Gotland’s development trajectory is unique in Sweden. While the country has numerous islands and long costal lines, the region of Gotland is by far the largest island (3 140 km²) and is located the furthest from the mainland (90 km). It is also the only territory that has both regional and municipal administrative responsibilities.
Gotland represents 0.8% of Sweden’s land area. With a population of about 60 970 (0.6% of Sweden’s national population), Gotland is the smallest region in terms of inhabitants and the smallest regional economy (contributing 0.43% of the national GDP) in Sweden. The region displays lower productivity and population growth than Swedish mainland regions but, across many indicators, it outperforms many comparable benchmark regions (EU islands and OECD remote rural regions). For example, since 2009, Gotland’s GDP per capita has grown by an average of 1.2% per annum, compared to 0.23% in peer island regions and a contraction (of -0.67%) in remote regions.
The island has a number of important advantages that positively influence its development. These include the presences of raw materials, a mild climate, a high potential for a connected, smart and renewable bioeconomy and circular economy (Gotland functions as a national testbed for renewable energy), a university providing research, education and training, very good broadband connectivity (88% of households have access to the fibre optic network) and a strong local identity and vibrant civil society. These make it an attractive location for tourists and internal migrants alike. Gotland’s population had been stagnating until 2016 but, since then, the population has grown (up 3.34% between 2016-19), largely due to inflows of working-age families with children from the mainland. The island also has significant policy and service delivery responsibilities relative to population size.
As an island economy, however, Gotland has a range of bottlenecks that, without action, can hold back well-being and sustainable regional development. These include its lack of critical mass and remoteness from larger markets, vulnerability to climate change (e.g. summer droughts and sea level rise), higher relative costs to deliver services and infrastructure, a largely seasonal economy and high elderly dependency ratios. In response, Gotland has put in place a well-developed regional development strategy Our Gotland 2040.
To further improve the quality of life for its residents and deal with persisting challenges, the study provides recommendations in three main areas. The first deals with improving infrastructure planning, investments and delivery. Some of Gotland’s infrastructure will soon be unable to provide an appropriate level of service as it nears the end of its useful life or in response to the increasing impacts of climate change and population growth. Gotland currently lacks a forward-looking approach to preparing for infrastructure needs dependent on external decisions (e.g. future energy connection to the mainland, the fate of the local cement plant, increased water shortages or military presence). The second focuses on the business environment, noting that Gotland enjoys one of the highest rates of start-ups in the country and a vibrant business community characterised by a “doer” mindset. Yet, small and micro businesses, which make up the majority of companies, struggle to innovate, reach off-island markets and access needed scale-up and growth support. In addition, low levels of post-secondary education and relatively high student drop-out rates make it difficult for employers to find highly skilled workers. Finally, the report focuses on improving administrative and financing capacity to make effective use of its limited own public resources (i.e. its small tax base) to deliver services throughout the territory. It also makes recommendations for addressing a lack of clarity in the distribution of responsibilities among levels of government resulting from administrative reforms that granted the region increased regional development responsibilities.