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Integrated Regional Development /Theoretical Textbook/ Integrated Regional Development /Theoretical Textbook/ Written by: Béla Baranyi University of Debrecen Faculty of Agricultural and Food Sciences and Environmental Management Edited by: Béla Baranyi Reviewed by: Gábor Zongor Hungarian Association of Settlement Local Governments Translated by: Krisztina Kormosné Koch University of Debrecen Faculty of Applied University of Pannonia Economics and Rural Faculty of Georgikon Development University of Debrecen, Centre for Agricultural and Applied Economic Sciences • Debrecen, 2013 © Béla Baranyi, 2013 2 Manuscript finished: June 15, 2013 ISBN ISBN 978-615-5183-85-0 UNIVERSITY OF DEBRECEN CENTRE FOR AGRICULTURAL AND APPLIED ECONOMIC SCIENCES This publication is supported by the project numbered TÁMOP-4.1.2.A/1-11/1-2011-0029. 3 TABLE OF CONTENT Introduction .............................................................................................................................. 6 1. The Objective, Content and Methodology of Regional Development ............................. 8 1.1. Integrated Regional Development ................................................................................... 8 1.2. Regional Sciences ......................................................................................................... 10 1.3. Integrated Regional Development and Related Definitions .......................................... 15 1.4. Control Questions .......................................................................................................... 17 1.5. Competence Developing Questions .............................................................................. 17 2. Content of Regional Policy ................................................................................................ 19 2.1. System of Relations between Regional Development and the Strategic Approach of Regional Policy .................................................................................................................... 19 2.2. Region Forming Factors – Self-regionalization, Regionalization, Regionalism .......... 22 2.3. Control Questions .......................................................................................................... 25 2.4. Competence Developing Questions .............................................................................. 25 3. Regionalization and Regionalism in the European Union and Hungary ...................... 27 3.1. The Short Summary of the Evolution of the European Union ...................................... 27 3.2. Objectives and Principles of Regional (Structural) Policy in the European Union ...... 28 3.4. The Regional Aid Policy of the European Union .......................................................... 33 3.4.1. The Conception and Development of the Regional Aid Policy ....................................................... 33 3.4.2. Comprehensive Objectives and Funds for Financing the Structural Policy ..................................... 36 3.4.3. Transformation of Structural and Cohesion Policies – Agenda 2000 .............................................. 40 3.5. Changes in EU Subsidy Policy in the Period of 2007-2013 ......................................... 44 3.6. EU Policy for Agriculture and Rural Development ...................................................... 49 3.7. Main Points of Regional Policy in Hungary ................................................................. 51 3.8. Control Questions .......................................................................................................... 54 3.9. Competence Developing Questions .............................................................................. 55 4. Barca Report – Paradigm-shift in the Cohesion Policy of the European Union .......... 56 4.1. The Aim and Content of Barca Report .......................................................................... 56 4.2. Ten pillars of the Barca-report ...................................................................................... 58 4.3. Control Questions .......................................................................................................... 61 4.4. Competence Developing Questions .............................................................................. 62 5. Less-favoured Areas in Hungary ...................................................................................... 63 5.1. Territorial Politics in Regional Dimensions .................................................................. 63 5.2. Regions’ State of Development, Regional Differences ................................................ 70 5.3. Characteristics of Disadvantaged, Peripheral Areas ..................................................... 76 5.4. Control Questions .......................................................................................................... 80 5.5. Competence Developing Questions .............................................................................. 80 6. Local Economic Development from Aspects of Regional Development ........................ 81 6.1. The Content of Regional Development and the Integrated Regional Development ..... 81 6.2. Local Levels of Regional Development – Small Regions, Settlements ........................ 84 6.3. The Means and Ends of Local Economic Development ............................................... 88 6.4. Local Economic Development in the Practice of the European Union ......................... 96 4 6.5. Contact Points between the Local Economic Development in the Regional Operative Programmes of National Development Plans ...................................................................... 98 6.6. The Regional Development Operative programme of the Northern Great Plain Region ............................................................................................................................................ 102 6.6.1 The Target System of the Strategic Programme ............................................................................. 106 6.6.2. Tourism Development Strategy for the Northern Great Plain Region ........................................... 110 6.7. Control Questions ........................................................................................................ 112 6.8. Competence Developing Questions ............................................................................ 112 7. Centre–periphery Relational System; the Theory of Polarization .............................. 113 7.1. Preliminaries to the Evolution of the Entre-periphery Relational System .................. 113 7.1.1. The New Division of Labour in Europe ......................................................................................... 113 7.1.2. The Centre-periphery System of Relations within the National Framework ................................. 115 7.1.3. The Characteristics and Consequences of Historical Development in the 20th Century ............... 117 7.2. Peripheries in Hungary ................................................................................................ 120 7.2.1. Internal Peripheries ........................................................................................................................ 120 7.2.2. The Development of Peripheries in the Great Hungarian Plain ..................................................... 121 7.2.3. External Peripheries – Existence at the Border and the Peripheral Situation ................................. 124 7.3 Expected Trends in Making the Disadvantaged Regions Close Up ............................. 126 7.4. Polarisation Theories ................................................................................................... 129 7.5. Control Questions ........................................................................................................ 131 7.6. Competence Developing Questions ............................................................................ 131 8. Hungary and Regional Competitiveness ................................................................. 132 8.1. The Major Factors of Regional Competitiveness ........................................................ 132 8.2. The Concept of Regional Competitiveness and its Characteristics ............................. 135 8.3. The Pyramid Model of Regional Competitiveness ..................................................... 139 8.4. Innovation Development and Regional Competitiveness in Hungary ........................ 140 8.5. Innovation potential in the Northern Great Plain region ............................................. 148 8.6. Control Questions ........................................................................................................ 156 8.7. Competence Developing Questions ............................................................................ 156 9. Thesaurus .......................................................................................................................... 157 Reference Literature ............................................................................................................ 171 5 Introduction Since Hungary joined the EU (May 1, 2004), the country has become not only an equal member of the continuously enlarging European Community but also a direct beneficiary of subsidies coming from regional policy. The most important strategic objectives of the latter one are the reduction of regional disparity, the moderation of the distinctions in development