Conditions and tools of the catching up process of rural areas from European aspect – Return from an endogenous resource mobilising development approach to the redistributive subsidy policy in Hungary

Abstract

One of the important nodes of Éva G. Fekete’s wide research spectrum was territorial cooperation and integrated development, which she considered to be key factors for the development of small settlements and rural areas. These issues are still relevant today, as the concept of locality, endogenous development and the mobilisation of diverse stakeholder networks have gained central role in the European policy agenda. Likewise, the implementation of place-based development interventions has been recommended by the EU in the current planning period as an efficient tool to foster the catching up process of poorer regions. In Hungary, despite increasing territorial disparities, the significance of the place-based approach was not communicated by the government and its implementation was neglected.

This study argues that the development policy pursued by the EU and the Hungarian government bifurcate in two diXerent ways. Despite EU guidelines, the latter does not apply principles of the place-based approach and partnership when Vnanced from national sources. The study investigates and confronts the two development approaches and compares their means from theoretical and practical aspects by focusing on the institutional and regulatory framework, and their eXects. The study focuses on the analysis of the Hungarian Village Programme introduced in 2018, which has targeted all settlements with 5000 and less inhabitants. Data suggests that the programme is lacking the planning background and the integrated approach of domestic support allocation, and reveals the problem of centrally led development policy replacing local initiatives. The intervention does not take into account urban-rural linkages for problem solving and favours isolated local authorities, NGOs and churches.

The results of the study show that the tools used for reducing the backwardness of rural areas express a clear return to top-down resource allocation, while the implementation of multilevel governance method and transparency is missing. The analytical framework of the study is the place-based development approach, as well the principles of good governance and multi-level governance. In terms of processing methodology, it relies on the relevant literature and the author’s own research.