Differences between the various regions of Hungary

Vajsz, Tivadar – Pummer, László

Keywords: regional system, inequalities, industry, agricultural production, innovation

In accordance with the NUTS 2 system, seven regions have been delineated in Hungary. Significant developmental differences can be recorded between the regions. A good indicator is the regional variance in GDP per inhabitant, the ratio of which is constantly growing between the most and least developed regions and currently stands at 2.5:1.

Three regions (Central Hungary, Central- and West-Transdanubia) determine Hungary’s industrial production, while agricultural production is mostly dependent on two regions (the North- and South-Lowlands). The enormous predominance of Central Hungary is conspicuous in every respect. Bridging the gap for provincial territories could form the basis of harmonious regional development. The State can strive to mitigate the negative phenomena of the regions (unemployment, income differentials, outward migration), as well as eliminating obstacles to the spread of economic activities that would further development.

The situation of the regions is determined by the quality of the labour force. The existence of a trained, disciplined and innovative labour force motivates the immigration of qualified companies, which speeds up the region’s development. The amount spent on education and research in underdeveloped regions is proportionally smaller making disadvantaged regions falling further behind a self-perpetuating process. To change this would require a radical increase in expenditure on education and research.

The situation of underdeveloped regions cannot be much improved through grants; other methods are required for development. The complex SME programmes, which comprise projects that build on each other in areas that harmonise with the region’s characteristics, appear promising. Post-modern regional policy is striving to activate internal resources (regional, social, institutional, cultural, environmental and economic factors) in place of central subsidies and to develop relationship networks. Development is conceived via fast dissemination of information and the growing role of knowledge and innovation. Successful development requires continuous and demand-based improvements in infrastructure. Promoting the establishment of professional organisations in underdeveloped regions, which could carry the innovation process through from idea to implementation, would significantly improve the situation. It should be stated that only people with an appropriate level of knowledge are capable of progressive decision-making, so we must also bridge the gap to societies competing in the field of information.

Full article