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European Funds and the Evaluation of Their Application in the Northern Great Plain Region
191-198Views:85Presently, the process of regionalization is slowly progressing in Hungary. The regional institutional system is young and the institutional experiences are limited. The Hungarian regional development agencies are operated with a limited number of personnel and their budget is only a fraction of EU regional agencies of similar size. There is no unequivocal cooperation between regional development agencies and county development agencies. In the absence of these, the strategical objectives of the region cannot be aligned and the application of consistent development policies cannot be achieved. In the past five-six years the supports from EU Pre-Accession Funds, along with the new tools of regional development policies, have all contributed to the development of the North Great Plain Region. Phare projects – beside supporting development – have played a significant role in forming the approach of individuals who are actively involved in regional development, in promoting cooperation among cross-border and other regions, as well as in preparing the regions to accept EU structural funds. Prior to the May 1st, 2004 EU accession of Hungary, the North Great Plain Region received 24-25% in direct regional development funds in the Nineties. The support per capita in the case of TFC, TEKI and CÉDE has exceeded the national average. The North Great Plain Region has received support from investment type agricultural supports, the Employment Fund and the Touristical Directives that well exceeded the national average, from the sectoral resource funds. However, the applicants of the North Great Plain Region have received little support in the case of environmental, water management and especially road development supports. About 200 applications have been submitted for the SAPARD calls nationally, 32 of these were from the North Great Plain Region. The significance of cooperation among sub-regions is demonstrated by the fact that, except for 15 settlements in Szabolcs-Szatmár-Bereg county, all have submitted an application. The efforts of inhabitants is highlighted by the high number of submitted applications, as well as by the significant degree of own contribution. Still, the GDP of the North Great Plain Region has not increased, the rate and tendency of unemployment does not sufficiently reflect the positive effect of supports. The Regional Development Directive has provided support for the development of many small- and medium size enterprises, but their effect did not ensure a sustained economic growth.
The greatest difficulty is that the number of dedicated professionals who are skilled in regional politics and regional development is few. However, advantages of our EU accession can only be exploited if a group of highly skilled professionals is provided on local, county, regional and national level as well. Thus, we need a group of professionals who are informed about the European Union, the EU support forms and most of all about the operation of Structural Funds and Cohesion Funds to establish the suitable institutional background for professionally handling the funds obtained from the EU, to prepare the professional documents to access the funds and to generate development projects to efficiently use the funds as well as establishing connections with the institutions of the EU. Appropriate share from funds coming from the EU is only possible if the country, certain regions, counties and sub-regions can achieve rapid results in the areas listed above. -
Renewal of the city network in Szabolcs-Szatmár-Bereg country after the political restructuring
21-25Views:117After World War I., but especially from the second half of the 20th century the public policy development is determinative in urban development. The urban and the country planning appears under the auspices of the regional development policy between the world wars. After 1945 the primary goal in economic and development policy was the socialist industrialization, with a priority on cities. In this period the driving force in urban development primarily were the industrial installations. As a result, economic and social structure was transformed. It is a fact, that planned economy gave a huge impulse to city network, which determine the trend of cities up to this day. After the regime change, as an effect of escalation of regional differences and as a result of economic processes the urban development took new directions. The state intervention changed, and the principles of decentralization prevailed in resource allocation. The private and non-profit sector appears in urban development, the governments gain more important roles. These three sectors became the movers of local development. To recognize the main trends of urban development in Szabolcs-Szatmár-Bereg County, the local area development funds were examined in a special way in a given period. This study will show, the main tendencies of the consumption of decentralized regional development funds between 1996–2008, in the cities of Szabolcs-Szatmár-Bereg County. This study also gives an answer for which factors convert the renewal of city network of Szabolcs-Szatmár-Bereg County after the regime change.
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Cohesion and competitiveness of the European Union at strategic level
29-33Views:109After the relaunchment of the Lisbon strategy, the cohesion policy of the EU concentrates even stronger on the establishment of the knowledge based economy, on R&D activities and innovations. In the first chapter I demonstrate the funds division of the convergence and regional competitiveness targets in the financial perspective between 2007–2013. The first sheet shows unambiguously that the new member states from Middle-Eastern Europe and the Mediterranean countries spend their funds on convergence and cohesion issues. The situation is contrary in the highly developed Western-European countries, in the core regions, where decisive part of the funds are spent on competitiveness issues. In the second chapter of the study I present the Europe 2020 strategy of the EU, that is a crucial paradigm change in the European strategy-making. While the Lisbon strategy focused on the social cohesion of the European Union, the Europe 2020 strategy strives the fostering of the European competitiveness. In the third part of the study I make a comparison how the funds-allocation altered during the two financial perspectives.
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The role of Local wine administration bodies in creating social and cultural capital and in the preservation of local identity
181-191Views:80the target for the European Union to make Europe the most competitive and dynamic knowledge-based economy in the world. In this process, the education and training are of great importance for the member states. The restructuring of higher education, the modernization of the universities cannot be achieved without new financial resources. They should be ensured by increasing contribution of the private sector. However it is not enough to invest sufficient funds in the educational and training system, they must be expended efficiently. The free higher education itself does
not necessarily guarantee the equal access and maximal participation. The quality of higher education and equal opportunity can be improved, if the rising funds are expended on infrastructure development and creating an efficiently working student support system.
Quality, equal opportunity, efficiency – they are the most important views for the decision-makers in the higher education reform. In my paper, I would like to interpret definitions relating to higher education and in this way I attempt to evaluate the financing systems of the Hungarian higher education formed since the change of the regime, with special regards to the normative financial system combined with the payment of tuition fees. For classification, it is necessary to present the different basic financial models. Furthermore, on the basis of the above criteria, I try to make recommendations on how to improve the present financial model in order to achieve the Lisbon objectives.
The topic is important in our days, because tuition fees will be introduced in Hungary from 2008. The problem is very complex, although the analysts in most cases tend to approach the topic with prejudice, depending on their financial and political interests. My analysis may contribute to discernment in the tangle of the pros and cons. -
The Target Areas of Regional Development, Tool and Institutional Background, its Present and Future Prospects
138-142Views:103Regional politics determines the aims of regional structures, and the tools with the institutional background on the whole necessary achieve these. Realizing the aims of regional politics is a precondition of executing the basic principles of regional development and politics. The regional institutional system for handling the decentralized financial resources has not evolved in Hungary yet. The professional institutes for preparing the programs have not been set up, and the management of execution is slowly taking shape. There are still deficiencies in the domestic application of concentration and addition principles. A number of funds are provided on a national level, that are directly or indirectly aimed at regional development. The obvious coordination among the funds is not carried out neither on a national, nor on a regional level, partly to avoid parallel consumption aims. The future of Hungarian spatial structure depends on the type of decentralization strategy the country will follow for the new resources after the accession. Total decentralization offers the most efficient solution for Hungary.
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The measurement of successfully completed projects funded by the European Union
9-12Views:150Projects funded by the European Union contribute significantly to the socio-economic development of Hungary, its increasing competitiveness, thereby the local people's general level of satisfaction, their ”happiness and prosperity”. Successful spending from the Union's funds, successful project implementation directly impacts all actors in the Hungarian economy and society. Therefore, to examine the factors that support or jeopardize the implementation of the projects is a priority at EU and national levels. My research and doctoral dissertation aims to develop a methodology to assess the management efficiency of projects supported by the European Union, implemented in Hungary taking into account all measurable factors (technical and special expertise) and the "suspected" factor (EU thinking learning).
I intend to draw up guidelines for future EU funded project management teams to realize projects successfully for the benefit of Hungary.
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Evaluation of the current situation of the Hungarian higher education based on a few indexes
121-125Views:114Around the Millennium we experienced the worldwide development and the growing importance of the role of higher education played in the social and economic development. A few years later, however, a crisis appeared in the situation of higher education (Kadocsa, 2002). The Hungarian higher education system faces the perspective of serious changes in its fundamental principals – such as its main activities and the economical ways which are used to finance these activities – even if only parts of the new educational scheme come into effect. Considering this fundamental activity aspect of the issue, there are new challenges which make necessary to rethink the role and aim of higher education and to define the new tasks needed in connection with education, research and other services. Hungarian Education needs to be renewed and improved to avoid a complete
break away; therefore, future priorities and tasks in order to fulfill these priorities need to be defined (Vincze and Harsányi, 2011). The new conception seems to be based on restrictions of the budget as it is experienced recently: a new structure available for a smaller part of society with a restricted budget has been under development. However, not even a battle, let alone a war can be won without money, horses and arms. The recent financial restrictions as well as the parts of the Széll Kálmán plan concerning education prove that serious amounts of governmental funds is taken away from education. The international improvement tendencies contradict to basically all of these Hungarian priorities.
All in all, no reform or change – no matter how much wanted – can be achieved without appropriate funds. -
System of relations between competitiveness and social cohesion in the European Union (2007–2020)
39-45Views:144I my current essay I tried to prove that the European Union modified its economic policy due to the financial and economic crisis and the fierce global competitiveness requirements. The main emphasis was laid on the increase of competitiveness. Competitiveness became preferred
to cohesion and the economic and social closing up of the newly joined Middle-Eastern European countries. The funds for competitiveness for growth and employment increase by 6–7% yearly during the financial perspective between 2007–2013. On the contrary the funds for agriculture and rural development decrease by 3% yearly in this period. The tendency remains unchanged during the financial perspective 2014–2020.
This tendency strengthens the establishment of the two speed Europe concept and causes tensions between the core regions and the peripheries. -
Public finance resources and regional distribution of rural development
73-77Views:310Rural development, more specifically the economic development of counties have three public finance resources: the municipality, the central budgetary and the labour market fund resources. Based on the provisions of public finance, there are currently five provisions of the municipality resources of rural development: supporting settlements struggling with employment problems, supporting multi-purpose small regions, supporting settlements which are in a difficult position through no fault of their own, supporting public utility development and supporting holiday resorts. The opportunity of increasing investments is using EU funds. The structural change has a favourable direction, the proportion of the economic development program and regional developments increased in the recent years, but their share is still low. The proportion of agricultural and rural development programs which are important from the aspect of rural development is a less favourable phenomenon. Furthermore, the share of human and social development somewhat decreased, but it is still high. Apart from the regional programs, the Budget Act does not specify the regional distribution of budgets, only the professional purposes of uses, of which it is possible to conclude to which county development can be requested resources for.
Between 2008 and 2011, the 13–15% share of the North Great Plain region was close to the population share of 14.7%. In 2012, there was a turn of events in which the necessity of developing the region was shown. In this year, not only the proportion, but also the absolute extent of development resources increased. Therefore, the region could use resources of 16.9 billion HUF in 2010, 31.4 billion HUF in 2011 and 56.3 billion HUF in 2012. In order to properly use these resources, determined utilisation structure is necessary to be performed. The distribution of development purposes provides an explanation for the backward position of the economic performance of Hajdú-Bihar county.
Of the development resources available for four years, the region spent only 12.2% on economic development.
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Reflections on the use of subsidies received from the Agriculture and Rural Development Operational Programme and the European Agricultural Fund for Rural Development in the micro-region Ibrány-Nagyhalász
211-216Views:86Hungary’s accession to the European Union caused major changes in the country’s life. Rural development subsidies can be received through extensive application mechanisms. This is particularly challenging for lagging micro-regions. My study presents the lagging microregion of Ibrány-Nagyhalász, focusing on what types of organizations and upon what grounds received subsidies in the framework of the Agriculture and Rural Development Operational Programme 2004–2006 (AVOP). I focus on the same parameters when examining the measures in the third axis of the New Hungary Rural Development Programme 2007–2013 (ÚMVP), followed by a comparison between the two programmes’ effectiveness. I conclude that due to the experience collected throughout the period of AVOP, both the number and the quality of applications have risen from the year 2007. Still, due to the lack of competence, cooperation and motivation, the region's planned improvements are not yet fully met and the capabilities of the region are not yet fully exploited. For the future, even more complex and more feasible projects are needed.
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Investment funding programs on dairy farms in Hajdú-Bihar County
11-16Views:181The dairy farming sector needs constant modernization of its buildings, machines and technology in order to maintain its competitiveness and productivity. For the greater scale investments, these companies try to apply for state funds in addition to their own financial sources. Therefore, the investment support system plays a great role by improving the competitiveness and modernity of these farms. In the last 10 years, 7 funding programs were available for dairy farms. In this research, 25 dairy farms were interviewed in Hajdú-Bihar County. The examined farms cover more than 50% of the milk production in Hajdú-Bihar County. The survey questions focused on the investment funding program use of farms between 2007 and 2017 and renewable energy investments including all programs. The results show how many tenders were submitted, how many were successfully evaluated and completed. All farms had at least two successfully evaluated projects. A correlation was found between completed projects by farm size and completed projects. The connection of the modernity index of dairy farms and the completed projects was also shown.
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The future of apple growing in the Northern Great Plain region
35-38Views:146We revealed and assessed those macroeconomic data which enabled us to identify the outstanding role of agriculture and within it that of fruit production. Based on this, it can be said that soil is the most important natural resource of Hungary. The appropriate combination of the additional resources required for production, labour and assets can provide a comparative advantage for the Northern Great Plain Region.
The Northern Great Plain Region is one of the most underdeveloped regions in Hungary, so its development is a political objective. When analysing the economic sectors in the region, the important role of agriculture is obvious and it is also clear that the industry and the tertiary sector can only have an alternative income generating role in the future also. Therefore, it is important that the regional development funds of Hungary and the European Union are directly or indirectly aimed at improving agricultural development and competitiveness. -
Regional Development Differences in Hungary and the Northern-Great Plain Region
62-71Views:176The most important endeavour of European Union’s regional policy is to moderate disparities. An emphasised strategic objective of member states, based on the principle of solidarity, fairness and justice, is to develop regions and almost forty percent of the common budget is devoted to achieving this objective.
Hungary, as a full EU member state, will get a new chance for underdeveloped regions, especially for the Eastern-Hungarian as well as the North Hungarian and North Plain Region.
The differences in development among the regions are significantly influenced by the economic characteristics of the specific region, quality and quantity of human resources, accessability of the region and other factors influencing local quality of life beside natural conditions.
The new spatial structure was formed by change of regime, processes of the nineties, primarily the economic renewal based on foreign capital investments and the crisis phenomena in parallel with these. The economic, political and social consequences of the transformation significantly changed spatial structure and increased disparities. New disparities formed which were further aggravated as a consequence due to the formation of the eastern-western slope and local crisis zones. As a result of the outstanding development of the capital, the long term differentiation of regional development differences can also be detected when examining the regional distribution of Hungarian gross domestic product. The collapse of heavy industry and agricultural mass production based on the eastern markets primarily affected the north-east counties in the eastern part of the country.
Strengthening regional competitiveness is of key importance for the region, which requires the application of consistent development policy. The most important is economic development which, if it operates well, also infers the possibility of establishing welfare infrastructures. Drawing in external sources to ease the significant lack of capital is important for the processing industry and the development of supplier networks. Agricultural development also plays an important role in transforming economic structure, since the characteristics of the region, its traditions and long term competitive advantages are favourable, therefore it is going to represent a higher ratio within the economy than the EU average. The modernisation of the agricultural sector can be promoted by supporting market accession, quality agricultural production and stimulating producer-retailer cooperation. The development of transportation and informatics infrastructure as well as human resource development plays a significantly important role in the development of the region.
In conclusion, the implementation of such a consistent regional development policy is required in the future, based on the strengths of the region, that serves the most efficient utilisation of regional development funds through the implementation of regional policy principles and prevents the irreversible decay of the region while promoting rapid development. -
Food Safety in EU Higher Education
188-197Views:87Under the aegis of the Lisbon Strategy, special attention is paid to education and areas left untouched by the European integration process. Human capital and research inputs were identified as major driving forces for long-term development. The European Union is keen on meeting its target of boosting research spending to 3% of GDP by 2010. In order to contribute towards his goal, the European Commission has set aside an amount
which is double the budget of the 7th Framework Programme. Accordingly, preferences were given to research and development projects encouraging competitiveness in the food industry and other initiatives, such as the European Technology Platforms. Major obstacles to innovation in Hungary are: lack of funds, weakness of research network, poor structural relations. Better utilization of our comparative advantages should be targeted in order to have the Hungarian food industry become a driving force sector. This is to be promoted by the newly transformed food
engineer training (as a result of the Bologna Declaration) which can adapt better to the changing requirements of the labour market. Food science and related research could become determining factors for the food economy by setting up accredited training systems and enhancing food safety education and training in Hungary. -
Financial interrelationships of public warehousing
80-89Views:94In my paper I examined the institutional and market connections warehouses use emphasising the role of financial institutions. I stressed that for the proper functioning of a warehouse the mutual trust of the economic participants is required. This presupposes a tight relationship between warehouses and banks, as banks have to accept warehouse warrants in such a manner that the credit suppliant can more readily access current assets credit.
Today, we can say that the moneylender bank is strongly confident about deals involving warehouse credit. The amount of goods stored in warehouses is increasing. Warehouse deals offer better conditions to depositors, which can be explained by the fact that the creditor does not examine the management and credit standing of the depositor. Most important for them is that the goods provide enough collateral to ensure marketability, and that the warehouse storage conditions are proper. On the other hand, with the support of an interest subsidy system credit is obtainable at very auspicious conditions. To top it all off, and this is the most important aspect participants can receive access to funds unavailable to them in any other case. -
Examination of the sub-regions in the North Great Plain Region
158-163Views:119Before Hungary joined the European Union – in order to gain access to the sources of Structural Funds and to create the expected regional information service – a build up of five-level territorial system was indispensable. Both in the EU and in Hungary, there are significant differences among regions. The aim of regional policy is to reduce differences regarding development and living standards, in order to guarantee a reasonable living standard and income for every region’s inhabitants in the EU.
In Hungary, during the last decade, the effects of regional difference grew. While the advantage of the leading capital and its agglomeration and the eastern and western parts of Transdanubia was growing, meanwhile the most undeveloped areas' rates of development remained under the mean. The underdeveloped areas are in the northeastern part and in Southern Transdanubia. The developmental differences lead to such great social asymmetries, that these simply beg for remedying.
In this study, I would like to present the sub-regions of the North Great Plain Region and uncover the possible reasons of the developmental differences. -
Special Investment Support Under the Agricultural Reorganisation Programme 1995-2000
64-73Views:89Since the political changes in Hungary, agricultural businesses have worked in a declining economic environment and hectic market situation, with a widening price gap between agricultural and industrial products and low profitability. A declining export comes then by no surprise. The sector has not been able to even benefit from export opportunities provided in the European Agreement. The area least benefiting from quotas is animal products (beef, mutton, lamb, slaughtered chicken, cheese, egg). The ministry of agriculture was lagging behind in responding to these problems, and it was as late as in 1995 when it launched a reorganisation programme for export stocks fund build-up (5).
The author has conducted empirical studies on agricultural enterprises in Csongrád county to see what results the special investment support delivered under the reorganisation programme produced. The fundamental aim of the reorganisation programme for export stocks fund build-up was to boost exportable Hungarian animal product stocks in a bid for businesses to better benefit from the preferential quotas set by the European Agreement. The author examined how the special investment support scheme succeeded in its aims, whether livestock grew considerably in its wake, whether farmers were able to attain exportable quality and what development funds enterprises were able to raise. -
A practical means of setting the scene for evaluating aggregated absorption risk in EU co-funded programmes related to project failure
63-66Views:119The main purpose of the mid-term evaluation of grant programmes is to assess relevance, progress, effectiveness and efficiency. There are several methodologies, tools and techniques applied in various evaluations to assess these programme aspects. An important area of the evaluation of both the financial progress and the effectiveness of the programme is to evaluate the risk of absorption which is indicated by various factors, inter alia risk of supported project failure. If a project fails in any EU co-funded programme in the stage of preparation or implementation, then the fund already committed to that particular project (assumed to have already been absorbed or “spent”) is to be reused again or is to face decommitment (funds have to be paid back to the EU). There are strict EU regulations governing the time scale of this re-use (n+2, n+3 rules), therefore it is of major importance to assess the risk severity (measured as the resultant of the volume of grant at risk and the chance of project failure) and build up an early warning mechanism which indicates if the risk reaches a critical level that requires immediate intervention.