ROLE OF THE NETWORKS IN A COHESIVE, COMPETITIVE AND SUSTAINABLE EUROPE Tamás Fleischer Hungarian Academy of Sciences Centre for Economic and Regional Studies Institute for World Economics Entretiens Economiques Européens (EEE) Fifth round table: The implementation of projects on the territories and the articulation with a European dynamic of cohesion and sustainable development The revival of the social and economical dialogue for employment and training, industrial imperatives and competitiveness Bologna, Italy, October, 30-31, 2012

ROLE OF THE NETWORKS IN A COHESIVE, COMPETITIVE AND SUSTAINABLE EUROPE (AS SEEN FROM EASTERN CENTRAL EUROPE) Tamás Fleischer Hungarian Academy of Sciences Centre for Economic and Regional Studies Institute for World Economics Entretiens Economiques Européens (EEE) Fifth round table: The implementation of projects on the territories and the articulation with a European dynamic of cohesion and sustainable development The revival of the social and economical dialogue for employment and training, industrial imperatives and competitiveness Bologna, Italy, October, 30-31, 2012

Role of the networks in a cohesive, competitive and sustainable Europe (AS SEEN FROM EASTERN CENTRAL EUROPE) Investing in Europe’s future: Fifth report on economic, social and territorial cohesion. Chapter I: Economic, social and territorial situation and trends. p. 12. © European Union, offic/official/reports/cohesion5/pdf/5cr_en.pdf offic/official/reports/cohesion5/pdf/5cr_en.pdf

4 The main message of the contribution in theses (1) While we deal with territorial issues and networks, the spatial dimension of the sustainability also has to be underlined besides the frequently mentioned temporal dimension (2) The internal networks are the basis of a region’s operation, competitiveness. It helps to reserve the structure and the existing connections within the region (3) External access to/from a region is very important, but the positive effects can reach the given region only if the internal transmitter elements are existing and the region is able to adapt these effects (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries (5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap Role of the networks in a cohesive, competitive and sustainable Europe

(1) While we deal with territorial issues and networks, the spatial dimension of the sustainability also has to be underlined besides the frequently mentioned temporal dimension 4 UN Bruntland report (Our Common Future 1987) definition of sustainable development “meets the needs of the present without compromising the ability of future generations to meet their own needs” 4 The general sustainability approach focus on the time dimension of sustainability; taking care on the environmental conditions of the future generations (inter-generational solidarity) 4 Also important to speak about the spatial conditions of sustainability as spatial solidarity and spatial interdependence - or intra-generational solidarity and spatial self-defence 4 Spatial extension – intra-generational solidarity / defence „development, that meets the needs of those living here without compromising the ability of those living elsewhere to meet their own needs”

4 Inter-generational connection is a one-way relation: our responsibility for future generations, - they can’t do anything for us... 4 Intra-generational relation is a two-ways relation: the activity of others can also effect our circumstances and possibilities. We have to count on their solidarity, but this is not enough, we must also do for defending our environment. Sustaining our activity in a changing environment besides the solidarity we need also a kind of self-defence. 4 Sustainability is also a fight for control over space out of control over time. “Space of places must retain its autonomy and its meaning independently from the evolution and dynamics of the space of flows” (M Castells) (1) While we deal with territorial issues and networks, the spatial dimension of the sustainability also has to be underlined besides the frequently mentioned temporal dimension

4 The key concept: „space of places” and „space of flows” (Castells, Manuel 1996 The Rise of the Network Society - The Information Age). 4 Space of places is our physical environment that has meaning and importance for us, with its order, culture, rules, and internal structures. Space of flows is the field of force: the effects arriving from outside. This latter is not a continuous space, but space of individual effects. 4 Castells do not want to exclude external impacts and do not deny the possibility of internal changes, just underlines that too rapid and too sudden external effects not serve, but rather disintegrate internal relations and structures. - defence is needed against. (1) While we deal with territorial issues and networks, the spatial dimension of the sustainability also has to be underlined besides the frequently mentioned temporal dimension

What do the network can do? Provision, accessibility, transit, by-passing 4 Above terms can be translated to economic and transport relations using terms as provision, (connections of the ‘space of places’) and. accessibility, through traffic and by-passing. (trajectories of the ‘space of flows’) Different network relations relative to a region Source: After Plogmann (1980), with own additions

(2) The internal networks are the basis of a region’s operation, competitiveness. It helps to reserve the structure and the existing connections within the region. Provision, accessibility, transit, by-passing 4 P1 The existence of a proper internal network is the precondition of the harmonised operation of a region. 4 A main target of the transport is not the “good transport” in itself -- but to make prosperous the world of the starting and destination points in a region. 4 The physical networks of a region reserve the paths of earlier connections as a memory, and make easier to sustain or create again similar relations.=>

Source: Ray, Violette: (1991) Borders versus Networks in Eastern Central Europe. Flux, Vol.1. No.3. The different network patterns of the western and the eastern side of the Polish railway network (2) The internal networks are the basis of a region’s operation, competitiveness. It helps to reserve the structure and the existing connections within the region. Provision, accessibility, transit, by-passing

Source: Gorzelak G – Jalowiecki B (2002) European Boundaries: Unity or Division of the Continent? Regional Studies, Vol.36. No.4. The 20% of Polish gminas with lowest own income per capita, 1998 (2) The internal networks are the basis of a region’s operation, competitiveness. It helps to reserve the structure and the existing connections within the region. Provision, accessibility, transit, by-passing

4 P2 The pattern of the internal structure determines, whether a given region becomes prosperous. 4 In case of strictly hierarchical structures the nods are in key positions as the flows are not able to avoid them. The consequences are rigidity, vulnerability and the lack of flexibility. 4 The importance of a grid structure is, that different points of a region are helped to be at a more equal position, that is it decreases (and not increases) the differences owing to their position.=> (2) The internal networks are the basis of a region’s operation, competitiveness. It helps to reserve the structure and the existing connections within the region. Provision, accessibility, transit, by-passing

The distinction between centripetal and centrifugal networks Source: Rodrigue, J-P ( ), Dept. of Economics & Geography, Hofstra University (2) The internal networks are the basis of a region’s operation, competitiveness. It helps to reserve the structure and the existing connections within the region. Provision, accessibility, transit, by-passing

4 A1 The multi-directionality and multi-laterality of the accessibility is of basic importance for the development of a region. => 4 A2 Among the external relations a difference has to be taken between large scale backbone relations (linking regions by corridors) and neighbour relations. (an extension of the internal provision relations) 4 A3 The symmetry or the asymmetry of the impacts depends on the difference in the development of the interconnected regions. Interconnecting to each other developed and less developed regions, it is to be considered that what measure and tempo of the external changes is bearable for the less developed structure. (3) External access to/from a region is very important, but the posi- tive effects can reach the given region only if the internal transmitter elements are existing and the region is able to adapt these effects. Provision, accessibility, transit, by-passing

4 A1 The multi-directionality and multi-laterality of the accessibility is of basic importance for the development of a region. => 4 A2 Among the external relations a difference has to be taken between large scale backbone relations (linking regions by corridors) and neighbour relations. (an extension of the internal provision relations) 4 A3 The symmetry or the asymmetry of the impacts depends on the difference in the development of the interconnected regions. Interconnecting to each other developed and less developed regions, it is to be considered that what measure and tempo of the external changes is bearable for the less developed structure. … Demolishing the fences between the lion’s and the zebra’s hurdle in the zoo (3) External access to/from a region is very important, but the posi- tive effects can reach the given region only if the internal transmitter elements are existing and the region is able to adapt these effects. Provision, accessibility, transit, by-passing

Investing in Europe’s future: Fifth report on economic, social and territorial cohesion. Chapter IV: Impact of Cohesion Policy. p © European Union, 2010 (3) External access to/from a region is very important, but the positive effects can reach the given region only if the internal transmitter elements are existing and the region is able to adapt these effects. Provision, accessibility, transit, by-passing

esion5/pdf/5cr_en.pdf Investing in Europe’s future: Fifth report on economic, social and territorial cohesion. Chapter IV: Impact of Cohesion Policy. p © European Union, 2010 (3) External access to/from a region is very important, but the positive effects can reach the given region only if the internal transmitter elements are existing and the region is able to adapt these effects. Provision, accessibility, transit, by-passing

Source: Az országos közúthálózat évekre szóló-fejlesztési programja 1991, KHVM. Road numbering since 1975 – the first signal of corridor thinking (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries. Provision, accessibility,

Source: EUROPA > European Commission > TEN-T projects MAP Libraryhttp://tentea.ec.europa.eu/download/maps/overview/01_tent_and_pp30_ _labels_galileo_logo.pdf (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries. Provision, accessibility,

4 Schema of the grid of the TEN for the 12s (15s) in 1992 (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries. Provision, accessibility,

4 Eastern extension of the grid of the TEN (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries. Provision, accessibility,

4 Eastern extension of the W-E corridors of the TEN (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries. Provision, accessibility,

4 Eastern extension of the W-E corridors of the TEN (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries. Provision, accessibility,

Source: The Helsinki, or pan-European transport corridors (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries. Provision, accessibility,

4 European Interest ? – the extension of the TEN network toward the East was rather the extension of the east-west corridors of the TEN than the extension of the grid itself. It reflected the Fifteen’s interest rather than the general interest of the enlarged European Union. 4 European Interest ? – during the adaptation of the EU (CTP) priorities the transition countries overestimated the significance of the TEN (supranational) level in territorial cohesion. Without good local networks the expected advantages can not penetrate into the local economy, to achieve cohesion – so good local network is of a general interest. 4 European Interest ? – the structure/pattern of the inter- regional networks within Hungary follow an over-centralised structure that is also a barrier in the development of the adaptive capacity of the country. (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries. Provision, accessibility,

4 The Danube valley is a macro-region of Europe 4 What is a Macro-Region? "There is no standard definition for a macro-region [...]. The definition applied here, developed during the preparation of the European Union Strategy for the Baltic Sea Region, will be “an area including territory from a number of different countries or regions associated with one or more common features or challenges.” Source: Macro-regional Strategies in the European Union - published on the Website of DG Regional Policy 4 Macro region: Co-operation of countries having a similar cohesion background (From an early paper of the Hungarian Foreign Ministry 2010) (5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap. Provision, accessibility, transit, by-passing

4 Positive approach 4 (1) An almost complete set of EU countries with different cohesion background : a longitudinal section of the oldest, the old, the newer and the future EU member countries. (A concentrated pattern of the EU cohesion and enlargement problems) 4 (2) Symbolic meaning of the Danube: Rhine as a symbol of the EC of the old EU founders – Danube as a symbol of the extended EU => (5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap. Provision, accessibility, transit, by-passing

Rhine as a link within the founders of the EC (5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap. Provision, accessibility, transit, by-passing

Rhine as a link within the founders of the EC (5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap. Provision, accessibility, transit, by-passing

Source of data: Europe in figures - Eurostat yearbook 2010 Population data Jan. 1st, 2010; GDP values for the year GDP per capita in Purchasing Power Standards (PPS) (EU-27 = 100)Europe in figures - Eurostat yearbook 2010 (5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap. Provision, accessibility, transit, by-passing Economic development of the countries along the Rhine (EC 6) Inhabitans [million]

(5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap. Provision, accessibility, transit, by-passing Countries of the Danube area:

Source of data: Europe in figures - Eurostat yearbook 2010 Population data Jan. 1st, 2010; GDP values for the year GDP per capita in Purchasing Power Standards (PPS) (EU-27 = 100)Europe in figures - Eurostat yearbook 2010 DUNA (5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap. Provision, accessibility, transit, by-passing

4 Different EU intervention policies to help cohesion 4 1 CBC softening steps, blurring sharp frontiers 4 2 INTERREG multilateral functional territorial cooperation 4 3 The main cohesion target: ‘catching up’, in growth terms, by interconnecting regions 4 !!!are operating but in case of small differences 4 !!! 1–3 interventions are operating but in case of small differences 4 4 Macro-region: different regions with diverse development paths multi-dimensional values, diverse current targets (5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap. Provision, accessibility, transit, by-passing

Summary of the general findings 4 Focusing on the spatial dimension of sustainability we stressed the importance of the spatial self-defence by calming the effects of externally led quick changes. Internal networks, internal structure, improvement of spatial adaptivity - these are considered to be key- elements of the spatial sustainability. 4 Transport networks have important role in reserving the internal structure. Physical networks reserve the structure of earlier internal (economic, social) relations as a memory, and are able to conserve these relations. 4 It is worthy to distinguish the role of the internal networks and that of the external links 4 Better internal links – help external competitiveness – may improve or worsen internal cohesion ( depending on the structure of links and the size of differences )

Summary of the general findings 4 Better external links – may improve or worsen external competitiveness – may improve or worsen both internal cohesion and external cohesion 4 Corridors ( TEN ) in Western Europe were based on the internal demand of the area, namely on the necessity of the interconnection of well developed national networks (“Single network to the single market”) 4 In the eastern part of Europe the starting point was external: the extension of the TEN network toward the east. Their priority was exaggerated in countries where internal connections also would have needed development 4 It would be useful, if similarly developed regions of the EU could harmonise their needs in a macro-regional level, instead of following a mythical uniform European development (that seemed a realistic target for the EU -6s, EU -9s perhaps EU -15s – but definitely doesn’t work for the EU -27s )

4 The main message of the contribution in theses (1) While we deal with territorial issues and networks, the spatial dimension of the sustainability also has to be underlined besides the frequently mentioned temporal dimension (2) The internal networks are the basis of a region’s operation, competitiveness. It helps to reserve the structure and the existing connections within the region (3) External access to/from a region is very important, but the positive effects can reach the given region only if the internal transmitter elements are existing and the region is able to adapt these effects (4) TEN is an internal network of the EU and as such it is the basis of the external competitiveness of the Community – while TEN is also the external link of each member-states and needs good local distribution networks for being useful for the single countries (5) Interconnection between differently developed economies is necessary but not sufficient tool or guarantee for the caching up of the less developed regions: the impact may also be an increasing gap Role of the networks in a cohesive, competitive and sustainable Europe

ROLE OF THE NETWORKS IN A COHESIVE, COMPETITIVE AND SUSTAINABLE EUROPE (AS SEEN FROM EASTERN CENTRAL EUROPE) Tamás Fleischer Hungarian Academy of Sciences Centre for Economic and Regional Studies Institute for World Economics Entretiens Economiques Européens (EEE) Fifth round table: The implementation of projects on the territories and the articulation with a European dynamic of cohesion and sustainable development The revival of the social and economical dialogue for employment and training, industrial imperatives and competitiveness Bologna, Italy, October, 30-31, 2012 THANKS FOR YOUR ATTENTION !