regional polycentricfinal urban systemreport

INTERREG III B Strategy for a Regional Polycentric Urban System in Central Eastern Europe Economic Integrating Zone RePUS repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 1 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 2 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 3

REPUS Project Partners

Lead Partner – ITALY: Emilia-Romagna Region Paolo MATTIUSSI (RePUS Project Head) • Myriam MATTEUCCI (RePUS co-ordinator) Roberta BENINI (RePUS Scientific Project Director)

HUNGARY: VÁTI – Hungarian Public Non-profit Company for Regional Development and Town Planning,

István FERENCSIK (Country project Head) • Géza SALAMIN • Ádám RADVÁNSZKI • Attila SÜTÕ POLAND:ˆ Institute of Urban Development, Krakow

Grazyna KORZENIAK (Country project Head) • Katarzyna GORCZYCA • Agnieszka ROZENAU RYBOWICZ SLOVENIA: Ministry of the Environment and Spatial Planning, Ljubljana ˆ Janja KREITMAYER MCKENZIE (Country project Head) • Nataša PICHLER-MILANOVIC Alma ZAVODNIK LAMOVŠEK • Metka SITAR

AUSTRIA: ÖIR Austrian Institute for Regional Studies and Spatial Planning, Vienna

Ursula MOLLAY (Country project Head)

ˆ ˆ CZECH REPUBLIC: Czech Technical University in Prague/ Faculty of ˆ Architecture, Prague Karel MAIER (Country project Head) • Ondrej Mulícek • Ludek SÝKORA

REPUS STEERING COMMITTEE MEMBERS

Roberta Benini, Nomisma - Economic Research Institute, Head Unit for Spatial and Regional Development Strategy, International Programmes, Bologna Roberto Camagni, Polytechnic of Milan, Technical University, Milan István Ferencsik, VÁTI, Budapest Erzsébet Vajdovich-Visy, Budapest University of Technology and Economics (BME), Department of Sociology Regional Development and Planning, Budapest Grazyna Korzeniak, Institute of Urban Development, Krakow

Andrzej Zborowski, Jagiellonian University Institute of Geography and Spatial Management, Krakow Janja Kreitmayerˆ Mckenzie, Ministry of the Environment and Spatial Planning, Ljubljana Andrej Cerne, University of Ljubljana, Faculty of Arts, Department of Geography, Ljubljana Karel Maier, Czech Technical University in Prague, Faculty of Architecture, Prague Jaromír Stejskal, Institute for Spatial Development, Brno

OTHER COLLABORATORS TO REPUS PROJECT ARE THE FOLLOWING: Italy: Manuela Capelli, Celeste Ungaro, Paolo Naldi, Francesco Masi, Alessandro Selva : Dóra Illés

Czech Republic: Irena Pokorná, Filip Drda, Jakub Vorel

ˆ Austria: Iris Wach ˆ Slovenia: Dejan Cigale, Marko Krevs, Tadej Zaucer, Vlado Drozg, Petra Gostincar repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 4

Foreword

This Final Report is a condensed version of the main findings of the INTERREG III B RePUS (Regional Polycentric Urban System, project number: 5C010) that have been achieved during the two year project, on the basis of a common RePUS methodology by the six Partners Teams. This implies that the individual country analyses that have been carried out as empirical spatial analyses, pilot studies and policy strategy analyses are not fully presented in this document. Thus, this report does not go into detail on the methodology employed and on the quantitative results.

This Report is a synthesis that aims at highlighting the main crucial and critical features of the urban settlement systems and their policy implications in Central and Eastern European countries. It will be a contribution to the ongoing debate at European level, about the search for a difficult balance between, on one hand, cohesion policy - where polycentric development vision is concentrated on small and medium-sized towns, and on the other hand, competitiveness policy, that primes the central role of the large metropolitan areas and capitals. The aim was to combine these two different approaches, proposing a positive vision that focuses on the great potential of small and medium-sized towns. repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 5

FINAL REPORT

Edited by Roberta Benini, RePUS Scientific Project Director with the support of Paolo Naldi, Emilia-Romagna Region repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 6

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INDEX

1. INTRODUCTION ...... 10

1.1 Project targets and main issues ...... 10 1.1.1 Which Polycentric vision for the project?...... 10 1.1.2 Polycentrism from three perspectives: as a morphological dimension, as functional relations, and as a policy target ...... 10 1.1.3 Small and medium-sized towns: a matter of definition or a policy-choice?...... 12

1.2 Legacy of the past and the impact on the present spatial shaping in Central and Eastern Europe ...... 14 1.2.1 Which implications for the present spatial development since transition started in the 1990s? ...... 15

1.3 Macro economic framework of the Central Eastern European areas: catching up and growing regional disparities ...... 16

2. SPATIAL ANALYSIS ...... 23

2.1 Spatial/urban patterns of growth in Central – Eastern Europe: some general characteristics and macro-areas ...... 23 2.1.1 Macro-areas and sub-systems of urban potential integration ...... 29 2.1.2 The question of accessibility, improving connectivity among regions in a cross-country perspective ...... 37

2.2 Hierarchy of the Urban areas ...... 43

2.3 Spatial polarisation, inter and intra disparities ...... 52 2.3.1 Degree of monocentricity / polycentricity by population and economic functions ...... 53 2.3.2 Intra-LLS degree of polarisation ...... 58 2.3.3 Morphology aspects of the spatial urban system in the RePUS areas ...... 58

2.4 Integrated Central Eastern European spaces. The strong areas of spatial integration...... 62

2.5 Typology of LLS: (Cluster analysis)...... 74

3. THE POLICY STRATEGY DIMENSION...... 88

3.1 The European context between territorial cohesion and competitiveness ...... 88

3.2 Spatial vision of polycentric development in the RePUS area ...... 89

3.3 Critical policy issues ...... 101

4. CONCLUSION ...... 104

SELECTED REFERENCES ...... 110 6 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 7

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LIST OF MAPS

1. GDP per capita ppp NUTS 3 (100 = EU average) ...... 17 2. Unemployment rate 2003 ...... 19 3. Population Density in the EU25 ...... 22 4. Population Density by LLS, RePUS countries ...... 24 5. Population dynamics by Municipalities, RePUS countries...... 25 6. GVA per capita index of RePUS countries ...... 27 7. Economic Aggregate per capita by LLS in Czech Republic (2001) ...... 29 8. Rate of Unemployment, RePUS countries ...... 30 9. Functional urban areas against a background of development axes planned in Poland...... 31 10. Macro-Areas in Poland ...... 31 11. Macro-Areas in Hungary...... 33 12. Macro-Areas in the Czech Republic...... 33 13. Macro-Areas in Slovenia ...... 34 14. Macro-Areas in Austria ...... 34 15. Strategic macro-areas for integrated development in Italy ...... 36 16. Macro-Areas in Italy ...... 36 17. Trunk road networks in RePUS countries. TEN-T Priority projects (2006) ...... 38 18. Railway networks in RePUS countries. TEN-T Priority projects (2006) ...... 39 19. Trunk road networks in RePUS countries with TEN-T networks (2006) ...... 40 20. Railway networks in RePUS countries with TEN-T networks (2006) ...... 41 21. Urban Hierarchy, RePUS countries ...... 45 22. Budapest metropolitan area ...... 50 23. Degree of polycentricity by NUTS 2 region in RePUS countries – Coefficient of variation of LLS’ population ...... 54 24. Intra-Regional (LLS) economic polarisation by NUTS 2 region in RePUS countries – GVA’s Williamson’s coefficient of variation ...... 55 25. Intra-LLS degree of polarization by population function in RePUS countries (relative weight of centroid population on LLS population) ...... 56 26. Typology of LLS...... 57 27. PUSHs overlapping in each municipalities ...... 60 28. Population within 60 minutes accessibility to the centre of regional capital by car ...... 61 29. Potential of the territory for polycentric development at local level ...... 61 30. Efficiency of servicing population...... 62 31. PIA Population...... 63 32. LLS and Cross-Border and neighbouring countries Relationships ...... 65 33. Potential areas of cross-border cooperation in Poland ...... 66 34. Kraków - Upper Silesia Cooperation ...... 66 35. Cross-border cooperation in the Czech Republic ...... 67 36. Cross-border cooperation and Euro-Regions in Austria ...... 67 37. CENTROPE cooperation...... 69 38. Cross-border in Hungary ...... 70 39. Alps-Adriatic (Alpe-Adria) cross-border region ...... 70 40. Location of selected car production plants in the Czech Republic, Slovakia and in the neighbouring parts of Poland and Hungary ...... 78 41. Typology by LLS in Poland ...... 79 42. Typology by LLS in Hungary...... 80 43. Typology by LLS in the Czech Republic...... 82 44. Typology by LLS in Slovenia...... 84 7 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 8

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45. Typology by LLS in Italy ...... 85 46. Typology by LLS in Austria ...... 87 47. Regional development poles and axes in Hungary ...... 91 48. Polycentric development of Polish space ...... 94 49. Development areas, development axes and specific areas in the Czech Republic...... 96 50. “Centres of (inter)national, regional and inter-municipal importance” (urban network) with city clusters, agglomerations and functional urban areas...... 99 51. RePUS Countries – Spatial Vision: Development axes ...... 105 52. RePUS Countries – Spatial Vision: Cooperation and Development areas ...... 107

LIST OF TABLES

1. City LLS hierarchy up to Regional 1...... 44 2. RePUS Dynamic trend of the Urban hierarchy (Poland, Hungary, Czech R., Slovenia): a Synthesis...... 47 3. Selected indicators of Cluster Analysis ...... 75

LIST OF FIGURES

Figures 1 and 2 Coefficient of Variation GDP per capita PPS, NUTS 2 and NUTS 3 Regions in the EU 25 ....20 Figures 3 and 4 Coefficient of Variation GDP per capita PPS, NUTS 2 and NUTS 3 Central-Eastern Europe Regions excluding capital cities ...... 21 Figure 5 Economic Performance of Clusters...... 77 Figure 6 The Objective Structure of the National Spatial Development Concept...... 90 Figure 7 Poland; the conception of Spatial planning system ...... 93 Figure 8 Institutional context of spatial planning of the Czech Republic ...... 95 Figure 9 Spatial Planning integration Scheme in Austria ...... 97 Figure 10 The multi-faceted visions of the territories: a new dynamic perspective from local to global, in Italy...... 100

LIST OF BOXES

1. Hungary: a short background of its urban settlement system ...... 28 2. Hungary: the impact of transport improvement on small and medium-sized towns ...... 42 3. Indicators for urban Hierarchy ...... 43 4. The role of small and medium-sized towns in the Budapest metropolitan area...... 49 5. The centripetal role of Vienna in the largest Central Eastern European space...... 51 6. Czech accessibility from a local perspective ...... 59 7. Shaping European cooperation centres on the example of Cracow-Upper Silesia Cluster (KRUS) ...... 64 8. CENTROPE: An example of cooperation on “Research and Development” ...... 68 9. Hungary and cross-border areas ...... 69 10. Alpe-Adria Working Community ...... 71 11. Economic clusters of automotive industry – the case of the Czech and Slovak Republics: the example of small and medium-sized towns highly specialised and internationally competitive ...... 76 8 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 9

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can acquire different significance having consequently 1. Introduction also different policy implications. First of all, polycentrism changes with the specific scales we are using: 1.1 Project targets and • At European level it is clear that only very large main issues mega-cities represent the counterweight to the dominant Pentagon areas: this perspective of poly- centrism concentrates on the role of the metropolis, and being competitive in the global markets. Thus The project has put forward an ambitious target of only a few competing “global cities” can emerge from proposing a vision of the polycentric development in this layer: in the New Member countries this would Central Eastern Europe, focusing on the role of medium necessarily signify only the Capital cities. Following and small towns, starting from a regional perspective, as this option, the attention given to the metropolitan potential way to sustain a more diffused type of areas would inevitably imply the exacerbation of the development. This perspective might favour the disparities within the countries, with a few poles of development of functional links and integration European importance, leaving the remaining processes, fighting the exacerbation of the regional secondary and tertiary urban layers lagging behind. disparities that have resulted from the increasing territo- • At national level, the capital cities can be the rial concentration of the past two decades in the New relevant poles of attraction at the expense of the Member countries, since transition started in the 1990s. secondary rank cities that cannot compete with the “national leaders”; The main focus of the project has been the following: • At regional and local levels, on the contrary, • Identifying the potentialities of the regional urban polycentrism can be brought from below, strengthening systems, with the help of a sound spatial analysis, those local and regional cities that, on the basis of including the analysis of the functional roles and territorial proximity, can represent a potential for a the identification of the urban hierarchy that has denser city/town network, bringing spin-off effects. emerged in this period of rapid changes; Thus the territorial contiguity can be beneficial for a • Identifying the dynamic urban areas/regions where more balanced urban development perspective. medium-sized towns could play the role of potential “regional capitals” for developing new This project is focused precisely on the regional scale functional integrating areas, in light of the ongoing analysis of polycentrism - considering that instead of the slow process of decentralisation; dominant trends toward the primacy of the large national • Identifying dynamic small towns that can play and global urban poles - the local and regional dimension positive roles in service provision for highly is also becoming essential for the consolidation of more urbanised regions or rural areas; diffused creation of wealth. At the same time this vision • Analysing the main policy strategy options and can be conducive to improving business conditions and identifying the most critical issues at the forefront attraction capacity: this in turn will also contribute to the of the present debate on cohesion and consolidation of a stable social and economic environment, competitiveness at European level, but looking that is an essential precondition for a more diffused from the New Member countries perspective. development, in order to reduce the effects of excessive spatial and regional gaps, that can represent a costly brake to economic growth in the long term. 1.1.1 Which Polycentric vision for the project?

The notion of polycentrism as has been proposed in 1.1.2 Polycentricism from three perspectives: the ESDP has been the central innovating vision that as a morphological dimension, as has indicated new avenues for further theoretical functional relations and as a policy target research as well as spatial analysis and new policy options, looking for a more equitable spatial develop- Polycentric development in the framework of this ment throughout the whole of Europe. However the project is proposed from three different viewpoints: notion of “polycentrism” has no unique meaning, but I. As an empirical observation of the existing urban can be interpreted in different ways, depending on the structures and their concrete territorial shaping: context and the scale in which it is employed: thus it the morphological dimension; 10 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 11

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II. As functional relations among the different urban Thus, “global cities” exert their dominant functions at settlements and their related hierarchy, in the world level (OECD, 2006), far beyond the physical framework of the different spatial contexts, either territory where they are located. If this trend was the regional, national or international. only dominant dimension, local and regional integration, III. As a policy target in order to pursue a more balanced based on more diffused urban structure – including development for spatial planning purposes. small and medium urban settlements – would, as a result, decrease in relative importance. As observable phenomena, polycentricity is inevitably related to a given existing urban structure, that in turn The alternative vision to the “global cities” was based is the result of the sedimentation of historic factors, of on the assumption that strong integration of small and old and recent urban policies, of spontaneous medium (down from large metropolitan areas) urban processes of location and mobility of resources and entities - as a lower layer of functional urban relations population: all these historic, socio-economic and with proper internal hierarchy - might be able to optimise institutional factors have contributed to the shaping of the allocation of resources and attraction capacity, in the present urban structures. Thus polycentricism order to be capable of competing “as integrated urban from this perspective, is related to its morphological systems” – and not as isolated entities – with dimension: consequently, any policy target that metropolitan areas. pursues the objective of a polycentric development, cannot avoid taking into consideration the existing It is clear that these two opposite trends - concentration urban structures and their functional relations. versus diffusion - are constantly confronting each other: the question is to what extent do the assump- However polycentric development can become an tions that are behind these two opposite “models” – ambitious policy target to the extent that it tends to “global cities” and “local-regional urban system” – improve the urban functions associated with the coexists or are they inevitably in conflict, giving rise to existing urban settlements, sparsely located in the a “winner- looser” result. In other words, is competitiveness territory. Proposing a polycentric vision of an urban in the global markets, necessarily related only to strategy is meant to improve the conditions for a concentration around strong poles or might it also be more efficient allocation of resources in the urban based on regional city networks? The costs and the areas, to up-grade the services delivery to population benefits of these two options are different if we look at and businesses in order to ameliorate the attraction the short or the long term: the balance between them capacity for residential population or for business is a difficult policy question. location, to favour the regeneration of the cities. One of the most useful instruments for facilitating The hypothesis and the largely shared belief – confirmed the elaboration and implementation of those targets, also by the ESDP’s vision of Cohesion targets – is that is the urban network, which is increasingly considered the improvement of the city function delivery, also for as a powerful way to improve a polycentric vision small and medium urban entities, might facilitate de (see ESPON 1.1.1.). facto a more equitable development to the extent that the urban structures are not much affected but there But it is clear that no centralised policy can create the could be excessive polarisation towards one core-centre. abstract perfect equilibrium of Christaller’s polygons in The weakening of the urban hierarchy, as was the territory, taking into consideration that increasingly conceived by Christaller - on the basis of the service dominant forces are pushing toward further spatial specialisation functions – accelerated by the widespread concentration, rather than diffusion. The global network diffusion of the ICT and expansion of welfare systems, is also the result of the relative loosening of the physical propose again at higher levels and by qualitatively contiguity in the territory, for exerting a function: as far as different factors, the question of the polarisation and the links between institutional and economic actors hierarchy among urban settlements. To propose a become intangible, favoured by the globalisation of vision of polycentrism at regional level might give the the markets and the changing of the specialisation opportunity to test and up-date the analysis of the patterns, by ICT technologies and information society traditional hierarchy model, seen from the top of the development, increasing mobility of factors and persons, hierarchy. proximity is weakening relatively in importance, putting in a de facto prime position, the dimension of the It is precisely the scope of the project to propose a world players competitiveness. polycentric vision from a regional perspective, and from 11 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 12

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this policy perspective, to mobilise the policy-making I. the political scopes of each country, actors from the bottom, but being aware that these II. the functional scopes of the territorial entities trends that favour a more equitable spatial shaping of depending on the degree of consolidation of the urban areas, cannot represent the only dominant spatial planning traditions (stronger in Northern trend: the exacerbation of competition, which exerts and Central Eastern European countries than in tremendous pressure on the urban functions of the Southern countries); cities and their capacity to compete. III. the size of the country and its population density are also factors that influence to a large extent the choice The increasing role of the capital-cities in all the of criteria for the definition of the urban entities; RePUS countries, even if at different degrees, show IV. the geo-physical factors that might influence the that the polarisation effects are dominant, but interesting delimitation of the border of the administrative city new trends also indicate that secondary layers entity (e.g. mountains, isles, desert areas etc.) cities/urban agglomeration areas are emerging, even if not at the same pace, and not univocally. Also small In this context, RePUS did not raise the question of towns can emerge as dynamic entities, in particular definition of small and medium-sized towns, but has when they acquire stronger functions and specialisation. assumed implicitly that each country shall apply its own It is on the basis of interesting new findings that the criteria, as the national urban settlement system has picture that results from RePUS analysis brings a new been retained as main reference for the spatial analysis. insight on the spatial analysis and the policy debate that might contribute to suggesting some of the most Thus, the absence of standardised classification of critical issues. small and medium sized cites, does not allow one unique categorization if not combined with other criteria that identify their role within the urban hierarchy 1.1.3 Small and medium-sized towns: of each national settlement system. The attributes that a matter of definition or a policy-choice qualify them in terms of Function, remain the main dominant criteria, following a vision of spatial urban The term small and medium-sized towns, is primarily structure that goes beyond the purely administrative related to the “size” as the first criteria retained for their criteria of the city’s administrative delimitation. classification, in their institutional/administrative delimitation. There are no standard definitions of small to medium-sized towns in Europe as such: each country either does not refer explicitly to these “size” elements, Morphological Built-up area identifies them by contrast, as result of subtraction of area the large cities / metropolises - Italy for instance refers only to “metropolitan areas”, as large agglomerations, but does not mention other urban smaller entities, or defines them on the basis of the functional criteria – certain degrees and type of functions assigned to a certain urban size, as in Germany (see for details see ESPON 1.4.1.). City- functions as Functional area central attribute The simple ranking of small and medium towns from the population size can start from a threshold of 2,000 residents, or 5,000 or 10,000 as minimum requirement for defining an urban settlement as a small town, from 30,000 to 60,000 residents up to 120,000-150,000 residents, to be defined as a medium-sized town. URBAN-Audit adopted a maximum threshold for a Administrative Policy decision small town up to 50,000, medium-sized town from making 51,000 to 250,000 and large city more than 250,000. area

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The non correspondence between administrative A dense network of small to medium-sized towns boundaries, functional role and morphological dimension with a weak hierarchy can represent a strong of the cities (see also ESPON 1.4.1.) represents the potential polycentric urban structure. For Eastern most controversial aspects that make it extremely European countries this target is particularly relevant, difficult to match the different levels that deal with in light of the heritage of the past urban and spatial diverse scopes: planning experience.

• the morphological aspects that are related to the • Contribution to the slowing down of the sub- location of the resources and to land use that go urbanisation phenomena around large cities, as beyond the administrative responsibilities (including sprawl phenomena, and to creation of attraction the sprawl phenomena). capacity for potential living areas and /or business • the attraction capacity for jobs (labour market), attraction investments areas, as alternatives to service-provision, cultural supply etc. that depend large metropolitan areas. Small towns surrounding on the dominant or diversified functions that each large cities or metropolitan functional areas, can city is able to exert; acquire complementary or specific functions • the policy-making function that is formally limited contributing in many cases to ease the metropolis’s to its (the city’s) administrative boundaries; congestion problems and also contributing to the creation of what are called “urban regions” The The functional role takes precedence over the two phenomena of sub-urbanisation and sprawl have other components, in the attempt to identify a more also accelerated in the New Member countries, in realistic dimension of the influence that the cities exert particular around the main cities and in some in their territorial surroundings. The identification of the cases there is the interesting phenomena of the Local Labour System (LLS) is thus the common emergence of smaller urban centres, becoming methodology that has been most widely employed in alternative attractions for secondary centres. most of the European countries (OECD, 2002; ESPON 1.1.1), among the Old Member countries, as a spatial • The increasing services diffusion over the territory unit for making an approximation of the functional city and the need for higher quality services – for space. Thus the LLS, on the basis of the intensity of the businesses and for the resident population – daily commute from the residential areas to the main make the question of spatial diffusion more and city that provides jobs, gives an approximation of its more crucial, and small and medium-sized towns labour market size. This becomes an area of influence can become a fundamental way to improve a more that a city can exercise on its neighbouring municipalities, equitable development of non-central areas, but including other minor urban centres. The functional also to contribute to a more integrated urban areas that the New Members identified become the structure, counterbalancing excessive polarisation base for the spatial analysis of the RePUS countries. phenomena, essential for service provision to the From this perspective small- medium or large towns local population spread sparsely in dominantly play either the central function as city-centre (centroid) rural regions. New secondary and tertiary urban of their respective LLS, or they can be part of larger layers in the New Member countries seem to labour market system on the basis of reciprocal relations suggest that a slow process has started in this with the other towns, depending on the internal hierarchy direction, as services are becoming increasingly among the different urban centres. relevant over the industry that has rapidly shrunk since the 1990s. Small and medium-sized towns, for their size and peculiarities, inserted into this perspective of LLS – • Rural-urban relations: differing from country to acquire a fundamental role in creating dynamic processes country. A process of increasing integration in the territory, in particular for the functions that can exert: between urban and rural areas is now the prevailing trend, due to contemporaneous phenomena: • Facilitation of the pursuit of Cohesion targets, since the strengthening of small and medium-sized I. the rapid growth of inner and outer areas towns favours the improvement of economic activity around the main city core, encompassing and service diffusion provision over the territory, larger portions of green areas, and further the becoming a counter-weight to excessive concen- emergence of “green regions”, developing tration on large poles (capital cities/metropolises). tourist and ecological functions; 13 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 14

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II. the increasing importance of recreational adjustment and restructuring are under-way which will green areas as a qualifying factor of high not last for long. Urban regeneration, adjustment and standards of living and ecologically clean development is an integral part of this process, since urban environment, in particular in smaller and cities concentrate fundamental functions and play a medium-sized towns; crucial role within the national economy, for providing III. the diffusion of provision of services, in particular conditions that ensure high productivity, skills and commercial services, in the hinterland of major qualifications, diversification of services for guaranteeing cities, but also sparsely located in previous durable economic growth. agricultural areas, close to small urban settlements (specialised commercial areas); A few main factors are essential in understanding the IV. the gradual growing of the ICT that can ensure distortions that affected these economies and their information flows access in all remote areas, spatial structures, during the past half-century of becoming a powerful channel for spatial inclusion, centralised planning: provided that the necessary pre-conditions exist as ICT technical assets. The territorial 1. The Industry-based development has favoured the diffusion of ICT however is very uneven. The mono-functional profile of regions and cities with a smallest towns have a particularly sensitive role strong impact on their spatial structures, leading to for guaranteeing a certain level of service a fragmented and vertically based configuration. provision in dominantly rural or agricultural The loss of their previous role, with the opening up areas/ regions. Thus a small town can have a of the economy since 1990s, has brought relevant function – for basic services – within its widespread economic crisis phenomena that surrounding rural/or agricultural areas despite have heavily affected entire regions and at local its small size. level, industrial towns, most of which were built exclusively for the scope of industrialisation (heavy The rural areas in the New Members countries, are industry and mining). either sparsely located as in the Czech Republic and Hungary, or concentrated as in some regions in 2. Limited services development has contributed to Poland. Some are isolated from urban centres and are the decline of some fundamental urban functions, facing the problems of segregation of social brackets which has a de facto weakening effect on the role excluded from cities and towns. Thus, the improvement of the cities in the overall national context. It is of the urban function of small towns is crucial for the interesting to note that Christaller’s theory was sparse population in those areas, often far away from taken - as an implicit or explicit reference- by the the large urban agglomerations. central planners in Central and Eastern Europe, as his geometrical hierarchical system of functions match the scopes of the planners: guaranteeing a minimum basic delivery of services to the entire population, depending on settlement layers, 1.2 Legacy of the past and the considering the fundamentally supply – driven impact on the present spatial economic model (ex-ante identification of the potential demand for goods and services). The shaping in Central and political and institutional pyramid corresponded, therefore, to the hierarchical pyramidal system of Eastern Europe urban settlements. However, this vision has brought on the other side, a more equal distribution of resources all over the country, irrespective of The long period of centralised economic system in cost considerations or rarity of the resources: this Central and Eastern Europe has heavily impacted the is also the reason for the lower relative regional shaping of the urban and economic structures, disparities in the planning economies, compared against the backdrop of their respective historical to the Old Member countries. background. The speed by which the catching-up process is advancing, since transition started, has 3. There has been weak infrastructure development with however brought in turn other social and financial daily mobility at short distance, many from villages to costs that indicate that still-important processes of larger cities, or as in Poland (for double industrial and 14 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 15

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agricultural employment phenomena), even at long of adjustment has rapidly evolved, bringing important distance – weekly/ monthly commuting. On the other changes in the organisation and shaping of the hand, a widespread scarcity of housing was territory, both at local/regional and national level. complemented by weekly-monthly commuting public hostels – all over the country. Some sprawl • The inherited spatial polarity between Western phenomena around the main cities in fact started to and Eastern parts of the countries or between develop, even in the 1980s. This situation of transport North and South, varying country by country, shortage has badly affected most of the internal might also change relative to each other, (enclaves) or peripheral territories in particular in the because of the improved accessibility that East. The railway system was the public’s priority might facilitate new opportunities for investments means of transport, very dense in order to ensure enhancing attraction capacity. The improvements internal mobility, whilst the road system remained in accessibility however do not necessarily underdeveloped, being both a consequence and a automatically bring the expected benefits; on cause at the same time, of the small dimension of the the contrary, this might further slow down the private car market. However road public transport (buses) peripheral areas by facilitating the out-flow of has been a powerful means for commuting mobility. people, if the local conditions there do not improve substantially. 4. Political and institutional centralisation that has had a de facto strengthening effect on the pivotal role of • The increasing disparities among regions at different the capital city and main industrial centres in some layers, is accompanied at the same time by a regions, but in turn, has not favoured (or weakened) modification of the “winner-looser” balance of the some of the secondary city layers. Country by country region, since the previously wealthy regions differences of course remain large, as for example (industrial mono-functional region) are declining. Poland remains strongly polycentric with strong So new regional gaps are emerging due in the regional centres. However, the building of a pyramidal most part, to the increasing polarisation around administrative system has brought a de facto the capital. polarisation phenomenon, accompanied on the opposite side, by the identification of smaller territo- • The diversification of the economy, away from rial units – at lower regional/local levels: for instance, mono-functional industrial specialisations, often Hungary had the Counties; Poland had the concentrated in small-medium-sized towns, is Voivodship; Czech Republic had Regions or kraje. strongly related to the development of services. Slovenia is a different case, as it was part of the former Thus the cities and urban regions become the Yugoslavian Federal system, and enjoyed higher core of the new economy and the services provide decentralised units, but without political powers. a strong potential for job creation and improvement of the standard of living, facing the increasing 5. The intermediary upper level, the Regions (under- social distress and high rate of unemployment, in stood by European layer, as NUTS 2 or similar particular in unfavourable areas or regions. size) was lacking, also because it was seen as a potential counter-weight to central power: this fact • The improvement of accessibility at high level, with has also impacted on the potential role of the the rapid growth of infrastructure for roads and “regional capitals”, as balanced urban poles vis-à- worsening of public transport services vis the capital city. The situations of course differ predominantly in peripheral areas, has started country by country, as in the Czech Republic particular to modify the speed of the connections attention was given to main regional cities. between urban centres, facilitating higher mobility of people and goods. Thus the problem of congestion and the rapid growth of private car users have negatively affected the environment 1.2.1 Which implications for the present spatial and indirectly also fuelled sprawl around the development since transition started main urban centres. in the 1990s? • New urban functions are developing mainly related Taking into consideration the distortions that the to the diversification of services both public and centralised planning system has brought, the process private, with different implications depending on 15 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 16

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the size of the city, as far as markets consolidate and need high quality, effective service provision 1.3 Macro economic framework for attraction of investments and job creation. of the Central Eastern The polarisation phenomena result increased as the importance of the capital city increased in all European areas: catching the countries and new specialisation patterns developed, facing pressure from globalisation. up and growing regional

• Increase of the private housing market, renovation disparities and up-grading of old houses - accompanied by a cyclical trend with crisis at the beginning of the 1990s – has substantially modified the growth For understanding the stage and the dynamics that pattern of the cities, with the mushrooming of the characterise the different economic and spatial sub-urbanisation phenomena also bringing sprawl growth pattern in the New Member countries, there phenomena. is a need to frame them within the broader European framework, from different perspectives: • The changing levels of the spatial disparities with from the macro-economic perspective; from the the emergence of new micro-phenomena of decline regional perspective both as inter-regional disparities areas, even at the border of main urban poles, with at the EU 25, and intra-regional disparities, within high rates of unemployment and a concentration each country; and finally against the background of of social distress. a broader picture of the territorial morphology (population density) and accessibility (transport • The creation of the intermediary level, the large network). Regions (NUTS 2) – even if at this stage they are mainly for planning purposes and not fully • From the macro-economic perspective: country administrative entities - as Poland is the only disparities and their catching up process toward country at this stage, due also to the size of the convergence, started since the 1990s. The starting country, having formally this regional dimension, disparities among countries, between the Old the others being or at the initial implementing Member States and the New Member States in phase as Slovenia or still at the stage of terms of levels, remain relevant even if substantial discussion as in Hungary – following the catching up has taken place, the New Members NUTS 3 levels. NUTS 2 however for their larger being between 50% and 75% of the EU 25 average dimension contributes to change the perspective in terms of economic performance. Catching-up of institutional functions and may have an has been characterised by different phases and important impact on future spatial development, paces, as the process of restructuring and as catalyst for economic growth as far as the adjustment does not proceed uniformly, country main urban centres - the potential “regional by country: more sustained growth rates have capitals” that can balance the weight of the been recorded since 2000, whilst during the capital city- in those regions, reinforce their 1990s (Landesmann and Romisch, 2006) the functions and may bring new spreading effects rate was moderated for the cost of the in their regional surrounding territory. adjustments – most of the financial and economic crisis happened between 1995 and • This does not come in contradiction although 1999, and not comparable to those countries, with the important role that the NUTS 3 have, like Ireland. The hypothetical period for catching considering the relatively small size of many up at the EU average level, changes country by Central Eastern European countries, with country, but for all remains within some exclusion of Poland. NUTS 3 suggest that is a decades everywhere (Third and Fourth Cohesion good layer for lower intermediary territorial Report, EU). management, strengthening the small and medium-sized towns as their servicing cores, slowing down long-distance commuting. This contributes to smooth development at lower levels. 16 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 17

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Map 1: GDP per capita ppp NUTS 3 (100 = EU average)

GDP per capita ppp NUTS 3 (100 = EU average)

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• From a regional perspective: the inter-regional starting levels are below those existing in Western disparities among EU countries tend to increase. If countries, as for Poland; Slovakia and the Czech convergence occurs at country level, the inter-regional Republic, the disparities are in absolute terms higher disparities tend to increase among regions, as only than all the other countries, including Western Europe. the strongest regions/metropolitan areas are driven The increase in the level of disparities between the upward by competitiveness. Referring to the New two years (1995 and 2002) is extremely high in the Member countries this indicates that only few Czech Republic, followed by Hungary for both NUTS regions are driving national growth as they become 2 and NUTS 3; however Poland saw large increases the main growth engine of the national economy: in disparities at NUTS 3 level, indicating that a catching important regional gaps vis-à-vis the EU 25 average up process is taking place only for a few regions at the beginning of 2003 were between 35% and where more dynamic factors are concentrated. 70% of the EU average, but the capital cities emerge high above the EU 25 average. This emerges clearly II. In general, the levels of regional disparities between from the dichotomy between the capital cities and West and East, in 1995 are much higher for the latter the other regions in each national context (see than for the former, and they tend to increase more below). From the map 1. (GDP per capita ppp at for NUTS 3 for Central - Eastern countries: however NUTS 3 level), it also appears that the divide East- not for Czech Republic and Slovakia, where the West remains significant, and crosses the most NUTS 2 disparities are higher than the NUTS 3 level, peripheral regions on the East side, as in Poland, and it can be ascribed to the fact that the problems Czech Republic and Hungary. The territorial proximity of adjustment are relatively concentrated in a few to Eastern transition economies remain the main regions affected by decline, rather than dispersed at explanation of the phenomena together with the lower levels through out the country (NUTS 3). heritage of the old industrial and/or agriculture specialisation, both under strong down-sizing III. If the weight of the capital is removed from the processes. The adjustment of the labour market and respective regional balance (see Fig. 3 and 4), the the high rate of unemployment also give a strong levels of disparities are significantly reduced, and indication of the difficulties of the process of for the case of the Czech Republic and Slovakia, restructuring and the need for alternative job even very strongly, whilst for Poland the gaps are creation strategies/relocation of human resources very small, confirming a very different degree of (see the Map 2.) polarisation among the countries. Among the RePUS countries, the Czech Republic results as the • From an intra-regional perspective: the regional country most highly polarised around the capital, disparities within each country increase as sign of a with a striking increase between the two years, polarisation process. Looking at the regional whilst the regions have a strong even level among disparities within each country (see Fig.1 and 2), it themselves. This indicates that Prague is leading is evident that a new process of polarisation has the economic growth of the country at an increasing taken place, as regions develop at different paces pace, leaving behind the remaining regions that are and levels. The polarisation around the capitals in at relatively similar levels of performance. all the New Member countries is also coupled with the decline of the previous prosperous regions The exacerbation of the disparities are also primarily (old industrialisation) and the decline of agriculture related to the relative performance of their urban (low productivity) areas that affect large parts of centres as they concentrate the highest quality human the regions, in particular in Poland and Hungary. and financial resources: conversely, increasing gaps are also the results of the difficulties of the main urban Looking closely at the measure of disparities (the centres in becoming dynamic centres of economic coefficient of variation for NUTS 2 and NUTS 3 levels)1 expansion, attraction and innovation. in 1995 and 2002, gives interesting indications: From the morphological point of view, looking at the I. The disparities at both levels in Central - Eastern population density (see Map 3) in the New Member Europe tend to increase, even in cases where the country areas the average densities remain relatively

1 In these cross-countries comparison of course the territorial size of their respective regions, in particular NUTS 2 and NUTS 3 but as well as the size of the munici palities, is very relevant when measuring the gaps, but this is an uncertain factor that enter inevitably in all quantitative analysis that deals with diverse territories. 18 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 19

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Map 2: Unemployment rate 2003

UNEMPLOYMENT RATE 2003

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Figures 1 and 2: Coefficient of Variation GDP per capita PPS, NUTS 2 and NUTS 3 Regions in the EU 25

Source: Tables elaborated on data taken form M. Landesmann and R. Romisch, (2006), "Economic Growth, Regional Disparities and Employment in the EU-27", WIIW 20 repus_FINALREPORT.qxd 2007. 09. 20. 16:25 Page 21

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Figures 3 and 4: Coefficient of Variation GDP per capita PPS, NUTS 2 and NUTS 3 Central -Eastern Europe Regions excluding capital cities

Source: Tables elaborated on data taken form M. Landesmann and R. Romisch, (2006), "Economic Growth, Regional Disparities and Employment in the EU-27", WIIW 21 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 22

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Map 3: Population Density in the EU25

Population Density in the EU25

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modest, if compared with the high density in Northern I. The basic positioning of the areas from the Italy and in Germany, in most of the territory: it is socio-economic- demographic and accessibility mainly around the large metropolitan areas of the perspective on the basis of selected indicators capitals and around a few important centres that a including some dominant pattern by macro-areas highest demographic critical mass exists. The overall in the respective national urban system in order to picture, seen from a European perspective of course, identify where peculiar aspects and integration suggests that the existing potential in terms of potential exist on the basis of different factors such population size and concentration remains limited, as proximity, urban settlement features, socio- especially if compared with the very high population economic peculiarities; density in the core areas of Europe, within the II. The hierarchy of the urban system on the basis of Pentagon areas. However the scale of the analysis is standard methodology as one of the dimension of important: NUTS 3 are large territorial entities and for the urban system, in static and dynamic terms; the New Member countries, their dimension is even III. An attempt to measure the degrees of polycentricism/ relatively larger than for most of the Old Member polarisation of the urban settlement systems among countries: this factor might represent a relative the Member countries from two perspectives: from distortion in the country-comparison. However for the population function and from the economic measuring the existing potential at national and perspective; regional levels of the RePUS area, the analysis will be IV. The cross-border areas as potential for spatial developed further, in order to highlight those areas integration in an European perspective that disappear from a too remote picture. V. An attempt to identify a typology of the urban areas on the basis of the identification of the small-medium sized towns in order to suggest which aspects and factors can explain their relative performances and positions in the context of the national urban 2. Spatial Analysis system. Some of the main findings of the project are illustrated below. The main scopes of the spatial analysis are of identifying the specificities of the national urban settlement systems and their pattern of growth, in the first instance, irrespective of the relative level of development in a European comparison. This choice has been necessary 2.1 Spatial/urban patterns of in order to be able to better catch those aspects of the growth in Central - Eastern urban structures of the New Member countries that, by contrast with the most advanced Old Member countries, Europe: Some general would lose in relevance and peculiarities, given the different level of startind conditions, from the economic characteristics and and urban point of view. Thus, the quantitative analysis has been carried out precisely keeping the national macro-areas levels as reference. Then, after highlighting the peculiarities of the national urban systems, a further stage has been reached for making a final synthesis As mentioned in the introduction, the identification able to incorporate the dimension of the cross-border of the LLS as been taken as the basis unit for the comparison from a European perspective. Thus a spatial analysis, in order to cover the whole certain level of compromise, for ensuring consistency, country territory, also encompassing the less has been inevitable for the necessity of matching the urbanised areas/rural areas, for verifying how the national analysis with the cross country comparison. local levels perform and how they are integrated into the urbanised regions, depending on the The spatial analysis has been composed of five main scale and on the scope of the analysis. The four blocks, each of them responding to different layers New Member Countries have calculated the LLS and angles of views, in order to maximise the as new territorial entity on which the spatial multiphase dimension of the analysis: analysis has been drawn. 23 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 24

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Map 4: Population Density by LLS, RePUS Countries*

* for Czech Rep. and Italy data at 2001; for Poland data at 2003; for Slovenia data at 2002; for Hungary data at 2005 24 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 25

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Map 5: Population dynamics by Municipalities, RePUS countries*

* Rates of growth (%): Czech Rep. 1991-2001; Poland 1995-2003; Italy 1991-2001; Slovenia 2002; Hungary 1995-2005 25 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 26

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Some basic indicators are here presented as a However migration flows, attraction capacity and selection from the more comprehensive list of indicators specific socio-economic phenomena explain some chosen for combining socio-economic, demographic trends that would require more detailed case by case and accessibility patterns of growth. analysis. Here in brief, are the most relevant features:

The population density and the spatial country I. In general in all five countries, the main patterns in static and dynamics trend metropolitan areas indicate the decrease of their respective city population: this denotes The relative low density identified in the map of EU 25, also that the New Member countries are emerges again in that of the RePUS areas but with characterised by the well known phenomena of more details and contrasts: in the cross-border comparison, the mature market economies, the slowing the metropolitan areas around the capitals and/or the down of the population in the large agglomerations main national urban centres (in Hungary, Poland and for the typical effects of diseconomies of scale, Italy) have among the highest density rates. In Poland congestion, real estate price upsurge. At the the areas in the South, Upper Silesia, including Kato- same time the sub-urbanisation phenomena wice, Cracow and Ostrava in the Czech Silesia, increase, bringing new resident population in emerge as large areas of strong population density, the surrounding areas, resulting also the due to the close proximity to many important poles, of sprawl phenomena. large, medium and numerous small towns (see Box 7). II. This phenomenon occurs to a certain extent, the Most of the patterns identified in these maps will be second-layer cities too, in particular in Poland and confirmed by further levels of spatial analysis. For the Hungary, less so in the Czech Republic. The Czech Republic and Slovenia, the capital metropolitan Czech Republic is characterised by greater stability areas are below the average, resulting in higher – decline of the population all over the country dispersion of population because of the relatively large showing less contrast at the macro-area level territory of the metropolitan areas. For Hungary, the Budapest metropolitan area at large contrasts with the III. The areas of stronger decline are sparsely remaining territory: however the other regional poles can located, differently country by country; more in be identified with relatively moderate density along the East of Poland, in the East and South- West of North side of the country and around the two main Hungary, and in the South-West of the Czech regional poles in the South. Republic. These areas generally, but not always, correspond with small towns or rural areas and By contrast Italy shows strong concentration axes in isolated medium-sized cities, characterised by the North, around the capital city Rome and its relative economic and socio-economic decline, surroundings, and the metropolitan area of Naples, sometimes even with the location of medium- and along the East coast: the population density in sized towns, as in the Ostrava region, of old Italy show the strong base of its polarisation patterns, industrialisation. between North, Centre and South. IV. Italy, other than the trend of the metropolitan In order to better comprehend the importance and the areas’ decline, is characterised by a more weight of the various city-sizes in the urban systems, homogenous macro-area trend: most parts of the municipalities have been taken as the basic unit of the North have a positive increase due to internal the analysis, (see Map 5), in order to see from the and foreign migration attraction capacity that smallest territorial unit (e.g. the municipalities), what overwhelms the natural decrease of the birth rate the population dynamics are. Considering the different and the ageing population phenomena, whilst scale, compared with the LLS dimension, of course the Southern regions are characterised by a rapid the picture is more diffused all over the countries’ decline: most of these areas that see a strong territory. Some similar trends that can be depicted as negative trend, are small urban centres, where the phenomena of ageing population and slow-down the population also decreases because of internal of the natural growth rate of the population dramatically migration toward the Northern regions (in affect the demographic dynamics of Old Member particular the youngest generations) and the countries like Italy, and more moderately affect the increase in the ageing population, instead of the New Member countries, even if at an increasing pace. still- higher rate of natural births, compared with 26 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 27

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Map 6: GVA per capita index of RePUS countries*

* for Italy data at 2003; for Slovenia data at 2005; for Hungary data at 2004; for Poland data at 2003 (GDP per capita) 27 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 28

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the North. In the South, but also relatively in the IV. Italy, as a peculiar country with strong North-South North, the medium-sized towns maintain their divide, is confirmed by the strong concentration of attraction as urban poles showing some interesting the wealth in the North, based on the dense urban attraction phenomena as medium centres. agglomerations of medium-large and metropolitan areas leaving the South dominated by low and Economic disparities and social distress: toward very low indexes. spatial polarisation pattern Box 1 From the economic point of view, GVA per capita or HUNGARY: a short background of the urban GDP per capita index (see Map 6) has been noted in settlement system order to measure the discrepancies vis-à-vis the average. The results are mixed. These patterns The development of the settlement system of change in relative terms with a strong polarisation Hungary has experienced some substantial phenomena around the major urban agglomerations, changes during the 20th century. The urban with the dominance of the capital’s metropolitan network developed over centuries experienced a areas, with the exception of Poland. The latter does significant shock when several main cities were not show high internal disparities because of the separated from the country after World War I, at statistical effect of the low average GDP per capita as the end of the Austro-Hungarian Empire. Cities the majorities of the regions have low value and the like Bratislava, Košice, Satu Mare, Oradea, main poles (as Warsaw and Poznan) have a small Timisoara, which had served as counterweights overall importance on the national economy, pushing to the dynamically growing Budapest, were cut down the mean. Therefore the high disparity in Poland artificially from the urban network by the definition is towards the highest ranks that are the metropolitan of new borders, together with the transversal rail areas such as Warsaw, Wroclaw and Poznan: this is lines. Thus, the capital of Hungary became why the picture differs from the maps of the other overweight in the shrunken settlement system. countries. The comparison with Budapest is clear as its weigh is very high in the national economy pushing The centrally-planned economy linked urban up the national mean. The patterns of relative development more likely to central economic concentration are very peculiar in the New Member planning, therefore cities along the heavy countries and indicate the strong concentration of the industrial axis of the country running from wealth in one or few locations. Among the New Northeast to Southwest, including Budapest Member countries there are some main features: were developing the most. The realization of this harmful territorial polarization led the planners to I. Hungary confirms the absolute dominance of the limit the development of Budapest and start Budapest metropolitan area but is surrounded by development of cities outside the heavy industrial emerging urban regions on the border of the large axes. The explicit settlement development policy of agglomeration, in particular towards the West, the centrally planned economy aimed to create a towards Gyõr, against weaker urban areas in the balanced structure of settlements, but the South, with Pécs and Debrecen on the East side. implementation resulted in the development The remaining regions remain at a very low level mostly of cities at a higher hierarchical level. relative to the national mean. II. Similar concentration patterns also characterises The former industrial towns experienced decline Czech Republic (see Map 7): Prague metropolitan since transition, though while some other are area emerges as the strongest areas vis-à-vis the diversifying and becoming more dynamic, country, the Eastern part of the country having the others are still struggling with the problem of lowest levels. restructuring. The development of Budapest has III. In Slovenia, the more economically-advanced continued, which is strengthening the position of metropolitan area of the capital city Ljubljana is the Budapest metropolitan area in the competition centrally located, with some other larger urban of the European MEGAs (as mentioned in areas that are all surrounded by relatively low ESPON 111). levels of small urban areas in a fragmented way, showing relatively low performances in East The overall settlement structure today has some Slovenia. basic characteristics. The Budapest metropolitan 28 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 29

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area is a highly developed and further developing mainly the small and medium sized towns. In most area in the northern-middle part of the country. The cases higher unemployment is related also to small North-Eastern and South-Western and Western towns in the regions surrounding larger agglomerations parts of the country are characterized by smaller as in the East side of Hungary and Czech Republic, settlements, mostly micro-villages with a population around Brno. below 500, while the Great Plain in the Eastern part of the country is still traditionally characterized by At the same time if unemployment is an indicator of giant villages, agricultural market towns being large social and economic distress, two other aspects need in land area and having dispersed farm systems. to be mentioned, which are non-recorded unemployment as the unofficial labour market is still very pervasive in most of the countries in transition, and the low Unemployment as an indicator of social distress employment rate, as the weakest social brackets leave the labour market. Job creation remains the The spatial concentration of the unemployment rate by most crucial aspect that affects the urban centres and macro-areas (see Map 8), follows relatively closely the has a strong territorial impact, even if non recorded patterns of the economic concentration and is related jobs in the shadow economy might have a de facto to the economically weakest regions that indicate softening effect on this phenomena. where there are either old industrialised areas in decline or rural peripheral areas. There are clear East- Italy as a mature market economy, is chronically West patterns for Hungary, Slovenia and Czech characterised by the high unemployment rate in the Republic, but also for the latter it is the North-West Southern regions but the reasons behind this differ, side, and in the North of Poland. Different phenomena compared with transition countries, since its long overlap: on one side the previously prosperous term character is related to structural problems of industrial and mining regions have sharply declined in economic and socio-economic unfavourable terms of wealth and job creation capacity: it is the conditions. case in North-West of the Czech Republic and Upper Silesian in Poland, whilst the traditional peripheral agricultural regions suffer from the costs of transformation 2.1.1 Macro-areas as sub-systems of urban and productivity targets gain with expulsion of labour potential integration (e.g. North of Poland). However, this inherited divide seems to have slowed down since the starting of the The urban settlement systems, on the basis of a transition at the beginning of the 1990s, as re-vitalisation combination of different factors such as population policies have been pursued during the last two density and population critical mass, proximity to decades. Job creation strategies are particularly related urban centres of different dimensions, reciprocal links to the improvement of the cities’ functions as service in terms of labour markets and service provision, development remains the priority target involving integrating functions and economic potential, can be

Map 7: Economic Aggregate per capita by LLS in Czech Republic (2001)

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Map 8: Rate of Unemployment, RePUS countries (%) (2001)*

* for Slovenia data at 2005; for Poland (data at 2003) it is the share of unemployment over the working age population and not the rate of unem- ployment. This also explains the low data comparable with the other countries. 30 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 31

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Map 9: Functional urban areas against a background of development axes planned in Poland

Map 10: Macro-Areas in Poland

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characterised by specific macro-areas that might also VI. The Cracow-Upper Silesian area: the most densely become references for development strategy in the populated southern area of Poland with the most future. This dimension proposes spatial visions that go cohesive settlement system with two major metro- beyond the administrative or institutional territorial politan agglomerations plus other regional centres layers, and could serve to strengthen the integration of Opole, Bielsko-Biala, Czestochowa, and Tarnów. the urban settlement sub-system, on the basis of common, similar features and identified potential. VII. The Wroclaw area: covers the Southern part of Poland with several regional labour centres. Below are some examples of the different macro- areas by country that serve also as first hypotheses for In Hungary, the large Budapest LLS encompasses further analytical work to be developed. several surrounding small and medium-sized towns and dominates the spatial structure of Hungary. In order to In Poland a first hypothesis is based (Map 9) on the overcome the extreme concentration in a monocentric development axes that combines the proximity of the structure, Hungarian national policy has identified five main urban agglomerations and connectivity. “growth poles” near the border of the country (See Map 11).

The dominant Southern axes that will emerge encom- Development started in the 1990s along the two passing Wroclaw, Katowice and Cracow: this will also highways radiating from Budapest, in the direction of be the base for the identification of the main areas of Vienna and Lake Balaton and has been going also cooperation as synthesis-map. A second main axis along the Western border with Austria. Due to the encompasses Warsaw-Lodz-Poznan, with several spill-over effects, the North-Western part of Hungary other smaller areas around the main regional capitals. can be considered as a macro area of development with future potential of a triangle between Budapest, The remaining axes are not so dominant, as Vienna and Maribor. mentioned above and they are vertically connected to the two main axes. They are: Wroclaw – Poznan and The least developed areas (the three rectangles) are: Katowice – Lodz. the South-Western peripheries at the border with Croatia, where Pécs, despite its relevance is not able to The relative importance by macro-areas: enhance the development of this problematic region.

A further vision, given the large size of Poland and its The second peripheral area is on the border with regular geometric form with a strong diffused urban Romania, Ukraine and Eastern Slovakia, which suffers settlement system, seven macro-areas can be identified from social distress. on the basis of proximity to the main urban centres and their reciprocal integration (See Map 10): The last low development and socio-economic problem is the Central Eastern Great Plain. I. Central areas with the bipolar system: Warsaw and Lodz and secondary regional centres; For the Czech Republic, on the basis of the analysis of commuting flows between centres (Map 12), in order to II. North-Central areas: Poznan-Zielona-Góra, identify reciprocal relations between cities in terms of local Szczecin-Koszalin, integrating Western and labour market, a few macro-areas are identified as they Central regions. reflect the relevant structure of the urban settlement system in the country. Five main areas have been III. North area Gdañsk-Bydgoszcz with several regional identified, polarised around one or several urban centres, centres where industry and tourism coexist but as poles of different sizes. The dominant large areas are remain areas of high unemployment; around the metropolitan areas of Prague that shows the central position and also relative weight on the national IV. North-East area: Bialystok-Olsztyn: a peripheral urban settlement, encompassing also Plzen. The only and poorly-populated area, with high employment strong isolated area after Prague is Brno, whilst the others rates in agriculture are the result of relatively smaller urban settlements that are close to each other: Northern West Bohemia with V. South-Eastern areas: Lublin and Rzeszów as well as other medium and small towns, areas in Czech Silesia with major regional centres and traditional industrial centres; Ostrava, and in between small towns around Olomuc. 32 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 33

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Map 11: Macro-Areas in Hungary

Map 12: Macro-Areas in Czech Republic

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Map 13: Macro-Areas in Slovenia

Map 14: Macro-Areas in Austria

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Slovenia is a small country that has by location and regions are highly centralised to the urban agglomerations morphology, a strong potential for integration with the of their capitals and their centrally located regions surrounding countries, both from Old Members such (Salzburg, Linz-Wels) and good performance. as Italy and Austria and New Members like Hungary, or future members such as Croatia, and can be divided IV. Well-performing, more-balanced regions (type 2): into the three main areas of West, Central and East Vorarlberg and Tyrol have low regional inequality: areas. These macro areas correspond also to certain the regions, especially Vorarlberg, show a much different socio-economic feature as following: higher level of polycentricity. Good and very good accessibility: both regions are located within

I. the West side is more service and tourism-oriented, extensions of the main transport corridor in Austria with border urban areasˆ with Italy of city cluster (West-East) with very good links to international Koper-Piran-Portoroz at the Adriatic coast and Nova transport routes (e.g. Brenner) Gorica, and lot of small towns in the hinterland V. Poorly performing regions (type 4): Burgenland, II. the Central area is dominated by the strong Styria and Carinthia functions of Ljubljana metropolitan area surrounded These regions generally show low to medium by a few medium-sized towns (Kranj, Novo mesto) regional inequality, whereas Carinthia shows a and numerous small towns; medium concentration, the values in Styria and Burgenland are rather low. Migration is high only in III. the East side, traditionally industrial with some central areas, where it substitutes the negative major urban centres, and Maribor, the second birth rate for a positive population change (e.g. larger urban centre in Slovenia, in the process of areas of Graz and Klagenfurt-Villach as well as diversification towards the service centre. Northern Burgenland due to its proximity to Vienna). Beyond those central areas, population In Austria five main large macro-areas can (by analysis change is negative. In general all of the regions at the level of NUTS 2-regions)2 be defined: show considerable lower accessibility.

I. Vienna In Italy two main large macro-areas can be identified Vienna shows by far the highest GDP/capita as that are characterised by high population density based well as the highest number of workplaces per on the close proximity to and integration of, metropolitan inhabitant. Population density is clearly the highest areas, large and medium-sized towns and a lot of small in Austria, total population increases slightly due to towns: the large areas between the two axes in the migration, whereas the birth rate is negative. North, encompassing both the West-North with main Vienna is located at the junction of main transport metropolitan areas as Milan, Torino and the North-East routes of national and international importance, with main metropolitan areas as Bologna and Venice. and has an international airport. This large triangle that represents the strongest concentration of population and wealth of the country, is II. Medium performing region (type 3): Lower Austria also the area that ensures the integration into the EU has a special situation because of the location of space as integral part of the Pentagon areas (See Map 15). Vienna. Without considering Vienna, the regional inequality lies within the Austrian average. The second relevant potential area is represented by the Accessibility is high within the agglomeration of two large and important metropolitan areas of Rome, the Vienna and along the Danube and South capital, and Naples, the second largest city in Italy: their corridors, but there are some peripheral areas in proximity and the presence of dense network of many the north (border with Czech Republic and partly medium and small towns, represent a large space of Slovakia) and South of the Danube corridor great relevance at national and international level, provided suffering from poor accessibility. that a strategy exists to improve the overall environment and attractiveness and overcome the serious economic III. Well performing, centralised regions (type 1): Salz- and social problems, for the Naples metropolitan area in burg and Upper Austria with high regional inequality: the particular (See Map 16).

2 Regional inequality depicts the calculation of the Williamson coefficient over the following indicators (NUTS 3): population 2001 and GDP/capita pps 2004. The description of economic performance takes into consideration GDP/capita pps 2004, density and change of work places 1991-2001. 35 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 36

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Map 15: Strategic macro-areas for integrated development in Italy

Map 16: Macro-Areas in Italy

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The second map (Map 16) however is based on the projects, plus the main existing network. The relevance of hypothesis of diverse types of development and urban matching European priorities with national needs is settlement systems that characterise the three major determinant for the future perspective of these countries, macro-areas (North/Centre / South) that can be split into as the process of development takes place at different two in the North and in the South respectively, following layers, to ensure a better spatial coverage and downsizing also the vision of DiCoTer (Ministry of Infrastructure). of the increasing process of polarisation around a few poles. In fact the still-slow pace of transport network The North alone has a little less than half of the total development does not completely benefit all cities and population (45% for 26 million residents) but represents regions. 54% of total GDP against the South (see map) that with 20 million population (35% of total population) represents only Some brief considerations can be synthesised looking 23% of total GDP. These divides have strong spatial and the first two maps (TEN-T priorities) and the two maps regional implications from the development strategy point on existing and new corridors as planned for 2010-2020: of view, as the socio-economic conditions are very diverse. • The railway network is the more diffused type of These different country hypotheses of macro-areas transport infrastructure that covers all the territories are relevant as they have at the core the positioning of in a relatively even manner, as railway had been the urban settlement system and the cities as pillars of the main (public) transport mean developed in the economic and spatial integration. previous planned economies. Whilst the investment in this sector was worsening in the initial period of transition, in the last few years railways have 2.1.2 The question of accessibility improvement gained again in progress. of connectivity among regions in a cross-country perspective • The inherited limited development of the road network that had strong impacts on connectivity among the The unfavourable pre-existing circumstances from the urban centres at national and also at regional level accessibility point of view, of relative peripheral position and even more cross-country. The poor net of high- of CCE at large (see ESPON 2.1.1.) from an European ways at present, is evident from the map, in particular perspective, have represented a heavy heritage that for Poland that with a much diversified urban structure has put forward the problem of accessibility as one of suffers evident problems of accessibility, which limit its the priorities, for strengthening the integration and potential polycentrism for further development. From economic development of the New Member countries. the road network, the TEN-T priority project starting Transport infrastructures, per-se cannot be considered from Vienna and Bratislava up to the North partially sine-qua-non conditions for development, as improved improves the connectivity following the vertical axis of accessibility, great standing disparities among the regions the RePUS areas at large. There is a strong need to in socio-economic conditions, might simply lead to quicker realise the planned road systems, in particular in outflow of people from unfavourable areas to central Poland: this will improve the accessibility not only in attraction areas. However – considering that the old Poland but also the East-West connections. visions in the 1950s-1970s, where hard infrastructures targets were the only pillar of the development strategy in • In particular the railway development axes will the regions, have been widely criticized and abandoned – improve clearly the connectivity among the capital the renewed attention to transport responds to a strong cities reinforcing the links of the main metropolises necessity not only for improving the mobility within each with the Pentagon areas, but as well the connectivity country but also to favour the integration – both vertically among themselves. In this scheme the focal point, and horizontally – at European level, in order to overcome apart from the capital-cities, (Budapest; Vienna, the fracture between the traditional core of Europe (the Bratislava, Prague) and the large areas of Cracow Pentagon) and the peripheral countries, as Central and Katowice that will emerge strongly, in particular Eastern Europe was considered. Infrastructures taking into consideration the present isolated development is a challenge for development of the CEE, situation, even at the cross-border level. whilst it is a means, not the end of the scope. • Slovenia has particularly favourable conditions for its The following four maps give clear indications of the small size as it is at the core of ongoing and future importance of both European and national sponsored transport connections: its cross-border areas and internal 37 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 38

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Map 17: Trunk road networks in RePUS countries TEN-T Priority projects (2006)

Trunk road networks in RePUS countries TEN-T Priority projects (2006)

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Map 18: Railway networks in RePUS countries TEN-T Priority projects (2006)

Railway networks in RePUS countries TEN-T Priority projects (2006)

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Map 19: Trunk road networks in RePUS countries with TEN-T networks (2006)

Trunk road networks in RePUS countries with TEN-T networks (2006)

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Map 20: Railway networks in RePUS countries with TEN-T networks (2006)

Railway networks in RePUS countries with TEN-T networks (2006)

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space are strongly inter-related: most of its regional European flows. Corridor V (Budapest-Ljubljana), urban centres will be close to or directly on, the main south of Lake Balaton, down to the border with axes and in particular, the new corridors (corr.5 and 10). Slovenia/Croatia has potential for extending the prosperous development of northwest Hungary • From a national perspective Czech Republic and along the Budapest-Maribor axis. Hungary will benefit from the TEN-T priority projects as they will add a new axis to the present ones • On the other side, small and medium sized reinforcing the connectivity with other regional towns excluded from transport developments centres. Many regional centres however, in particular face the threat of losing position. This is a threat for Hungary, remain outside the main axes, at mostly for southern and Pécs, as present. The example of Hungary is relevant and it falls out of the main axes, though national underlines the necessity of a more diffused development in PPP is ongoing to integrate this complementary transport network in order to avoid town into the network. The main role is dedicated the creation of new enclaves. (see Box 2) to roads in Hungary, as railways are so far behind in competition that even though some Box 2 main lines are being developed, the improvement Hungary: the impact of transport improvement in accessibility is not that significant. As for small on small and medium-sized towns towns, the opposite is true, as the side lines in peripheral and rural areas (northeast, southwest In recent years, large infrastructural invest- and party on the Great Plain) are closed, due of ments have been made in Hungary and the high inefficiency. process is still ongoing at present. The most prosperous axes of the country, connecting Vienna and Budapest was the first motorway • Poland on the other hand, for its size and the large completed to reach the border of the country at number of national and regional centres is relatively the same time also rail investments increase better off regarding railway connections, but most the quality of this transport axis. The expected of its centres remain outside the TEN-T priorities. increase in traffic will be mostly along the axes The situation improves notably with the new corridors radiating out from Budapest, mostly belonging as they will cover most of the country space, connecting to Trans-European corridors, with a mixture of the cities poles; however the Eastern regions European funds also for national roads, not remain still relatively on the periphery of the belonging to the TEN-T priorities. The construction improved accessibility. The size of the country of transversal roads would be extremely important requires a strong coordinated effort between for the development of a polycentric development different layers of the transport system, to improve of small and medium-sized towns, as the trans- accessibility within the country both horizontally European and radial axes enhance the accessibility and vertically and avoiding leaving out the most of the capital. The pace of development is peripheral areas. significantly higher in the case of road networks, while depreciation is affecting the • Taking into consideration the new corridors (Map railway lines to a great extent as current 19 and 20) both for road and rail, the new axes investments are mostly used for maintenance, that are expected to be built between 2010 and not for new development. Development of 2025, are going to shape the new spaces, motorways changes the spatial structure to a improving the long distance connections across great extent and has controversial effects on countries from South to North and from West to small and medium sized towns: East: the expected positive impacts will facilitate the integration processes going also to further • On one side, those towns being along the East toward potential accession countries, like motorway development axes are gaining strength. Croatia, Serbia, other than the Baltic States, and The most significant effects are foreseen along the non-EU countries such as Ukraine and in the very axis in Northeast Hungary, as the development of North, Russia with Kaliningrad. The overall net- the Budapest-Ukraine main connection allows work is going clearly to have diffused effects on smaller and larger towns, like Eger, Miskolc, Deb- accessibility, providing that the local transport will recen, Nyíregyháza to be integrated in the rely on the minor centres. 42 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 43

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From the policy perspective, the improvement of A quantitative analysis has been achieved for identifying connectivity on the existing and planned axes, a hierarchy on the basis of a common RePUS methodology would require a broader strategy (including an based on the LLS, as unit of spatial analysis. inter-modal system) provided that the large projects of international importance are supplemented by Selected blocks of indicators have been chosen and a improvements in accessibility (rail, road including relative weight assigned to them. The box below public transport services) at regional and sub- shows the synthesis of the indicators: regional levels, especially in the peripheral regions. In the policy perspective, the EU and, consequently, also national governments should Box 3 balance the support for the infrastructure Indicators for Urban Hierarchy development of international, national and regional /sub-regional importance and they Seven blocks of indicators have been chosen should also balance rail and road investments to covering: keep the rail infrastructure competitive for • Demography: size / density; environmental and sustainability reasons. Thus • Economy: GDP per capita (or GVA per the new transport connections can become capita or equivalent); strong channels through which new processes of • Human Capital: university degree over active integration can take place. population / share of secondary school on active pop.; • Knowledge: number of students at university /students at secondary school; • Accessibility: access to highway/airport/ 2.2 The hierarchy of the high-speed train; urban areas • Institutional: levels of institutional/ administrative responsibilities; • Decision Making: public and corporate decision making centres; The urban hierarchy in the context of the RePUS has been achieved with the scope of identifying the places and the roles occupied by the different However there is the need to highlight that the results urban areas layers within the national urban inevitably face several shortages, due to different factors: settlement system. The hypothesis that lies behind this is that medium and small towns play • The non-availability of many statistical data at town particular roles and are differently integrated into and lowest territorial unit levels: this is particularly the urban system and the national economy, true for the economic data of which there is the depending on the specificities of the country, in its most serious dearth, hindering the ability to get an specific phase of development, its historical and exhaustive indication of the economic functions of institutional background. Thus the hierarchy is the city areas. Alternative indicators sometimes understood here only as the result of a dynamic have been used as approximation; process that characterises, at a certain stage, the • The country by country different statistical data urban settlement system. availability: as result it is difficult to have a unique standardised statistical data base; As mentioned before the RePUS’s New member • Following the first results of the scores for the countries (Czech Republic, Hungary and Slovenia) hierarchy, a second adjustment has been have identified ex-novo the LLS area by a unified achieved, ensuring a cross-country comparison, RePUS method for calculation. from a European perspective.

Poland, because of the non available commuting Six levels have been identified - with scores from 1 to data, has applied own peculiar methodology for 5 - in order to get the most detailed levels of analysis identifying the local labour markets. Italy and Austria in particular at the intermediary and lowest levels: the have the LLS available from their respective Statistical regional and the local levels have been split in two as Offices. follows: 43 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 44

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1. Local 1

2. Local Local 2

3. Regional 1

4. Regional Regional 2

5. Trans. Reg. / NATIONAL Trans-regional / National

6. EUROPEAN European

In the cases the gaps between the highest scores, capital, also have the fifth rank of the Trans-regional the capitals, and the secondary layer, were very /National layer. significant the Trans-regional / National levels have been eliminated from the hierarchy and the upper The lack of the second rank in the case of Hungary, level of Regional rank (Regional 2) became the Czech Republic and Slovenia, indicates that the urban secondary level: this has been the case for the system is strongly dominated by a unique pole, not Czech Republic, Hungary and Slovenia as they had balanced by other metropolitan areas, below the after the European level, their respective capitals, capital, having the first secondary layer very different the Regional 2 layers. On the other hand, larger countries from the capital in both population and economic size. like Poland and further, Italy, composed of numerous metropolitan areas that had the scores close to the The results of the hierarchy maps are shown below:

Country Names LLS Country Names LLS HUNGARY CZECH Rep. European Budapest European Praha

T-R/National T-R/National

Reg. 2 Debrecen, Szeged, Miskolc, Reg. 2 Ostrava, Brno

Gyõr, Székesfehérvár, Veszprém,

Eger, Pécs ˆ

ˆ Reg. 1 Nyíregyháza, Kecskemét, Szom- Reg. 1 Plzen,ˆ Olomouc, Ceské bathely, Szolnok, Tatabánya, Ka- Budejovice, Hradec Králové, posvár, Békéscsaba, Zalaegerszeg, Jihlava, Zlín, Ústí nad Labem, , Dunaújváros, Salgótarján, Liberec, Pardubice Szekszárd, Vác, Kazincbarcika, Gyöngyös, Mosonmagyaróvár, , Jászberény, Siófok, Tata, Komárom, Tiszaújváros POLAND SLOVENIA

European Warszawa European Ljubljana T-R/National Poznan, Katowice,ˆ Lódz, Kraków, T-R/National –

Wroclaw, Gdansk, Szczecin Reg. 2 Opole, Zielonaˆ Góra, Bydgoszcz, Reg. 2 Maribor

Rzeszów, Swinoujscie, Radom, Czestochowa, Skierniewice,ˆ ˆ Zlotoryja, Rybnik, Torun, etc.

Reg. 1 Bielsko-Biala, Gorzów Reg. 1 Ptuj, Murska Sabota, Celje, Kranj,

Wielkopolski, Inowroclaw, Malbork, Coast, Nova Gorica, Novo mesto,

Strzelceˆ Opolskie, Wloclawek, Velenje, Zasavje, Krško, Slovenj

ˆ Dzierzoniow, Walbrzych,ˆ Zdunska Gradec, Postojna Wola, Leszno, Zagan, Jarocin, etc.

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Map 21: Urban Hierarchy, RePUS countries

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From the previous analysis the identification of the • The relative demographic and economic weight of urban hierarchy gives interesting indications about the the regional centres increase in several cases: type and the dynamics that characterise the RePUS generally in these cities, the increase in population countries, taking only the four New Member countries is greater than the increase in economic terms. In into consideration. Hungary among the better economic performing LLS Szeged emerges, that has in a few years From the table below (Tab 2) emerges important dynamics achieved higher than average GVA per capita, that indicate the importance and the trend of the capital probably due to strong inward investment in the metropolitan areas that also confirm some general city area. Gyõr as second city after Budapest from trends for the secondary layer urban areas (LLS): the economic point of view remains relatively far from the capital’s economic performance whilst 1. All the capital city metropolitan areas, with the greatly increasing its economic weight, over- exception of Warsaw, increase their population or whelming its population weight: this is an indicator remain stable; however their economic weight of strong potential for development in the future. increases much more than their relative population Debrecen, the second important urban centre for weight, between 1,5 times for Budapest and population but weaker in terms of economic Ljubljana, and 1.8 for Prague and Warsaw. For weight, has a positive growth but still remains Budapest the increase is extremely high: the lower than its demographic weight. Pécs economic weight of the Budapest metropolitan significantly improved its relative position, even if area, with very large LLS, represents more than its weight remains limited. half (58%) of national GVA of the country in 2004: its economic weight overwhelms its population by • In the case of the Czech Republic, Brno is the a factor of two. But Ljubljana also has an economic second important pole, followed by a quite-homo- weight that represents little less than half of the geneous group of LLSs of regional centres. Brno country. Whilst Prague represents 14.5% of the is quite demographically strong but economically total population but only 1/4 of the national wealth. weaker but in dynamic terms it is stable. All the Warsaw instead represents only the 9% of the remaining LLSs of regional centres have retained population but little less than 17% of national their population position in the national context wealth. between 1995 and 2004. Besides the dramatically -strengthening Prague, only Brno and Hradec 2. The second layer, national or regional centres of Králové among the analysed LLSs increased their national importance, shows different performances share on national economic aggregate. Significant and they have diverse population size and economic economic growth outside the national capital was weights. All second layers, with the exception of witnessed in lower-tier LLSs of Mladá Boleslav Poland, are relatively far, in terms of economic where large-scale investment in automobile performance (calculated by RePUS methodology) production was allocated in the early 1990s. from the upper level of the Capital: this indicates the relative weakness of the overall urban structure in • Poland, which has a larger secondary layer of terms of size and performance, as well as attractiveness. trans-regional/national importance, shows a positive Only a very few cities have their relative economic trend, in particular more in terms of economic performance higher than their population weight: performance than demographic performance. this is also an indicator of the difference in productivity Most of the T-R/National layer cities, that enjoy very levels. Poland is an isolated case because of its large LLS, have a positive economic increase and historical polycentric shape, enjoying strong alternative their relative weigh is higher than their demographic national cities that are very close to the capital in weight. In particular Katowice, Cracow, Lodz and performance. This is the reason why Czech Poznan have very important population size (over Republic, Hungary and Slovenia do not have the 1 million). trans-regional/National layers in their respective hierarchies, as the first level, after the capital. • Slovenia at the second layer of national importance has Maribor that occupies in absolute term impor- However, overcoming this first stage of the analysis, tant weight both demographically and economical- interesting trends emerge from this secondary layers ly: it shows however a small decline in population cities analysis: but a relative increase in economic terms. 46 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 47

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Tab 2: RePUS Dynamic trend of urban hierarchy (Poland, Hungary, Czech Republic, and Slovenia): a Synthesis

Secondary Urban Layer National Metropolitan area/Capitals (LLS) or Regional centres of National Trends Relative weight over National importance (LLS) (various years Levels indicator(%) Relative weight over National 1991-2004) indicator (%) Population GDP or GVA Population (+) GDP or GVA (+) High H CZ- Ostrava M Decreasing Medium H Low L

PL-Katovwice H SI-Maribor H High H PL-Lodz M SI-Kranj M CZ-Ostrava M CZ-Plzen M – SI-Maribor H CZ- Liberec L Medium M SI-Celje M CZ-Usti.LabemL Moderately HU-Miskolc L CZ- Pardubice L decreasing HU-Szeged M HU-Székesfehérvár M Low L HU-Miskolc L HU-Veszprém L PL-Lodz M PL-Szczecin L Budapest H CZ-Brno H CZ-Olomuc M High H (2004: 28.2% CZ- PlzenM CZ-Cesk.Budo. L CZ- Pardubice L CZ- Zlin L relative weight) HU-Eger L PL -Wroclaw M HU- Pécs M PL-Lublin M = Stable Medium M HU-Veszprém L PL-Rzeszow L HU-Szeged M PL-Krakow M PL- Wroclaw M PL-Szczecin L Low L PL-Lublin M

Warsaw L Warsaw L PL-Krakow M PL-Katowice H High H (2003: 9.1% (2004: 16.7% PL-Gdansk M PL-Poznan M relative weight) PL-Poznan M PL-Gdansk M relative weight) PL-Rzeszow L HU-Pécs L HU-Gyõr L HU-Debrecen L Prague M Prague M HU-Debrecen L Moderately CZ- Brno H Medium M (2004: 25.9% HU-Székesfehérvár M increasing (2001: 14.5% CZ-Cesk.Budo. L CZ- H.Kralové L relative weight) relative weight) + CZ-Olomuc L CZ- Liberec L Ljubljana H Ljubljana H CZ-Usti.LabemL Low L CZ- Zlin L (2002: .7.2% (2005: 41.6% CZ- H.Kralové L relative weight) relative weight) SI-Kranj M Budapest ° (v) H HU-Eger L Increasing High H (2004: 58.5% HU-Gyõr L relative weight) SI-Celje M

The Capital cities and the secondary Cities (LLS) layers: the most relevant national or regional centres of national importance, 1991-2004* Sources: Country statistical data; estimations for Poland and Czech Republic by the country Teams. Levels criteria: High: for the Capitals above 25% for population and above 30% for GDP or GVA; for secondary layers: above 6% for the population and GVA/GDP. For the other levels (medium / low) the shares decrease consistently. ° Budapest is identified as Very High for its share on GDP, above all the other countries capitals. + For the secondary layers of National importance or Regional Centres of National importance, the Levels (H,M,L) are adjusted to their relative lower weight, not comparable with the capital cities. * Depending on the country. For population: Czech Rep: 1991-2001; Poland: 1995-2003; Hungary 1995-2004; Slovenia: 1991-2002. For GVA or GDP: Czech Rep.:1995-2004; Poland:2000-2004; Hungary 1995-2004; Slovenia: 2000-2005. 47 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 48

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Here below are some more detailed explications of the • LLS of large cities of a regional significance (R2) hierarchy by country: The group includes LLS of large and medium- sized cities, with 6 of them (Opole, Zielona Góra, Kielce, Rzeszów, Lublin, Bialystok) being the regions’ capitals (NUTS 2). This group has a highly POLAND Hierarchy diversified population. The average size of that group LLS is around 200,000 residents and 50,000 Poland is a country that from the morphological point job places. Also diversified are the spatial of view and for its regular shape, is strongly polycentric, structures and extents of poly-centricity of those comprises many large metropolitan areas and densely LLS. The economic situation of particular LLS is located medium-sized towns surrounded by many diversified. Functions performed by individual LLS small towns. The hierarchy shows a relatively regular are also diversified. Major centres are dominated spacing of the main urban poles of different ranks. by service or service and industrial functions, while The Eastern and the Northern parts of Poland are smaller centres are multi-functional. Typical instead characterised by smaller urban centres and a industrial LLS are those of Belchatów and Police. few sparsely located large cities. This group of LLS is developed in the South, Central and West Poland, while in the Eastern part • Warsaw, as capital is of European significance. of the country there are three large centres and The city of Warsaw has the most-strongly region capitals located, namely Bialystok, Lublin, developed metropolitan functions as regards and Rzeszów. administration, science, culture, and business. Its spatial structure is characterised by the • LLS of medium-sized and large cities of a regional existence of strong job centres in the zone significance (R1) adjacent to the central city, and a wide peripheral That group embraces 68 LLS of medium-sized and area that lacks strong, developed job centres. several large towns. The average size of population in Its LLS is marked by the highest national level that group of LLS is 120,000). That group of LLS is also of GDP/capita . diversified as regards its spatial structure and extent of polycentricity, as well as the economic situation and • LLS of National significance is an important functions. The group includes industrial, service, and rank for Poland as it has numerous large cities multi-functional centres, as well as agricultural ones. of secondary but strong relevance. That group That group of LLS are located in Central, Western and includes LLS of the largest Polish cities of Southern Poland. They do not exist in the North and Cracow, Lodz, Wroclaw, Poznañ, Gdañsk, Katowice, North-Eastern parts of the country. and Szczecin. It is rather the reach of LLS than the size of the central city that decides the group diversification. The average size of that group LLS is 1,616, 855 as regards its residents, HUNGARY hierarchy and 353, 954 as regards its job places. The spatial structure of LLS is diversified. The LLS As for macro-areas, it may be concluded that the north- of Katowice is characterized by the existence western part of the country (triangle) has a greater ratio of a compact urban agglomeration, with of towns with higher scores, together with the axis reaching numerous, strong job centres, highly polycentric from Budapest to Miskolc-Debrecen-Nyíregyháza. Also LLS. The LLS of Gdañsk is made up of a tri-city higher scores are seen on the , system of Gdañsk, Gdynia, and Sopot, as well where the growth pole of Szeged is accompanied by as the surrounding areas of weak, local centres. numerous towns on the local 2 level. The lowest scores Just like Warsaw, Poznan is characterized by are present in all three major problem areas of backward the existence of strong job centres within the regions in the central part of the Great Plain, the north- ring around the central city. All cities belonging eastern and the south-western peripheries. to that group have great population and job potential, in addition to well-developed • The urban hierarchy of Hungary shows an metropolitan functions. Official strategic unbalanced structure, with Budapest differing national documents consider them to be extremely from its environment, and the national centres of European significance. urban settlement system (see Box 4) 48 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 49

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• The second level of cities (Regional 2) is relatively far of regional 1 are situated along the Budapest- from Budapest in scores. The regional 2 level cities Vienna axis, with substantial cross-border potential are located either in the areas surrounding Budapest, and extremely good accessibility via highways. or around borders. Szeged is an island of high value in the southern Great Plain, serving as an important • The level of local 2 towns is formed by centres which regional centre with a high level of education and are either complementary county capitals, or former substantial cross-border links to Serbia and Romania. substantial centres with higher scores in only some Debrecen, also with high rate of tertiary education and indicators, such as high population density or research is an important regional centre of the northern educational level. The local 1 towns include the really Great Plain, with the complementary centre of small centres between the areas of LLS with higher Nyíregyháza (which is lower in rank) and Miskolc rank in the hierarchy. These are found in the being another regional pole nearby. Debrecen has predominantly rural areas, where the distance to a also cross-border links to Romania, Nyíregyháza to larger centre determines needs for the formation of Romania and Ukraine and Miskolc to Slovakia. Gyõr small local centres to provide their small, local hinterland is a significant centre along the Budapest-Vienna axis, with the functions needed on an everyday basis. with high rates of cross-border cooperation towards Slovakia and Austria. Also the national spatial policy Box. 4 has pointed out the town-pair of Veszprém and Szé- The role of small and medium-sized towns kesfehérvár, which contribute to the polycentric in the Budapest metropolitan area structure of (Közép-Dunántúl). The historical town of Eger is elevating from the Budapest is the only metropolis in Hungary, the system of county capitals regarding the overall scores second-layer cities being far smaller in size as of the standardized methodology. well as in economic terms. The Budapest LLS has a large extension and concentrates around • The set of secondary regional (Regional 1) centres 30% of the population, and almost 60% of the is heterogeneous. This group combines the Gross Added Value of the country. The latter centres or complementary centres of counties. figure may be overestimated as numerous com- Counties are the NUTS 3 level regional units, having panies register their value added at the head- an administrative function and have existed for a quarters which are concentrated in the capital. millennium, though the change of the boundaries Still, we can see that the LLS of Budapest is out- of this entity was common, mostly in the 20th standing from the country and determines the century. The centres of these areas have always mono-centric pattern of the whole country. The served as real centres for their region and in some concentration has increased in the past ten cases they have been complemented by another years both in terms of population and output. town within the county with more than 50,000 The city of Budapest has though overgrown its residents and a special legal status assigned. boundaries as from the 1980’s onwards, subur- Except for the complementary county centre banisation of population has been a major Nagykanizsa near the border with Croatia and demographic trend. As the map shows, the loss Slovenia, all of the centres have reached scores of population in the core city is substantial, required to be included in the set of regional while the surrounding belt is gaining population. centres of the standardized methodology. The FUA delimitation based on commuting intensity does not necessarily reflect this. As • Besides the county primary and complementary can be noted, a high rate of population growth centres, a set of smaller towns have reached higher is present in the South-Western ring of the sub- scores therefore are labelled as Regional 1 centres, urbs, however, these areas do not reach the too. Such smaller towns are situated on the ring 30% threshold of commuters to Budapest. The surrounding the Budapest LLS3, characterized by reason for such a phenomenon is that there are good accessibility, high output and high educational employment sub-centres of Budapest emerging level. These towns usually have the presence of in the suburban belt, many of them exactly in some low level of tertiary education, too. Another the south-western sector. Two towns in this sec- set of smaller towns, with scores reaching the level tor have even more than 10,000 jobs, but there

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are numerous small centres with jobs between but there are also signs of tertiary education both 1,000 and 10,000. Substantial centres still with- within and outside of the LLS. Small and medium in the Budapest LLS can be found. sized towns within and on the edge of the metropoli- tan area have a crucial role in achieving a sustainable Sprawl of functions is going beyond the boundaries and polycentric metropolitan area and have a great of the local labour system, as also seen in the cluster role in enhancing the competitiveness of the whole analysis; the surrounding LLSs are either cities from capital region. Even though a large population and the second row or industrial engines. These labour several functions have moved to the suburbs, caus- systems have important engines as their centres; ing some internal problems of the city there is still a however there are numerous smaller towns with high huge dominance by the capital city itself within its reg- economic activity as well. Signs of polycentricity have ion, and as the metropolis is growing, the environ- arisen as the metropolitan region is growing together mental challenges are increasing very rapidly which is with the nearby county capitals (Székesfehérvár, being not handled efficiently enough, as there are Tatabánya, Szolnok, Kecskemét), but also in the severe problems in cooperation among villages, direct ring of the capital there are numerous functions small and medium towns within the metropolis region developing, mostly in the fields of logistics and retail, and the capital.

Map 22: Budapest metropolitan area

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in the long term wherever the long-term negative Czech Republic hierarchy impacts of ageing population, job decrease and service decline coincide. On a national level, the Czech Republic splits into two hierarchical systems of centres.

• Bohemia – strictly dominated by Prague, with a

ˆ SLOVENIA hierarchy system of regional “satellite” centres of ˆ Plzeñ, Hradec Králové – Pardubice, Ceské Budejovice, The Slovenian urban settlement system is dominated by Liberec, Ústí nad Labem – Teplice and rather weaker Ljubljana, which plays the central role: its weight is very high Karlovy Vary and Jihlava. Except for Liberec, the both in terms of population and economic weight. Numerous Bohemian urban system has developed rather as medium and small towns are located in the different part of autonomous, without closer links outside the the country making a certain balanced structure. country. The regional spatial policy of the period of the Cold War even emphasised the island-like • Ljubljana has the highest scores as metropolitan autonomy of the system. urban area, as the capital city of European importance.

• Moravia and Czech Silesia – rather polycentric • Maribor is the second city after Ljubljana and emerges pattern of centres: supra-regional centre of Brno, as a strong development pole of Eastern Slovenia. Ostrava agglomeration, Olomouc and Zlín; except for strong mono-centre of Brno, all other regional • LLS of regional significance (R1) Most of the following centres are parts of own polycentric systems with layer LLS Celje as development pole of Savinjska region, satellite smaller centres. Unlike Bohemia, Moravia LLS Kranj as development pole of Gorenjska region, has much stronger geographic potential for cross-border LLS Coast (Koper-Izola-Piran) as development pole of integration to Polish Upper Silesia in the north-east Obalno-kraška region, LLS Novo mesto as development and to Vienna and Lower Austria in the south. pole of South-Eastern Slovenia region, LLS Nova Gorica as development pole of Goriška region. • On regional levels, apart from the hierarchies within According to the overall scores LLS Velenje also belongs the macro-scale urbanization systems described to strong regional poles (from year 2009 Velenje will be above, also local urban systems exist in the areas the centre of new NUTS 3 region). LLS Zasavje, part of less exposed to the influence of a metropolis or Zasavska NUTS 3 region, LLS Slovenj Gradec as regional centres. These mostly consist of several development pole of Koroška region, and LLS Krško as local centres, interconnected by functional relationships. the development pole of Spodnjeposavska region These spontaneous networks help to provide a belong to industrial areas under restructuring and are

more diversified offer of jobs and secondary also part of city clusters of regional importance: Trbovje- education than a single local centre could do. Hrastnik-Zagorje, Slovenjˆ Gradec-Ravne na Koroškem- Dravograd, Krško-Brezice-Sevnica. • However the size of regions, which refer to NUTS 3 units and have often less than a million residents, and • With the lower overall LLS Murska Sobota, regional pole regional centres may seem small and, consequently, of agricultural NUTS 3 Pomurska region and LLS inefficient, the network of regional centres as it developed Postojna, regional pole of forestry NUTS 3 Notranjsko- especially in the second half of the 20th century, fully kraška region, as well as LLS Ptuj, regional poles of a new responds to the scale of the country. The position of NUTS 3 region near Maribor, are labelled as Regional 1. the regional centres has remained preserved in the national context in the period after 1990s´ liberalisation changes, while the position of Prague has increased. Box 5 Thus the regional centres maintain a stabilising role in The centripetal role of Vienna in the the national hierarchy. (Hampl, 2006). largest Central Eastern European space

• Apparently, the growth of the significance of In comparison with European countries, the Prague has been on the account of smaller centres Austrian urban system is relatively small. The and peripheral rural areas in general. The viability largest city (by far) – Vienna – has about 1.55 of small centres in peripheral areas may be questioned million residents, whereas the population size 51 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 52

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of all the other cities in Austria is below regional capitals, however with different patterns from North 250,000 residents. to South. The urban centres performing best are located in the North, few in the Centre and sparsely in the South, The structure of the Austrian urban system with where lower layers are mostly diffused: from this point of Vienna as the main urban pole and several minor view the Centre and the South results are less polycentric, urban poles has been laid down in the „Austrian but rather monocentric around a few poles as the urban Spatial Development Concept 2001“: The model of density is relatively low on average. polycentric development, defined in the ESDP, is stated to be relevant also in Austria, but with one • Rome and Milan are the formal and the economic major difference: The important urban regions shall capitals at European level for the importance of further develop, but Vienna shall be able to hold its their respective weight and relevance in the Italian dominant position within the Austrian urban structure settlement system hierarchy. (that means, there is no aim of a counterbalanced • The main characteristics of the Italian urban settlements urban system at the highest level in Austria)4. are the high economic performance of many large cities that make the second layers very close to Within Austria (especially within the eastern half of the upper levels: thus eight metropolitan areas are Austria), there is a strong centralisation trend the second layer by the RePUS hierarchy of trans- towards the urban agglomeration of Vienna. Also regional/national importance: Turin, Bologna, some important medium and small towns – concerning Venice, Genoa, Naples, Bari and Palermo, five of population size and economic potential – are located which are in the North of Italy, as the pillar of the within this agglomeration, mainly in the east and south urban skeleton. of Vienna. In contrast to all of the other smaller Austrian • A second selected layer of Regional 2 as the main agglomerations, the Viennese agglomeration covers Regional centres that also contribute to the suburban regions as well as towns, which are located Northern urban density with few sparsely located especially in the south of Vienna. in the Centre and the South. • The third layer (Regional 1) is instead more Further important urban agglomerations in Austria diffused all over the country as it covers the can be divided into two types: regional centres of secondary importance related to numerous small towns (Local 2). • Some have one clearly-dominating urban node • The Locals (Local 1), those performing worse, are (core city), as there is e.g. Graz (Styria), Salzburg, mainly located in the Southern part and they are Innsbruck and partly St. Pölten (together with mainly the small towns of weak potentials. Krems, Lower Austria). • And there are agglomerations, which show polycentric structures to some extent, e.g. Rhine valley (Dornbirn, Bregenz, Feldkirch), Linz-Wels (Steyr) (Upper Austria) and Klagenfurt-Villach 2.3 Spatial polarisation inter and (Carinthia). intra disparities

ITALY hierarchy In order to advance in the comprehension of spatial patterns and to attempt to go more into the specifics of the different Strongly polycentric, the Italian hierarchy reflects the existence countries, the various degrees of demographic and economic of many large as well many medium-sized towns that make polarisation / and or polycentricity at upper levels (NUTS 3 or the urban structure extremely dense in the Northern regions NUTS 2) and at intra-LLS level, have been calculated by the in particular and partly on the upper part of the Centre. employment of simple indicators, as rough measures of the Additionally the importance of several strong metropolitan different degrees of concentration/ diffusion. areas makes Italy a strongly polycentric country, from both perspectives: from the national as well as regional perspective, • Two levels have been identified: at the regional as the mature decentralisation had favoured powerful level, NUTS 2 (for Poland, Hungary Slovenia and

4 Source: Austrian Spatial Development Concept 2001 (page 117) 52 repus_FINALREPORT.qxd 2007. 09. 20. 16:26 Page 53

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Italy) and NUTS 3 (Czech Republic) the coefficient areas, because of the numerous urban centres that are of variation for the population function, and the encompassed in its region. The other regions where coefficient of variation by Williamson for the secondary layers centres are located are relatively less economic function. polycentric, such as Brno in the Czech Republic, Katowice and Gdañsk and the other main centres in • For looking at intra-LLS disparities, the simple ratio Poland. While Hungary again confirms relatively of the centroid over the LLS population, gives an polycentric patterns, an indication of the numerous indication of the local labour market polycentricity. urban centres of average size located all over the country.

The results below are interesting for identifying specific The economic polarisation shows different results (see patterns that change country by country, but also give Map 24). Poor regional context can explain stronger insights about the peculiarities that are related to the concentration because of one single or fewer economic combination of various factors such as: poles; instead a developed region can have an extremely strong centre that inevitably explains the high • The density of the urban settlements and the concentration (size effect) even in a wealthy region. proximity of different centres of various hierarchical levels; For four countries, Poland, Hungary, Slovenia and Italy, the degree of economic polarisation, compared with • The dimension of the municipalities in terms of the demographic polarisation, is much more pronounced. size of territory, as this can change the degree of This shows that economic centres tend to be proximity of one municipality to another; concentrated against more dispersed pattern for the population. • The size of the labour market that is often indirectly related also to the degree of population density On the other hand, the Czech Republic shows an and proximity of many centres. extremely even level against the large pole around Prague and its region: these results might also due to the specifics of the economic indicator taken, as 2.3.1 Degree of monocentricity/polycentricity “economic aggregate”, which remains relatively flat by population and economic functions throughout the regions in the country.

The comparison between levels of polarisation of the Hungary shows diverse degrees of economic polarisation. population with the degree of economic polarisation is The lowest level, with very polycentric structure, is the extremely interesting since it can indicate very diverse Central Region with Budapest that has many adjacent results: the two do not coincide, on the contrary there strong economic poles that make the disparities of its are significant discrepancies that are related to the region very low. There is also low polarisation on the combinations of different factors: in general, economic Southern Great Plain owing to the presence of several functions result in much more polarised than large cities, whilst the remaining ones are relatively population functions, as clearly the degree of polycentric with many medium-sized urban poles. The economic performance of the economic poles has a most strongly polarised regions are in the South multiplier effect, whilst population can be sparsely with Pécs and Northern Hunga- located in urban centres having non necessarily ry that both have a single isolated strong centre. economic functions, but exclusively residential areas function, with basic provision of services. Poland has its foremost polarisation around the main cities that are also strong economic centres, as the In fact, the degree of polycentricity of the urban settlements Regions where Warsaw, Cracow, Wroclaw are. The in the five countries has relatively strong results, with the remaining have different degrees of polarisation: the highest polarisation around the respective main Eastern regions and partially the North-East instead metropolitan areas: this clearly applies to Poland, Czech emerge as relatively polycentric as they have more Republic, Slovenia and to a lesser extent to Italy (addi- sparsely located economic centres, also explained by tionally for the strong centres of Milan and Naples). Hungary the more rural economy. Slovenia, apart from the relevant emerges as the most polycentric on average, compared polarisation due to the capital has the strongest with the others, as the population polarisation is less polarisation around the main economic pole in the pronounced even around the Budapest metropolitan East whilst the Western side is highly polycentric. 53 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 54

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Map 23: Degree of polycentricity by NUTS 2 region in RePUS countries - Coefficient of variation of LLS' population*

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Map 24: Intra-Regional (LLS) economic polarisation by NUTS 2 region in RePUS countries - GVA's Williamson's coefficient of variation*

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Map 25: Intra-LLS degree of polarisation by population function in RePUS countries (relative weight of centroid population on LLS population) (%)*

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Map 26: Typology of LLS

Typology of LLS

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Italy shows very marked high polarisation patterns in the attempt to give an analytical picture of the combination Southern regions, whilst the North and part of the centre of two main factors. is rather polycentric, apart from the region which includes Milan. The explanations are of different origins: the I. Accessibility, characterised by the quality and the speed polarisation of the North is explained by the high of the main road transport network (both of European economic dimension of the Milan agglomeration whilst in and National importance), updated to 2006 information. the South, by poor background and few economic poles. II. The proximity to urban centres as a measure of density: the closer the municipalities, the higher the existing potential for urban integration areas in terms 2.3.2 Intra-LLS degree of polarization of labour market, provision of services and functions.

Looking at the intra-degree of polarisation of the urban However the different territorial sizes of the municipalities settlement by LLS (see Map 25), as simple weight of have an important influence on the density: The Czech the population centroid over the LLS population, the Republic has smaller municipal territory and consequently results are the combination of simultaneous factors: less cities can be reached by transport connection in a given time distance, if they are not closely located. Poland, • The size of the labour market and their respective on the other hand, has larger municipalities and the result population (size of the LLS) is that it is easier to reach a given number of municipalities. • The size of the LLS’s population centroid (See map 26) • The number of secondary urban centres within each LLS The results of the RePUS hierarchy identified in each country, is the starting base from which the elaboration of From the comparison of the five countries, it emerges that the PUSH areas have been calculated. The choice has the countries as large as Poland and Italy, in terms of pop- been that of taking into consideration from the upper levels ulation, are characterised by relatively polycentric internal down to the intermediary level (in RePUS methodology structure, as they enjoy many different-sized cities called Regional 1), excluding the Local LLS (Local 2 and relatively close to each other, within each LLS. In fact Local 1), in order to stress a certain critical level of urban where the LLS are small in size, there is higher polarisation, function for policy makers and also for getting a more as in the Central part of Italy (small size LLS with few centres) contrasting picture. This choice in fact, weakens those and those sparsely located in Poland, with medium areas that are characterised by dispersed urban centres polarisation in the LLS around strong metropolitan areas (weak proximity) under-evaluating a possibly more as Warsaw, Cracow and several others major centres. diffused type of urban settlement, as for instance might be the case for the Czech Republic, which has more sparsely The other three countries, Hungary, Czech Republic and dispersed cities. The rationale for this approach has been Slovenia, show relatively high levels of internal polarisation that of underlining the areas in which stronger potential as their internal urban structures have relatively few urban exists, considering population size and density, two centres. Prague shows the highest level of internal important factors that can facilitate growth, although they polarisation, while Budapest shows an average concentration, are not per sé sufficient conditions for development. explained by the simultaneous existence of other numerous small urban centres in its large conurbation. The map below describes the synthesis of the overlapping of the (See map 25) PUSH areas taking the municipalities as basic units: thus the intensity of the colours, from yellow to orange and red, is given by the number of PUSH that overlap in each municipality. The 2.3.3 The morphology aspects of the spatial higher the proximity of different urban centres, the more PUSH urban system in the RePUS areas can be reached this has consequently an impact on the service provision and the labour market, as proximity can improve the To better comprehend the morphological aspects of consumer’s and the supplier’s choice and opportunities. the settlement systems, the PUSH (Potential Urban Strategic Horizons) areas on the basis of the density The identification of the density of the PUSH areas clearly of the LLS reached by 45 minutes isochrone car travel, indicates the existing gaps between the Old member have been calculated. The identification of the PUSH countries, within the Pentagon, in particular Germany and is based on the methodology developed in ESPON Italy, and the other countries. From the morphological point 111 and applied to the RePUS areas. The PUSH is the of view, some determinant features can be highlighted: 58 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 59

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1. Poland is the country that shows the most important In order to better apprehend the demographic potential in terms of density and proximity of large potential of the proximity and the overlapping of the cities/medium-sized towns surrounded by many LLS’s centroids, many PUSH areas consequently small towns. The South of Poland, seems to indicate overlap and the areas of overlapping are called PIA the place where there is high potential and where (Polycentric Integration Area) by the methodology there is a large, strong conurbation along the proposed In ESPON 1.1.1. (See Map 31). The centre of Southern border, Upper-Silesia, including the dense each PIA is assumed by the most important centroid agglomeration of Ostrava in the Czech Republic. of LLS that are the basis of the PUSH area. In the map 2. On the other side, there is also an interesting continuous below, the population size of each PIA have been dense area on the North of Hungary that includes the measured in order to indicate the population critical large Budapest metropolitan area. This space is clearly mass. along the line toward the West side going to the large Vienna-Bratislava conurbation, indicating a strong potential • The large PIA, with a population at least from 7.5 for future development in an integrated perspective. million residents up to 15 million, is in the Central 3. Slovenia emerges very densely in the middle of the and the Southern part of Poland, in the East side four neighbouring countries, as it also enjoys of Austria around Vienna, and in the North of Italy. densely located small towns and few medium- sized towns, other than the capital Ljubljana. • The other countries show smaller PIA areas: this is Slovenia has a particularly favourable conditions in line with their respective population densities due to its small size and its location at the core of and urban centres diffusion. In the North of ongoing and future transport connections Hungary, however there are two large PIAs indicating 4. The Czech Republic shows less density as the munici- the important proximity of the capital metropolitan palities are smaller (territorial size) and its total number of areas and important regional centres that merge LLS up to Regional 1, are fewer in proportion to the other with the large PIA of the Vienna-Bratislava RePUS countries. Taking into consideration these conurbation, almost making a continuous space. factors, the map shows that the density of PUSH areas is higher in Central and North-Western Bohemia and, The relative intensity of the colour indicates where particularly, along the Brno – Olomouc – Ostrava axis higher population critical mass exists, or conversely, with prolongation to Upper Silesia in Poland. (See also less intensity, red and yellow colours, where lower for comparison the Box 6 on Czech accessibility, as population is concentrated: Thus the areas that enjoy complementary analysis taken from a local perspective). high density and proximity of urban centres have 5. Austria’s results show strong density on its East side benefits in terms of higher opportunity for integration, where Vienna, Linz, Graz and Salzburg are located. alternative service provision choice, high accessibility 6. Italy is the country where the intensity is the highest, and mobility, all factors that in the modern economy with Germany, in particular in the North axes and in are fundamental for attraction and competitiveness, the metropolitan areas of Naples. provided that other socio-economic conditions exist. Thus the most populated areas can receive great See map 27! advantages from stronger cooperation. Conversely the less densely populated areas or sparsely located Box 6. urban centres would require adapted policy in order to Czech accessibility from a local perspective address the limited opportunity for choice of services Accessibility of centres as a factor of polycentric provision. Here the policy makers need to tailor the development and efficiency of servicing population policies to the specifics of the urban settlement type and proximity for finding adequate solutions and The analyses were made for the accessibility of increasing the attractiveness of the centres. The regional centres (Map 28), multiplicity of choices of density di-per-sé does not bring development but accessibility of local FUA/LLS centres (Map 29) and becomes a positive feature when the other fundamental the efficiency of servicing the population described (economic, social, institutional, environmental) as the number of people that can be reached from constituents exist both as hard and soft factors. a centre of a LLS/FUA within 60 minutes (Map 30). These different expressions of attractiveness based Cross-border cooperation also plays a particularly on accessibility show very different pictures. (See important role in the integration process, taking into map 28–29–30) consideration the urban proximity and density. 59 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 60

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Map 27: PUSHs overlapping in each municipalities

PUSHs overlapping in each municipalities

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Map 28: Population within 60 minutes accessibility to the centre of regional capital by car ˆ © CVUT in Praha Source data © Czech Statistical Office; © Czech Institute for Geodesy and Cartography

Map 29: Potential of the teritory for polycentric development on local level ˆ © CVUT in Praha Source data © Czech Statistical Office; © Czech Institute for Geodesy and Cartography 61 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 62

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Map 30: Efficiency of servicing population ˆ © CVUT in Praha Source data © Czech Statistical Office; © Czech Institute for Geodesy and Cartography

• The historical and cultural background of 2.4 Integrated CE European neighbouring regions as the geo-political borders spaces. The strong areas in Central and Eastern Europe have changed through the decades in the past century, and of spatial integration many populations have been split between countries, due to state borders being moved. Towns too have been assigned to different In the perspective of spatial integration of the Central countries, imposing a strong impact on the relative and Eastern European areas, cross-border co-operation structure of urban settlements. plays a strategic role in facilitating the wider process of integration. Important urban centers along the borders Taking into consideration the combination of these of the countries enhance cooperation, often facilitated different economic, socio-economic and cultural by their common historical or cultural background. aspects, the urban dimension plays a central role because economic, institutional service provision is a Various pre-existing circumstances have an influence channel for improving spatial integration from a cross- on the importance of and the potentialities for border perspective, in order to overcome political development: border fragmentation. • Size and functions of towns and related urban areas that go beyond the labour market dimension, because Thus, cross-border integration can be understood as they are also based also on the type of service provi- an opportunity to speed up the processes of sion and attraction capacity that the cities can exert, vis- convergence and integration and, at the same time, to à-vis neighbouring centres in the bordering countries. facilitate the re-composition of state borders which in • The proximity of towns along the borders and their many cases have undergone change and to relative accessibility in term of transport infrastructure ameliorate problems relating to minorities. 62 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 63

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Map 31: PIA Population

PIA Population

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The map below (see Map 32) identifies some Box 7 major cross-border linkages classified by their Shaping European cooperation centres based on the European, regional and local importance. The example of the Cracow-Upper Silesia Cluster (KRUS) areas coloured in yellow correspond to the areas of the PUSH (45 minutes isochrones) which are in The areas comprising Cracow, Czêstochowa, the cross-border area. This gives an important Opole, Ostrava and Bielsko-Biala make up the insight into the relevance of this cross-border Upper Silesia Metropolitan Area. This densely area and indicates their local potentialities, in urbanised system of towns and cities is a term of proximity and number of urban centres as polycentric area. It has been called the Cracow- potential areas of cooperation, from the perspec- Upper Silesia (KRUS) Cluster. Such well-integrated tive of accessibility also. and co-operating areas existing in polycentric Europe have primarily an opportunity to increase their competitive position, with respect to other Links of European importance on this map are strongly regions. Some examples worth considering as concentrated around Austria, the Czech Republic, role models would be the Delta Metropolis Hungary and Slovenia, because these have historically (Amsterdam, Rotterdam, the Hague and been well-integrated regions within the Austro- Utrecht), the Centropa (Vienna and Bratislava) Hungarian Empire. and the Saxon Triangle (Chemitz, Dresden, Halle, Leipzig and Zwickau) (See Map 34).

These links are not exhaustive of all links or potential The Polish part has a population of approximately 7 links existing in the Central Eastern region, rather they million people. The average population density is only give an initial picture of the most relevant. A 331 inhabitants /km2; however, in the major part more detailed list of cross-border areas can be found of the area, there are places with much higher at the end of this chapter. Furthermore, other additional density. The settlement system of the area is maps by countries in this chapter, integrate the picture characterized by high cohesion, resulting from its in relative terms. historical development, which is today strengthened by the area’s location on the route of the A4 motorway and A1 national road connections. Below are further, detailed maps of individual countries, where the main cross-border areas are highlighted. The greatest level of job concentration is to be found in the three region capitals: Cracow, Katowice and Opole, as well as in a dozen other strong regional Poland with its large size and its regular shape has centres. The settlement structure within the area is many potential and existing cross-border areas, diverse. The Upper Silesia area forms a cohesive bordering EU countries: Germany, the Czech urban agglomeration with many cities and towns, Republic and the Baltic states, as well non-EU including large, medium-sized and small ones. The countries: Ukraine, Belarus and Russia. Cracow region is marked by strong domination on the part of the city of Cracow itself, with the existence of smaller urban units. The city of Opole dominates in the There is great potential in both cases: on the one west of the area. The area’s labour market is hand in the east for softening political divisions and composed of approximately 1,600,000 non-farming jobs, facilitating cooperative development, also in light including about a million in services. In the Upper of the expected improvement of accessibility, with Silesia region there is still a high rate of employment in the new transport corridors that will link major industry, because of problems arising from the restruc- Polish metropolitan areas with Kiev, Kaliningrad turing of traditional heavy industry and these are the and Minsk (strong historical factors also indicate main reasons for social distress and unemployment. that it is necessary to improve integration, as the example of L’viv and other, now Ukrainian cities The whole area is characterized by high scientific which were historically part of Poland); on the other and educational potential. There are strong hand in the west and south, toward Germany, research centres which are of national and international Czech Republic, Slovakia and Romania, more significance, such as Cracow, Katowice-Gliwice intensive exchange exist already. and Opole, as well as smaller, regional centres. 64 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 65

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Map 32: LLS and Pothencial for Cross-border Relationships

LLS and Pothencial for Cross-border Relationships

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Map 33: Potential areas of transborder cooperation in Poland

Map 34: Kraków - Upper Silesia Cooperation

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Map 35: Cross-border cooperation in the Czech Rebublic

Map 36: Cross-border cooperation and Euro-regions in Austria

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Cracow is also a cultural and tourist centre of prises; the research and development institutions are international significance. of high quality and enjoy international recognition. The structure of the settlement and economic In all parts of CENTROPE, the enhancement of R&D system of Upper Silesia provided the basis for capacities has been made a high (economic) policy the establishment of the Upper Silesian priority. Future strategies are defined within the scope of Metropolitan Union in June 2007. The Union the technology and innovation programme (AT), as well functions on the basis of close co-operation on as within the National Development Plans (CZ, SK, HU). development control, including the spatial and Assistance programmes and funding schemes are transport economy5. There are grounds for the accordingly well-supported for R&D investments and development of cross-border cooperation between spatial development programmes to support the following Poland and the Czech Republic on a regional issues: sectors and industries, the provision of scale, on the basis of the proximity and the social infrastructure (technology and research centres) and and economic potential of Ostrava and urban know-how transfer, especially for the numerous SMEs centres in southern Poland. Policy co-operation acting as providers of technical know-how and suppliers. could include four areas: transportation, economy, Additionally, further infrastructure, such as human resources and environmental protection technology and innovation centres and business of essential importance to the development of parks play an important role as strategic key particular towns and the whole KRUS Cluster players in the field of innovative development. system. In conclusion, solid infrastructure and This infrastructure has been developed logistics need to be built which will make the essentially within the past 10 years: a considerable region independent of political divisions and will number of technology parks, competence facilitate co-operation, monitoring and improvement centres, science parks, etc. have been of the area’s competitiveness. established in the region. Parallel to this development several successful industrial clusters and technology-based networks have emerged Cross-border cooperation exists mostly within the around the industrial key players, such as framework of Euro Regions. At present, there are 13 automotive, timber, micro-electronics, plastics, Euro Regions in the Czech Republic (See Map 35). environment and renewable energy. They were established between 1990 and 2000 and CENTROPE offers a variety of landscapes and cover nearly all border areas with neighbouring cultural, sports and tourist attractions, such as the countries. They are based on voluntary cross-border March-Donau-Auen, Thayathal and Neusiedler co-operation between municipalities, institutions, See national parks, a number of health resorts citizens, NGOs and private actors; demarcation is and infrastructure for the wellness industry based on historic cultural and current economic ties. (Piestány, Baden, Bad Tatzmannsdorf, Héviz). The main objectives of the Euro Regions is co- This variety of cultural and leisure activities on operation in the fields of physical planning and regional offer is not only an important factor for the quality development, management of the natural environment, of life in the region, but also forms the basis for increasing citizens’ quality of life, the development of the development of tourism, which has grown shared infrastructure, promotion of tourism and dynamically in recent years (See Map 37). common cultural events and mutual help in emergencies such as natural disasters (See Map 36). In the case of Hungary, the potential for cross-border urban network has historical roots, as throughout Box 8 most of its history, the territory of the country was larger CENTROPE (See Map 38). At the end of World War I, new borders An example of cooperation in were drawn; thus many of the organic ties were severed “Research and Development” by the new borders and the potential counter-poles to Budapest found themselves cut-off in a different The CENTROPE region has a long tradition in the area country. Spatial policy has aimed at strengthening of research and development (R&D). Public and private other counter-poles, within the present borders and

research institutions work closely together with enter- with the European integration processes, there is an

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Map 37: CENTROPE cooperation

opportunity for stronger co-operation among the mo- Austria-Slovakia-Hungary re important towns and cities on both sides of the bor- This border region is a traditional co-operation ders. This historical view is important in understand- area, which also involves institutionalised rela- ing the potentials which exists for cross-border urban tions among towns from Hungary, Slovakia and networks. Austria. Towns and cities involved in this area include also two national capitals, one large and Box 9 one small (Vienna and Bratislava). Hungary and cross-border areas Axis of Western Slovakia-Hungary Some of the main potential networks of Potentials arise along the transport axis connecting Hungary’s cross-border areas and main poten- the national capitals of Budapest, Bratislava and tial networks are as follows: Vienna. This is a mainstream axis with high traffic levels 69 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 70

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Map 38: Cross-border in Hungary

Map 39: Alp-Adriatic (Alpe-Adria) cross-border region

**– – – 150 km from Ljubljana; === 500km from Ljubljana • Source: www.alpeadria.org 70 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 71

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and high population density, in a series of relatively supplementary smaller towns. There is a high level small to medium-sized towns, which have high rates of institutionalised cooperation in the form of a of activity. The development of the towns along this Euregion Four countries border the region (Hungary, axis is achieved by strong connections, commuting Austria, Slovenia and Croatia). between the two sides of the border. One strength of the region is that it has an advantage in terms of As the border section between Hungary and Slovenia language skills, due to the fact that there are large is small, this area in fact can be considered as ethnic communities in the region; this means that stretching into the territories of four countries: Austria, one soft factor for co-operation is present here. Slovenia, Croatia and Hungary, of which three are EU member states and one is a candidate country. There Couple: Miskolc (HU) – Košice (SK) is a mixture of ethnic minorities of all four nations in Košice was once the north-eastern regional centre of this region. The territory is predominantly rural and in Hungary with traditional, organic relations within the some cases faces restructuring problems, but the region. After the First World War, Košice became part area’s characteristics show good perspectives for of Slovakia, while Miskolc remained in Hungarian development, including the development of trans- territory. North-eastern Hungary found itself lacking a European corridor V (Budapest-Zagreb-Ljubljana) the regional centre, resulting in the forced development extension of the potential development triangle of of Miskolc, which underwent a huge population Hungary south of Maribor. The region has well-pre- increase. Now Miskolc and the region are facing served natural assets which need to be built on, restructuring problems. Additionally, eastern Slovakia under the principles of sustainable development.

is of low socio-economic status and there is lack of Towns affected include: Nagykanizsa (HU), Zalaeger- infrastructure, therefore potentials in this region start szeg (HU), Murskaˆ Sobota (SI), Ptuj (SI), Maribor (SI), co-operative development on a longer term. In the Graz (AT), Cakovec (CRO) and Zagreb (CRO). long term, Košice may assume the role of a local labour centre for peripheries along the border which Taking into consideration Slovenia’s small size, open borders now belong to Miskolc, forming a concave LLS. and geo-strategic location at the crossroads between Central Europe, the Mediterranean, and South-East Europe, Debrecen (HU) – Oradea (RO) the existing cross-border links and networks between urban Development has started, but this border area has areas in Slovenia and cross-border regions in Austria, Italy, only recently begun to allow free movement of Hungary and Croatia need to be strengthened further, resources (from the beginning of 2007). However, through the institutionalisation of cross-border, inter-regional the two cities – Debrecen and Oradea – are of a and trans-national urban networks within new EU regions. similar character: they are strong regional centres and share similarities in terms of ethnicity, thus Box 10: also having a language advantage. Alpe-Adria Working Community

Nyíregyháza (HU) – Berehovo (UA) The Alps-Adriatic Working Community (Alpe- Co-operation has started: in 2007, the two towns Adria) was established in 1978, as an important became partner towns. Despite their proximity, there step towards a new future for Europe. This cross- is a huge challenge, due to the fact that Ukraine will border and inter-regional association’s main task not become a EU member state in the short term, is joint informative expert treatment and co-ordination rather it will remain a neighbouring or partner country of issues, in the interest of the current members. only. This means that people coming from Bregovo The current members are countries, counties, require a visa and several bureaucratic difficulties hinder and regions from: Austria (Burgenland, Carinthia, free movement. For this reason, employment in the Upper Austria and Styria), Italy (Friuli-Venezia- black economy is high in this cross-border area. Giulia, Lombardia and Veneto), Hungary (Bara- nya, Somogy, Vas and ), Croatia and Triple border Hungary-Romania-Serbia Slovenia. The Alps-Adriatic territory covers a total The border region shows potentials not only within area of 190,423 km² and is home to about 26 million the boundaries of the EU but also outside, as there people. The Alps-Adriatic Working Community are three countries involved, including Serbia which has no legal status or central administration and has hopes of accession in the long run. The region the costs of its activities are borne by each member includes several strong regional centres and some state itself. The most important projects have 71 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 72

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been concerned with regional development, SLOVENIA transport infrastructure, environment, and pro- motion of tourism. European

The members of the Alps-Adriatic Working 1. Alpe-Adria-Pannonia: Venezia-Udine-Gorizia-Trieste Community have come together at what is a hot (IT) / Klagenfurt-Villah-Grazˆ (AT) / SLOVENIA / spot of European integration. The socio-cultural Zagreb-Varazdin-Karlovac-Rijeka-Pula (CRO); contacts in this area are of great importance for This new potential EU cross-border region is part the success of European collaboration. Shared of the Alps-Adriatic Working Community, which history and past experience serve to prove that has been an example of successful cross-border future-oriented, work for peace is essential in this cooperation in Europe for several decades. part of our continent. Slovenia has been always 2. Central European capital cities: Vienna (AT) - Buda- very active in many activities of the Alps-Adriatic pest (HU) – Bratislava (SK) – Prague (CZ) - Ljub- Working Community. ljana (SI)-Zagreb (CRO) Recently the name “Alpe-Adria-Pannonia” has The capital city of Ljubljana is also part of several become associated with the INTERREG III A/B/C capital city networks in Europe. This is a further project MATRIOSCA, which is aimed at proposing example of thematic metropolitan networks in the an institutional structure for the implementation of Central Europe and REPUS areas. common projects in this area, located at the inter-

face of old and new EU member states – an area Regional

which includes regions from Austria, Italy, Hungary 1. North Adriatic/Karst tourist area: Udine – Goriziaˆ –

and Slovenia, as well as from Croatia, which is a Monfalcone-Triesteˆ (IT) / Nova Gorica–Ajdovšcina- EU candidate country. There is the possibility that Sezana-Coastˆ (Koper-Izola-Piran) (SI) / Istria “Alpe-Adria-Pannonia” will become a new EU (Umag-Porec-Rovinj) (CRO) (b) North Adriatic region in Central Europe, similar to CENTROPE. ports: Trieste (IT)-Koper (SI)-Pula-Rijeka (CRO) This is an example of cross-border city networks of regional importance located along or near by the See map 39! Adriatic Sea, including large ports (Monfalcone- Trieste- Koper-Pula-Rijeka) and tourist resorts.

2. Wine region: Celje – Velenje - Slovenj Gradec – Maribor Selected list of Cross-Border Cooperation – Ptuj – Murska Sobota (SI) / Nagykanizsaˆ – Zalaeger- Areas in the RePUS countries szeg (HU) / Graz (AT) / Zagreb – Varazdin (CRO) This is an example of existing and potential cross- POLAND border networks of towns and cities in wine

regions, including wine routes and cellars, cycling European ˆ lanes, tourist farms, and other attractions for 1. Rzeszow-Przemysl- L’viv (Ukraine) tourists and local residents. 2. Szczecin-Berlin (Germany) 3. Brown Bear Land: Ljubljana – Postojna – Novo 3. Czêstochowa-Opole-Cracow-Katowice-Ostrava mesto (SI) / Karlovac – Rijeka (CRO) (Czech Republic) This is a unique example of a sparcely populated 3. Gdañsk- Stockholm (Sweden) area of mountains and forests, known as a natural habitat for brown bears in Europe. The area is Regional and Local surrounded by several small and medium-sized 1. Nowy Sacz-Krynica-Presov (Slovakia) towns of regional importance in Slovenia and Croatia. 2. Zakopane-Poprad (Slovakia) 3. Biala Podlaska-Briest (Belarus) Local 4. Bialystok-Grodno (Belarus) 1. Gorizia (IT) - Nova Gorica (SLO) 5. Suwalki-Kowno-Wilno (Lithuania) 2. Trieste (IT)-Koper

6. Olsztyn-Kaliningrad (Russian) 3. Maribor (SI)-Graz (AT) 7. Slubice- Frankfurt an der Oder (Germany) 4. Novo mesto (SI)ˆ / Karlovac (CRO) 8. Zgorzelec-Gorlitz (Germany) 5. Ptuj (SI) / Varazdin (CRO) 9. Jelenia Góra-Walbrzych-Liberec 6. Kranj (SI) – Klagenfurt (AT) (Czech Republic) 7. Villah (AT) – Jesenice (SI) – Tarvisio (IT) 10. Kudowa-Klodzko-Hradec Kralove (Czech Republic) 8. Lendava (SI) / Lenti (HU) 72 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 73

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9. Gornja Radgona (SI) – Bad Radgensburg (AT) HU: Gyõr, Mosonmagyaróvár, Sopron, 10. Rogaška Slatina-Rogatec (SI) / Krapina (CRO) SK: Bratislava, Trnava 11. Cividale (IT) / Kobarid-Tolmin (SI) AT: Wiener Neustadt, Eisenstadt 2. Four countries border regions (Hungary-Austria- This is a list of existing cross-border bilateral links Slovenia-Croatia) between urban areas of various sizes, located on the The building of the highway Budapest-Zagreb- borders between Slovenia and Italy, Austria, Croatia Ljubljana (trans-European corridor V). Towns and Hungary. There are various kinds of cross-borders include: Nagykanizsa (HU), Zalaegerszeg (HU), links and connection – economic, cultural, environmental, Murska Sobota (SI), Ptuj (SI), Maribor (SI), Graz institutional, family-related, etc.; some of them are (AT), Zagreb (CRO) supported with EU structural funds. Regional 1. Axis of Western Slovakia-Hungary AUSTRIA Several smaller towns included: Komárom (HU) – Komárno (SK) European Esztergom (HU) – Stúrovo (SK) 1. CENTROPE comprises the federal provinces of 2. Couple: Miskolc (HU) – Košice (SK) Vienna, Lower Austria and Burgenland (AT), South Miskolc Moravia Region (CZ), Bratislava and Trnava Košice Regions (SK), as well as Gyõr-Moson-Sopron 3. Debrecen (HU) – Oradea (RO) County (HU) 4. Triple border Hungary-Romania-Serbia 2. Alpe-Adria-Pannonia: state governments of Styria, Towns included: Szeged, Hódmezõvásárhely, Ma- Carinthia, Burgenland (AT), autonomous region Friuli kó, Békéscsaba, Gyula, Arad (RO), Timisoara Venezia Giulia, Veneto Region (IT), Republic of (RO), Subotica (SRB) Slovenia, counties of Zala, Baranya, Gyõr – Moson – Sopron, Somogy, Vas, (HU), Koprivnica – Krizevci County, Region of Istria and Varazdin CZECH REPUBLIC County (additional partner) (HR), Autonomous Province of Vojvodina (SCG as additional partner) European 1. Centropa: Brno – Wien (Austria) – Bratislava

Regional (Slovak) – Gyõr – Budapest (HU)

ˆ

ˆ 1. EUREGIO West/ Pannonia (HU/AT) 2. Ostrava – Katowice, Cracow ˆ (PL) 2. EUREGIO Region Weinviertel-South Moravia-West 3. Ceské Budejovice – Plzen – Linz (Austria) – Slovakia (CZ/AT/SK) Regensburg (Germany) 3. EUREGIO Styria-Slovenia (AT/SI) 4. Euroregion Nisa: Liberec – Zittau – Görlitz 4. EUREGIO Bayerischer Wald – Böhmerwald – (Germany) – Zgorzelec – Jelenia Góra (PL)

Unterer Inn (D, CZ,AT)

ˆ 5. EUREGIO Silva Nortica (CZ/AT) Regional ˆ 6. ARGE Kärnten-Slowenien (AT/SI) 1. Ústí nad Labem / Decín – Dresden (Germany) 7. CITYNET: Brunn am Gebirge, Schwechat, 2. Zwickau / Plauen (D) – Cheb (CZ) – Hof – Nürnberg (D) Hainburg, Bad Deutsch Altenburg, Himberg, 3. Kudowa / Klodzko (PL) – Náchod – Hradec Bruck an der Leitha, Eisenstadt, Gloggnitz, Ternitz, Králové / Pardubice (CZ)

Baden, Oberwart, Pinkafeld, Güssing, Jennersdorf 4. within the Centropa region: Wien, Waidhofen,

ˆ

(Austria) - Szentgotthárd, Körmend, Vasvár, Szom- Amstetten,ˆ Krems, Hollabrunn, Mistelbach (A) – Veselí

ˆ bathely, Sárvár, Köszeg, Sopron, Mosonmagyaró- na Morave, Hodonín, Znojmo,ˆ Brno, Gmünd(A)/Ceské vár, Gyõr, Fertõd, Kapuvár, Tét (Hungary) Velenice(CZ), Ceské Budejovice (CZ) 5. within the Euroregion Nisa: Liberec, Jablonec nad Nisou (CZ) – Zittau, Görlitz (D)/ Zgorzelec (PL) HUNGARY (N.B.: Görliz and Zgorzelec is the same town divided

between D and PL)

ˆ

European 6. within the ˆ Upper Silesian Region: Opava, Ostrava,

ˆ ˆ 1. Austria-Slovakia-Hungary- Ceský Tešínˆ (CZ) – Racibórz, Cieszyn, Bielsko- Two capitals involved (Bratislava-Wien) Biala, Zywiec, Katowice (PL) – Cadca, Zilina (SK) 73 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 74

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This may indicate that after the capital cities, second 2.5 Typology of LLS tier towns and cities which are able to demonstrate (cluster analysis) good performances are most probably large or upper medium-sized towns and cities. They are relevant or play a strong role as regional/national centres and A further step forward for identifying the specificity of demonstrate strong economic performance. Of small to medium-sized towns in the urban settlement course, this does not signify that in absolute terms, the system has been achieved with LLS typology, by larger the size, the better the performance. However, means of cluster analysis. the multi-functional profile of larger towns and cities means that they have a better chance of being more I. A list of selected indicators – including population, attractive, as high-level, quality services are more eas- economic (GVA, productivity, revenue at disposal), ily found in these towns and cities. In fact, there are unemployment rate, employment by sectors, FDI, many medium-sized towns and cities that thanks to human resources quality (education) – have been other, high quality features (cultural attractiveness, applied to cluster analysis; good environment, high standard of living, lack of II. The basic criteria for grouping the clusters has congestion) are becoming very attractive. These are been population size, taking the average cluster also those towns and cities which are part of the better population6 for small / medium / large towns and performing clusters, depending on the national contexts. cities (LLS) in order to find possible links between size and performance. • Clusters of medium-sized towns and cities which per- form poorly are those that are affected by industrial The results by country remain highly specific, as the decline (see Czech Republic, Hungary and Poland) or typology reflects the unique features of the individual which have weaker functions. Furthermore, they are suburban grouping of cities (LLS), within the framework often near densely urbanised areas, where dominant of the national settlement system. However, some large towns and cities are to be found, or in comparisons between countries can be made (see depressed regions or peripheral locations. Isolated Figure 5) for highlighting specific patterns, by size and towns and cities can hardly overcome the low level of performance. Some preliminary considerations are: activity or the lack of qualified resources in the context of their regional economy. a) Metropolitan areas: c) Small Towns • The main metropolitan areas which include the capital cities perform extremely well, since they are • Most clusters of small and very small towns seem to a focus point for the best human resources, being perform most poorly in comparison with all other types more attractive. They show higher economic per- of clusters, unless they have specialised in either formance, high services delivery and less social tourism or heavy engineering or industry. In some distress (lower unemployment). Some of the large cases, they have become a strong focus for FDI (see metropolitan areas, for example Naples in Italy are the Hungary cluster), which can also explain impressive an exception to this, since they show some poor performance. The relation between size and performance results (productivity) and a high rate of unemploy- for small towns, implies that their attractiveness relies ment. exclusively on their capacity to specialise in one or a few selected functions, as due to their small size, they do not b) Large and medium-sized towns and cities: have the capacity to be multi-functional.

• Many large and medium clusters of towns and cities • Small towns in the vicinity of metropolitan areas demonstrate different strengths, depending either on are adversely affected by positive effects, for the their profile (economic) or/and their location (accessi- diffusion of wealth, or negatively, if this creates an bility). In general, the best performing clusters are outflow of people and increase in ageing popula- those that have a larger than average population, in tion. It is obvious that the relationship between comparison with small clusters of towns and cities. small towns and medium to large towns and cities

6 The references to population size has not been taken as a rigid standard criteria but only as indicative way : down from 60.000 inhabitants considered Small; from 60.000 up to 200.000 as Medium, and up Large. 74 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 75

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is essential for identifying the place of the former Table 3: Selected indicators of Cluster Analysis that, for their limited population size cannot have a Population Size Economic critical mass for exerting a strong isolated function. POLAND Average by Indicator Budget revenues of The hierarchical relation in this case primes over cluster communes ( ) Cluster 1 10004636 1795 • Clusters of small towns related to agriculture are Cluster 2 217987 1820 usually associated with poor economic performance Cluster 3 78726 1475 (low productivity or GVA per capita). This is particularly Cluster 4 115211 1333 an issue in the rural areas of new members of the Cluster 5 90600 1813 European Union, but also in regions of Southern Cluster 6 87604 1374 Italy, which are weaker in relative terms. Small towns Cluster 7 66910 1312 demonstrate very poor performance, which indicates Cluster 8 54009 1411 that they are undergoing serious decline. Population Size Economic HUNGARY Average by Indicator Productivity ( ) It is relevant to underline the linkages between cities' cluster performance and overall regional conditions. A large Cluster 1 2865417 5272 city can become the motor of the regional economy if Cluster 2 151413 1234 has strong qualified functions and attraction capacity: Cluster 3 41230 826 in this case positive spin-off can take place in the Cluster 4 35711 1249 surrounding regional economy. Instead, in a poor Cluster 5 31848 877 economic regional environment and/or peripheral Cluster 6 26443 639 region, an isolated medium or Small Town can hardly Cluster 7 22677 4678 Cluster 8 9552 869 become strong motor for development of the region: Economic on the opposite, the town can become the worst CZECH Population Size Average by Indicator image of the low regional profile. These different out- REPUBLIC Income per capita at cluster disposal ( ) comes suggest that a strategy for improving urban Cluster 1 41908 6189 competitiveness and favouring urban re-generation cannot be pursued outside the regional context where Cluster 2 40347 6928 59664 6792 cities and towns are located. Cluster 3 Cluster 4 250194 7273 Cluster 5 29584 6456 Furthermore, below are the two indicators used for the Cluster 6 1484361 9180 above table, in order to make comparisons of relative economic performance. Each country has adopted Population Size Economic SLOVENIA Average by Indicator different economic indicators and for this reason, it is cluster GVA per capita ( ) not possible to make comparisons between countries. Instead, they are only viewed as being results for the Cluster 1 540922 10608 clusters within each individual country (internal Cluster 2 78846 6967 Cluster 3 78227 7826 country performance level). Cluster 4 29273 5247 Cluster 5 17337 3355 On average, each country has eight clusters (the Cluster 6 31602 3859 Czech Republic has six). The number of clusters Cluster 7 21651 4342 which demonstrate above average economic Cluster 8 20083 2857 performance is relatively limited: around 50% (for Population Size Economic Poland and Hungary) and 30% – 40% (for the Czech ITALY Average by Indicator Republic, Slovenia and Italy) of all clusters. cluster GVA per capita ( )

Cluster 1 3175132 31980 These results indicate that generally, there are great Cluster 2 2235602 15944 disparities in the performances of the city clusters, The Cluster 3 779958 24464 analysis is completed by other social and demo- Cluster 4 196000 24017 graphic indicators which have served the identification Cluster 5 104000 17209 of the typology, including ageing population, migration Cluster 6 27390 18164 flows, unemployment, productivity and attractiveness Cluster 7 21053 9012 for FDI. Cluster 8 13815 18851 75 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 76

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The analysis is completed by other social and and less competitive in comparison with demographic indicators which have served the competitors further east. However, the existing identification of the typology, including ageing population, cluster may have the potential to transformation migration flows, unemployment, productivity and itself into a more advanced and consequently attractiveness for FDI. more competitive cluster over the long term.

Box 11 Economic clusters of the automotive industry – the case of the Czech and Slovak Republics: small and medium-sized towns and cities, POLAND which are highly specialised and internationally competitive Metropolis Cluster 1: Developed and potential metropolitan areas A cluster of automotive manufacturing has This cluster includes the group of 16 LLS of the largest developed in the countries of Central and cities in Poland and the Regions’ capitals. These are Eastern Europe. This cluster originated with developed metropolitan areas (Warsaw, Cracow, plants which had existed before the economic Gdañsk, Poznañ, Wroclaw, Lodz and Katowice) and transition. These plants were bought and potential metropolitan areas (Zielona Góra, the bipolar refurbished by multi-national companies in the system of Bydgoszcz-Toruñ, Opole, Olsztyn, Bialystok, 1990s (Škoda in Mladá Boleslav CZ was bought Lublin, Kielce, and Rzeszów). This group is characterized by Volkswagen). Over the last decade, new by favourable population dynamics and the highest plants opened on greenfield locations, utilizing population density, best developed university and the available workforce released through the educational facilities, high budget revenues and the collapse of other branches of local manufacturing lowest unemployment levels. industries. These plants typically co-operate with “mother” establishments outside the country, Large to medium-sized towns and cities such as Volkswagen in Germany, Toyota in Cluster 2: Developing large and medium-sized towns Japan, KIA in Korea, etc. In these cases, the and cities Central and Eastern European plants act as This cluster embraces a group of 27 LLS of large cities mere assembly plants for models from the and medium-sized towns that have the highest commune “mother” production sites. (See Map 40) budget revenues and report the largest population increase. Some of them are strong, restructured Selected older plants that produce parts needed industrial centres. High commune budget revenues for car production (lighting, brakes, tyres, have placed in that group also other smaller centres, windscreens, etc.) underwent the same process though marked by a better economic situation, which of being bought and refurbished and joined the are border towns, that is Slubice and Zgorzelec. network, making up a cluster of car-related manufacturing adjacent to the basic manufacturers. Cluster 3: Medium-sized, developing regional centres This cluster embraces a group of 38 medium-sized The emergence of clusters for the automotive regional centres, located in agricultural areas of low industry is a Central and Eastern European population density and unemployment and with response to the challenge of globalisation and is commune budget revenues at the national average. reflected in the Territorial Agenda of the EU under They are important centres that provide services to Priority 3 – support for clusters for competitive agricultural areas, including , ,those related to and innovative activities. This response is education and culture (Zamosc, Biala Podlaska, adequate to the transitional period of the 1990s Suwalki), as well as tourist centres (Augustów, and early 2000s, when the competitiveness of Tuchola, Ostrolêka). This group can be found in the national economics in the region lay in the Eastern and Central Poland. cheap, well-qualified labour force, accessibility to the emerging markets of Eastern Europe and Cluster 4: Medium-sized regional centres, located emerged environmental concerns. As such, it will along main transport routes probably prove transitory, if the EU integration This cluster embraces a group of LLS of 38 medium-sized process makes the workforce more expensive towns, with good transport accessibility and important 76 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 77

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Figures 5: Economic Performance of Clusters

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industrial and service centres, located in agricultural The cluster comprises 44 multi-functional local centres of areas. In the east of the country, these are major regional small and medium-sized towns with low population density centres, such as Tarnów, Bochnia, Brzesko, and Siedlce. and low budget revenues. Many of these centres suffer from In central and western Poland, these are smaller centres, economic recession. However, they perform important located in areas where intensive agriculture is carried out. service and education (secondary school level) functions.

Cluster 5: Medium-sized regional centres with well- Cluster 7: Small, poorly developing local centres developed tourist functions This cluster is a group of 36 small local centres in This cluster includes a group of 8 strong tourist areas where extensive agriculture is carried out. These centres, located in coastal and mountain areas. The are the areas of eastern and central eastern Poland group is characterized by its population density, which characterised by the highest employment in is the same as the national averages, as well as a agriculture and lowest commune budget revenues. favourable economic situation and low level of Unemployment rate is lower than the national average, employment in agriculture. due to hidden unemployment.

Small and Medium-sized Towns Cluster 8: Collapsing small local centres in rural areas Cluster 6: Small and medium-sized, multi-functional This cluster comprises a group of 36 LLS characterized local centres by the lowest population density and strongest

Map 40: Location of selected car production plants in the Czech Republic, Slovakia and in the neighbouring parts

of Poland and Hungary ˆ © CVUT in Praha • Source data © Czech Statistical Office; © Czech Institute for Geodesy and Cartography 78 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 79

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Map 41: Typology by LLS in Poland Typology by LLS in Poland

depopulation processes, highest unemployment rate, The capital forms a cluster of its own, since it is the low budget income revenues, and most poorly developed most distant from all the other clusters and as it is so educational functions. These areas are located mainly different in most indicators. Budapest is the only in regions previously dominated by state farming and metropolis in the country and has a high level of now affected by recession. Although they have great international competitiveness, being an important potentials for the development of tourism, the tourist centre not only in the country itself, but also in the service provision functions have not developed to the broader, Central European region. Budapest scores extent, which would make it possible to counterbalance highest for most indicators. In comparison with the the process of economic recession. rest of the country, productivity is even higher than the gross value added per capita. The metropolitan area extends over a large area, with significant sub-centres of employment within the local labour system, showing HUNGARY a relatively polycentric pattern. The cluster has only one LLS as a member: Budapest.

Large and Medium-sized towns and cities The experiences of other analyses were underlined by the Cluster 2 : Second tier towns cluster analysis: after the changes in the economic system, The second cluster can be considered as the second the status of towns and cities is defined by a combination tier of towns and cities. After the dominant European of factors geographical position and position within the pole, there are no significant national poles, but there hierarchy of the settlement system. The results are also in are numerous medium-sized or larger towns, which line with the macro-areas defined above. are similar to each other, and which follow Budapest in terms of most indicators. These towns are fairly urbanized Metropolis with a high population density, high economic activity Cluster 1 : Metropolis which is a national centre of and output and high productivity. The service sector is international importance dominant in employment and human capital is 79 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 80

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Map 42: Typology by LLS in Hungary

increased in place. There is a high educational level problem of high natural population decrease and a achieved through significant knowledge centres, as a negative population balance. The towns are situated relatively large number of students are enrolled in the along the shore of Lake Balaton and serve as important educational institutions of these towns. centres in the life of the Balaton region. Geographically the second tier means a balanced net- work of county capitals and complementary capitals, with Cluster 4: Industrial engines an even distribution around the country; they form a ring Towns included in this cluster can be regarded as industrial around the Budapest LLS with some additional towns. engines of development. These are towns which have There are 26 LLSs included in the cluster including survived the recession of the nineties and due to several Sopron, Veszprém, Debrecen, Pécs, Eger, Gyõr, factors, including good accessibility, attracted foreign Miskolc and Szeged investment. This means that at the present time, a high rate of activity has been achieved, mostly by foreign Small and Medium-sized Towns and Cities companies. Almost half of the employed are present in Cluster 3: Tourist towns industry, thus reaching the highest level for the rate of The lack of national centres and the high number of industrial employment in the country. There is a risk of LLSs in the second tier after Budapest are followed by vulnerability to the changes of global economic processes, the other clusters, all of which are significantly smaller. as industrial production could be shifted in the direction Of these, the groups of largest towns is small, as there of cheaper labour in the future. are only three towns included in this cluster, however, There are 25 LLSs included in the cluster. these have been identified as important types. The three LLSs identified in this group show endogenous Cluster 5: Rural centres development based on natural assets and tourism, These rural towns with low population density are operated mostly through national capital, which may characteristic on the southern Great Plain. Though result in somewhat more modest but sustainable development, there are some in the northern part of the Plain and in if the resources are used in a wise way. These towns are , these towns are typical in the winners in terms of migration, though they face the area around Szeged. These towns are characterized 80 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 81

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by their rural character not only in terms of population Cluster 8: Small towns specialised in tourism density, but also because agricultural employment is The smallest cluster in terms of size and number of relatively high in comparison to the rest of the clusters. members is an interesting phenomenon and has been The educational level in this cluster can be considered retained, partly because these towns do not fit into any as low and productivity is also low. other clusters and partly because they are a good There are 29 LLSs included in this cluster. example of sustainable, endogenous development. The cluster is formed by two minor towns with strong Cluster 6: Small, under developed towns tourism, based on thermal resources. Both have their These towns are predominantly in the crisis areas own resources to build on and have a prosperous out- identified above as macro areas. These towns are look, as the demand for wellness tourism as well as under-developed and they have low scores for most the promotion of national thermal assets is expected socioeconomic indicators: the lowest activity, output to grow. The activity level for the population and the and productivity is present in these areas. The high output is modest, although as can been seen from the rate of emigration is accompanied by population case studies, Harkány dominates the nearby regional increase, due to the fact that these regions are not centre Pécs, as there are actually more commuters only in a low position, but are places where certain layers from Pécs to Harkány than the other way around. As of society are segregated, with a high ratio of Roma tourism is very strong in both towns, the share of population and the formation of rural ghettos, excluded employment in services is the highest among all the from socioeconomic processes. This exclusion also clusters. The number of tourist beds exceeds the number has a strong spatial character, since accessibility is of inhabitants and there is a good base for further lowest in these areas. It should be pointed out that sustainable development. there are limitations in the local labour systems, as There are 2 LLSs included in the cluster: Hévíz, there are some areas which lack even an employment Harkány. centre and are attached to a larger town with larger labour market further away. Those regions are not The results of cluster analysis are in line with the included in this cluster, even though it is in those identification of macro areas. In the triangle of development regions that problems are the most severe. identified, most of the LLSs are from clusters with good productivity levels, while the areas identified as Cluster 7: Industrial „tigers“ problem areas and under-developed regions mostly This cluster contains only a few members, but it is still have LLSs from the lowest status cluster. Budapest is very important as these are significantly different from emerging from the rest of the country here, with a ring all other clusters. These towns are very small in size, of second tier towns and industrial engines in its vicinity. but show a very high output, based on one or maybe However the growth poles identified in spatial policy a few plants with high industrial production. These are not emerging from the rest of the second tier, plants are either assembling factories for multi-national which means that although a policy aim exists to have companies or are part of the energy sector, such as concentrated development of counter-poles to Buda- the nuclear power plant at Paks. The gross value pest, the real socio-economic processes still demonstrate added in these towns is extremely high, even when the strength of a more extended, polycentric system of productivity is taken into account. Mention should be medium-sized towns, which are county capitals or made of two phenomena: the values of gross value complementary capitals. added, especially in the case of multi-national companies may be distorted by companies’ internal accounting systems; such distortion may be greater in the case of such small towns. Also, it should be noted, that the CZECH REPUBLIC vulnerability to global economic processes in these towns is higher than in the case of cluster 4, since for these towns, the size of the LLS is smaller and the structure of the local economy is unbalanced: it is Cluster characteristics based on one sector only and in some cases on only The analysis resulted in identification of the following one company; although this is not valid for the energy six clusters and their respective characteristics. sector. Clusters 1 to 3 and 5 constitute larger continuous territories There are 5 LLSs included in the cluster: Paks; Komá- while the Clusters 4 and 6 spread almost evenly in the rom; Tab; Répcelak; Visonta. country’s territory, but they are rather nodal and 81 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 82

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Map 43: Typology by LLS in Czech Republic

discontinuous. The separation by population size • functional autonomy, ageing population cannot be considered in the case of the Czech • highly-educated population Republic, as the size of the population has not been taken as basic criteria. This is typical for the LLSs of regional centres, except for the centres in old industrial regions in North-West Metropolis Bohemia. The LLS of Mladá Boleslav has also been Cluster 6 The LLS of the Metropolitan centre of Prague classified in this cluster, owing to its booming automo- Characterised by: tive industry. • high economic performance • high functional autonomy Cluster 1 Rural LLSs served by small and medium • outstanding accessibility centres • total population growth outside the centre, highly- Characterised by: educated population, the only representative of • low economic performance this cluster is the LLS of Praha. • low population density • ageing population Cluster 4 LLSs of regional and supra-regional (Brno) • often declining population centres Characterised by: This is typical for most of the rural part of the country, • large population especially south from the historical north-south divide • relatively high economic performance (i.e. in the traditionally less industrialised part) 82 repus_FINALREPORT.qxd 2007. 09. 20. 16:27 Page 83

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Cluster 2: LLSs with increasing dependence on the metropolis SLOVENIA Characterised by: • weak functional autonomy • demographically old population but high immigra- tion rates with demographically younger immi- Metropolis grants Cluster 1 : MEGA Ljubljana Metropolitan area of the capital city Ljubljana, with The LLS of this cluster were identified only in the high values for all indicators (demographic, econom- metropolitan hinterland of Praha; they cover almost ic, services), but with a lower level of tourist capacities entirely the Central Bohemian Region. The non- and lower share of university-educated population in xistence of this type of LLSs in the hinterland of other the overall population of the large LLS. regional centres, namely Brno are evidence of the exclusive position of the capital region. However, in the Large to Medium-sized towns and cities Brno case the large size of the Brno LLS suggests that Cluster 2 : Dynamic regional pole the agglomeration process already included most of Coastal conurbation or city cluster (polycentric morphological the prospective Cluster 2 LLSs. and functional) of international importance comprising three towns Koper-Izola-Piran and other urban settlements Cluster 3: Old industry-based LLSs structurally affected on the Adriatic coast, near the border with Italy and by de-industrialisation Croatia; the port of Koper is importance on a European Characterised by: level. There is high density, higher population growth, • high unemployment rate ageing population, a high rate of immigrants, very high • high emigration rate of employment in services and tourist capacities, • demographically young population high GVA and productivity, high number of students and very high share of university-educated population, This cluster is typical for LLSs in the NUTS2 Region good accessibility, but lower FDI. North-West and NUTS2 Region Moravia-Silesia, both urban and rural. It is only Ostrava LLS in NUTS2 which Cluster 3 : Second tier regional poles belongs to the other cluster of regional centres, unlike Larger urban areas consisting of the most important other regional centres of Ústí nad Labem and Karlovy regional centres (Maribor, Celje, Kranj, Nova Gorica, Novo Vary, in which cases the economic and social mesto, Velenj, Zasavje (Trbovlje-Hrastnik)), show higher characteristics prevail over the position of regional centres. values for certain indicators, e.g. population growth, density, GVA and productivity, employment in industry, Cluster 5: Small LLSs number of students, accessibility, but lower share of It is difficult to characterise this cluster in a similar way. university-educated population, tourist capacities and FDI. In general, the common features are: • low population size Small towns

• relatively low economic performance Cluster 4 : (sub) regional and local developing areas • demographically young population Medium and small-sized towns: Ptuj, Postojna,ˆ Krško, • weak centres with relatively small FUAs Slovenj Gradec (regional centres), Ajdovšcina, Škofja Loka, • very low functional autonomy Šmarje pri Jelšah, Ribnica (small, suburban towns) and Idrija (strong local) are characterised by lower density and However, within this cluster, several quite diverse typologies located near main regional poles (cluster 1-3). They also of LLSs and FUAs are included. A subgroup can be identified have population growth with low ageing (i.e. due to subur- that involves traditionally industrialised rural parts of the banisation and lower property prices), average GVA with low country, mostly textile and other types of light industry, unemployment and higher employment in industry, average which was traditionally rather dispersed in small towns FDI, average number of university-educated people with a and even villages, rather than concentrated in larger lower number of students and lower accessibility.

towns (North-East Bohemia). The rest of the cluster is

ˆ

rather heterogeneous and the LLSs can be interpretedˆ Cluster 5: small peripheral areas with higher FDI for

only in regional context. They span from thriving Trebon industry ˆ with its attractive spa and tourist industry to deprived LLSs These are smallˆ (industrial) towns (Crnomelj, Lenart, e.g. in Walachia (the eastern part of Moravia-Silesia). Mozirje, Ormoz) in low density peripheral and rural areas, 83 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 84

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Map 44: Typology by LLS in Slovenia

which have low GVA and a high share of FDI in GVA, as very low unemployment with higher employment in well as higher employment in industry than in services, services, low GVA, FDI and accessibility. higher unemployment, low tourist capacities, average level of education, no students and low accessibility. Cluster 8 : peripheral areas under restructuring

Medium and small towns in low density (mountain and Cluster 6 : (sub) regional and local areas under restruc- rural) peripheral border areasˆ (mainly with Croatia – turing Brezice,ˆ Ilirska Bistrica, Kocevje, Ljutomer) and Gornja

Medium and small-sized towns (Murska Sobota, Radgona, Slovenska Bistrica, Sevnica, Radlje ob Dravi Ravneˆ na Koroškem (regional centres), Lendava, in South East Slovenia NUTS 2 region, with lower Zalec, Slovenske Konjice, Šentjur pri Celju) in industri- accessibility, population decline with ageing, low GVA al and rural areas, population decline with low ageing, and FDI, high unemployment, higher level of secondary average GVA, low FDI, higher unemployment with school educated people and average tourist capacities. employment in industry, low level of higher educated population and students, lower accessibility.

Cluster 7 : tourist areas ITALY Very high tourist capacities in low density mountain areas in Western Slovenia at the border with Italy (Sezana,ˆ Tolmin) and Austria (Bled-Radovljica- Jesenice with Kranjska Gora), population decline with Italy typology completes the hierarchy analysis, as it ageing, lower level of university-educated population, gives deeper insights about the type and performance 84 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 85

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Map 45: Typology by LLS in Italy

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of urban settlements, organised on the basis of their Cluster 5 – Moderately performing regional towns and population function. cities from the second tier These are well-integrated into the northern The main spatial pattern of the Italian economy regions, as they are made up of dense urban emerges again, as the disparities have a large effect settlement between large and medium-sized on the various city clusters: the divide between the cities. They are also present in the centre but less main macro-areas, north/centre/south are confirmed so in the South. They show more mixed results, as by the performances of the city clusters, with particular they include towns and cities which specialise in evidence for the large and medium-sized towns and agricultural; this is particularly the case for those cities. The North the highest performing large, or in the south. medium cities, and even the small towns are more dynamic. The south retains few well performing large Small towns and medium-sized towns and cities, whilst the small Generally speaking, none of these attain the upper towns are among the worst performing. Apart from a levels performance, although it depends on their few large agglomerations (cluster), the centre remains profiles and positioning: i.e. whether they are dynamic characterised by mixed performance. and specialised.

Metropolis Cluster 6 – Small towns with clear functions When considering the importance of the metropolitan These have good employment capacity and low areas in Italy, two main clusters are identified: the first unemployment rates, low density because many are in with high performance and the second with low the foothills of mountains (Alps and Apennine mainly performance. in Central Italy). They include green areas, so they provide high standard of living. Cluster 1 – high performing metropolitan areas The two “capitals”: Rome and Milan, both high Cluster 7 – Small towns with the poorest results performing, with strong national-international functions. These towns are focused on agriculture and have high unemployment. They are the worst performing among Cluster 2 – low performing metropolitan area all types of towns and cities. They are concentrated in Naples urban areas, since many socio-economic the south and on the islands. indicators show low performance, rather than its potential for the population density, due to the large Cluster 8 – Dynamic Small Towns number of small towns in the vicinity. These are highly specialised, particularly in services and tourism, with good results in term of productivity Large and medium-sized towns and cities and employment. They are mainly located in the Given the weight of the numerous large to medium- northern Alps in the Italian Tyrol, but also scattered in sized towns and cities in Italy, they form the pillars of few isolated place in Sardinia and Tuscany. the urban settlements.

Cluster 3 – High performing large cities These play a strong role in the respective regions, AUSTRIA but have a role which extends to a national or even international level: Turin, Venice, Bologna, Genoa, Bari, Palermo and Catania. These cities have strong functions, good economic indicators and high quali- Vienna ty service delivery. Vienna has a unique status in the outcome of the Cluster 4 – Dynamic regional towns and cities Austrian cluster analysis because the city of Vienna is These are strong regional centres, densely located in one LLS7. The characteristics of Vienna are most simi- the north. They are above average for productivity and lar to type 2, but with higher population density by far GVA per capita. Along with Cluster 1 and Cluster 3, (and by definition, with a mono-centricity of 100), but they are the best performing towns and cities. with lower economic performance.

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Map 46: Typology by LLS in Austria

Cluster 1 – Mono-centric urban regions neighbours) are a kind of exception within the Austrian Mono-centric urban regions mainly depict the larger urban landscape of the Rhine Valley. The most provincial capitals (e.g. Graz, Linz, Salzburg, Innsbruck important difference in type 1 is the polycentric pattern and Klagenfurt etc.) and some semi-urban LLS within within this densely populated region. Additionally, type the range of Vienna’s broader agglomeration area. 2 is characterised by the following attributes: They are characterised by the following attributes: • The two LLS show high (above average) • The LLS show considerably higher densities than population density with a rather polycentric the average LLS, mainly within the urban node, but pattern. Both LLS have medium urban nodes, a increasingly also in the agglomeration area. medium share of population in the urban node • They depict mono-centric regions, the urban and there are some other urban nodes of less nodes are of provincial or regional importance and importance located within the LLS. some of those urban nodes have large • Both LLS show relatively good accessibility. agglomerations (mainly provincial capitals). Although not centrally located (from an Austrian • The LLS show very good accessibility in the urban perspective), they are linked to high level transport node, which is not much less in the periphery of infrastructure (road, railway and air-transport) not the LLS. They are located centrally and are linked only in Austria, but also in Germany and to high level transport infrastructure in all transport Switzerland. modes (except inland waterway in some cases). • The economic performance of these LLS lies • The economic performance of all the LLS is good within the Austrian average performance. and they show a dominant concentration of economic activities in the urban node. The following types 3 and 4 depict rural areas, which are located in central areas and/or broader urban Cluster 2 – Polycentric urban regions agglomerations. All of them are located within or in Those two LLS (to some extent together with their proximity to the main transport axes (high level road 87 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 88

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and rail) in Austria. Whereas type 3 regions are locat- ed more centrally, show higher population density and 3. The policy strategy better economic development, it must be said that dimension type 4 regions are less populated and less economi- cally dynamic. The characteristics of those types in more detail are as follows: 3.1 The European context

Cluster 3 – Dynamic rural areas within the range of between territorial cohesion wider urban agglomerations • Those LLS show a medium to low share of population and competitiveness in the urban node: a small town is often surrounded by a high number of even smaller municipalities/villages. • Population density is at a medium level. The polycentric territorial development in the vision • The accessibility of the LLS is relatively high. The proposed by the ESDP and reconfirmed in the favourable situation of the LLS arises mainly from European Territorial Agenda remains one of the pillars their location in proximity to one of the main urban of European policy strategy. However, the increasing centres (mono-centric urban regions), within one impact of globalisation, which increases competition of the major transport axes within Austria. for cities and regions, mean that more emphasis is • They show medium economic performance placed on other factors such as knowledge, competi- tiveness, innovation and efficiency, as placed at the Cluster 4 –Rural areas within Austrian transport corridors forefront of the Lisbon Agenda. • The LLS are mainly very small towns which have the function of an urban node and therefore a low The European Union endeavours to strike a good share of population in the “urban” node. balance between the two different targets of • Generally they are characterised by low population “Competitiveness and Cohesion”. In a situation where density. there are constraints on natural and financial • Due to their location within the major transport resources, countries are at different stages of development axes in Austria, accessibility is relatively high. and this fact results in high social and economic • The economic performance of these LLS is low, disparities across Europe. The balance between these comparatively speaking. two targets is not easy, as the pressure from the external environment is very high. The territories and the towns and The most difficult situation prevails in regions of type 5. cities – as they are dynamic actors – therefore acquire a new Located in peripheral position within Austria (mainly role in facing these new challenges. border regions or alpine regions), their accessibility is weak. Overall they show less dynamism in terms of both The Territorial Agenda (Territorial Agenda of the economic and population development. Additionally, European Union, 2007) is an attempt to reconcile most of them additionally share an unfavourable outlook these two targets of competitiveness and cohesion in terms of population development in the future. and address fundamental policy issues such as:

Cluster 5 – Peripheral regions • To adapt the approach to the specificities of the • Within all these LLS, there are only s few Small and territories and regions fully exploiting the existing Medium-sized towns and population density is low. potentialities: this creates the necessity to adopt a • Due to the small size of the urban nodes (low tailor-made policy approach as the origins of the share of population in the urban node), low problems are peculiar to each case: there is no hierarchy between those nodes and the surrounding blue-print for a solution to structural territorial rural areas exist. Nevertheless, these small urban problems. nodes often have an important service function in the area. • To strengthen polycentric development and • Accessibility is only medium to low, mainly due to Innovation by reinforcing the city region and cities a rather peripheral location. Links to high level network: the development of the city/regions infrastructure are missing. co-operation, including small and medium-sized • The LLS generally show weak economic towns, based on the principle of proximity, in order performance. to combat peripheral position and social exclusion. 88 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 89

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• To ensure sustainability of growth while facing strategy to deal with the main urban settlement increasing shortage of natural resources and the problems: an issue of which their respective authorities related problems of energy: this is indeed a new are well aware. How these visions are translated into and crucial problem for addressing the costs of concrete policies for implementation is the other economic growth, while at the same time strength- most sensitive issue: here gaps emerge as coherence, ening high standards of living. effectiveness, political willingness and resources are crucial for pursuing such policies. Institutional capacity • To strengthen the rural-urban partnership,by and capability at the different territorial layers, and involving different institutional layers, from local to their effective coordination, are all aspects that regional to ensure local governance. influence the degree of real and effective implementation of the policies. • To favour the clustering of activities as integration and specialisation create new competitive Moreover the long term character of such visions may capacities; this is also seen as vehicle for also contradict the short term policies that by contrast international co-operation and local partnership. deal with more direct and specific issues: spatial planning, understood as the main economic, urban and • To improve accessibility and transport infra- social dynamics that develop in the territory and structures with the extension of the trans- physical planning, dealing with infrastructure European network. development and land use. The line between spatial planning and physical planning are difficult to delineate, These targets are inspired to a great extent by the as often they either overlap or cross each other; this principle of partnership and co-operation, among also depends on the background of the individual various institutional tiers, from local up to national and country. regional, in order to ensure good institutional capacity and policy effectiveness. Governance is at the centre of new strategies, as synthesis between institutional HUNGARY effectiveness and partnership, among different territorial layers and also involving local stakeholders. In a polycentric vision, Hungary has elaborated This issue is particularly crucial for the new member and approved an ambitious strategy for spatial states, as they come from a cultural background with development and as a continuation of this policy little horizontal cooperation, since central planning development; a specific concept is being contributed to the fragmentation of the institutional prepared for the development of the settlement and economic actors in the territory. system. This strategy seeks to strike a balance between improvement of the competitiveness of the metropolitan areas, by strengthening the capital and the (potential) regional centres as “development poles” and the spatial cohesion of 3.2 Spatial vision of polycentric the country, which requires that the most under- developed regions catch up. The objective is to development in the RePUS fully take advantage of the great potential of the Budapest metropolitan area, but also to area strengthen the most important second tier Cities, in order to create alternative development poles, so as to counter-balance the growing To what extent has a polycentric vision come into the centripetal areas of the capital city. At the same policy strategy horizon of the new member states? time, smaller towns as urban centres of under- Polycentric development and strategy for medium and developed rural micro regions are dedicated to small towns and cities seem to have been retained by play key role in the development of their micro- the policy-makers in the new member states. regions. (See Figure 6)

Laid out briefly below, there are some syntheses of 1. The target “Development of a highly competitive Bu- the country concepts and vision for spatial develop- dapest metropolitan area” is split into two sub- ment. These indicate the importance of having a targets: competitiveness and sustainability: 89 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 90

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Figure 6: The Objective Structure of the National Spatial Development Concept

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a) Enhancing the competitiveness on an international scale II. Modernising the transport links with the use of I. to encourage FDI location of large companies environmentally friendly solutions. II. strengthening potentials for research and develop- III. Fight against urban sprawl within the agglomera- ment and higher education tion area, both for protection of and work to develop III. improvement of high value-added businesses, for green areas in the peri-urbanisation areas; sustaining the setting up of enterprises IV. Improving co-operation among the various IV. improvement of ICT and up-grading specialised institutional and economic stakeholders involved services to enterprises in management and activities in the metropolitan V. improvement transport infrastructure and related region, for the creation of an efficient and well- services functioning agglomeration system. VI. strengthening the role of the capital as centre for tourism and culture 2. Strengthening development poles that dynamise regions and the development of a system of interconnections b) Improving quality of the living environment and man- forming a network of cities. There are two main sub-targets: aging the agglomeration’s problems I. Ensuring a healthy living environment and c) Strengthening “development poles” of Debrecen, protecting the city’s green areas; Miskolc, Szeged, Pécs, and Gyõr. Including:

Map 47: Regional development poles and axes in Hungary

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I. Upgrading the educational system for the quality A. potential polarization poles of diversified hierarchy, and skill of human resources; B. potential belts of accelerated development, II. Increase the specialised R&D capacity C. potential zones of multi-functional, ecological devel- III. Raise the standard of financial and business opment. consultancy and public services; IV. Development of a network of institutions and The multi-polar urban settlement system in Poland organizations that can deliver innovation; represents a great opportunity for developing a strong V. Encourage urban development activities which polycentric policy, which can be based on the mor- attract private sector investment. phological existence of a large number of centres of various sizes, very close each other and spread out all d) Developing the network of the cooperating cities, over the country. There is great potential for integra- concentrating on the medium-sized cities tion, if strong transport infrastructures investment is I. Improve accessibility within regions between ensured for internal mobility. urban centres by development of public transport and roads II. Improve accessibility and mobility across the The Concept of Spatial Development for Poland country by the development of motorway, express assumes that in order to become a dynamic and trains, regional airports and ICT infrastructures growing economy integrated into Europe, the urban settlement system should include: On top of that regional development axes for Hungary • the capital metropolis as the central player in have been identified by the National Spatial the country; Development Concept: (See Map 47) • a network of uniformly diffused centres of European significance, which include centres From this strategic vision of spatial develop- located at interchange points within the European ment, it emerges that there are also third tier system of transport, with developed university towns and cities at an intermediate level centres and multi-functional capacities, between the capital and the main development • a network of centres of national, trans-regional and poles. These are located along a double ring regional significance that cover the largest parts of pattern around the radial axes. This de facto the country three-tier strategy would, in principle, increase • other minor urban centres of local importance the diffusion of wealth distribution and improve (See Figure 7) integration since towns and cities of different sizes would become closer due to improved accessibility, searching political willingness for A series of Priorities have been identified for improving cooperation and looking for improvement of the a spatial strategy for stimulating development by labour market integration. Mobility can improve increasing poly-centricity and cohesion of the settlement effectiveness, whilst not always necessarily system of Poland, in European, national and regional being beneficial for cohesion. dimensions:

Priority 1: Increasing integration of the Polish settlement POLAND system: upgrading scientific and soft factors for improving effectiveness, skills of human resources From the polycentric development viewpoint, the key and ICT innovation; problem for Polish spatial development addressed by Priority 2: Increasing poly-centricity and national the Conception of Spatial Development of Poland is: cohesion for the settlement system: how can the requirements of competitiveness and Priorities 3: Increasing cohesion of development effectiveness be reconciled with the principles of policies: better coordination of horizontal and vertical justice and equality. There are clear problems of policies; improved integrated approach consistency between the assumed priority of Priority 4: Strengthening the endogenous bases for local “effeciency” versus “equity”, in a view of “balanced development: in particular for small towns in rural areas development” nationwide (see section for macro- for providing services; improving accessibility to areas – in Poland). Based on that principle, three peripheral areas; small business promotion; upgrading priorities have been identified: and expanding service provision for enterprises 92 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 93

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Figure 7: Poland the conception of Spatial planning system

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Map 48: Polycentric development of Polish space

Priority 5: Inter and intra regional development integra- specific character, such as traditional farming tion policy so as to preserve the values of ecological Priority 6: Increasing the effectiveness of the way areas. regional and local development is managed. (See Map 48) • To stimulate the development of rural areas by: I. strengthening local job centres in order to develop service functions, including provision of services In order to update the official Concept of Spatial to rural areas in the financial and information Development of Poland (1999), several objectives fields, in order to utilize the benefits of Polish need to be included: integration into the European economy and favour diversification into activities outside the • Establishing functional zones in the country to agricultural sector; support the complementarity of spatial structure II. ii- developing the educational and cultural and take advantage of regional diversification, potential of smaller regional and local urban • To spur development of the Eastern Regions centres, also adopting active incentives to through the inclusion of the regional urban attract people from larger cities coming to the centres of Bialystok, Lublin, and Rzeszów into countryside. large integration areas of the most advanced • Creating and developing logistic centres of national regions for Poland, but also with a European and regional importance perspective. This is to overcome inherited • Stimulating the development of regional clusters of “peripherality”, while preserving the regions’ innovation 94 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 95

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Figure 8: Institutional context of spatial planning of the Czech Republic

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Map 49: Development areas, development axes and specific areas in Czech Republic

CZECH REPUBLIC The review of the PÚR currently being prepared will be critical for introducing an effective policy of spatial management at a national level, which In the Czech Republic, the National Spatial Development would be relevant to EU Territorial Agenda in Policy (PUR) sets national priorities for sustainable respect of the poly-centricity of metropolitan development areas. The National Policy of Spatial regions, cities and urban areas. The present period Development (PÚR) provides a good institutional back- is also important for establishing a new practice ground for the development of relevant and effective of spatial management of regions, as regional policies on national, regional and local spatial planning ZÚRs are now being drafted, for approval by the levels (See Figure 8). By law, the PÚR has to co-ordinate end of 2008. state sectoral policies from the spatial aspect and “vertically” co-ordinate territorial development on a regional The vision of polycentric development results clearly and local level. Since the PÚR is strategic document, its from this map with radial axes from Prague. main role is to establish frameworks for specific policies Particularly interesting is the regularity of the distance on the regional level of planning, in accordance with the of the secondary urban poles that cover virtually the Principles of Territorial Development (ZÚR). This has not whole country. (See Map 49) happened yet, as it will only take place in 2008 when the ZÚR will be introduced. The polycentric development vision for the Czech Republic, with a radial axes scheme can be The first, 2006, version of the PÚR has focused mostly observed around the core of the metropolitan on the development of transportation infrastructure. It area of Prague. is advisable that the next review should react to the changing physical as well as social environment and In the Czech Republic, there is no other city other than thus it may be more oriented towards the co- Prague to assume the role of gateway between the ordination of the development of settlement structure. international and the local economy. This is especially 96 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 97

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Figure 9: Austria Spatial Planning integration Scheme

relevant to the second largest city, Brno, which has of some new functions, namely regional administration aspired to play a more important role. but also, for example, new independent universities at the beginning of the 1990s. On the regional level, the Czech Republic has a net- work of regional centres which covers most of the The role of regional centres was further enhanced by country. These regional centres provide the full range the dissolution of the district level of administration in of higher-ranking facilities (higher education, spe- 2001; hence, former district centres lost some of their cialised hospitals, and regional administration), as leverage. However, the ranking of the regional centres

well as institutions. shows a span from the strongest “supra-regional” Brno,ˆ followed at a clear distance by the westernmost The significance of the regional centres was Plzen, the “twins” of Hradec Králové and Pardubice maintained and even strengthened by the establishment and, with certain limitations, Ostrava, to the relatively 97 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 98

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small and weaker regional centres of Jihlava and scope for seeking a more balanced urban system at Karlovy Vary. The new polarisation of the Czech the highest level in Austria

Republic in the international business and political

context, as well as economic transformation ˆ has

ˆ reshuffled theˆ position of regional centres: Plzen and SLOVENIA Ceské Budejovice seem to be winners in this respect, while the old industrial centre of Ostrava, which more- Urban policy in Slovenia has been part of national over is situated on the unfavourable north-eastern spatial and regional development policies since 1960s fringe of the country, is among the losers. onwards and part of urban (land use and urban design) planning at the local level (e.g. municipal and In the long run, provided the gap between “old” and intra-city level). Regional policy and spatial planning in “new” EU member states narrows and transport infra- Slovenia have their origins in a polycentric urban structure is improved, Moravian regional centres may development concept based on (adopted) “central improve their position and possibly also their poten- place theory” (or hierarchy of central places) and tials for mutual networking. Thus, Moravia and Silesia “development poles” by Perroux from 1960s onwards, may offer better prospects for polycentric models of with their gravitation areas as “planning regions”. This an integrated system of regional centres, balancing in original “polycentric urban development” concept, this way the strong position of Prague within the formulated in the 1960s, was never fully implemented. national context. This was firstly because of the introduction of the “communal system” in the Yugoslav Federation in 1970s, when local communes in individual republics AUSTRIA were given more power and responsibility over local development and planning, and later in the 1990s with Two main critical aspects characterise the Austrian the change of the political system, market economy vision and spatial planning system: the old and and institutional reforms. Urban policy is also an consolidated tradition in spatial planning and the important part of the new strategic documents, laws federal character of the state, defining a strong and by-laws, most notably the Spatial Development level of decentralised power: the “Länder”. Strategy of Slovenia (2004), the Spatial Planning Act However, polycentricity is not part of the spatial (2002, 2007) and the Construction Act (2002, 2007) planners’ goal. The strengthening of the functions and the Land Development Act (2005) etc. Therefore, of small and medium-sized towns ought to be the concept of polycentrism has been the basic achieved via the concept of “decentralised development concept for Slovenia, through the allocation concentration”. (See Figure 9) of jobs and services in “regional centres” (middle- sized towns), which are important for the social and Austria subscribes to a concept of spatial economic development of their “gravitation areas”, development based on the notion of the “central and as an instrument for (regional) development of place” which has its roots on Christaller’s theory: local centres (small towns) and “less developed the centrality of a town or city’s functions remain areas”. As a result of this consistency in polycentric those that define the town or city’s hierarchy. spatial (urban and regional) development polices Within this framework, even if some notion of since the end of 1960s, the ESPON 1.1.1 project polycentrism has surfaced over the last decade, (2004) finds that Slovenia is one of the most polycentric there have been no explicit policies drawn up European countries, despite the small size of the country. toward this broader goal. In 2002 the National Assembly of the Republic of The structure of the Austrian urban system with Vienna Slovenia adopted the first new Spatial Planning Act as the main urban pole and several minor urban poles and Construction Act with Spatial Management has also been laid down in the „Austrian Spatial Policy. Two years later, the Strategy of Spatial Development Concept 2001“. The model of polycentric Development of the Republic of Slovenia with Spatial development, defined in the ESDP, is described as being Order (2004) was adopted. Prior to the new Spatial relevant to Austria, but with one major difference: the Planning Act, the government adopted two other important urban regions shall develop further, but documents: the Assessment of Spatial Development Vienna shall be able to hold its dominant position within in Slovenia and the Spatial Management Policy of the the Austrian urban structure. It is clear that there is no Republic of Slovenia. These were the first new spatial 98 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 99

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Map 50: »Centres of (inter)national, regional and inter-municipal importance« (urban network) with city clusters, agglomerations and functional urban areas

Source: Spatial Development Strategy of Republic of Slovenia (2004) "Spatial Development Strategy of Republic of Slovenia (2004) is promoting further polycentric urban development concept through 51 »centres of (inter)national, regional and inter-municipal importance« (with 62 urban settlements) and »functional urban regions« of 15 »centres of (inter)national importance« (i.e. regional centres)." 99 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 100

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planning documents after Slovenia’s independence spatial development policy, Slovenia has underlined (1991) introducing a new legal system and market the importance of the urban agglomerations, town and economy values. city clusters, functional urban areas and potential cross-border cooperation. The Spatial Development Strategy of the Republic of Slovenia was adopted by the National Assembly in June On 28 April 2007, the National Assembly of Slovenia 2004, presenting principal national planning guidelines adopted the new Spatial Planning Act, which modified and conceptualisation of Slovenia’s territory at the the existing legislation in defining the types, contents, national and local level. The Spatial Development and hierarchy of documents, and the method by which Strategy contains goals and objectives for spatial they are drawn up. It provides two types of spatial development, with priorities and guidelines for achieving documents: national and municipal. In addition to these objectives and the development of urban national and local levels, the Spatial Planning Act also settlements, infrastructure, and landscape systems, introduces the possibility of planning at a regional

Figure 10: The multi-facets visions of the territories: a new dynamic perspective from local to global

together with guidelines for spatial development at the level for the spatial structures which have influence regional and local levels, and measures for implementa- beyond, or spread over, municipal borders. The Act tion. In connection with the international (UN, Council of regulates spatial planning activities and the enforcement Europe, EU) policies and recommendations ensuring of measures for the implementation of the spatial sustainable development, the document sets out the arrangements which have been planned. It also provides concept and strategic guidelines for sustainable spatial for building land development and the spatial data development of activities at a national and at more record keeping system. The newly established spatial detailed local levels, and basic premises for the coordination planning and management system has been impossible of spatial development policies and instruments, along to enforce in full from the beginning of 2007, because with requirements for environmental protection. the by-laws and other regulations which are to define in detail the contents, along with the methods and In the new polycentric urban development concept, procedures for the preparation of spatial planning which is part of the new spatial planning system and documents are still in preparation. The National 100 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 101

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Strategic Spatial Plan of Slovenia is also being drawn equally. What emerges is a new conception of the up. This is to present the basic premises for the prepa- territory in a dynamic way where flows, rather than ration of all spatial planning documents at national stable assets are the main determinants. and local levels and will replace the current Spatial Development Strategy. Along with other national This perspective gives a new interpretation of the strategic development documents, it will serve as a importance of the two different components in the starting point for guiding sustainable spatial urban perspective: development at the national, regional and local levels. I. The metropolitan areas acquire strategic importance (See Map 50) for improving their potential development even in a European context. Within this vision, determinant quality factors related to urban development, not ITALY only of tangible but also of intangible nature, are emphasized. Historically with weak or absent spatial planning II. The role of small and medium-sized towns are also tradition, Italy has enjoyed strong decentralisation mentioned as essential tools for ensuring the and the regions have assumed the role of the diffusion of high quality of life, as a prerequisite for spatial planners. Thus the dynamic of the territory a vision of diffusion of well-being in an advanced is mainly seen from the regional perspective. In the society. past, attempts to draw up a spatial framework have failed. Recently, a new vision has once again This broader vision however hardly translates into been developed which may indicate new avenues stable and coherent spatial planning framework: for development. with infrastructure development remaining de facto, it is mainly the operational plans that dominant the The analysis carried out by the Ministry of policy framework at national level. Thus, spatial Infrastructure presents an interesting interpretation of planning as a strategic document in practice is limited spatial development, where territories do not only exist to the Regional level (NUTS 2). Strong decentralisation, as locations of activities in a static way, but there is without coherent national coordination remains the also a territories’ network, where different flows at most critical weakness of the institutional territorial multiple levels are inter-connected around the system in Italy, in particular in light of strong regional localities. The main features of the development in the disparities. changed dimension of the present globalisation emerge from this overlapping and reciprocal crossing of different dynamics as “multi-layers”.

Different types of territories constituent the multi-layers 3.3 Critical policy issues (multi-leaves) scenarios: • Identity Territories: where cohesion targets are at the forefront; The RePUS project has developed some critical • Competitiveness Territories: where private firms, appraisal of the main policy issues which characterize local resources, business environment and net- the national institutions and function in the fields of works of main institutional and economic actors public policy, regional policy, spatial planning interact; practice and urban policy in each individual country. • Connecting territories: where human resources, Many discussions with policy-makers at the various goods, knowledge, information and services levels of public administration, those in the academic develop and emerge at the upper level; field and experts have been carried out in each • Large European territories: where macro-regional country and some indications shall be presented areas compete in the broad economic and geo- briefly here. These discussions are based not on a political context; survey but rather provide only a qualitative appreciation of the importance and relevance of This graphic (Figure 10) gives a very clear and logical the problems touched upon. These points are not framework for the dynamics of the territories, where intended to be an exhaustive list of the many competition and cooperation react with each other. issues that have been analysed and discussed but This concerns hard and soft (intangible) factors are rather only indicative. 101 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 102

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• The institutional context: decentralisation, effective- them. This may eventually undermine the ness, governance and multi-layered government: effectiveness of the policies themselves. Co- this is the crucial issue on the present policy agenda operation and co-ordination between sectoral and for the new member countries. Regionalisation and spatial planning activities should be enhanced in decentralisation, as far as level of institutional the future. capability, may present a future challenge to the search for more effective urban policy and spatial • Approaches to urban development strategy should strategy for development. The integration oriented reflect the specific potentials and constraints of the cooperation between governments of regions and region or city or town in question. As such, the of towns and cities are an essential element for the relevant policies should be tailor-made to reflect development of a system for small and medium- the different levels and origin of the problems to sized towns and cities. Regional cooperation be addressed, because no blueprint exists in between towns and cities is of similar importance. spatial management. Endogenous potentials deserve special attention, since they are • Spatial planning and physical planning: transport fundamental elements ensuring economic and infrastructure development is often retained as the social sustainability. main focus of spatial planning, due to an underestimation of the complexity of the issues related to spatial • City networking and cross-border cooperation for development. Moreover, the lack of co-operation strengthening integration and development are between physical and development planning can important messages for the RePUS countries. Up be considered a serious problem in the majority of until now, city networking has remained rather the Central European countries. The communication limited as competition prevails over cooperation. between the two planning activities is quite weak. In Also, cross-border cooperation is often limited just the future, these two separated fields of planning to the areas near border crossings and they are should be integrated in a joint process. characterised more by gaps and disparities than by partnership. • Often there are contradictory approaches at the lower and intermediary institutional layers, due to the fact More specifically, vis-à-vis the small and medium- that the municipalities or the upper local/lower region- sized towns’ perspective, the following needs to be al level dealing with land use regulation lack a wider retained through the main RePUS messages: spatial vision of economic and urban development. There are inefficiencies and difficulties in dealing with The relevant policy priority in the Central and Eastern spontaneous phenomena such as suburbanisation European new member states is to catch up to the EU and urban sprawl, as there is a lack of broader strategic level and integrate with the overall European process plans which go beyond the territorial limits of of urban and regional development. Within this, a policy-makers at local level (municipalities). prominent policy role is attributed to the large cities and greater metropolitan regions. Nevertheless, the • Regional policy, urban policy and spatial planning, role of small and medium-sized cities should not be however well-developed they may be institutionally, underrated either. often tend to deal with the issues of spatial development separately, through their singular fragmented • Small and medium-sized towns deserve greater policies and instruments. However, these attention in regional and urban policy, both on the overlapping issues increasingly require that all national and trans-national scale: three areas of spatial management should be better connected and coordinated, both institutionally • Small and medium-sized towns constitute the and in operation and in awareness of the main body of the urban system and they can play interconnectedness and complexity of spatial processes. a crucial role in the catching up process for under- developed rural regions, • It is difficult to co-ordinate sectoral policies dealing with regional and urban development. The administrations • whereas large towns and cities and metropolitan dealing with individual sectors often underestimate regions are motors for spatial development, small the spatial effects of sectoral policies and the and medium-sized towns have a vital role in major development projects which derive from running and managing the settlement system 102 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 103

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• Small and medium-sized towns have special links accessibility, use of tools of place marketing and to large towns and cities, whereby they branding in order to stimulate tourist demand and supplement the urban functions of large towns last but not least, the provision of supplementary and cities, education, culture, production, distribution functions such as training, as well as bio-farming etc, depending on location characteristics and craft industry for local markets.

• The characteristics of geographical location and • The development strategies are to be based on the regional links are determinant for the development mobilisation of strengths and potentials. Therefore potential and role of small and medium-sized complexity, foresight and a pro-active, comprehensive towns. The differences in spatial relations thus approach are indispensable for policy making: involve the need for diversified policy approaches: • Change is a permanent phenomenon, which • Small and medium-sized towns in metropolitan/ results from globalisation and gives rise to high urban regions need to develop and strengthen their instability: this instability needs to be managed in special profiles, the specific roles which they perform order to benefit from it. Attracting foot-loose, mobile in the urban region (education, culture, trade or firms (such as assembly plants) is not a sustainable recreational tourism or special/high-tech industry). solution, unless the firms are locally rooted and The issue of managing suburban sprawl around major able to create clusters in their territorial proximity or centres needs to be addressed urgently. This may in the surrounding municipalities. require revisiting the existing roles and responsibili- ties of regions and municipalities in spatial management. • The enhancement of education and training is a Future regional cross-sectoral management of development permanent obligation for the maintenance of a in the growth pole hinterlands might include: competitive workforce and to ensure livelihoods for the local population. I. regional control over large-scale development proj- ects; • Redistribution of resources for the support of II. regional frameworks for local housing development deprived areas and municipalities will remain necessary. planning; However, this will be limited to basic equity issues, III. harmonisation with planning / development of as well as social care for those in need. transportation network, where rail-oriented development should be prioritised in metropolitan • The mobilisation of local /endogenous resources and regional-city regions. needs a creative approach and it can be oriented to a variety of areas such as cultural heritage, natural • Small and medium size cities in rural areas should assets, work traditions and willingness of action. retain their conventional function as local service centres accommodated to the new challenges, • In order to introduce spatial considerations in thus focusing among others on training and development policy, better coordination is needed marketing and service suppliers, as well as among existing institutions, namely regional policy supplementary employment functions. The / sectoral policies / spatial planning. economic base for the urban area (LLS) should be reasonably diversified to achieve a robust and, as • In the case of small and medium-sized towns, such, more sustainable pattern of development. local initiatives and the implementation of bottom- up, local policies is particularly important • The more or less isolated small and medium-sized industrial towns should focus on maintaining and • The national and regional authorities need to strengthening local firms, mobilising local ensure a suitable and appropriate scope for local entrepreneurship and developing local services policy actions: financial capacities, political, legal and a pro-active employment policy (with special power and institutional capacities. Empowering is regard to training and re-training) of special significance for the enhancement of creative action. • For the local centres in resort regions, resort centres, the main issue is environmental upgrading, • Local authorities cannot operate effectively in development of soft infrastructure, improvement of isolation. Dialogue between authorities, the 103 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 104

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exchange of views, experience and opinion is has not been completely achieved, as the gap that needed at different levels of the hierarchy. still exist between the Old and the New members is still relevant (see Fourth Cohesion Report, the • Good and mutually profitable public- private projections 2004 – 2024). Thus, the processes of partnerships can and should be developed locally restructuring and adjustment that characterise the by means of dialogue and co-operation with local economy and society from both perspectives, enterprises. both in terms of hard factors – such as industrial, services and infrastructural investments – as well • Public participation is an obvious requirement in as in terms of soft factors – such as innovation, up- local policies. The involvement of both permanent grading of education and qualification, new and temporary residents (second home owners) is knowledge-based diffusion activities – are still always useful for the development of community under way and they have a strong territorial spirit and to obtain public support. dimension. The re-location of resources and the search for efficiency gains have a robust impact • The development of co-operative structures is an on regions and towns and cities, which are essential contemporary condition of appropriate affected also by the speed of changes. The impact urban functioning. of such changes in the territory is very high and this moving framework dominated by newly • For small and medium-sized towns, the fostering created market mechanisms is modifying previous of horizontal linkages of inter-municipality “centres et peripheries”: the regions prospering in cooperation is of particular significance. Links to the past have lost significance and others are central cities is essential, but equally so is the slowly emerging, as resources go toward new cluster formation of towns and cities of similar size, sectors and locations. as well as intensive urban-rural relations.

• Cross-border cooperation is a relatively new 2. These processes of adjustments have brought element of urban functioning. Conditions for such about increasing polarisation around just a few poles, co-operation are improving along the borders both usually the capital metropolitan area. Regional with member states and neighbouring countries. disparities are increasing as concentration brings Small and medium-sized towns have special role increasing returns. This trend characterises to varying and broad opportunities in this process. degrees, all the new member states, particularly at this initial phase of market adjustment. At the same • Cooperation can extend beyond the immediate time, it is relevant to emphasise that important vicinity. Twinning and other co-operative arrangements changes in the European economic landscape are at a trans-national level are also possible and also taking place, as economic concentration in the fruitful between municipalities with common traditional Pentagon areas has been slowing down ground in terms of ethnicity, geography or culture. in relative terms, since the last decade (1995-2004) (Fourth Cohesion Report, 2007). This fact is due in part to the growing economic weight of additional metropolitan areas in the old cohesion members countries, i.e. Spain and Ireland, but it is also due to 4. Conclusions rapid growth of the new member’s capital cities, i.e. Warsaw, Budapest, Prague, Bratislava and Ljubljana. This confirms the fact that the strengthening of the The main results of the RePUS ‘s spatial analysis capital cities in the Central and Eastern European indicate some important findings, although for the economic context, is of utmost importance for complexity of multi-layer analysis, many aspects bringing higher growth and bearing up under require further in-depth study in order that phenomena increasing pressure from international competitiveness, which are difficult to be better understood. particularly in terms of price competitiveness. This is an essential pre-condition from the macro-economic 1. A changing background: the process of economic point of view for ensuring an adequate catching-up and social integration of the new member states with the advanced countries. However, excessive into the European economy is still ongoing and concentration brings the well-known phenomena of 104 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 105

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Map 51: Spatial vision: Development axes in the RePUS countries

Spatial vision: Development axes in the RePUS countries

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diseconomies and negative externalities, as prices and competitiveness – the winning strategy for inter- increase too rapidly and the impact on the national competitiveness – needs to be found. environment is highly negative. In addition to this, there is the typical phenomenon of mushrooming 6. Small towns are also extremely important, as they sprawl. This is why there is the need on one hand, can play an important role for social and economic to manage these processes in order to minimize the cohesion as secondary functions in the territory. negative effects with appropriate urban polices Their position in the urban settlement system measures, and on the other hand to favour the depends on the specificities of the framework in strengthening of second tier cities. which they lie: I. Small towns can have determinant roles as 3. Given the basic background with a less favourable diffused types of urban centres that contribute to the starting situation for all CEE areas (moderate process of economic integration from the bottom: density, different level of the economic performance their density and their location can be a factor that in absolute terms, some rigidities due to the urban facilitates the processes of diffusion of services heritage structures), the hypothesis of developing and improvement of standard of living in rural or an alternative model of spatial integration based sparsely populated areas. This is of particular mainly on small and medium-sized towns seems importance in the most peripheral areas, where unrealistic and is not well-grounded enough, there is absence of other major urban centres. based on the empirical evidence from the empirical II. Small towns in the hinterland of the large analysis. This requires a broader vision of the metropolitan areas have a peculiar function of entire settlement system as an integrated system, integrating labour market and secondary services where different tiers of urban areas find an appropriate functions. They also have a function in limiting place, but in a dynamic way and not in keeping with sprawl phenomena and sub-urbanisation of Christaller’s vision of rigid hierarchy. large metropolises. III. Highly specialised profiles can become a strong 4. On the base of the RePUS findings, second tier factor for competitiveness in the case of small urban areas have important potential that seems to towns, in terms of tourist function, recreational emerge even if at the beginning stage, that might areas, high technology or industrial-specific be strengthened in the medium – long term. Starting branches possibly giving rise to industrial and from the most promising indications, particularly service clusters. Specialisation becomes a for the large and medium-sized towns and cities, a condition sine-qua non for integration into an area strategy needs to be adapted which is central to and favours spin-off with adjacent towns or the the economic development of the countries and attraction of expansion of specialised services. ensures a certain diversified type of functions – mainly services. The expected increase in 7. Polycentric vision needs to be adapted as a consequence institutional decentralisation, up-grading of the and major area disparities to be addressed, as institutional and policy capacity of the Regions they can be costly in the long term. Towns and (NUTS 2 levels) might also give additional political cities acquire a strong role in particular in less powers to potential regional capitals. The polycentric urbanised areas, as they need to upgrade their strategy put forward in all the RePUS new member functions and attract investments, jobs creation states contributes to this goal and can become and services delivery. effective, as long as there is a clear combination of the two different focus target: the capital 8. The questions of accessibility and mobility should not metropolitan areas and its hinterland, and the be addressed in an isolated manner but in a way which large and medium-sized towns and cities. comprises an integrated vision, i.e. one not exclusively focused on hard investments, but also on efficiency 5. This suggest that a “dual track strategy” policy and modal system strategy development. Moreover, needs to be drawn up where, beside further increasing the improvement of the overall conditions for the the competitiveness of the capital city, there is a creation of endogenous growth factors at regional and second tier strategy adapted for the upper tiers of local levels are essential in order to fully exploit the the towns and cities of secondary importance, which expected increase in accessibility and avoid increasing needs to enjoy a certain “critical mass”. A good bal- the outflow of people, so reinforcing the decline of ance between cohesion – in the polycentric vision – peripheral areas or isolated towns and cities. 106 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 107

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Map 52: Spatial vision: Cooperation and Development areas in the RePUS countries

Spatial vision: Cooperation and Development areas in the RePUS countries

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9. An integrated approach should be adopted and practice learning; exchanges of experience in coherence and consistency between the sectoral spatial planning and development policy policies and spatial and urban policies should be strategy). ensured. The spatial context is more and more a determinant for successful policies, as soft and 13. Enhancement of cross-border co-operation remains hard factors interact reciprocally in the territorial central, as common historical and cultural back- context. grounds act as a motor for developing closer ties. The importance of different size urban centres is 10. The relevance of regionalisation and decentralisation: significant for identifying expected impact and the weak state of the NUTS 2 Regions, in the new relative importance: as locally based, daily member states, with the exception of Poland, commuting for service provision remains of local remain a critical issue, as regionalisation could importance, whilst more relevant co-operation with help the new member states to overcome excessive medium to large towns and cities represents a centralisation around capital cities and to improve critical mass for economic integration. allocation of resources in the countryside, as NUTS 2 ensure a higher economic and spatial One of the last areas which is part of the scope of the horizon, comparing with the lower scale, as NUTS RePUS project has been that of identifying a Potential 3, that remain too fragmented. The scale of the Economic Integrating Zone (PEIZ) on the base of the problems requires a broader vision, which goes potentialities identified in the course of the spatial analysis beyond a lower regional/ local perspective. The carried out by the project. A proposed vision for the role of the State in public policy management has PEIZ needs to be based on strong acquis and on the dramatically weakened since transition began. strongest potential areas identified. (See Map 51) The Regions could take on an important role for regulation and improving efficiency, provided that The synthesis map is an attempt to highlight some of enough institutional capacities exist. the indications that emerge from the RePUS finding: it is only intended to be a possible vision for future 11. To take advantage of the position of the Central and development of the Central and Eastern Europe areas Eastern European areas within the European in the long term. It has identified what is referred to as context – since it lies eastern side of the Pentagon, the PEIZ (Potential Economic Integrating Zone). Thus, it the dominant core areas of Europe, and on the does not reflect the situation at present, but rather West side, as intermediary for a larger integration proposes a dynamic positive perspective in the future. areas toward non-member states. The strengthening It is not a static and defined area, but rather it is a of economic ties with the Pentagon areas remains “system” where the actors are the town and city areas crucial in order to facilitate processes for creating – all types including large, medium and small – around spin-off: to improve the capacity of the large areas the main metaphorical axes of development, which go to compete. both vertically and horizontally in all directions.

12. To strengthen the diffusion of City Networking • The main development axes (in blue) in fact, are in both directions, horizontally (on the base more symbolic and only partially reflect the main of the same sizes) or vertically (on the base trans-European network. This is why they are not of specific targets but involving different a comprehensive representation of the real sizes cities/towns). the benefit of various transport network. The central axis which crosses cooperation schemes can be sensitive. City vertically all the areas (from Gdañsk to Milan and networks, both those based on proximity and beyond) indicates, in contrast to the transport those based on spatially distant partner axis, an idle median axis that is geometrically at ships can become a strong instrument for the middle of the areas where the four capital counter balancing excessive polarisation and cities (Warsaw, Prague, Budapest and Ljubljana) disparities. The involvement of different are located with Vienna and Bratislava at the centre. institutional layers, including regional and All the other large, medium and small towns and local (town or city) is important, as strategic cities are sparsely located all over the areas. The cooperation can bring an improvement of the other axes indicate horizontal integration, going integration and diffusion of experience and west and east: the arrows indicate the dynamic policy implementation efficiency (best visions as they move west toward Germany and Italy 108 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 109

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and further into the core of Europe (the Pentagon), cities and many small towns. and to the east, the Baltic, the new accession 4. Light Blue: North-South integration areas: from countries, i.e. Romania and the non-EU countries, Katowice-Cracow to Budapest for better central i.e. Russia and Ukraine. area integration. Large cities are close to small towns and there is strong potential for high urban • The idea of Central and Eastern Europe overcoming density in the two large metropolitan areas. the position of being a simple periphery of the Pentagon is fundamentally based on possible 5. Violet: Capital regions with future potentials:´ new connectivity and networking among the new a. Central Poland: Warszawa – Lódz – Poznan: member states’ capital cities, as accessibility to strong second areas in Poland with potential will improve in the near future. Also included in also for integration with weaker border areas the network are the other cities (urban areas) are the east and north. which structure the respective urban settlement system, in particular medium-sized cities. The b. Central Czech: Prague metropolitan areas numerous regional cities against the background integrating with north-west small to medium- of cooperation areas represent the strong potential sized towns and the regional capital, Plzen, for networking to overcome the excessive which is surrounded by German borders. There polarisation around the capitals, against the is potential in the future (there are disparities background of the sparsely or densely located inside these areas). small towns. (See Map 52) 6. Orange: large border areas with peripheral The second synthesis map presents the large problems: three different areas: areas of existing and potential cooperation (Map Two in Poland: Northern Poland / Eastern Poland 52), including cross-border, network potential, and one in the South of Hungary: there is potential main areas of urban density (large/medium/small for co-operation with countries further east and towns and cities) and proximity. There are critical new accession countries. There are several medium- areas where there is both the highest population sized towns and cities and many small cities in potential in term of size and density and the more Hungary, with important potential for local diffused type or more peripheral areas. The development. In Poland, these are more sparsely hypothesis is to identify large areas of potential located, with a few major isolated urban poles. co-operation on the basis of similar urban Here too, the balance between metropolitan areas, settlement structure and common spatial and large and medium-sized cities, and small towns is economic development problems. crucial for a spatial vision and a less hierarchical perspective. Integration of sub-urbanisation Main areas of co-operation for a policy-oriented strategy systems can facilitate effectiveness and efficiency.

1. Blue: Central areas (RePUS’ blue banana) North Six cooperation and development areas may also have Hungary up to Vienna –Bratislava, Czech Republic strategic importance, as they could be based on with Brno: most densely populated and with the common features and economic ties. The Central and greatest potential; many large urban areas Eastern European area thus demonstrates new (metropolises) plus medium-sized towns and opportunities for devising diversified strategies to cities (potential regional capitals), plus a large tackle the problems of territorial imbalances at number of small towns. different levels and by different priorites.

2. Pink: Southern Poland development axis including the Ostrava agglomeration: the second greatest potential with a strong centre in Kraków-Katowice- Opole-Ostrava (Upper-Silesian cluster).

3. Green: southern cooperation areas: Slovenia-Italy integrated with Austria/Hungary: new potential cross- border areas and improved accessibility, metropolitan areas, medium-sized towns and 109 repus_FINALREPORT.qxd 2007. 09. 20. 16:28 Page 110

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Government, Turin pp. 131-148 • DAVOUDI S. (2003) Polycentricity in European • Hamilton F.E.I, DIMITROVSKAˆ Andrews K., PICH- Spatial Planning: From an analytical tool to a nor- LER-MILANOVIC N. (2005) “Transformation of mative agenda, European Planning Studies, De- cities in central and eastern Europe: towards glob- cember, 8(11), pp. 979-999 alization”, Tokyo-New York-Paris: UNU Press

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