with forests is complex. Everything we do for, in and of forests or based on the influence of forests reflects our sense of forests. Sense of the forest opens up opportunities for sustainable and versatile use of forests and for also producing added value at the local level. Strengthening people’s relationship with forests is one of the keys to diversifying rural business and the benefits gained from forests. Investments in a broader sustainable use of forests are needed at the national, regional and local levels. This requires an increase in the knowledge and understanding of the sustainable use of forests. Furthermore it is important to reconcile the interests of different actors and promote dialogue between generations on the subject. 6 Sustainable Growth Programme for Finland: Preliminary Recovery and Resilience Plan. Publications of the Finn- ish Government 2021:22. https://julkaisut.valtioneuvosto.fi/handle/10024/162935 https://julkaisut.valtioneuvosto.fi/handle/10024/162935 26 Publications of the Ministry of Agriculture and Forestry 2022:13 Forest policy aims to guide forest use, forest and nature management, felling and harvesting. Forest policy also aims to reconcile the conflicting climate and industrial policy objectives regarding use of forests. In addition to wood production, the statutory regional forest programmes also contain targets for wood construction, natural products, nature tourism as well as climate change mitigation. Regional forest programmes implement the EU Forest Strategy and the objectives of the national forest strategy. These include increasing biodiversity, climate change mitigation and rural development. Creating added value both locally and nationally through resource efficient utilisation of forests is important. Finns hold domestically produced food in high regard. Ensuring the prerequisites for national agriculture lays the foundation for a sustainable food system and national security of supply. The agricultural policy is based on the EU Common Agricultural Policy (CAP), which focuses on strengthening the competitiveness of agriculture, improving the state of the environment, preserving biodiversity, animal welfare as well as increasing the vitality of rural areas - that is, rural development. Rural policy is strongly connected to the last-mentioned. National agricultural policy aims to accelerate sustainable solutions within agriculture. These include nutrient recycling, utilisation of side streams and food production based on agroecological symbiosis, in which farms, processors of food products and energy producers collaborate locally. Sustainable solutions also include organic production and the development of smart agriculture, the latter requiring extensive high-speed telecommunications networks. Agriculture and forestry are interlinked. Preserving biodiversity must be a key objective both in the use of forests and in agriculture. In order to safeguard biodiversity, traditional nature conservation efforts must be accompanied by operating models that work on a voluntary basis. Market-based models such as natural values trading can provide one solution to this. There is also a need to develop service models concerning ecosystem services (e.g. recreational values trading and carbon sink trading) to support the profitability of agriculture and forestry. Peatlands and entrepreneurship related to peat have offered a significant economic base in rural areas. Phasing out the use of peat as an energy source faster than expected will affect national security of supply, at least during the transition period, and will have long- term effects on the economy of and entrepreneurship and employment in many rural municipalities. Methods for reducing emissions caused by the use of peatlands must be further developed and introduced in order to ensure that preconditions for sustainable production remain in different regions. Supporting the security of energy supply and business activities in small municipalities requires innovative measures. Market-based operating models to compensate for carbon dioxide emissions can also offer new opportunities for rural operators. 27 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 The interface between national rural policy and the forest and agricultural policies is linked to improving the operating environment of rural areas and the perspective of environmental justice. In practice, this means developing land use, infrastructure, the natural and cultural environment, and new types of services to meet societal needs and demand. Rural policy measures: 1. Promote the consideration of the perspectives of environmental justice and local rural communities and aim to reconcile the interests of various actors in policy issues concerning agriculture and forestry. 2. Promote fair and place-based solutions to mitigate socio-economic problems caused by the energy transition and the change in the use of peatlands. Contribute to the adaptation and change of the economic structure as part of the sustainability transition and to promote new employment and income opportunities. 3.1.1.2 The built environment and cultural environment Creating and preserving comfortable housing and living environments in rural areas should be set as a goal for land use planning and the steering of construction as well as in regional and local architectural policy programmes. Planning and construction must meet the needs of both rural people and communities as well as the increasing remote work and multilocality. Constructing new buildings must be possible in rural areas, as well as safeguarding traditional construction techniques and cultural heritage. The existing building stock must be maintained. This enables strengthening the attractiveness of rural areas as an environment for housing, entrepreneurship and services alike. From a rural policy perspective, it is important to pay more attention to the local perspective in land use planning and in the steering of construction. Planning must be based on taking into account different housing preferences, the needs of rural businesses, environmental values and the opportunities provided by different operational environments. Flexible and predictable planning and permit practices must also be used to respond to the housing preferences concerning sparsely populated areas. More and more Finns, including young urban people, are interested in rural living. This increasing interest in the countryside increases the demand for rental housing and properties sold in rural areas. The availability of housing can be improved by marketing and utilising empty properties and by restoring buildings in a manner promoting the preservation of cultural heritage. 28 Publications of the Ministry of Agriculture and Forestry 2022:13 Rural areas have unique cultural environments that, when properly managed, create pleasant living environments and increase the attractiveness of the area. A balance must be found between protecting and exploiting the environment. Housing, agriculture and forestry and other business activities contribute to the cultural landscape and the management of the environment. Various projects, village planning and private investments can also be used to take care of the built and natural environments. Rural policy measures: 3. Highlight experiences and practical models of smooth permit practices concerning rural areas. 4. Highlight measures for managing the cultural environment and for making versatile use of cultural heritage to strengthen local and regional vitality. 3.1.1.3 Water bodies and waterways The state of Finland’s water bodies affects everyone's well-being Water bodies are a significant national resource. We make use of water bodies in our day-to-day lives, primary production, industrial production, electricity production, tourism, and recreational activities. The condition of the water bodies and the sustainability of their use affect everything from individual well-being to the national economy. In terms of rural policy, it is important that water systems are taken care of and measures are taken in rural areas to improve the status of water systems. Projects aiming to restore water bodies both improve their ecological status and enhance the environment and economic opportunities linked to it. Water bodies can also be used and developed as waterways and serve tourism and logistics based on them. Operating models that work well should be communicated, benchmarked and their wider implementation promoted, for example, through EU co-funded activities. 3.1.2 Increasing local added value in the use of natural resources Finland’s business and export industries rely largely on the utilisation of natural resources located in rural areas. The utilisation of natural resources in industry and mining must be based on minimising the potential harm caused by the use of natural resources, and on allocating gained benefits to the local economies. The needs and values of local communities must be taken into account in activities that significantly change the environment. The guiding principle of economic activity should instead of relative cost- benefits of production, be, relative sustainability-benefit rateof production. This would 29 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 enable examining the direct and indirect environmental, social and cultural impacts in addition to production costs. From a rural policy perspective, it is important that the degree of local processing of raw materials is increased. Carrying out further processing at the local level brings entrepreneurship, jobs and livelihoods to rural areas. It is also important that the development of local further processing complies with the principles of resource efficiency and the circular economy and promotes closed loop production cycles. The utilisation of research knowledge in the development of further processing is also important. In order to minimise and compensate for potential harm and to distribute the benefits in a just way information is needed that support these actions. Also new operating models, legislative and economic streering and a change in attitudes is required. The principles of environmental justice must be more strongly integrated into legislation and the distribution of budget resources. Rural policy measures: 5. Highlight issues on environmental justice and the impacts of the sustainable use of natural resources on the local and regional economy. Highlight the perspective of rural communities. 6. Follow and influence the preparation and implementation of the Mining Act by highlighting the perspective of sustainability and rural communities. 7. Produce knowledge about the opportunities to increas local further processing of natural raw materials. 3.1.3 Promoting well-being from nature People spend more and more time and engage in increasingly versatile activities in nature. Nature is strongly associated with rural areas. Hiking, berry picking and gathering mushrooms, hunting, fishing, and other activities carried out in the wilderness all contribute to our relationship with nature, which supports our well-being. Everyman’s rights enables everyone to move freely in nature, and to engage in nature activities and entrepreneurship respectful to nature. 30 Publications of the Ministry of Agriculture and Forestry 2022:13 An estimated 96 per cent of Finns spend time outdoors and the most popular recreational activities include walking, swimming, cycling, berry picking, fishing and boating7. A significant share of outdoor activities occurs in people’s day-to-day lives and close to people’s homes. Municipalities play a significant role in providing opportunities for outdoor activities. Hiking trails are a concrete example of the urban–rural continuum. It is important that solutions that facilitate outdoor activities, such as pedestrian walkways and nature trails, are also developed between the urban areas and rural villages in municipalities. As the number of people spending time in nature increases, it is also important to provide more information and training on nature conservation and on how to act in nature. Finland's exceptionally extensive opportunities for hunting and fishing support people’s well-being and serve as a source of income in rural areas. The number of hunting and fishing enthusiasts is high; In 2018, there were some 0.3 million hunters and some 1.5 million fishing enthusiasts. On the other hand, the members of hunting clubs are ageing. Safeguarding the prerequisites for wilderness activities promotes attracting new enthusiasts, including young people, to the hobby. This also creates conditions for sustainable service businesses based on recreational activities in the wilderness. Improving the efficiency of the permit process for less sought-after areas can also be used to promote the development of service businesses. According to visitor surveys carried out by Metsähallitus in the period 2015–2019, 87 per cent of the visitors to nature sites feel that spending time in nature has had quite a lot or very significant impacts on their health and well-being. The number of visitors to national parks is increasing steadily. In 2020, a total of 9.2 million visits were made to state-owned areas managed by Metsähallitus. On an average each euro spent on hiking services and nature centres brings 10 euros to the local area through the money spent by the visitors. It is vital to ensure the development and maintenance of service structures and infrastructure in national parks. To an increasing extent, the impact of nature and animal-assisted methods has been recognised and proven through research, in contexts such as rehabilitation and social support. Green care activities, which highlight the benefits brought by nature to well- being and include nature and animal-assisted services, should be taken into account more extensively in both preventive activities and in social welfare and healthcare services. Therapeutic horse riding, social pedagogical equine-assisted activities, social and 7 National outdoor recreation demand inventory 3 pilot study, Natural Resources Institute Finland. (luke.fi, in Finnish) https://www.luke.fi/projektit/lvvi3p-mmm/ 31 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 therapeutic gardening activities and other activities such as rehabilitative work on a farm also provide opportunities for entrepreneurship. Rural policy measures: 8. Provide more opportunities for entrepreneurship by supporting the development of service business activities based on nature and recreational activities related to nature. 9. Promote the wider adoption of natural and animal-assisted methods both in the promotion of welfare and health and in social welfare and healthcare services. 3.2 Rural actors – a part of the solution that is sustainable transition A sustainable society requires a transition from a fossil economy to a sustainable bio- and circular economy. What is crucial is how we all – citizens, communities, entrepreneurs and organisations - fare at adopting sustainable solutions in our daily lives and activities. The development of solutions requires a place-based policy and development as well as extensive research and development efforts. The sustainable transition requires partnerships between different sectors and agents. The introduction and development of sustainable bioeconomy and circular economy models will open new doors to businesses in rural areas. Utilising the side streams of industrial manufacturing processes requires both new innovations and new kinds of partnerships between various actors SMEs and microbusinesses can play a key role in introducing as well as creating models. Sustainable solutions can be developed in contexts such as the food system, energy production and tourism. The sustainable transition emphasises decentralised and hybrid models that also support security of supply. Rural policy measures: 10. Prepare an overall view and plan of how the rural perspective will be integrated into the implementation and monitoring of sustainable development and climate policy. 11. Produce indicators that can be used to more closely monitor the progress of sustainable development in rural areas and to serve as a basis for decision- making. 32 Publications of the Ministry of Agriculture and Forestry 2022:13 The bioeconomy and circular economy A bioeconomy refers to an economy that relies on renewable natural resources to produce food, energy, products and services. Finnish forests, fields and water bodies produce raw materials and also intangible resources that can be made use of in travel and tourism. Bioeconomy includes forestry, forest industry, chemical industry, fisheries, agriculture, food industry, pharmaceutical industry and nature tourism. Bioeconomy involves developing and utilising innovations and technologies related to renewable natural resources. It is also perceived as a strategy for solving challenges related to climate change and structural changes. According to a definition by the Strategic programme to promote a circular economy8, a circular economy makes efficient and sustainable use of materials, and these will remain in circulation for long and safely. Products are also shared, leased, repaired and recycled. Servicification is part of the circular economy. The circular economy is a new operating method for the economy that generates economic well-being within the limits of the planet’s carrying capacity. It utilises digitalisation efficiently and will renew the structures and operating models of society. The circular economy is a means for reducing the use of natural resources. 3.2.1 Building a sustainable food system The well-being of everyone is widely affected by a functioning food system. A sustainable food system means environmentally friendly primary production, food processing in closed loop cycles, and local food purchases that support local entrepreneurship. It also means socially acceptable distribution of income in the food chain and climate-wise logistics. It furthermore includes a diet in line with nutrition recommendations, for which everyone must be guaranteed equal opportunities. In Finland, a sustainable food system is developed as part of agricultural and food policy. Rural policy supports the objectives of the Finnish Food Policy Report 2030, the Government’s Climate-friendly Food Programme, Local Food Programme, the Government programme for the Finnish organic product 8 New directions: The strategic programme to promote a circular economy. Publications of the Finnish Govern- ment 2021:1 (in Finnish). https://julkaisut.valtioneuvosto.fi/bitstream/handle/10024/162654/VN_2021_1.pdf?sequence=1&isAllowed=y https://julkaisut.valtioneuvosto.fi/bitstream/handle/10024/162654/VN_2021_1.pdf?sequence=1&isAllowed=y https://julkaisut.valtioneuvosto.fi/bitstream/handle/10024/162654/VN_2021_1.pdf?sequence=1&isAllowed=y 33 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 sector and the Promotion programme on domestic fish. It is important that the objectives and measures of the various programmes are consistent. Rural policy emphasises the importance of place and retaining added value in the region. In Finland’s day-care centres, schools, hospitals, nursing homes and other public cafeterias 100 meals are eaten per person every year. Within public procurement approximately 350 million euro is spent on food; of this, the share of local food ranges from one per cent (Uusimaa) to just under 50 per cent (Satakunta). In decision-making regarding public food procurement, the multiplier effects on the region’s economy must be taken into account. The removal of barriers to local procurement and the promotion of dialogue between different operators can contribute to retaining added value in the region. Local food production, processing and the utilisation of side streams support local entrepreneurship, employment, communality, and contribute to improving security of supply. In recent years, local networks of farms, food processors and bioenergy producers operating in so-called agroecological symbiosis have emerged to support the development of a sustainable food system. There is good reason for developing closed loop cycle production models, and promoting them in a manner adopted to local conditions. Increasing interest in food, its cultivation and origin will bring consumers closer to food producers and strengthen interaction between cities and rural areas. For example, direct sales (e.g. REKO local food rings) have improved consumers’ opportunities for making an impact on their environment and society through their own choices. It is important that consumers have access to the right information to support their choices and opportunities for influence. Through their choices, consumers can support local entrepreneurship and strengthen a sense of community in their local area. A constructive dialogue between consumers of different ages and backgrounds and agents in the food chain is important. Rural policy measures: 12. Highlight the multiplier effects of public food procurement on the regional economy and strive to identify and remove barriers to local procurement, for instance, by promoting dialogue between different actors. 13. Support dialogue between consumers of different ages and the operators in the food chain, and promote models of interaction that create increased added value at the local level. 34 Publications of the Ministry of Agriculture and Forestry 2022:13 3.2.2 Promoting decentralised bioenergy production It is important to utilise the side streams and closed cycles of primary production and processing in bioenergy production. Rural policy encourages open-minded development of new solutions at the pace that emerging technology allows. The current smart grid systems facilitate, for example, the self-production and sales of solar power and bioenergy, which should be promoted. Waste and side streams such as manure and plant waste should be utilised as the primary raw material for biogas and biofuel production. Increasing bioenergy production may require expanding the area of land used for cultivation. In this case, requirements set by the sustainability criteria, the waste hierarchy and the implementation of the nutrient cycle must be taken into account. There is need to examine and assess biofuel production and opportunities for collaboration between various operators comprehensively from different perspectives. From a rural policy perspective, it is important to provide small operators with opportunities in the implementation of the national biogas programme. Investments must be made in research and increasing competence. There is a need for promoting innovations and ensuring that the latest research findings can be utilised and translated into practical applications through experimentation. Legislative steering and resource allocation must be developed to ensure that this improves the preconditions for small-scale bioenergy production. EU legislation plays an important regulatory role in this context. Local energy communities, electricity production based on cooperatives, agroecological symbioses, bioproduct and circular economy companies as well as energy- self-sufficient farms and villages are part of the solution to a sustainable transition. The wider adoption of models must be supported to ensure that their use becomes customary. More decentralised renewable energy production supports energy self-sufficiency and security of supply while increasing competition in the sector. Rural policy measures: 14. Examine the challenges and opportunities of decentralised energy production legislation. 15. Encourage open-mindedness towards new, decentralised energy production solutions as soon as these are facilitated by scalable technology. Encourage the development of decentralised renewable energy production and local and property-specific experiments. 16. Promote the creation of a production and distribution network for transport biogas covering the entire country and in this context ensure opportunities for small operators. Emphasise cooperation between different authorities and financiers to ensure that no operator falls between different measures. 35 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 3.2.3 Developing sustainable tourism Tourism strengthens a balanced regional structure and plays a particularly important role at the local level in rural areas and archipelagos. This importance is emphasised by the dependence on location of the tourism industry: most of the jobs and locally carried out development work cannot be transferred to another country or locality. Tourism is part of rural entrepreneurship, and many rural entrepreneurs operate in a number of industries, including the tourism sector during peak seasons. The sector employs a lot of young people, representing 30 per cent of the workers. Tourism also produces diverse multiplier effects for other industries, such as the construction, food, textile and financial services industries. One euro spent by a tourist will bring an estimated 61 cent added value to other sectors. Tourism is the only export sector in which consumption occurs in Finland and which pays value-added tax for its activities. Developing inbound tourism to Finland is an effective way of increasing income from the perspective of the national economy and the vitality of regions. Additionally, tourism creates a wider range of more high-quality services for the local population and helps maintain the basic infrastructure which, in turn, enables the development of other businesses. Tourism that supports culture and the preservation and development of cultural heritage and environments also strengthens the cultural identity of the regions. Cultural events have positive economic, image-related and tourism impacts, which support the vitality of municipalities. In developing the sector, special attention must be paid to competence, quality, sustainability, competitiveness, accessibility and digitalisation, and ensuring that the activities can be carried out year-round. For example, culinary tourism promotes the development of year-round tourism in rural areas. Cooperation between local residents, companies and communities, and building wider networks, is important. The potential for environmentally sustainable tourism in rural areas is exceptionally good, as the necessary energy can be produced locally and with renewable sources. Food comes from the local area and sustainable solutions based on, for instance, the sharing economy can also be utilised in transportation. The development of sustainable tourism is closely linked to productisation and increasing knowledge and awareness. Metsähallitus is a key central government agency operating in the counties, and the services it maintains can be utilised by nature tourism companies. National parks and their growing number of visitors and hiking trails offer companies many opportunities. Developing partnership activities enables rural companies to get more visibility and new markets for their services and products. 36 Publications of the Ministry of Agriculture and Forestry 2022:13 Sustainable tourism Sustainable tourism refers to tourism that comprehensively takes into account current and future economic, social, cultural and environmental impacts as well as the needs of tourists, tourism companies and local communities. Taking sustainability into account increases the profitability of the sector, qualitative growth, and the positive impact of the sector on society, and guides the sector to avoid the negative impacts of tourism. In addition to environmental issues, sustainable tourism refers to socio-cultural and economic responsibility. Rural policy measures: 17. Encourage entrepreneurs operating in rural areas to actively participate in the implementation of the visions and measures of Finland’s tourism strategy and culinary tourism strategy. 18. Encourage rural enterprises to cooperate across sectoral boundaries and to commit to the principles of sustainable tourism in their own activities. Encourage companies and tourism regions to work towards attaining the Sustainable Travel Finland badge. 3.2.4 Strengthening national security of supply Rural areas can only contribute to securing Finland’s security of supply if the vitality of rural areas is ensured. This requires making sure that infrastructure, access to affordable energy, critical services, business profitability and skilled labour is secured at the local level. In the context of developing security of supply, it is crucial to pay attention to the smooth flow and reliability of day-to-day life and business activities in rural areas both under normal conditions, in an incident under normal conditions, and during emergency conditions. In Finland, security of supply is based on cooperation between the public and private sector. This cooperation involves the central government, sectoral organisations and companies critical to the functioning of society. From the perspective of rural policy, it is essential to take into account food production, energy supply, water services, health care, roads and logistics, and telecommunications. 37 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 Food supply consists of primary production, the food industry and the trade and distribution of food. In rural areas, the security of food supply can be increased by ensuring the degree of self-sufficiency in food production, the food industry and expertise in the sector. Security of supply is also supported by a sufficiently decentralised food system. Finland’s energy supply is based on decentralised energy production, versatile energy sources and a reliable transmission and distribution system. The reliability of electricity during incidents and under emergency conditions must be ensured in rural areas. A well-functioning water supply, good quality domestic water and proper treatment of wastewater are part of the security of supply. Clean water is Finland’s strength, especially in the food sector, and its availability must be safeguarded under normal conditions as well as during crises. The health care sector is responsible for the planning and material preparedness of health care in our society. As far as health care is concerned the service network must be regionally comprehensive and personnel, equipment and materils must be available in all parts of the country. A well-operating infrastructure, cooperation between businesses and the authorities, and transport and logistics services all contribute to safeguarding the functions of society under normal conditions, during serious incidents, and under emergency conditions. A functioning road and transport network with refuelling stations must be ensured throughout the country. Improving security of supply requires decentralised production of biofuels and a comprehensive distribution network, also in rural areas. The threats to critical infrastructure in society increasingly concern cyber threats against information systems, including malware, data breaches, distributed denial-of-service attacks, spam, and related phenomena. Throughout the country, well-functioning and fast telecommunications networks, expertise, information security and the reliability of communications are a prerequisite for the smooth functioning and security of society. Rural policy measures: 19. Monitor and ensure that critical rural infrastructure (roads, transport connections and logistics, electricity production and network, water services, telecommunications), food production and health care in rural areas are in good shape and that these promote Finland’s security of supply. Measures aimed at strengthening security of supply are presented in sections 3.1 through 3.5. 38 Publications of the Ministry of Agriculture and Forestry 2022:13 3.3 Strengthening competitiveness and vitality It is important that each region recognises the strengths of its operational environment and translates these into factors promoting vitality. For example, infrastructure, competence, operating culture and services supporting entrepreneurship, and public procurement have the potential to strengthen the vitality of the regions. Rural areas are seen as a place for a good life that will also provide opportunities for business in the future. It is important to engage in dialogue with people of different ages and backgrounds on how the interest in entrepreneurship can be realized. Increasing the degree of processing, product development and innovation activities require eduational and training services that increase competence in rural areas and improve the availability of skilled labour. Promoting the availability of competence and workforce requires the development and implementation of new platforms and operating methods. Infrastructure and structures are also important. There is a need for an ability to maintain, improve and also modify the existing infrastructure and structures for new purposes, such as a closed cycle system. 3.3.1 Promoting competitiveness and vitality through effective connections Well-functioning transport and telecommunications connections lay the foundation for interactions and cooperation between different actors and regions. Comprehensive high-speed telecommunications networks ensure equal opportunities for citizens and businesses to participate in the digital economy independent of place. In particular, fibre- optic networks have a positive effect on both the location and development of businesses as well as the demographic development of regions. 3.3.1.1 Developing a transport system that serves rural areas A functioning transport system is essential for the accessibility of different areas, for the land use planning and the regional development. The competitiveness of businesses, the development of the bioeconomy, and climate change mitigation and adaptation require developing the transport system. The national transport system plan prepared for the first time in Finland covers all modes of transport: passenger transport and flow of goods, transport networks, services and the support functions for the transport system. It is prepared for a 12-year period (2021–2032) and updated for each government term. From the perspective of rural policy, it is important that the different conditions in rural areas and the needs of various actors in 39 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 rural areas, such as businesses, are taken into account in the implementation of the plan. For example, the bioeconomy requires well-functioning roads and functional logistics and travel chains. From a rural policy perspective, it is important to make sure that sufficiently detailed information is available on the transport needs of rural business life. It is important to ensure the interoperability of spatial data developed in the administrative branch of the Ministry of Agriculture and Forestry and the data environments concerning the built environment that fall under the remit of the Ministry of the Environment (development of transport and transport areas). Rural policy measures: 20. Ensure that rural conditions and needs are taken into account in the implementation of the national transport system plan. 21. Influence the reform of the transport tax model by highlighting the needs and special features of rural areas. Produce an more detailed situation picture and knowledge base on the needs for transport in rural areas to serve as a basis for decision-making. 3.3.1.2 Ensuring comprehensive telecommunications networks in rural areas High-speed and reliable telecommunication connections significantly reduce the disadvantages caused by geographical distances activities, education and training, and the provision of services. Telecommunications networks enable place-independent work, entrepreneurship and studies, and service production. Fibre-optic network has a positive impact on local demographic development as well as business development. High-speed broadband connections with consistent quality are an investment in vitality, especially in rural areas. The construction of fibre-optic networks has progressed more slowly than expected in Finland. As a result, the policy targets set at the national and EU level for the construction have not been achieved. The availability of optical fibre remains poor in large parts of the country and the construction of fibre optic networks has been fragmented. A comparison of high-speed fixed internet connections reveal that Finland has on of the biggest disparities in EU when it comes to connectivity in rural areas and in the country as a whole. Improving the availability of high-speed broadband connections in areas where connections are not built on market terms still requires public support and better national coordination. The joint construction of infrastructure must also be further promoted. 40 Publications of the Ministry of Agriculture and Forestry 2022:13 Rural policy measures: 22. Ensure that the EU objectives for a Gigabit Society are achieved in Finnish rural areas. 23. Support the national coordination of the construction of high-speed broadband networks by providing relevant information. 24. Assess the socio-economic and regional economic impacts of available broadband connections from the perspective of municipalities and rural businesses. The examination concerns social welfare and health care services, education and cultural services as well as economic development and public costs vs. investments/productivity. 3.3.2 Responding to the transformation of work by developing competence and approaches As part of the transformation of work, it is important to find flexible and diverse ways to anticipate competence needs. The labour needs of increasingly diverse rural businesses must be met by providing training and employment services. Dialogue between different operators is important. Shortage of skilled labour is a key challenge in rural areas. Educational policy decisions are strongly reflected in educational opportunities and the availability of skilled labour. The concentration of education deepens disparities both within and between regions. The negative effect of this is apparent at the business and industries levels, reducing businesses’ willingness to invest in and develop their operations. This reduces the vitality of the regions. Meeting the demand for workforce requires a comprehensive set of education and training, tailored training aimed at specific groups and situations, employment services oriented towards rural areas, and well-functioning labour immigration. Information on the anticipated need for skilled labour in rural areas must be provided more actively to education providers and higher education institutions. Digital opportunities to higher education and continuous learning are developing strongly and are changing the way people think about the centralisation of education to specific regions and about the accessibility to education. Opportunities offered by digital solutions to education and learning should be made full use of in order to improve the accessibility to higher education and vocational education and training especially in sparsely populated areas. 41 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 Rural policy measures: 25. Ensure the availability of employment and business services in rural areas and especially in sparsely populated areas. Investigate and provide information about employment service and business advisory service models suitable for the operational environments of rural areas. 26. Safeguard the availability of vocational education and training and higher education in sparsely populated areas, taking into account the extensive opportunities brought to education by digital services. Investigate models that encourage cooperation between education providers. Anticipate the needs for competence and workforce in the Finnish and Swedish language in the increasingly diverse industries operating in rural areas as part of a regional process for anticipating education and competence needs. 27. Promote cooperation between vocational education and training institutes and companies. Seek and develope flexible and diverse solutions to meet different needs for competence and to foster continuous learning, making use of the opportunities brought by digitalisation. 3.3.3 Creating preconditions for location-independent work Technological development and changing lifestyles and attitudes affect the work tasks and operating methods within different industries. As work is becoming increasingly independent of place, more and more people will have the opportunity to live and work in a rural areas. For example, working as a specialist won't determine where one has to live in the same way as it did before. This change particularly affects the opportunities for young people, people with tertiary education and women to live and work in rural areas. The central government must be a pioneer that provides its employees with more opportunities to work remotely. Well-functioning telecommunications free people to work wherever they want, help them in reconciling work and leisure time, and reduce emissions caused by commuting. The attractiveness of work independent of place and well-being at work can be improved with communal (remote) local workspaces, which can also serve as places for other activities, such as studies, cultural activities and business counselling. 42 Publications of the Ministry of Agriculture and Forestry 2022:13 Rural policy measures: 28. Initiate preparations of a national strategy for place-independent work and accelerating the promotion of location-independent work and recruitment. 29. Launch pilots and development activities related to work independent of place in collaboration between the public, private and third sector. Promote research related to work independent of place. 30. Promote the means of taxation to support work independent of place, including necessary facilities and procurement. 3.3.4 Promoting the creation of higher added value at the local level Innovation and financial services must be able to identify the potential in rural areas in the sustainable transition and creation of vitality in all parts of Finland. Increasing the level of processing of raw materials at the local level in rural areas requires cooperation and networking, particularly with regard to product development based on scientific and practical innovations. There must be dialogue between local value chains (e.g. food, bioenergy and industrial production) and further cooperation must be developed. Cooperation between the research and education organisations operating in the regions and rural businesses. Regional innovation systems and operational environments should also be developed based on the strengths of rural areas (smart specialisation). Innovation and learning environments can better serve both educational institutions and companies by offering facilities, machines, equipment and services to meet the needs they both have. As most vocational education and training institutions in Finland are maintained by municipalities or joint municipal authorities, municipalities can contribute to expanding and deepening this cooperation. Increasing the degree of processing and developing new innovations requires business advise, consulting, financing and internationalisation services that recognise the special features of business activities in rural areas. The development of services can be implemented using a multi-producer model. It is important to have easy access to advisory services, and financing services and application of different forms of financing that seamlessly respond to different needs. These must be easily available at both the start-up and expansion stage of businesses. The services that support entrepreneurship must be available in both Finnish and Swedish. Crowdfunding provides one opportunity for start-ups and growth businesses in rural areas. The growth of the SME sector in rural areas is limited by the lack of risk financing elements. More private sector risk financing must be attracted to rural areas, which 43 Publications of the Ministry of Agriculture and Forestry 2022:13 Publications of the Ministry of Agriculture and Forestry 2022:13 requires awakening the interest of investors. The public authorities must lead the way information about sustainable business opportunities in rural areas must be widely provided to potential investors. In addition to the economic added value, the wider aspects of the transition to a sustainable society, biodiversity and work related to climate must also be highlighted. The platform economy is one manifestation of a connected world. There is reason to increase the use of the business models and forms of the platform economy as part of increasing the degree of processing, product development and innovation activities in rural areas. New models must boldly be tested and developed An operating culture and open networks that encourage economic activity increase the vitality of places and regions. They attract new actors. The interest in rural businesses and reorganisation and generational handovers concering them can be increased through an encouraging operating culture. It is important to recognise young people’s dreams of entrepreneurship and to take measures in order for them to be achieved. Rural areas have a large number of ageing entrepreneurs representing a variety of sectors. Generational successions and changes in ownership provide opportunities for both young people and others interested in entrepreneurship in rural areas. Opportunities must be widely provided and marketed. To support entrepreneurship, there is a need for the aforementioned services to function properly. A change of ownership can be a tool for growth and internationalisation for a well-functioning business. It may also provide one alternative for establishing a new business. Rural policy measures: 31. Explore the possibility of creating a compensation system for regional and local competitive advantages, i.e. a region-specific and location- specific investment programme for public funds that supports equality of opportunity in different regions. The investment programme must promote the creation of new activities (instead of maintaining existing ones, as is the case with the system of central government transfers to local government)