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Development of and Lessons from the Institution System of the Common Agricultural Policy in Slovenia
43-53Views:61The comprehensive agricultural policy of Slovenia during the setting-up of its agricultural institutional system for implementation of the Common Agricultural Policy has enabled the setting-up and design of the Paying Agency system to handle national and EU subsidies according to schedule. The country has acted on the advice of the European Union to use the introduction of SAPARD measures as a preparatory and experimental field for utilising subsidies after EU accession. Moreover, in addition to the importance of gaining practical experience in the field of implementation of rural development measures, Slovenia has recognised the necessity to become familiar with the application procedures for obtaining direct payments relevant for the largest group of beneficiaries, farmers. Accordingly, farmers have been practicing for 3 years how to fill in application forms, and have gained important experience before opening the most relevant resources. Also, the advisers supporting farmers to obtain subsidies have been trained during the last 3 years, in order to provide real assistance. EU agricultural subsidies are not divided among the Member States; there will be a strong competition not only with the new Member States, but also with the farmers of the more developed EU-15.
Slovenia has done its best in order to launch its farmers – due to the different development levels of the EU-25 Member States – into this very strong competition not like pupils, but at least like mature secondary school students. -
Slovenian economy in the grip of credit crisis – How to proceed?
19-25Views:153The Slovenian economy has been through steep ups and downs post-EU accession (2004), and is at the crossroads again. The period 2004–2008 was characterized by balanced monetary and fiscal policies resulting in the adoption of the Euro (2007), coupled with overheated economic growth and propelling corporate indebtedness, fuelled by rapid credit expansion from cheap and abundant foreign funding.
The global financial crisis has exposed the “home-grown” vulnerability of the Slovenian economy, bringing about the second largest GDP fall (9.4%) in the Eurozone after Greece, with a double-dip recession (2009, 2012–13). Growth rebounced in 2014 to 2.6% from its low, but the competitiveness of the Slovenian economy continued to slide in international rankings. For further recovery Slovenia, squeezed by high public debt at 82% of GDP, credit contraction despite EUR 5bn state aid injected into the 70% domestically (basically state) owned banking sector, and the continued threat of massive bankruptcy and debt overhang in the corporate sector, has 3 fundamentally different policy options.
− Profound restructuring of the banking system and the real sector, on the basis of earnest privatization and voluminous FDI inflow.
− Slow creditless recovery due to half-hearted reforms in the financial system and corporate sector.
− Substituting wide-ranging micro level restructuring with Government-stimulated credit expansion, reproducing current tensions in even higher magnitudes in the future.
In the current state of the Slovenian economy, equity-led growth, combined with far-reaching institutional reforms seems the only choice in laying the foundation for long-term sustainable economic development. This study outlines the critical further steps in re-invigorating the financial system, utilizing also the proposals elaborated by the author and his banking team for the Slovenian macro policy decision-makers.
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The institutional background of local sustainability strategies
7-13Views:71The system of local sustainability strategies is shaped by the intentions of the central government and local initiatives together. From the aspect of the hierarchy of government organization in Hungary it means that there are institutions on the central government’s side – different ministries or other governmental institutions – the role of which is mainly coordination; and local governments (regional and local as well) also form their institutions at the municipality.
It is important to examine the institutional background, as in Hungary the formation of sustainability policy is still in its infancy, so it is well worth taking the institutional background of countries the circumstances of which are similar to ours and have successful sustainability policies as a basis. In this presentation I will examine whether the top-down or the bottom-up approach is chosen, which institution is in charge of the process, what the legal background is like, and what sources are available for use in these countries. -
The Target Areas of Regional Development, Tool and Institutional Background, its Present and Future Prospects
138-142Views:65Regional 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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European Funds and the Evaluation of Their Application in the Northern Great Plain Region
191-198Views:74Presently, 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. -
The Present and Future of Tokay Aszú
87-92Views:82Tokay wine is Hungary’s noblest wine. Beyond doubt, it is one of those uniquely Hungarian products, which has been without rival for centuries. Today the role of quality has become increasingly important and consumers who are ready to pay more for quality wines expect it. This wine will be able to get back its original popularity if the message of its excellence reaches the public. Knowledge of historical wine-producing regions constitutes a part of basic education and wine-marketing could take important measures to spread it since good products need to be sold properly and consumers require information about wines – with gastronomy – and wine producing regions.
With foreign invested capital, advantageous changes have been started in Tokay-Hegyalja. However, there is much still to do in order to produce, sell and consume Tokay wine on such conditions that are really worthy of a Hungaricum. It is essential to approach the famous oenologists of Europe and the world and to establish suitable production conditions for every winegrower. In addition to following consciously prepared wine-marketing directions, our country needs to make an expected name for this Hungaricum. These aims are important mainly because of approaching EU-accession. There is timely to study on what conditions Hungarian viticulture and oenology could access. It would be a great success of the Hungarian delegation if they could make current Hungarian laws of Tokay-wine-production accepted in the EU. Of course, all of these would be valid after EU-accession. During the pre-accession period, our country needs to fulfil several stipulations. For example, origin-protection, establishment of a registry system, law harmonisation, development of an institutional system.
Strengthening of home consumption has always been an inspirational tool in a product’s life cycle. It is important not only to take the requirements of foreigners into consideration and to produce for export, but we also need to satisfy the home market. Considerable stress should be laid on establishing and preserving viticulture. Increasingly, buyers expect high standards and they are ready to pay more for quality wines. They also demand appropriate professional information and consultation. So there is a lot to do and theoretical approach should be followed by action. In order to get to know what quality expectations exist, we have to examine the consumers of the Hungarian wine-market. Study of the Hungarian people’s consumption behaviour, referring to Tokay „aszú”, was closely connected with my work.
Participants of my study were consumers who buy Tokay „aszú” mainly in shopping centres, supermarkets and low-price shops specified for wine selling. Wine shops have important roles as they give opportunity for salespersons to make closer relationships with buyers. These shops could be communication channels of spreading wine culture. It would be favourable if in every town or city there were at least one wine shop giving the opportunity of consultation besides commercial activity and also providing services that support the improvement of wine culture’s position. The majority of questioned people spend less than 4.000 Forints on buying of Tokay „aszú” in a year. Results of the questionnaire survey support the fact that there is a demand for these wine-specialities, but lack of money strongly effects demand.
The Following summarises the history of Tokay wine, tasks of Hungary and the expected effects relating to EU-accession. Regulation of oenology and the wine-market, referring to quality wines and main results of the survey are also overviewed in the text. -
The Possibilities of Futures and Option Hedge in Price Risk Management for GrainProduction
72-80Views:77The greataest risk tograin production is fluctuation in market prices, which is over 50% over the course of a year; and year by year, as well. There are real market circumstances in the grain market, instead of state guaranteed fix prices, which was the norm under the former political system.
According to the general opinion of producers, losses come from their defencelessness against buyers. The real situation is that price risk can be managed by suitable market strategy, and loss production can be avoided.
Hungary has a futures market (which is organized according to the CBOT system) in the grain sector, which is an unique institute in Europe. This organisation is suitable for hedge businesses and it has convenient technical and institutional background.
There are two possibilities to make hedge business. One of them is the short hedge with futures contract when the producer sells his product for long term if an acceptable profit is included in market price. In this case seller can protect himself against low market prices.
This technique can be considered as professional for price risk management, but possibly has financial cost because of the weak financial situation of Hungarian producers this solution seems expensive for them.
There is an other possibility in the Commodity Exchange for manage price risk, that is the option technique. This solution is suitable for insure prices as well, and has an other additional advantage, namely: there is no financial costs in this case. -
From the Concept of Sustainable Development to the Subsidies of Agricultural Environmental Management
354-361Views:72The most important aim of the study is to introduce the theoretical background of my PhD dissertation – agricultural environmental management –, in order to help the scientific foundations for my dissertation, which is in progress. For this reason I will try to clarify and systematize facts found in the special literature according to my own thoughts, from a new aspect.
In my study, I therefore attempt to introduce the theoretical background of sustainable development as pertains to the subsidies of agricultural environmental management (National Agricultural Environmental Management Program, National Regional Development Plan, agricultural environmental management measures). Having clarified the concepts I place sustainable development in the economic theories directed to the treatment of environmental problems, introduce where subsidies are within the environmental regulation implements and I dwell on to the institutional questions in the explanation. I then study questions of sustainable agricultural economics. Accession to the European Union has to be considered as one of the most important concrete motivities of domestically coming into prominence of agricultural environmental subsidies therefore I think it is important to study how the problematic of sustainable development, sustainable agricultural development and agricultural environment protection worked out in the EU. Finally I survey the main characteristics of domestic agricultural environment management programs fitting into the theories explained above, how the program adjusts to the theories of sustainable development and sustainable agricultural development.
In the dissertation I begin with sustainable development as the broadest theoretical background, then I survey a narrower category, the theories of sustainable agricultural development and how concrete agricultural environmental programs fit into the studied theoretical relations. -
The effects of education, culture, research and development in Hajdú-Bihar county
87-90Views:161The most important instrument of social advancement and economic development is the education system. The educational qualification of the population of Hajdú-Bihar county is continuously improving, however the census data of the year 2001 show that the educational qualification of the population of the county did not reach the national average. The educational qualification of the county’s population is higher at the county seat and in other cities and lower in small municipalities. The county’s ratio is strongly influenced by the data of the county seat Debrecen and that of Hajdúszoboszló sub region.
The unfavorable educational level of the region is related to the migration tendencies and the brain-draining trends of the past decades, as a consequence of which the population of the less developed eastern regions has moved either to the capital, or to the county seats, or larger cities of the region. The young are increasingly affected by the process.
The number of kindergartens in the county corresponds to the national average, therefore taking into consideration the regional demographic characteristics the aim should be the equalization of regional disproportions. The number of students per 1000 resident within the Northern Great Plain Region and in the county significantly exceeds the national average. The secondary school network of the county consists of 38 secondary grammar- and 51 secondary vocational schools.
The secondary schools of Debrecen have considerable impact on the county’s secondary education. The vocational training network of Hajdú-Bihar county is a large, in its conditions highly differentiated institutional network in which all types of secondary vocational institutions are present with secondary technical-, vocational-, accredited higher vocational-, specialized or preparatory vocational-, and special skill enhancement programmes. The majority of the secondary institutions have regional, rarely national enrollment.
Students who have the intention to continue their studies in higher education within the county can study in Debrecen or Hajdúböszörmény.
The integrated University of Debrecen has the highest student number within the country and it offers the widest range of academic programmes in Hungarian higher education. The University of Debrecen with the wide range of graduate and postgraduate educational programmes, unified academic qualification system, English language programmes is a European standard scientific centre of the Trans-Tisza Region. The county’s higher education takes exceeding share beyond its weight in the education of Natural Sciences (Biology, Physics, Chemistry, Earth Sciences, Mathematics), Health- and Social Sciences, Agricultural- and Environmental Sciences and Information Technology, which positively influences its educational structure. The county’s share in the education of Humanities (Hungarian Language, Foreign Languages, History, Archeology, Philosophy) is also significant.
6.3% of the country’s scientific researchers work in the county. In 2010 7.0% of the country’s R+D expenditure was spent here. 3/4 of the region’s research capacity is in Hajdú-Bihar county employed either by the University of Debrecen or by the research teams of the Hungarian Academy of Sciences.
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Financial interrelationships of public warehousing
80-89Views:78In 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.