The Baltic Sea Region´s economic environment is now

fundamentally different from that which prevailed before the 1990´s, before the

formation of the Russian Federation, the uniting of the two Germanies and the

independence of the Baltic States. The Baltic Sea Region is developing towards

becoming a community of market economies. This development is analyzed in the

present study. More generally, it thus focuses on the developing networks in

the Baltic economic region. In this study "city network" means both competitive

and co-operational connections between the cities.