Север и рынок. 2014, N 3.

informal economic relations have been crucial ingredients when trying to understand the present development process. A major issue is related to the level o f community involvement in the project (Storey and Hamilton 2003). 2. Mega-projects in the Arctic have become a hot topic both nationally and internationally. And while exploitation o f for instance mineral resources had to rely on the establishing of more permanent settlements up till quite recently, the situation today is moving towards new constraints. As discussed by Rasmussen (2003) there are basically three typical forms o f involvement, each with a dynamics o f their own: Enclave economies, Adjacent activities, and Community Integrated activities. And mobility and interrelated labour markets involving short term employment and FiFo (Fly in, Fly out) workforce are key issues in this context. 3. The questions raised in the paper relates to what kind o f interaction takes place when mobile labour meet locally based labour. Little is known - at least in the Nordic countries - about the influence, role, and position o f local businesses, workers and local communities in the wealth creation in the north. Much more can be found in both Russia and North America where boom-and-bust cycles combined with forced interaction between newcomers and previous inhabitants - very often indigenous peoples - has been a recognized issue. EXAMPLES OF THE IMPACT OF CROSS-BORDER COOPERATION ON THE DEVELOPMENT: CASE KIRUNA AND NARVIK Anna Berlina Research Assistant, Nordregio, Stockholm, Sweden Examples o f the impact o f cross-border cooperation on the development: Case Kiruna and Narvik Introduction Cross-border cooperation (CBC) plays an important role in boosting the territorial potentials of the European regions and diminishing the territorial imbalances. The level of economic and social integration in Kiruna-Narvik border region is quite high due to long tradition in cooperation in legal, cultural, social, economic, transport and environmental issues (Medeiros 2010). Furthermore, Sweden and Norway share a long common history, have a similar governance system and significant cultural and language similarities, which are important preconditions for development o f CBC (Regeringen 2008). Nevertheless, the border is there, and it has an impact on the population living in the proximity to the border, thus maintaining a psychological and physical separation. This paper presents a short overview o f CBC in Kiruna-Narvik border area. It looks into how the proximity of the border influences the development in the border area and sheds some light on the challenges of CBC in the region. The paper is based on the interviews with the local actors in Kiruna and Narvik, including businesses, development organizations, NGOs and local governments, conducted in the framework o f EUBORDERREGIONS FP7 research project. The origin o f the border and historical background Iron ore fields in Kiruna area were discovered in the end o f the 19th century, which triggered the development of the first settlements. The emergence o f Narvik is linked to the development of the Iron Ore railway from Kiruna to Narvik (the Ofoten line) in 1902, which allowed for transportation o f iron ore from the mines in Kiruna and Malmberget to the ice-free ports o f Narvik (Tullverket 2009). From the beginning o f the 20th century Kiruna and Narvik developed from remote rural communities to small industrial towns. Swedish-Norwegian border is sometimes referred to as Europe’s longest, oldest and the most peaceful border. After the establishment o f the Nordic Passport Union in 1958 the citizens o f Nordic countries were allowed to travel and reside in other Nordic countries without a passport or a residence permit. This resulted in much more relaxed customs and passport checks between Sweden and Norway (Tullverket 114