Lelkes Gábor Regional development policy

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1 Lelkes Gábor Regional development policy and strategies in Slovakia RTT - MTT konferencia Szabadka,

2 Regional development policy and strategies in Slovakia Fórum Kisebbségkutató Intézet Gábor Lelkes

3 the surface small country [ km²] with 5.4 million inhabitants, largest city is its capital, population of Bratislava is approximately 0.5 million the growth of macroeconomic efficiency of the Slovak economy is enormous influence of economic reforms realized after 2002 [reforms of tax system - flat tax of 19% (income, VAT) decreased taxation of companies and employees markedly, social system, pension system, labour market, public administration with fiscal decentralization] boosted up inflow of the FDI Slovakia is seen as a country, which has currently one of the most favourable business environment in the CEE GDP growth 7-8% [2-3 times higher compared to the EU average] automobile industry [VW, Peugeot, KIA], electronics industry [Samsung, SONY] the European Central Bank (ECB) and the European Commission on Wednesday, May 7th, decided, that Slovakia meets the necessary conditions needed to adopt the common European currency, the euro, from January 1st, 2009

4 beneath the surface North vs. South West vs. East

5 strong regional contrasts regional gross domestic product (PPS per inhabitant in % of the EU-27 average) NUTS EU (27 countries) Bratislavský kraj (Bratislava Region) Západné Slovensko (Western Slovakia) Stredné Slovensko (Central Slovakia) Východné Slovensko (Eastern Slovakia)

6 unemployment rate on the NUTS 4 level on the eve of the EU accession (30 th April 2004)

7 unemployment rate on the NUTS 4 level 2 years after the EU accession (30 th April 2006)

8 unemployment rate on the NUTS 4 level 4 years after the EU accession (31 st March 2008)

9 WHY? WHY? WHY? Complex of factors determining success of regions geographical position [western regions are closer to the developed Western Europe and to Bratislava] population structure [population aging - median age higher than in northern Slovakia, population density rural character, not competitive educational structure, brain drain, in eastern part of the region there is a concentration of marginalized ethnics groups - Romani people - 1/10 of the population of the region (100 thousand)] settlement structure small villages [population under 1000], lack of cities with over 50 thousand population economic basis agriculture and food industry collapsed, lack of FDI, high unemployment, low salaries [400 EUR vs. 700 EUR] infrastructural equipment [not adequate, accessibility - lack of modern technical infrastructure, especially roads] institutional environment underdeveloped NGO sector political environment development strategy, decentralisation level

10 political strategical environment after the World War I Southern Slovakia became disfavoured area regarding state investments because of the Hungarian minority living there governments were feared of the losing of this territory, so they has mainly supported developing the areas inhabited by Slovak people for 8 decades [ ] regional development was still characterized by top-down approach europeanization of Slovakia started just in autumn 1998 [after the falling of the dictatorial V. Mečair's government] the first steps towards the decentralized coordination of the regional development were made in 1999 [MCRD] boom of cross-border activities, RDAs in year of radical reforms: law about the support of the regional development, law about the establishment of the regional self-governments on the NUTS 3 level they have a strategic position in the regional development conception of the space development policy of Slovakia

11 NUTS 3 levels / regional selfgovernments irrational division

12 development axes (defined by the space development program in 2001)

13 The future? summer 2006 changes in the priorities of the regional policy the end of the fair regional policymaking by the representatives of the central government [Transparency International Slovakia - public opinion surveys demonstrate that people recognize corruption as one of the major problems they encounter]. regardless of the current central government there are some basic tools to support development in Slovakia bottom-up approach bottom-up approach KING ARTHUR idea: regional roundtables - communication, cooperation between the local and regional self-governments, economic, social and nonprofit organizations [is crucial to crafting sound regional strategies, identifying unique competitive advantage of regions - founded on their distinct economic assets] cross-border cooperations intersettlement, interregional and interinstitutional cooperations NOT TO THINK JUST WITHIN THE FRAMEWORK OF THE TERRITORY OF SLOVAKIA self-confidence and marketing Cash Is King, But Marketing Is Everything!

14 Thank you for your attention.

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