3.1 Background
In December 2022 a report with the title “Sustainable Value Chains in Nordic Coastal Communities” (NORVALUE) was published as a Tema Nord Report (Hovgaard & Bærenholdt, 2022). The NorValue project investigated how people in Nordic Atlantic local communities were involved in connections and linkages crucial to their survival and livelihoods as a part of the Nordic Atlantic societies of Greenland, Iceland, the Faroe Islands and Northern Norway. The report provided descriptive accounts of our approach, and developments in the coastal communities studied. The focus was on one particular research question: Based on a local and historical perspective, as well as insight into changes in demography and political regulation from 2000, how have the value chains most important for local communities, changed? (Bærenholdt & Hovgaard, 2022, p. 10).
In our Icelandic case in our earlier book-chapter on the development in Siglufjörður and Ólafsfjörður (Eythórsson & Þorgrímsdóttir, 2022), two traditional fishing towns in north Iceland, we raised the key question: Has the community created from the two towns demonstrated resilience in the process of transforming from traditional Icelandic fishing towns into a community that is more diversified, and today characterized by tourism and the knowledge industry? Resilience is in this context defined as “the capacity to cope with change and continue to develop” (Giacometti & Teräs, 2019, p. 11).
We concluded that the socio-economic changes in the amalgamated municipality of Fjallabyggð, containing the two towns Siglufjörður and Ólafsfjörður, have primarily been created by decisions at the national government level. A state-built road tunnel connecting the towns closely, financial support for the amalgamation of the municipalities and the foundation of the state run upper-secondary school in Ólafsfjörður were all significant inputs from the state, with the tunnel as the prerequisite for all these. These public sector projects stimulated investment in tourism and biotechnology, led by an individual entrepreneur. Siglufjörður and even Ólafsfjörður to some extent, have transformed from traditional fishery towns to communities displaying more diversified economic activities. Thus, the value chains have changed in the municipality of Fjallabyggð as a whole, but particularly in Siglufjörður, where both tourism and biotechnology have become a significant part of the economic life. The value chains have changed less in Ólafsfjörður, but the upper secondary school located there brought new jobs into the community.
Before year 2000, the decline of employment in fishing and fish processing in both towns had led to depopulation and ageing communities. The fishery decline, and associated demographic changes, were the main reasons for state involvement in financing the road tunnel. Shortly after, a decision on the road tunnel project in Fjallabyggð was made. The input of a private investor, Róbert Guðfinnsson, also plays an important role for the development. All those financial decisions and actions weigh heavily in building resilience in those two communities, especially in Siglufjörður. It also raises the question of what would have happened without these external inputs. The growth in the sectors, tourism, and biotechnology, meant that both skilled and unskilled workers had to be recruited externally, and a local workforce willing to make adjustments was required. This seems to have succeeded. But would the people in those two towns, facing depopulation and an ageing community, have had the strength to adapt and go further on their own?
How have the communities – local authorities, businesses, households, and civil society - in the two towns adapted to what has happened after 2005? We have shown that Siglufjörður and Ólafsfjörður have displayed somewhat different trajectories. Our interviews conducted in 2022 indicate that people in Ólafsfjörður are not as happy as in Siglufjörður with the economic changes. And in our citizen-survey conducted in early 2021 we see more positive responses among the people in Siglufjörður. Further, many people in both towns agreed with our statement that conflicts and disputes between people in the two towns existed. That is of course something that might threaten a positive development towards a better future community in Fjallabyggð. Still, we also saw more optimistic views on current situation and future among the younger people in the answers to the open-ended questions in the survey in 2021 (Eythórsson & Þorgrímsdóttir, 2022).
Our results, mainly based on the survey, did not answer all questions and in some cases, they raised new questions. With a qualitative study and some further look into statistics and facts, we intend to provide further answers and deepen our insight into how the two towns have developed the last twenty years or so. In the next section we define our aim and research questions.
3.1.1 Data and method
In the second phase of the NORVALUE-project our further data collection was fieldwork in the two communities: interviews and focus group meetings conducted in June/July 2022. The Covid-19 pandemic had made earlier visit to the towns difficult if not impossible. Finally, two days, 21st and 22nd June 2022 were set. Local people were interviewed, key persons in fisheries, tourism and people from the public sector – a total of 5 interviews, 3 in Siglufjörður and 2 in Ólafsfjörður.
We held two focus-group meetings 21st June, one in each town, with selected people, six in each town. Recruiting people was of some reason difficult and a lot of people avoided participation. In the end the participants turned out to be a blend of people from businesses, educational sector, industries, fishing sector and services. Ages from 30 up to 70, three males and nine females.
As said earlier our intention was to get more in-depth knowledge about things that weren’t fully answered in the survey in 2021. Further, to answer questions that emanated during the survey work. Schutt (2019) describes the difference between quantitative and qualitative approach by saying that “qualitative methods emphasize observations about natural behaviour and artifacts that capture social life as participants experience it, rather than in categories the researcher predetermines” (Schutt, 2019, p. 367). However, let us not forget that the quantitative approach allows the researcher to collect more data and therefore generalize about what is being investigated.
3.2 A further study on the case of the two towns
In this chapter we intend to answer the following questions about the development in Fjallabyggð. We found them emerging after our first study on the case, mainly concerning the differences in people’s attitudes and perceptions on developments and prospects in the two towns investigated:
Why do people in Siglufjörður and Ólafsfjörður perceive the development in municipal services in different ways after the amalgamation and opening of the road tunnel?
People at different ages seem to look differently at the future. How different are the generation views towards the future economic development?
Rigor, traction and even conflicts between people in the two towns seem to be present. What might be the causes?
3.2.1 Different views on changes in municipal services and other services
The survey results from 2021 showed in our report from 2022 that the amalgamation of the two municipalities was generally seen as a positive input (55%), but the people of Ólafsfjörður were much less satisfied with it (30%). The survey indicated that the people of Ólafsfjörður felt that specific services in their town had declined in their part of the municipality. Why municipal services were perceived as worsened in Ólafsfjörður but not in Siglufjörður, was bound to be examined further (Eythórsson and Þorgrímsdóttir 2022, p. 70).
Research results on the impact of municipal amalgamations on services point in the same direction. Eythórsson and Karlsson (2018) found that the general pattern is that people coming from and living in the administrative and service centers are more positive towards the impact of amalgamations on services, both in general and on four selected service posts. Those who live in the peripheral parts seem to be more negative. In an evaluation study on amalgamations in the 1990s by Eythórsson and Jóhannesson (2002), they found indications of this causal connection between amalgamations and service quality as well as less satisfaction with the services in the peripheral parts. Last, but not least, we mention here that a survey study on the impact of the tunnel and the amalgamation from 2009, just before opening of the tunnel but three years after the amalgamation, showed that people in Siglufjörður were significantly happier with the municipal services than the people in Ólafsfjörður (Eythórsson, 2010).
Asking about this in the second round of our data collection it turned out that even though the administration was divided between the towns to begin with, the part of the administration of the new municipality of Fjallabyggð located in Ólafsfjörður was moved to Siglufjörður in May 2014. This included the office of the welfare sector administration, however the localities in Ólafsfjörður were used for a new and renovated municipal library.