1

Regional Development Regional Development Policy in HungaryPolicy in Hungary

Dr Zsuzsanna BacsiDr Zsuzsanna Bacsi assoc. prof, Univ of Pannonia,

Georgikon Faculty Keszthely, Hungary h5519bac@ella.hu

Nitra, 19 to 21 November 2009Nitra, 19 to 21 November 2009

2

Hungary: general featuresHungary: general featuresArea: 93 000 km2 Population: 10 million (slowly decreasing)GDP/head (PPS): 2003: 2006: 2008:

12900 EUR 15300 15700As % of EU-27 average: 56 % 65% 62,5%

GDP/head,PPS

Bulgaria

Romania

Poland

Latvia

Lituania

Hungary

Estonia

Slovakia

Czech R

Slovenia

3

The geographical area of the country

NUTS 2 level: regions (7)

NUTS 2 Regions PPS, EUR/ head2005

% of the EU-25

average,2005

PPS, EUR/ head2007

% of the EU-27 average,

2007

% of HU

average

1. Central Hungary 18,374 89.7 25,662 103,1 164%

2. Central Transdanubia 10,706 52.3 14,529 58,3 93%

3. Western Transdanubia 12,362 60.4 15,331 61,6 98,1

4. South Transdanubia 8,470 41.4 10,666 42,8 68,3

5. North Hungary 7,392 36.1 10,028 40,3 64,2

6. North Great Plain 7,436 36.3 9,841 39,5 63,0

7. South Great Plain 8,075 39.4 10,432 41,9 66,8

NUTS3: 19 counties, NUTS 4: microregions

4

GDP• 2002: Large disparities

(range: 31,6 % to 123 % of EU-25, 48% to190% (Bp!) of Hu average)

• Budapest – rest of country duality

GDP/head, % of EU-27, 2006

54,561,7%

65,6

46,1

73,2

62,9

50,639,6

46,0

43,042,3

47,1

42,1

43,731,5 33,6

45,941,

536,6

141%54-73 %44-54 %37-44 %31-37 %

Regional disparities have grown (2006)Range: 31,5 %-

141% (Bp!) of EU-27, 50%-220% of

Hu average

140,4

5

Urban and rural microregions

UrbanRural

Towns above 20 000 headsDevelopment polesRegion boundaryBudapest agglomeration

Urban

Rural micror

6

Unemployment as % of working age population, 2003

Agricultural employment as % of working age population

7

Hungary, labour market

0

10

20

30

40

50

60

70

Centra

l HU

Centra

l Tra

nsd

Wes

t Tra

nsd

South

Tra

nsd

North

HU

North

G P

lain

Sout G

Plai

n

HUNGARY avg

Em

plo

ym

en

t ra

te %

0

2

4

6

8

10

12

14

16U

ne

mp

loy

me

nt

rate

% Employmentrate 2007

Employmentrate 2008

Unemployment rate 2007

Unemployment rate 2008

Activity, employment, 2007-2008

Active population as % of 15-64 yr old

Activity rate, HU AVG: 62%

8

Transport infrastructure

Problem:• Nodal structure – all

roads lead to Budapest• Same for rails

Motorway access

9

Territorial development policiesTerritorial development policies in Hungary in HungaryLegal 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 2005-2013The 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:

1. Improving the competitiveness of the productive sector,2. Increasing employment and developing human resources,3. Better infrastructure and a cleaner environment,4. Strengthening regional and local potentials.

5 operational programmes1. Agricultural and Rural Development OP (P1) - ARDOP2. Economic Competitiveness OP (P1) - ECOP3. Human Resources Development OP (P2) - HRDOP4. Environmental Protection and Infrastructure OP (P3) -EIOP5. OP for Regional Development (P4) – OP RD

11

Funding of Operational Funding of Operational ProgrammesProgrammes

National Development Plan I (2004-2006): 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-New Hungary Development Plan (2007-

2013): 2013): 22400 22400 million EUR (6 million EUR (6 convergence regions + Central HU)convergence regions + Central HU)

• New Hungary Rural Development Programme: approx 3 000 million EUR

12

NH Rural Development Programme

end of 2008. total expenditure 84,8 billion HUF (330 m EUR)

13

The New Hungary Development Plan, 2007-2013

Situation analysis – Main problems1. The growth of the economy implies structural risks

(labour productivity growth but macro vulnerability, dependence on imported energy)2. Low level of activity and stagnating employment3. Dual economic structure (Budapest vs regional disparities)

4. The transport system needs development5. Change for market economy with social sacrifices6. Environmental values, and high risks 7. Increasing regional differences8. The role of the state needs rethinking

14

The New Hungary Development Plan, The Development Strategy

Overall Objectives:1. 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.

2. 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 services4 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

Priorities Operational programmes

1. Economic development Economic Development OP

2. Transport development Transport OP

3. Social renewal Social Renewal OP

Social Infrastructure OP

4. Environment and energy developments Environment and Energy OP

5. Regional development West Pannon OP

Central Transdanubia OP

South Transdanubia OP

South Great Plain OP

North Great Plain OP

North Hungary OP

Central Hungary OP

6. State reform State Reform OP

Electronic Public Administration OP

Coordination and communication of the New Hungary Development Plan

Implementation OP

16

Financial allocation, billion HUF, %Total: 685,4 bill HUF (appr. 2500 mill EUR) +

Eur Territorial Coop: 106.8 bill HUF

17

Funding by regional OP-s 2009, November

0200400600800

1 0001 2001 4001 6001 800

DA

OP

(Sou

ther

n G

reat

Pla

in)

DD

OP

(Sou

thTr

ansd

anub

ia)

ÉA

OP

(Nor

thG

reat

Pla

in)

ÉM

OP

(Nor

thH

unga

ry)

KD

OP

(Cen

trral

Tran

sdan

ubia

)K

MO

P(C

entra

lH

unga

ry)

NY

DO

P(W

est

Tran

sdan

ubia

)

EU

R, m

illio

n E

UR

050001000015000200002500030000

GD

P/fő

EU

R

Requested support, m EUR Allocated support, m EUR support EUR/ head GDP/head,PPS

18

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

19

Forrásallokáció, Magyarország,

2007-2013EU források Millió euro

Kohéziós Alap 7 589

Konvergencia 12 654

RegionálisVersenykép. ésfoglalkoztatás(Közép-Mo.) 1 860Területi együtt-működés 344

Összesen 22 452

Forrás: Európai Bizottság

Az ÚMFT prioritásai Operatív Programok

Gazdaságfejlesztés Gazdaságfejlesztés GOP

Közlekedésfejlesztés Közlekedés OP KÖZOP

A társadalom megújulása

Társ. megújulás TAMOP

Társ. infrastruktúra TIOP

Környezet- és energiafejlesztés

Környezet és energia KEOP

ÁllamreformÁllamreform OP ÁROP

Elektronikus közigazgatás OP EKOP

Területfejlesztésösszesen 1.770 Mrd Ft

Nyugat-dunántúli NYDOP

Dél-alföldi DAOP

Észak-alföldi EAOP

Közép-magyaro.-i KMOP

Észak-magyaro-i EMOP

Közép-dunántúli KDOP

Dél-dunántúli OP DDOP

ÚMFT koordinációja és kommunikációja

Végrehajtás OP VOP