Abstract:The article aims to show how local industry life cycles impact the development of Finnish resource-based rural towns. This study reveals five long-term and overlapping industry cycles which were based on natural resources, assembly industries and service production. In general, the cycles have shortened over time.Transitions from cycle to cycle were enabled by the phases of resilience, which were highly dependent on political and economic processes at different scales. However, the political interventions of the last decades were unable to compensate for the disadvantages in competitiveness of this remote area and lay sustainable foundations for new industries. In the long run, the only exception has been the forest-related processing industry which has a capacity to renew its own operations and adapt to changing market situations. The results demonstrate the high significance of absolute advantage in rural development.Keywords: industry life cycles; resource dependence; local resilience; employment; regional policy; forested areas; Finland Abstrakti: Suomalaisten resurssiperustaisten maaseutukuntien kehitykseen ovat vaikuttaneet keskeisesti paikallisten toimialojen elinkaaret. Tutkimuskohteessa havaitut viisi toisiinsa limittyvää sykliä ovat perustuneet paikallisiin luonnonvaroihin, tuotuja raakaaineita ja puolivalmisteita käyttävään teollisuuteen ja palvelujen tuotantoon. Teollisella kaudella yksittäisen elinkaaren pituus on lyhentynyt. Syklistä toiseen siirtymiseen ovat vaikuttaneet eritasoiset poliittiset ja taloudelliset uusiutumisvaiheet. Viime vuosikymmenten poliittiset interventiot eivät ole kyenneet kompensoimaan tutkitun resurssiperiferian heikkoa kilpailukykyä ja luomaan kestävää perustaa uusille aloille. Parhaiten muuttuviin markkinatilanteisiin on sopeutunut paikallisia luonnonvaroja jalostava metsäteollisuus.

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The paper’s general objective is to question the point of view whereby peripheries are seen only through a static downturn with no reflections on dynamicity or adaptation. The focus is set on the standpoints of actors in local government and their interface with the broader structures. The aim is to create a productive dialogue with evolutionary economic geography studies paying attention to actors and resilience studies where the human perspectives in adaptation are emphasised. The town of Lieksa, Finland, is used as a case study to exemplify a forest resource periphery located in relative isolation at the regional and national scale, but within a developed economy in Europe. The results, based on interviews with key local policy-makers, show that development did not stop at the time of the first bust despite the domination of the downturn. The study reveals two waves of restructuring which both include a type of regional bust followed by different kinds of institutional recovery. In general, the human adaptation appears as reactions reflecting the variation of giving up, forward-looking acceptance, desperate resistance, re-orientation with external support and search for renewal with an optimistic attitude. Above all, the resilience regarding the local governmental actors emphasises their flexible adaptability and ability to develop institutional capacities to tolerate their vulnerability, the uncertainties of the economic future and the difficulties of locals to influence it – and if anything – to act and bounce forward in spite of repetitive busts and restructuring phases.

Growth stands out as a key development object in contemporary green economy policies. It is particularly interesting in the Nordic context such as in East and North Finland, where many regions are rich in natural resources, but also shrinking and lagging. Therefore, their regional development is simultaneously framed by an expected sustainability transition that alternates between green growth and degrowth agendas, and the socio-economic phenomenon of shrinkage. This article examines how growth is understood and framed among regional development actors, with special interest placed on different meanings, possible critics, and the boundaries of growth. The interviewed actors are positioned as intermediaries who possess special knowledge regarding regional development. The interviews show that the understanding of growth in this context requires various framings that combine global, regional, and local perspectives on sustainable development, as well as the burdens of shrinking and lagging regions balanced against cohesive and inclusive promises of green growth. The hegemonic frame is approached through a lens of green growth, yet the shrinking population remains in the background. Growth appears as a favoured means to tackle societal problems, which reflects a mission-oriented goal setting. Critical statements are directed at growth policies and funding instruments that do not seem to promote cohesive and inclusive growth. The clearest boundary for growth relates to nature, but it is far too early to make interpretations on an intentional degrowth agenda. From the regional actors’ perspective, setting boundaries for growth in a context of long-term shrinkage, sparse population, and extensive natural surroundings seems trivial. Handling the peripheries’ societal problems related to shrinkage and their struggle for resources appears as the more relevant mission that also requires growth in various forms.