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Banskobystrický Region - Case Study Report BANSKOBYSTRICKÝ REGION - CASE STUDY REPORT (WP6, Task 3) Ján Buček Ján Buček Department of Human Geography and Demography Comenius University, Bratislava, Slovakia March 2014 The research leading to these results has received funding from the European Union's Seventh Framework Programme (FP7/2007-2013) under grant agreement “Growth-Innovation-Competitiveness: Fostering Cohesion in Central and Eastern Europe” (GRNCOH) 1 1. INTRODUCTION This report had been prepared within GRINCOH project conducted in selected regions of Central and Eastern European countries. In wider terms it reflects the development in Banskobystrický region after 1989, but with special attention to period after the accession to EU and with respect to the global financial crisis impact. It attempts to reveal transformation problems as well as strengths and weaknesses in its regional development, regional policy and use of EU SF support. It is strongly influenced by city region concept, focusing on the role of key city of Banská Bystrica and its neighbouring city of Zvolen. This report is based primarily on standard statistical data, documents and publications available, enriched by 11 in-depth interviews carried out with representatives of institutions active in social and economic life of the region. 1.1. History and location Banskobystrický region (in Slovak – Banskobystrický kraj) is located in southern part of central Slovakia, also as border region with Hungary. It is the largest region of the country (9 454 km2), only Prešovský region in the north-eastern Slovakia (8 973 km2) is the comparable one in terms of territory. The territory of region is composed by contrasting mountain (e.g. about 2000 metres in Nízke Tatry mountains) and valleys areas with large territory covered by forests. Basic level of spatial organisation of region includes 516 local self-governments. Within this number we can find 24 cities and 492 rural self-governments. Total number of population living in cities exceeds 350 thousand (2012). The two largest cities are Banská Bystrica (almost 80 thousand inhabitants) and Zvolen (more than 40 thousand cities), both located in north-west of region. The largest cities in south east part of region are Lučenec (28 thousand inhabitants) and Rimavská Sobota (24 thousand inhabitants - 2012 ). As a result of historical development, we can find also small towns in this region, with population below 5000 inhabitants (e.g. Dudince, Veľký Krtíš, Jelšava). Key urbanised area of the region is Zvolen basin concentrating within distance of about 20 kilometres cities Banská Bystrica, Zvolen and Sliač (spa city with about 5 thousand inhabitants). Road distance to Bratislava is 210 kilometres (motorway), to Košice 200 km, to Budapest 180 km, to Vienna 270 km and to Warsaw 500 kilometres. There is one international airport (Sliač), at present without regular passenger flights. Main railway node in region is Zvolen (especially in west, east and north direction). Banskobystrický region delineated in its current territorial framework in 1996 (see Figure 1) is composed by set of smaller historical regions (or their parts). It is important to mention that region has long lasting tradition of economic activities that substantially influenced the economic development of historical Hungarian and Austro-Hungarian states. While in Middle Ages it was significant territory thanks mining concentrated into set of cities (gold, silver, copper – e.g. Banská Štiavnica, Kremnica), this region also substantially contributed to early industrialisation of that time Hungary (mining, metallurgy – regions alongside Hron River, south east region - Gemer). During interwar Czechoslovak Republic region had been marginalised in economic terms. Regional economy lost its traditional links to the rest of former Hungary and faced new competition within newly established Czechoslovakia, with its well economically developed western part of country. The economic structure of region substantially had changed socialist industrialisation with large 2 investments in various kinds of industry that spread across whole current Banskobystrický region. However, this outcome of planned ecconomy structure emerged as very vulnerable during post- socialist market economy conditions. Historically, this region also had positively influenced its traditional links to northern Hungary and Budapest, especially in its southern parts, multiplied by presence of Hungarian minority (e.g. regions around cities Lučenec, Rimavská Sobota, Fiľakovo). Figure 1 Territorial division of Slovakia according to regions. 1.2. Basic socio-economic characteristic With a population number of 658 490 (2012), it is only fifth among all Slovak regions. It means that although being the largest Slovak region from the point of view of territory, population density representing a value of 70 inhabitants per km2 is the lowest one in interregional comparison (2012, Slovak average is 110 inhabitants per km2). Demographic situation can be regarded as the one of the decisive factors underlying socio-economic development of any territory. As a crucial aspects we can emphasize ageing and migration, as well as ethnicity and educational structure of population as very important. Age structure of population as very important indicator concerning the development prospects of the region is represented by ageing index. Ageing index of population has been continuously growing in all regions of Slovakia (Figure 2). Compared to the national average, the population of the Banská Bystrica region is slightly older. Within the Banskobystrický region, quite significant differences in the age structure of the population can be seen as well. In this region, older cohorts are concentrated mainly in the districts with the largest towns, namely Banská Bystrica and Zvolen, along with the adjacent district of Žiar nad Hronom located in the northwestern part of the region. The younger population occupies areas especially in the southeast of the region. 3 The second important demographic process that is strongly linked to social and economic development it is migration. Banskobystrický region, altogether with Prešovský region have the worst out-migration numbers among Slovak regions. Banskobystrický region is losing each year hundreds of its inhabitants by migration (e.g. about 900 inhabitants in 2012), especially in favour of more developed region (with the highest flow to Bratislavský region). However, total out-migration we can only hardly estimate according to official data. While in south east part of the region is very important outflow of young people, in western part it is problem of very qualified young people that follow better employment opportunities in other regions or in abroad. This region belongs to region with the highest number of people working abroad. Figure 2 Ageing index according to districts in Slovakia (2012) Source: Statistical Office of the Slovak Republic. Banskobystrický region is ethnically diversified. There is observed the third highest share of Hungarians (10.2%) and Romanies (2.4%) in Slovakia (2011) according to regions. For Romanies, it is necessary to mention that due to their unwillingness to confess their own ethnicity in Census, their genuine number is estimated to be at fourfold higher level in fact. Therefore, it can be assumed that minority ethnic groups compose about one fifth of the total regional population. The greater territorial representation of Romanies is registered in the eastern and southern part of the region. The territorial concentration of Hungarian minority spreads in southern parts, alongside the state border with Hungary. The educational attainment of population living in Banskobystrický region is characterised by above average share of inhabitants with primary education, and on the other hand, with relatively low 4 percentage of the persons with tertiary education. Proportion of population with secondary education is almost identical to the national average. When assessing the religious situation in the Banská Bystrica region we can state that right after the Košice region, there is the second lowest proportion of Roman Catholics observed (54.8%, 2011), which is mainly due to the highest regional proportion of believers grouped in Evangelical Church of Augsburg confession (10.6%), and just after the Bratislava region there is also the second highest territorial concentration of undenominational persons (16.6%). Compared to the other regions, unemployment rate is permanently the highest one, currently exceeding the level of 20%, in Banskobystrický region. Along with two regions of Košice and Prešov, it defies the national average and lags significantly behind other parts of the country. At the turn of the millennium, the unemployment rate in Banská Bystrica region even attacked the threshold of 25% (23.8% in 2002). Afterwards thanks to more positive economic development, unemployment rate had been reduced by almost ten percentage points, to below level of 15% (14.1% in 2007). However, following the outbreak of the global economic crisis, unemployment began to grow and was approaching the 20% level. The problem of this region is not only traditionally highest regional unemployment rate, but also the fact that in times of positive economic period, decrease in the number of people out of work is of the slowest rate right here. In this respect, the Banskobystrický region can be divided into south and east struggling with 25-35% unemployment rate (e.g. districts of Rimavská Sobota, Revúca, Poltár, Veľký
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