Implementation of regional development funds in Baranya county

Abstract

ABSTRACT: Baranya may be considered as a particular county, in many respects. Due to its specific economic structure it was seriously affected by economic transformation during the regime change. While in the 1990s it presented a relatively promising picture, the Yugoslav war, the lack of foreign direct  investments all contributed to the county's marginalisation, which was exacerbated by the fact that it did not benefit from the economic upturn following the 2008 economic crisis. The lack of capital inflow made EU funds a key factor in the development of the county.

For the evaluation of the county, the study examines the territorial pattern of the use of resources in the framework of the European Union's cohesion policy. The study analyses the application activity and the amount of funds granted along three main questions: 1) How has the support of more and less developed regions (districts) changed in Baranya in the two programming periods compared to the national trends? 2) How has absorption by size of municipality changed in Baranya county over the two programming periods compared to national figures? 3) Which priorities are emphasised in Baranya county in the different development districts and settlement
size categories according to the data of the county ITP projects?

The introductory part of the study briefly outlines the development path of Baranya county since the regime change, followed by an overview of the county's development documents, mentioning also the most significant changes in public law and institutions.  Following the presentation of the issues addressed and the methods used, the absorption of EU funding in Baranya county is analysed, as a complementary to two studies already published in the context of this research (Finta 2022; Pámer 2022). Comparative analysis is provided on EU funding used and paid in the 2007-2013 and 2014-2020 periods, according to the development level of districts and settlement-size categories. This overview is followed by a detailed analysis of the thematic (priority) distribution of resources in Baranya county under the Territorial and Settlement Development Operational Programme, 2014-2020. The final section makes proposals for further development of the county-level development policy, enhancing its place-based features.

The most important finding of the study is that although the share of funding allocated to relatively more developed districts and larger settlements has decreased nationally in the 2014-2020 compared to the previous period, Baranya county provides a mixed picture. The share of funding in Baranya county provided to districts to be developed with a complex programme and the funding provided to the smallest settlements is lower than the share of these districts and settlements within the county, so the principle of concentration is not applied at district level. The projects implemented by individual municipalities do not necessarily respond to local challenges, nor contribute to the catching-up of peripheral areas.