Myth and Reality: the Impact of Involving Funds on Regional Convergence

Abstract

The hope of catching up with economically better developed countries is not new in Hungarian public thinking.

The political propaganda prior to Hungary’s accession to the European Union (2004) formulated a promise and hope of fast economic convergence (both directly and indirectly).

The results are well-known. Our wishes that return cyclically have only been borne out by the facts superficially and partly so far, thus an increasing part of the population feels deceived. The great initial enthusiasm has been soon replaced by rapid disillusionment and disappointment, and the recognition that we have again held out excessive hopes. Now it seems that we had non-realistic expectations regarding EU membership (particularly regarding the funding from the various funds), which were far greater than what the order of supports might reasonably give rise to.
The paper endeavours to answer three questions:
• Has our economic performance (GDP growth), achieved as a result of our economic policy following Hungary’s accession and of the allocation mechanism as its part, a breakthrough of merit or has it only be sufficient for Hungary to be able to maintain its position to a greater or lesser extent?
• Can real convergence be maintained without regional convergence?
• What impacts have EU supports had on Hungarian regional convergence?