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Least Developed Micro-regions Programme
Targeted EU Funds for 33 Least Developed Micro-regions in Hungary
A complex development programme which is not only about money but a more effective use of funds
Even if the most depressed (deprived) micro-regions of Hungary received funds above the national average within the framework of the first National Development Plan between 2004 and 2006, it was not even enough to stop the arrears of these areas. In certain cases no funds at all reached the most depressed settlements. The Hungarian Government has therefore decided to launch a complex development programme in late 2007 for the 33 most depressed micro-regions.
Background
Unemployment, deep poverty, village ghettos, segregation and discrimination characterize the most depressed micro-regions in Hungary where ten percent of the population and nearly one third of the Roma population live. Within the framework of the first National Development Plan between 2004 and 2006, these depressed micro-regions received financial support by 20 percent above the national average. However, money was not enough to change the lives of the 33 micro-regions. It was mainly due to the rigidity of the application system towards complex development, creativity as well as its rather formal decision-making system. As a result, the relatively more advantageous settlements and social groups were more successful in the application.
A complex development programme targeting the most depressed micro-regions
In late 2007, based on economic, social and infrastructure indicators, the Hungarian Government defined the 33 most depressed micro-regions and decided to launch a specific, fairly complex scheme to develop them. A financial envelope, including monies from various operational programmes of the New Hungary Development Plan was set for each micro region in the new programming period of 2007-2013.
The idea was to provide guidance for these micro-regions to learn how to make the best of their opportunities with the help of a complex development programme, lessen the administrative burden and the incidentality of the existing programmes. In the new scheme therefore most depressed micro-regions did not have to compete for funding with the more developed micro-regions, but they were to meet highly qualitative requirements by submitting a strategy and a package of interrelated projects against the financial envelope dedicated for them each. In the planning work they were assisted by dedicated consultants who were to guide applicants to define development objectives on the basis of local stakeholders’ agreement. The involvement of local governments, institutions, Roma organisations, NGOs and enterprises was considered as a high priority and a very important tool to produce more coordinated plans, carry out more coherent developments and strengthen local cooperation.
Various funding sources – technical assistance funds for the implementation
A major part of financial resources of the programme – altogether around 360 million euro – are provided by the Regional Development Operational Programmes (RDOP, financed by ERDF), the Social Renewal Operational Programme (SROP, ESF) and the Social Infrastructure Operational Programme (SIOP, ERDF), and are fixed for each micro region. Another 90 million euro in the framework of the Economic Operational Programme has been allocated for the development of enterprises. The selection of the planning experts was financed from funds allocated from the State Reform Operational Programme and the anti-segregation experts from the Implementation Operational Programme. To avoid distortions in the allocation of funds for the various micro-regions resources have been distributed among them based on the following criteria: 1/3 of the money has been evenly distributed, 1/3 according to the number of inhabitants (the population of the 33 micro-regions is between 11-72 thousand people), 1/3 according to the number of settlements (the number of settlements in the 33 micro-regions is between 4-49). As the three priorities of strategy making were economic development-employment, education-children’s opportunity and Roma-integration micro-regions could dedicate 3/4 of their allocated funds to infrastructural projects (ERDF) and at least 1/4 of allocated funds to „soft’” projects such as training, education, employment or health care (ESF).
To enhance the implementation, a dedicated programme office has been set up in the National Development Agency (NDA), which has been financed with technical assistance funds.
Planning, selection and implementation
As a result of an intensive planning process organized by the micro-regional working groups and involving more than 5 thousand local stakeholders, the planning document and the package of draft project proposals were approved on a micro-regional level and eventually submitted to the National Development Agency. Around 700 project proposals were preliminarily approved by the selection committee including representatives of the Regional Development Agency, relevant ministries, the NDA and at least one non-governmental expert. Project owners had then to elaborate project packages in detail according to planning guides which were published in late spring 2008 by the managing authorities, and then submitted to the relevant intermediate body for control. Once finally approved, the implementation of projects may commence in the fourth quarter of 2009.
Major challenges and plans for the future
Programme coordinators of the NDA have had to face several difficulties and found that the major challenge of the programme has been to motivate people to involve all local stakeholders in the strategy and project planning process. As for the future, the programme office has lots of ideas to contribute to the development of the micro-regions. For example, they are building up long term co-operation between regional universities and micro-regions. There are already 4 micro-regions “adopted” by a regional university and given voluntary assistance that they are in a big need. Corporate social responsibility (CSR) is another area where several actions have taken place. The National Development Agency took a leading role in this by offering 65 of its replaced computers for two educational institutions in the related micro-regions and Microsoft Hungary joined the action by donating the software licence to enhance digital skills of children. Hopefully other organizations and business actors will follow them to contribute to the success of the programme.
National Development Agency Hungary
The project was co-financed by the Structural and Cohesion Funds of the European Union.