National
Development Agency

Hungary is dramatically torn in two; some researchers suggest that this process has accelerated during the past two years. Many of our compatriots live in poor circumstances, in disadvantaged settlement zones often as large as a county, or isolated in village ghettos. These places are the hubs of rural poverty, where the vast majority of families live on social benefits and odd jobs. Not even the basic conditions of civilisation are ensured for these people, and breaking out of this situation has so far seemed hopeless. 10% of the country’s population, i.e. 1 million people, live in the 33 micro-regions that have been labelled as the most disadvantaged regions of the country on the basis of the objective data of the Hungary Central Statistical Office (KSH). Launching action that targets closing the gap can no longer be put off in these areas. In a solidarity-based society, the chasm between the „sunny side” of the country approaching the EU level and the „dark side” facing a hopeless situation day after day must not continue to widen.

By using EU funding, the Government is launching the New Hungary Closing the Gap Programme to stop the decline of micro-regions falling behind and in order to launch action targeting the closing of the economic and social gap. Therefore, the 33 micro-regions in the most difficult situation are the target areas of the programme.

Funding to the value of nearly 135 billion HUF has been allocated for this purposes and is directly available within the framework of the New Hungary Closing the Gap Programme. Micro-regions receive extra points in tender procedures also open to other applicants, may use a higher rate of EU funding per investment and less rigorous conditions apply in the case of these regions. The estimated joint impact of these resources is approximately 300 billion HUF.

Some of the approved specific developments target improving employability and the quality of life by extending the scope of local public services offered and undertaking explicit and quality developments; all this is undertaken via the mediation of non-governmental associations and organisations. Beyond this, it is naturally also necessary to endeavour to increase the economic performances of micro-regions. The programme encourages productivity increase in the specified regions, helps sustain or increase employment capacities, in addition to stressing the importance of extending the scope of production undertaken in households, as well as on micro-farms and smallholdings. Most of the most disadvantaged micro-regions are located in valuable natural areas, which values must nevertheless be preserved; this does not contradict the rational use of natural values. It is necessary to make essential infrastructure developments increasingly environmentally friendly and sustainable by using renewable energy resources. Moreover, it is equally necessary to improve physical access by building roads and implementing other transport investments, in addition to extending the scope of broadband Internet access. Managing to incorporate private capital in investments is especially relevant in the case of economic developments, which is why projects implemented via public and private co-financing are prioritised.

The councils of the multipurpose micro-regional associations make decisions on the complex closing the gap programmes; the Micro-regional Development Committees to be set up on 15 December will undertake the operational management of the local development procedure. Micro-level planning will commence in January together with experts; local development plans will be finalised in April, which set out the concepts of the micro-region specifying under which calls they intend to submit applications.

The government hopes that the development projects to be implemented will reduce pressure currently placed on the social welfare system, increase economic performances on the long run and that these developments will be sustainable 15-20 years from now.

The New Hungary Closing the Gap Programme ties in with EU sectoral and regional developments in several regards, in addition to the EU cross-border cooperation programme. From among the thematic programmes of the development plan, the Programme particularly ties in closely with the Children’s Aid Programme, which endeavours to establish equal opportunity for disadvantaged children living in deep poverty by implementing the programme „Knowledge Opportunity” targeting the re-integration of the poorest segments of society in the would of labour.

Allocated frameworks in operational programme breakdown (at an exchange rate of 248 HUF/EUR and 271 HUF/EUR)

Target area of the complex regional development programme (33 micro-regions)