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Regional Development Policy in Hungary

Regional Development Policy in Hungary. Dr Zsuzsanna Bacsi assoc. prof, Univ of Pannonia, Georgikon Faculty Keszthely, Hungary h5519bac@ella.hu. Nitra, 19 to 21 November 2009. Hungary: general features. Area: 93 000 km 2 Population: 10 million (slowly decreasing)

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Regional Development Policy in Hungary

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  1. Regional Development Policy in Hungary Dr Zsuzsanna Bacsi assoc. prof, Univ of Pannonia, Georgikon Faculty Keszthely, Hungary h5519bac@ella.hu Nitra, 19 to 21 November 2009

  2. Hungary: general features Area: 93 000 km2Population: 10 million (slowly decreasing) GDP/head (PPS):2003: 2006: 2008: 12900 EUR 15300 15700 As % of EU-27 average: 56 % 65% 62,5% Bulgaria Romania Poland Latvia Lituania Hungary Estonia Slovakia Czech R Slovenia GDP/head,PPS

  3. The geographical area of the countryNUTS 2 level: regions (7) NUTS3: 19 counties, NUTS 4: microregions

  4. 42,1 33,6 GDP/head, % of EU-27, 2006 31,5 43,7 73,2 65,6 45,9 54,5 41,5 62,9 61,7% 46,1 36,6 50,6 42,3 39,6 43,0 47,1 141% 54-73 % 44-54 % 37-44 % 31-37 % 46,0 GDP • 2002: Large disparities (range: 31,6 % to 123 % of EU-25, 48% to190% (Bp!) of Hu average) • Budapest – rest of country duality Regional disparities have grown (2006)Range: 31,5 %-141% (Bp!) of EU-27, 50%-220% of Hu average 140,4

  5. Towns above 20 000 heads Development poles Region boundary Budapest agglomeration Urban and rural microregions Urban Rural Urban Rural micror

  6. Unemployment as % of working age population, 2003 Agricultural employment as % of working age population

  7. Activity rate, HU AVG: 62% Active population as % of 15-64 yr old Activity, employment, 2007-2008

  8. Motorway access Transport infrastructure Problem: • Nodal structure – all roads lead to Budapest • Same for rails

  9. Territorial development policies in Hungary Legal background • Act XXI of 1996 on Regional Development and Spatial Planning, amended: 1999, 2004 • National Regional Development Concept (NRDC) approved by Parliament in 1998 (revised every 6 years) • National Development Concept (NDC) – National Development Plans (National Strategic Reference Framework of Hungary) • 1st National Development Plan: 2004-2006 • New Hungary Development Plan (2nd National Development Plan):2007-2013 • National Rural Development Programmes (NRDP 2004-2006, New Hungary Rural Development Programme 2007-2013) • National Tourism Strategy 2005-2013 The strategic objectives of national regional policy: • growth • a more balanced spatial structure by reducing territorial disparities • East and West, • Budapest and rest of the country How:regional growth poles, utilisation of natural resources, environmental values, development of tourism

  10. First National Development Plan(2004-2006) main objective: ‘to reduce the considerable shortfall of per capita GDP level compared to the EU average’. 4 priorities indicating the directions of intervention: • Improving the competitiveness of the productive sector, • Increasing employment and developing human resources, • Better infrastructure and a cleaner environment, • Strengthening regional and local potentials. 5 operational programmes • Agricultural and Rural Development OP (P1) - ARDOP • Economic Competitiveness OP (P1) - ECOP • Human Resources Development OP (P2) - HRDOP • Environmental Protection and Infrastructure OP (P3) -EIOP • OP for Regional Development (P4) – OP RD

  11. Funding of Operational Programmes National Development Plan I (2004-2006): • 1995 million EUR from Structural Funds) • + 1132 million EUR Cohesion Fund • = 3127 million total • New Hungary Development Plan (2007-2013): 22400 million EUR (6 convergence regions + Central HU) • New Hungary Rural Development Programme: approx 3 000 million EUR

  12. NH Rural Development Programmeend of 2008. total expenditure 84,8 billion HUF (330 m EUR)

  13. The New Hungary Development Plan, 2007-2013 Situation analysis – Main problems • The growth of the economy implies structural risks (labour productivity growth but macro vulnerability, dependence on imported energy) • Low level of activity and stagnating employment • Dual economic structure (Budapest vs regional disparities) • The transport system needs development • Change for market economy with social sacrifices • Environmental values, and high risks • Increasing regional differences • The role of the state needs rethinking

  14. The New Hungary Development Plan, The Development Strategy Overall Objectives: • extending employment • increasing supply of workforce: improving the employability of the individual; • increasing demand for workforce: creating jobs; • creating an employment environment that co-ordinates supply and demand. • creating the conditions for long term growth. • improving competitiveness; • widening the economic basis; • improving the business environment, including improved access, and improved regulatory environment, increased efficiency of state services 4 pillars: • Economic and social cohesion by focusing on competitiveness. • Human-resource development by lifelong learning and innovation (to the needs of the labour market). • Territorial and regional development by focus on spatial development in specific areas:Lake Balaton, Tisza and Danube; border areas; decentralised regional development • Sustainable development by focusing on the long term impact of major projects.

  15. Thematic and regional priorities Structure of the Operational Programmes 2007-2013

  16. Financial allocation, billion HUF, % Total: 685,4 bill HUF (appr. 2500 mill EUR) + Eur Territorial Coop: 106.8 bill HUF

  17. Main touristic regions in Hungary • Budapest and surroundings • Balaton • Pannonia • Puszta (Great Plain) and lakeTisza • Eger- Tokaj hilly wine region (North Hungary)

  18. Forrásallokáció, Magyarország, 2007-2013 Forrás: Európai Bizottság

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