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From State Socialism to Global Capitalism: Budapest on the Way to Creative and Knowledge-Based Cities

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From State Socialism to Global Capitalism: Budapest on the Way to Creative and Knowledge-Based Cities From state socialism to global capitalism: Budapest on the way to creative and knowledge-based cities Pathways to creative and knowledge-based regions: Case Budapest ISBN 978-90-78862-01-7 Printed in the Netherlands by Xerox Service Center, Amsterdam Edition: 2007 Cartography lay-out and cover: Puikang Chan, AMIDSt, University of Amsterdam All publications in this series are published on the ACRE-website http://www2.fmg.uva.nl/acre and most are available on paper at: Dr. Olga Gritsai, ACRE project manager University of Amsterdam Amsterdam institute for Metropolitan and International Development Studies (AMIDSt) Department of Geography, Planning and International Development Studies Nieuwe Prinsengracht 130 NL-1018 VZ Amsterdam The Netherlands Tel. +31 20 525 4044 +31 23 528 2955 Fax +31 20 525 4051 E-mail: [email protected] Copyright © Amsterdam institute for Metropolitan and International Development Studies (AMIDSt), University of Amsterdam 2007. All rights reserved. No part of this publication can be reproduced in any form, by print or photo print, microfilm or any other means, without written permission from the publisher. 2 From state socialism to global capitalism: Budapest on the way to creative and knowledge-based cities Pathways to creative and knowledge-based regions: Case Budapest ACRE report [No.] Zoltán Kovács Tamás Egedy Zsuzsa Földi Krisztina Keresztély Balázs Szabó 3 ACRE ACRE is the acronym for the international research project Accommodating Creative Knowledge – Competitiveness of European Metropolitan Regions within the enlarged Union. The project is funded under the priority 7 ‘Citizens and Governance in a knowledge-based society within the Sixth Framework Programme of the EU (contract no. 028270). Coordination: Prof. Sako Musterd University of Amsterdam Amsterdam institute for Metropolitan and International Development Studies (AMIDSt) Department of Geography, Planning and International Development Studies Nieuwe Prinsengracht 130 NL-1018 VZ Amsterdam The Netherlands Participants: . Amsterdam (Amsterdam institute for Metropolitan and International Development Studies, University of Amsterdam, the Netherlands) Marco Bontje ~ Olga Gritsai ~ Heike Pethe ~ Bart Sleutjes ~ Wim Ostendorf ~ Puikang Chan . Barcelona (Centre de Recerca en Economia del Benestar – Centre for Research in Welfare Economics, University of Barcelona, Spain) Montserrat Pareja Eastaway ~ Joaquin Turmo Garuz ~ Montserrat Simó Solsona ~ Lidia Garcia Ferrando ~ Marc Pradel i Miquel . Birmingham (Centre for Urban and Regional Studies, University of Birmingham, UK) Alan Murie ~ Caroline Chapain ~ John Gibney ~ Austin Barber ~ Jane Lutz ~ Julie Brown . Budapest (Institute of Geography, Hungarian Academy of Sciences, Hungary) Zoltán Kovács ~ Zoltán Dövényi ~ Tamas Egedy ~ Attila Csaba Kondor ~ Balázs Szabó . Helsinki (Department of Geography, University of Helsinki, Finland) Mari Vaattovaara ~ Tommi Inkinen ~ Kaisa Kepsu . Leipzig (Leibniz Institute of Regional Geography, Germany) Joachim Burdack ~ Günter Herfert ~ Bastian Lange . Munich (Department of Geography, Ludwig-Maximilian University, Germany) Günter Heinritz ~ Sabine Hafner ~ Manfred Miosga ~ Anne von Streit . Poznan (Institute of Socio-Economic Geography and Spatial Management, Adam Mickiewicz University, Poland) Tadeusz Stryjakiewicz ~ Jerzy J. Parysek ~ Tomasz Kaczmarek ~ Michal Meczynski . Riga (Stockholm School of Economics in Riga, Latvia) Anders Paalzow ~ Diana Pauna ~ Vjacheslav Dombrovsky ~ Roberts Kilis ~ Arnis Sauka . Sofia (Centre for Social Practices, New Bulgarian University, Bulgaria) Evgenii Dainov ~ Vassil Garnizov ~ Maria Pancheva ~ Ivan Nachev ~ Lilia Kolova . Toulouse (Interdisciplinary Centre for Urban and Sociological Studies, University of Toulouse-II Le Mirail, Toulouse, France) 4 Denis Eckert ~ Christiane Thouzellier ~ Elisabeth Peyroux ~ Michel Grossetti ~ Mariette Sibertin-Blanc ~ Frédéric Leriche ~ Florence Laumière ~ Jean-Marc Zuliani ~ Corinne Siino ~ Martine Azam . Milan (Department of Sociology and Social research, University degli Studi di Milan Bicocca, Italy) Enzo Mingione ~ Francesca Zajczyk ~ Elena dell’Agnese ~ Silvia Mugnano . Dublin (School of Geography, Planning and Environmental Policy, University College Dublin, Ireland) Declan Redmond ~ Brendan Williams ~ Niamh Moore ~ Veronica Crossa ~ Martin Sokol 5 Contents 0 Executive summary...................................................................................................9 1 National background ..............................................................................................11 1.1 Demographic context and socio-demographic structure..........................................11 1.2 Economic development..........................................................................................13 1.3 Urban context ........................................................................................................15 1.4 Creative industry and knowledge economy ............................................................18 1.5 Summary ...............................................................................................................19 2 Introduction to the Budapest Metropolitan Region (BMR)..................................20 2.1 Geographical context .............................................................................................20 2.2 Demographic context.............................................................................................21 2.3 Main economic specialisations...............................................................................23 2.4 Position in European networks and hierarchy.........................................................24 2.5 Summary ...............................................................................................................26 3 Historic development path in the Budapest Metropolitan Region........................27 3.1 Historic development path before 1950..................................................................27 3.1.1 Population structure .........................................................................................27 3.1.2 Industrial structure ...........................................................................................28 3.1.3 Governance/policies..........................................................................................28 3.1.4 Social polarisation............................................................................................29 3.1.5 Physical infrastructure/layout of the city ...........................................................30 3.2 Historic development between 1950 and 1990 .......................................................31 3.2.1 Population structure .........................................................................................31 3.2.2 Industrial structure ...........................................................................................33 3.2.3 Governance/policies..........................................................................................36 3.2.4 Social polarisation............................................................................................37 3.2.5 Physical infrastructure/layout of the city ...........................................................38 3.3 Development path in the Budapest Metropolitan Region between 1990-2000 ........39 3.3.1 Introduction ......................................................................................................39 3.3.2 Population structure .........................................................................................39 3.3.3 Industrial structure ...........................................................................................41 3.3.4 Governance policies..........................................................................................44 3.3.5 Social polarisation............................................................................................45 3.3.6 Physical infrastructure / layout of the city .........................................................47 3.3.7 Tolerance, openness, diversity...........................................................................49 3.4 Summary ...............................................................................................................50 4 Current situation in the Budapest Metropolitan Region (2000-2007) ..................51 4.1 Recent economic development...............................................................................51 4.2 Growing and declining economic activities and evaluation of labour force.............54 4.2.1 Growing economic sectors ................................................................................54 4.2.2 R+D activities in Budapest................................................................................55 4.2.3 Innovation infrastructure ..................................................................................55 6 4.2.4 Tourism.............................................................................................................56 4.2.5 Cultural economy..............................................................................................57 4.2.6 Bank sector .......................................................................................................58 4.2.7 Labour force .....................................................................................................58 4.2.8 Higher education ..............................................................................................59
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