1. The institutional framework of regional development in Hungary
János Sára
Head of Department,
Ministry of Local Government and Regional Development,
Hungary

2. The institutional framework of regional development in Hungary
Formation the major regions (NUTS 2 units) was essential during Hungary's preparation for joining the European Union
The Parliament defined the notion of the planning and statistic region in Act 21 of 1996 on area development and landscaping, in accordance with the regional policy of the European Union.
Planning and statistic region:
an interconnected regional unit covering the territory of more than one (3) county (except the capital region); the borders of the unit are in accordance with the administrative borders of the counties concerned.
The 19 counties of Hungary and Budapest were divided into 7 territorial and statistic regions, the name and the geographic area of these regions were laid down in the Parliamentary Enactment on the National Area Development Concept no. 35/1998 (20 March), Chpt 2, par 5.2.

3. The institutional framework of regional development in Hungary
Lake Balaton region
The aim of the establishment of Lake Balaton region has been to provide effective assistance that Lake Balaton and its vicinity should become one of the most attractive and successful regions in Hungary and Europe for tourists, the local workers as well as the investors

4. The institutional framework of regional development in Hungary
County: An element of the official territorial divisions with administration functions. It is the middle level of public administration in Hungary. Within the "Nomenclature of Territorial Statistical Units (NUTS)" established by the statistical office of the European Communities it corresponds to the NUTS 3 level.
Towns with county rights: County seats and towns with a population over 50,000 which are given by parliament the status and powers of a county.

5. The institutional system of regional development in Hungary
PARLIAMENT
GOVERNMENT
Ministry of Local
Government and Regional
Development
Territorial Development
Council
County Municipalities
and
county seats
Spatial Development
Partnerships
of Municipalities
National Regional
Regional Development
Councils
County Development
Micro Regional
Development Councils
Local Governments
Ministries
Regional
Development Agencies
County
Managers of the
Micro Regions
MUNICIPAL
REGIONAL
MICRO
COUNTY
LEVEL
NATIONAL
Supervision
Representation
Cooperation

6. The institutional framework of regional development in Hungary
The system of developmental councils at the various territorial levels:
The National Regional Development Council is the main forum for the formulation and enforcement of regional development policy
The members are: various ministers with developmental related portfolios, representatives of national NGOs, representatives of the business sector and the delegates of the regions,
It is based on the principle of partnership among the business, governmental and NGO sectors

7. The institutional framework of regional development in Hungary
Regional Development Councils:
The regional development councils operating in the planning and statistic regions set by the National Area Development Concept. They should work out the area development concept and programme of the given region
The councils are responsible for allocating national funds for regional development, and participating in the decision process concerning EU funds
Its members are delegated by the county councils, by the micro-regions from each county, the mayors of larger towns, delegates from the ministries, and the representatives of the NGO and business sector of the given region
They co-operate with the county area development councils, the area development councils, the local public administrative organizations participating directly or indirectly in the development of the region, and the local economic chambers
They are not new administrative institutions, they are not principal to the county area development councils

8. The institutional framework of regional development in Hungary
Area Development Council:
a regional unit covering the territory of one or more counties or a special area of them that should be handled as one entity from social, economic or ecological point of view, the unified planning and development of which is a nationwide interest or is a goal set in other regulations (e.g. resort areas, national parks or landscape-protection districts sharing territories in more counties, cross-border or other special regions)
The Lake Balaton Development Council is an area development council created by the law of regional development, and was established to tackle issues specific to the Lake Balaton Resort District .

9. The institutional framework of regional development in Hungary
County Area Development Council
County area development councils are operating in order to harmonize the area development tasks in the counties
They are responsible to allocate national funds for the municipalities within their territory
The council participates in the development of the regional information system in co-operation with the county directorates of the Hungarian Central Statistical Office and with other regional data collecting organisations, as well as provides information to the preparation of area plans

10. The institutional framework of regional development in Hungary
Micro-regional developmental councils
There are 168 micro-regions in Hungary, (which are encompassing all 3200 municipalities) the borders and the territory of these units has been established by a law
All micro regions must have their own developmental council, the members of which are made up from the mayors of the municipalities
The representatives of the NGOs, and the business sector are also members of the council
Their main responsibilities are to take care of developmental issues of the micro region, and as well for jointly organised public services (schools, social care, financial services)

11. The institutional framework of regional development in Hungary
Development Agencies:
Public organisations with legal entity which are established by a regional or a county development council in order to perform their development tasks and duties.
Their main activity areas are:
cross-border international networks,
co-operation network of the Hungarian regions,
multiple partnership-organisation networks within the region, local and county governments, micro-regions and their associations
regional network of economic development organisations
organisations of economic development, institutions of higher education and research and development

12. The institutional framework of regional development in Hungary
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