The regional policy of the transition in Hungary

Abstract

The introduction in Hungary of market economy and the transformation of the social administration has fundamentally altered the aims, as well as the institutional and regulatory system of regional policy. Regional processes have been affected by reform programmes, and unfavourable spatial changes have emerged from the transfonnation of the budgetary and monetary systems, particularly for rural and old industrial areas. The aims of Hungarian regional policy should be to reduce spatial disparities among regions and settlement groups and to create equivalent conditions for economic restructuring in the various regions. The realisation of these targets will not take place over the same timescale, as different types of problems require different solutions, methods, priorities and institutional systems. The task of Hungarian regional policy should be determined by law, and a parliamentary Act should be passed to clarify the aims, means and key institutions of regional policy. The paper reviews the above areas, and provides an assessment of the strengths and weaknesses of Hungarian regional policy.