The absorption ability and the situation of subregions in the North-Hungarian region compared to other subregions of Hungary

Abstract

The aim of the research carried out by the order of the Prime Minister’s Office, Office for Regional Development in 2003 is to create and test a method which could be used for measuring the absorption ability of subregions. We defined absorption ability as the receiving and locking ability of external capital in Hungarian subregional statistical-planning districts.
The theme was very up-to-date because by 2004 Hungary had to prepare for the reception of the Structural Funds and the correct, effective and efficient use of the 1100-1600 billion forints available for Hungarian subregions (6-8 billions for each). The basic questions were the following:
− Which factors determine and how can subregions’ ability of locking external capital be measured?
− How can Hungarian subregions be evaluated according to their absorption ability?
− What further steps must be taken to prepare?
Studying the relevant documents and special literature we stated that the ability of absorbing EU funds was equal with the ability of elaborating and implementing relevant, attainable, sustainable projects. The absorption ability of subregions depends on spatial factors, development capacity and the ability to enforce interests. These factors together form the complex spatial indicator of absorption ability, which was determined as a value expressing the closeness to the subregional absolute maximum point tied to the biggest subregional values
occuring in each indicator’s case.
The analysis of spatial factors of the absorption ability accomplished to Hungarian statistical subregions indicated that in the spatial formation of absorption ability the closest connection
could be proved with the indicators of being accessible and the present economic environment.
According to the complex development indicator describing the situation of subregions compared with each other, which was created from the indicators of subregional absorption
ability, the Hungarian subregions can be classified in three cathegories.
− The number of subregions with good (above 0,5) absorption potential is 42. Of these 18 constitutes the group of subregions with the best spatial factors.
− Average absorption potential characterizes 91 subregions.
− 17 subregions have weak absorption potential.
At the same time, the defined regional cathegories of the spatial development factors mark out
the target area of the subsidies which help achieving the goals of cohesion and sustainable development. On the basis of the development of absorption conditions, besides the usual
Budapest-Győr, Budapest-Balaton spatial structural axis, became important the Budapest- Kecskemét-Szeged and the Budapest-Miskolc axis. The significance of the Budapest-Pécs axis
decreased.
In the North-Hungarian region, according to spatial factors, subregions situated along the M3
motorway as a main spatial structural line (in close relationship with attainableness) are the most suitable to receive external economic resources. The Eger subregion is the 7th most attractive subregion in the country. This is followed by the subregion of Miskolc, Salgótarján and
Gyöngyös in the 21st, 22nd and the 28th place, respectively. Besides the areas which are far from the centres along the northern and eastern borderline and cannot be accessed easily, the
subregions of Szécsény, Balassagyarmat and Pásztó turn up as the inner periphery of the region.

The analysis of the coincidence of spatial production factors and the supportable objectives from the Structural Funds in the frame of the Hungarian National Development Plan between 2004 and 2006 revealed that a significant part of the measures did not contain geographical preferences at all, e. g. in these cases areas with more developed spatial factors would start with more chance. Among the measures, the rural development and some regional development
objectives are the ones which help definitively the disadvantaged areas. These cover the 10 percents of the total amount of money.
The results of the survey carried out in 15 sample subregion (3 of them are North-Hungarian) and former researches on assessing subregional development capacity reveal that the development of subregional development capacity has at least the same role in determining the
absorption ability as the spatial factors. There is no unambigous relationship between the development of subregional capacity and spatial factors. In the case of our sample, subregions
with the most developed development capacity are from the cathegory of the weakest spatial conditions. At the same time, nor can the reversed relationship be generalized.
The subregional development capacity is formed mostly by plan supply, the density of connections network, professionals supply and the financial background.
In the case of half of the associations lack of capacity can be expressed according to at least one
point of view. The most shortfalls are in the field of planning (despite the lively planning processes in the near past). Primarily not the programmes but the lack of the colourfulness of
those and the project plans built on them can be indicated.
The subregional development associations of the North-Hungarian region show strong dispersion which is similar with the national situation.
Beyond planning, on the basis of the other three main condition approximately the one-fourth of the associations need being developed.
Our recommendation is that capacity analysis must be carried out for every subregion. In this
process help the questionnaire elaborated by us and the marginal values created by the sample.
On the basis of the results of research the capacity-building plans are to be worked out for subregions. The elements of the plans:
− the development of organizational structure, documents needed for operating, list and system of conditions of rules
− description of planning processes
− information strategy
− human resource management, training plan
− financial strategy
General frames helping subregional absorption, which must be constructed and regulated centrally. The elements of these:
− the plan law, which regulates the process of programming, authority, harmonizing plans
− helping the creation and operation of national initiatives, forums, which build connections between subregional organizations and other participants of regional development
− carrying through the process of the institutialization of subregional development, determining the authority and the division of tasks among different types of institutions
− clearing up the legal status of subregional managers, accepting it as a job
− constructing the system of the vocational training of regional development
− constructing the national and regional subregional-development information system.