New Mechanisms for Integrated Territorial Development in Hungary

Abstract

Hungary is one of the main beneficiaries of the EU  Cohesion Policy, which aids the development of the regions lagging behind. As one of the policy’s main objectives is territorial cohesion, both the functioning  of the territorial delivery system and the role of the regional and local stakeholders have crucial importance. The paper presents and evaluates the regime Hungary uses for integrated territorial development: the territorial strategies devised by municipalities as integrated plans on the basis of a pre-set financial allocation, a pre-defined menu of measures and obligatory performance targets. The research explores the interactions between multilevel governance structures and effectiveness of delivery. The paper is based on a mix of desk research and fieldwork (desk research of publicly available data presented in official reports, documents and data from the Hungarian institutions and authorities and on the relevant EU and national legislation together with the result of interviews with  the local stakeholders and experiences of the authors) and it offers empirical experience on how this regime has been functioning and what the impacts are. The Hungarian mechanism implies a renewed system of domestic collaboration and increased territorial responsibilities. Despite similarities, it is a distinct mode from the ESIF territorial toolkit, and even with the establishment of  a dedicated financial framework for counties and cities with county rights, the decentralisation of the programming and implementation of ITPs have not been realised.