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Péter Szegvári T. Assistant Professor Strategic Director Regional Development Holding PLC

„Structures for Europe – the answers of physical planning and spatial planning for decentralization and the regions” International Conference 9th of June, 2008. Pécs The me z o-level of public administration in Hungary. Péter Szegvári T. Assistant Professor Strategic Director

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Péter Szegvári T. Assistant Professor Strategic Director Regional Development Holding PLC

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  1. „Structures for Europe – the answers of physical planning and spatial planning for decentralization and the regions”International Conference9th of June, 2008. PécsThe mezo-level of public administration in Hungary Péter Szegvári T. Assistant Professor Strategic Director Regional Development Holding PLC

  2. Presentation elements • EU regional policy issues in the Hungarian case at the accession process; • Challenges for the regional policy and democracy in Hungary; • Realities of a coherent reform process in Hungary; • Conclusions.

  3. ‘If the EU could have a religion, it would be called: regionalism.' Michael Lake

  4. The Regional Roles and Functions in Hungary • Planning – development programming – statistical Regional Policy  Regionalisation 2. Administrative – Political Regional Democracy  Regionalism

  5. Indicators of EU screening for regional policy • Legal regulation • Statistical system • Institutional framework • Co-ordination • Financial instruments • Monitoring

  6. Stages of forming Regional Policy in Hungary, regarding to the accession process to EU • Bureaucratic period (- 1996) - Unsystematic approach by the State and lack of activity by the Local Governments • Transition period (1996-2004) - Building a new type of Regional Policy, regarding the accession to the EU • Democratic period (2004- ) • Implementation of European Regional Policy • Integrated regional approach by the State • Decentralization and partnership in the Regional Governance

  7. Main objectives of the Hungarian cases managing EU funds • Administrative absorption capacity building • Leadership • Managerial knowledge and skills • Institution building • Planning and programming • Financial absorption capacity building • Preparation Fund for Application of LGs • Infrastructure building • Hungarian Development Bank • Credit and loan for the investments • Venture capital

  8. General requirements of the regional institutions and decision-making • Complexity • Co-ordination and co-operation • Planning and programming

  9. N.U.T.S. system in EU Mandatory • Level 3.000.000 - 7.000.000 • Level 800.000 - 3.000.000 • Level 150.000 - 800.000 Voluntary • Level sub-regions/micro-regions • Level settlements/cities and villages Types: Administrative / Non-administrative

  10. N.U.T.S system in Hungary

  11. N.U.T. S. - 2 regions in Hungary

  12. Correlation between Regional Policy and Regional Governance in the practice of Hungary

  13. Components and procedures of public administration reforms in Hungary • The first stage: 1989-1995 („Transition period”) • Regulatory and institutional reform; • Conceptual and technical transformation; • Democratization and decentralization. • The second phase:1996- („Updating period”) • Longer-term and ongoing process; • Fine-tuning of regulations and institutions; • Optimalization and modernization; • Join the Common Administrative Space of EU; • Use the best practice of OECD countries.

  14. The main issues of regional governance in Hungary Regarding the Regional Democracy: • reflecting to the challenges of „Effectiveness”, „Efficiency”, „Quality” and „Good Governance” requirements; • creating a right measure for decentralization and „middle-level” governance; • incentive of the municipality-system to reduce disparity by amalgamation and integration.

  15. The „middle-tier” administrative territory; The elected body; Legal autonomy and independent authority; Economical autonomy. Requirements of the European Regional Charter

  16. Challenges of regional governance in Hungary In the regional governance: >Decentralization > De-concentration/ Re-centralization In the local governance: >Integration and Association > Amalgamation

  17. Conclusions • Transition from a ‘State-led Growth’ to a ‘Market-led Growth’ requires an effective and efficient Regional Policy; • EU Regional Policy could be a ‘driving force’ for the domestic regional policy; • Regional Policy would be more successful coherently the PA Reform, regarding to decentralized Regional Governance; • Effective and efficient Regional Policy needs a complex regulatory supportand consensual democracy; • Needs an effective management system in national and regional levels; • Requires vertical and horizontal Co-ordination and Partnership; • Needs financial support and fiscal decentralization.

  18. Thank you for your kind attention! Péter Szegvári szegvari.peter@rfh-rt.hu

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