Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
CENTRE FOR REGIONAL STUDIES 
OF HUNGARIAN ACADEMY OF SCIENCES 
DISCUSSION PAPERS 
No. 7 
Development Possibilldes 
of Backward Areas in Hunpry 
by 
FARAGO, Laszlo and HRUBI, Lgszlo 
Series editor: HRUBI, Laszlo 
Pecs 
1988 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
CONTENTS 
Introduction 
p. 1 
Characteristic features of the multiple-disadvantaged situation 
P.  3  
Development principles of the backward areas in Hungary 
p. 6 
Development conception elements of the backward areas 
P.  9  
Some administration problems of the backward settlements 
p. 18 
Summarizing 
p. 21 
References 
p. 22 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

Document Outline





Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
INTRODUCTION 
In both capitalist and socialist countries the central issues of concious regional development 
policy are the situation of the areas permanently lagging behind and the possibilities of their 
catching up with the other areas. The basic tendency and mechanism of socio-economic 
development lead to a differentiated structural development of areas due to the diverse natural, 
economic, administrative and social conditions. As result of this privileges are being accumulated at 
one end of the scale and disadvantages at the other end. At the same time the presence of 
development policy aiming at creating a balanced structure is desirable not only on account of 
socio-political and social reasons but also in view of the efficient functioning of society and 
economy - as evidenced by the practical experience of  the  past period. In principle, the category of 
equilibrated structure includes also regional structure as an element irrespective of the fact whether 
the mechanism of management and administration is able to assert the regional aspect and to what 
extent it can talce account of it. A development policy with strong internal priorities aimed at 
extensive-quantitative growth and concentrated in both organizational and economic aspects 
results in a polarized regional structure inevitably creating backward areas where lagging behind 
covers several moments of the socio-economic life, that is to say the disadvantages are being 
accumulated. Subsequently the potentialities which might provide any chances of c,atching up at all 
may be wasted. Thus we can conclude that socio-economic development has a selective impact 
upon certain areas: regional differentiation is an objective process. At the same time development 
policy should control, influence this differentiation for social and (in a narrow sense) economico-
political reasons in such a way that bacicwardness and disadvantages may not be accumulated 
lastingly in certain points of the space, in settlements and within a smaller-larger range of regions. 
If development policy is unable to assert the endeavour towards and equalized regional structure, 
over-polarization may arise and the decline of certain areas will become irreversible. 
The regional development of the past longer period in Hungary (and in the socialist 
countries in general) was determined by economic development policy (in a narrow sense) to an 
incomparably greater extent than by regional policy with its restricted scope of authority of 
decision-making and weaker mechanism. Economic development policy had a character of nearly 
exclusive sectorial approach taking account mainly of establishment. Its entire system of planning, 
accounting, administration, regulation and incentives was based upon this approach strengthening 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

it thereby. This development policy course was an extensive-growth-oriented economic policy with 
hegemony of industry (industrialization) and development of the capital and towns. It could not 
integrate different aspects and left them to the partial policies of complementary character with 
restricted authority, ensuring formally the possibility of reconciliation, harmonization, in brief, that 
of active reaction. The construction became more and more contradictory at the development level 
reached by the 1970s mostly because of the revaluation of the ousted factors, or rather because of 
the obvious manifestation of the importance of their role in development. Besides having to face 
more and more significant sectorial-structural disturbances economic development could less and 
less cope with "non-sectorial" spheres, such as infrastructure or environmental protection and in 
this connexion it could meet decreasingly the requirement of a more equilibrated regional 
structure. The majority of problems is basically the consequence of the established socio-economic 
mechanism. That is politics continuously registered the relative backwardness of infrastructure 
from the 60s, indeed paying particular attention to some of its branches in specific programmes 
from time to time; in spite of the recognition, however, no substantial break-through took place 
(note: similarly to the other socialist countries). In the 70s politics perceived the consequences of 
the imbalancedness of regional development, the fact that there are significant divergences in living 
standards and amidst the general labour shortage employment difficulties arise in certain regions. 
Sometimes several effective measures were talcen as well. But artificial separation between 
economic development policy in a narrow sense and regional development policy has survived. 
Under the given mechanism, however, the politics were unable to correct the basic socio-
economic processes. Owing to its strongly restricted scope the development policy of regions and 
settlements could not play an important part in this correction. In addition to this typically 
centralized tendencies asserted themselves even within its reach of influence, further strengthening 
the differentiating effect of economic development policy (taken in a narrow sense) on regions. 
The present situation of the bacicward, disadvantaged zones has been formed by these 
factors. The acuteness and depth of the problem is further increased by the fact that the whole 
economy is characterized by serious disturbances of functioning, the hidden contradictions have 
come to light at the same time, significant revaluation is under way and all these give rise to the 
growth and acceleration of backwardness, the increasing loss of perspective as well as to the 
regional expansion of the affected areas. 
The 12/1980-85 Decision of the Parliament on the long-term tasks of the development of 
regions and settlements assigns the continuation of the development of bacicward areas as a central 
task. To promote its implementation the Council of Ministers adopted a socio-economic 
programme on the accelerated development of the economically backward areas in 1986. This 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

progamme - although its general objectives and principles were formulated in accordance with the 
consideration of the requirements of long-term development - can remain a plan only for a shorter 
periodon account of the existing condition and difficulties of economic development. The 
programme - owing to the scarcity of fmancial means - is a kind of a minimal programme, where 
stress is laid upon the fact that the gravest social tensions of the settlements in the worst situation 
(mainly the lack of local employment) should be mitigated. The size of the range of settlements 
restricted in this way also points to the weight of this regional problem, since 537 settlements are 
classified as bacicward in the plan (this amounts approximately to one-fifth of the total number of 
settlements in Hungary) where there are about half a million inhabitants. According to expert 
investigations the proportion of disadvantaged settlements of rural character may be the 
double/treble of it in reality. 
The processes of the period following the adoption of the Government programme - the 
disruption of the extemal and internal equilibrium of the economy, the appearance of critical 
branches and depression zones, the imperative of economic restructuring, restrictive economic 
policy - have evidently enhanced further the extent of the problem of regional backwardness. 
In the course of the economic and political reformation the regional issue of the backward 
zones came into limelight again, the shaping of a mature development strategy is a task of pressing 
necessity. 
CHARACTERISTIC FEATURES OF THE MULTIPLE-DISADVANTAGED SITUATION 
In the terminology of special Hungarian literature the multiple-disadvantaged situation is a 
lasting condition characterized by the accumulation of the related, mutually stregthened individual 
disadvantages of socio-economic existence and development. This condition can be summarized by 
the follovving criteria: 
- The economic base (and mainly the industry) is relatively underdeveloped or perhaps 
utterly missivag, the income-producing ability of the region or settlements is rapidly declining. 
- As a result of this migration talces dimensions leading to the distortion of the 
demographical structure; the population of the settlements gets too old, the composition of 
education, employment etc. deteriorates, the natural self-reproducing ability decreases. 
- The living conditions are below the average by relative and absolute standards as well, 
within this infrastructure is underdeveloped above all, often even the basic supplies are missing. 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

Apart from this more tangible phenomena and disadvantages can be revealed which are 
called as a rule peripheric situation. These include: 
- the low level of transport and communication relations; 
- the low-level position of settlements in the widely taken hierarchical system of regional 
management, and within this mainly the administrative authority of less significance, and in this 
connexion the relative scarcity of development funds, the greater distance from the decision-
making centres; 
- location along the border which implies the vicinity of the national and county borders as 
well. 
Finally, in Hungary experience shows today that there still exists a general characteristic and 
this is the small-village-character. Although in principle - as evidenced by international examples - 
it is not inevitable for a small village to be always at disadvantage, in Hungary it is the regions with 
small villages (where the number of inhabitants is often less than 1000 and not infrequently less 
than 500) where these disadvantages are accumulated in the first place. 
From the facts mentioned above it follows that depressed zones (e.g. the areas struggling 
with really serious crisis in consequence of the predominance of iron metallurgy and mining) are 
not included in this category, though the essential tasks are the same. The reason for separating 
them can be accounted for by the fact that the possibilities and means of regional development 
strategy are different in the case of the depressed zones. To be precise in Hungary the category of 
backward areas applies to the areas of rural character. 
In the historical evolution of the multiple-disadvantaged situation economic 
underdevelopment has a primary role among the reasons, which is revealed in the lack of 
employment prospects or in their structural one-sidedness as well. With a view to the existence and 
development of settlements the economic base functions more and more exclusively by means of its 
income-producing ability. The income-producing ability is important from the point of view of 
settlement development in two ways: 
- on the one hand as a resource of development and operation of settlements through the 
mechanism of regulation (or other means of distribution or redistribution) 
- on the other hand on account of the income of the employed population derived from 
work. 
In the multiple-disadvantaged zones industry has a direct settlement-forming power outside 
the towns only within a small range of communities. Practically in the formation of the 
disadvantageous situation of villages the lack or underdevelopment of the locally (or in the 
microregions) located industrial potential played a determining role. The industrialization wave of 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

the country-side in the 70s mostly avoided the areas qualified to  be  at disadvantage today. 
Naturally, the situation would not be very much better even if it had happened otherwise. That is to 
say - despite its obviously positive effect - in the course of implementation this process was 
decisively motivated not by the effort to form the spatial structure of the economy rationally but by 
- the relocation of the unwanted part of the industrial units of the capital, 
- expansion of large enterprises (labour-extensive growth), 
- and in accordance with these lessening of the employment deficiencies in certain regions. 
In general it was not "the whole enterprisal function" that was decentralized but some 
phases of production instead often based on a rather underdeveloped technical-technological base. 
Their existence and development have been dependent on the parent company. Paradoxically 
regional decentralization practically strengthened the dependence of the region or settlement on 
the external decision-making centres. The industry "obtained" in this way could hardly mean a 
durable and realistic economic potential. Characteristically enough when the parent company is 
under the pressure of harder budgetary constraints the process of disinvestment is under way at 
once in these areas. Industrialization of this kind cannot solve the regional problems in the long 
run because it results merely in the "colonization" of the countryside. 
Today a much more differentiated factor is the basic and auxiliary activities of agricultural 
enterprises. The natural and economic conditions of large-scale farming in these regions are mostly 
unfavourable. In spite of this - as usual in agriculture in Hungary - it is the large-scale mass 
production which is characteristic: this was "dictated" by the traditions of the economy, the systems 
of regulation and subsidies or even by the informally manifested central expectations of politics as 
well. On account of the shortage of specialists, underdeveloped technology or management 
problems arising from other reasons the tensions are deepened to such an extent that even the 
conditions of simple reproduction are not created. Economy of agricultural units in this regions, as 
a matte of fact, is maintained by the continuous budgetary subsidies. The scarcity of capital, the 
geographical and in general economic distance from the market, from industry, do not make it 
possible for the auxiliary (non-agricultural but for example industrial, commercial) activities to 
come into being and play a compensating role in these very areas. As agriculture is the main 
economic base in the respective regions, the agricultural employment rate is very high there (about 
double of the average of Hungary). There is a considerable over-full-employment in agicultural 
enterprises due to local pressure. With differentiation, the decrease in the self-supporting capacity 
arising from the stricter system of economic regulation as well the freed labour cannot refltix to the 
near vicinity without having to give up their domiciles. The industry and the tertiary sphere are 
both unable to receive them in the region as a result of underdevelopment. 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

The inefficiency of the economic base playing an essential role in the life of the settlements, 
the low level of its income-producing ability give rise to the increasing lag,ging behind of 
infrastructural development. In line with this the erosion of the population of the settlements is 
being accelerated as well. Where the three processes (i.e. backwardness of the economic base 
lagging behind of infrastructure and erosion of population) coincided earlier in an extensive way, 
the decline of the settlements - under the well-known socio-economic conditions - is practically 
most probably an irreversible process. For the development policy of regions and settlements a field 
of realistic intervention is represented by those settlements or groups of settlements in which this 
chain of processes has not come into existence yet or is only in its first stage. It is possible only in 
this field to revitalize these areas and re-start the self-supporting social and economic processes 131 
means of transitory c,entral subsidization. 
Today lagging behind in socio-economic development is mainly a regional problen 
concerning local problems of the settlements too. That is to say, within the backward or multiple-
disadvantaged zonesthere are divergences of internal development like elsewhere in general. It alsc 
means the regional developments and those aimed directly and locally at settlements (if such a 
distinction can be made at all) are to be implemented together, in harmony with each other. 
Obviously we cannot expect the whole range of affected settlements in bacicward regions to cad: 
up with settlements of mean or well developed regions or in many cases even the prevention of 
further lagging behind. Part of settlements within the zones at disadvantage is not likely to be 
revitalized, at best these settlements can be temporarily maintained by means of further and further 
central subsidies. In the long run, however, this artificial survival cannot be carried out and regional 
policy carmot undertake to carry it out at all. Though the prevention of the further falling behind of 
the zones at disadvantage as regions and their catching up with the other areas in the long run may 
not have a realistic option in the final account. 
DEVELOPMENT PRINCIPLES OF THE BACICWARD AREAS IN HUNGARY 
In shaping the strategy of making the multiple-disadvantaged zones catch up with the other 
zones basically there are two alternative approaches. The first one is the socio-political approach 
which intervention is aimed at moderating and somewhat compensating for the disadvantageous 
consequences instead of the systematic alteration of the basic regional processes: within th( 
framework of a separate "provisional" plan practically "subsidies" are geographically assigned and 
granted. This alternative was taken by the aforementioned government programme. There is nc 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

doubt that the main outward forms of disadvantageous situation and in this connection the socio-
political responsibility and the scarcity of resources to be expended on the taslcs exercise strong 
pressure in favour of this very alternative. Beyond doubt in a human-centred society the most 
logical conclusion is that the improvement of multiple-disadvantaged situation, or more precisely, 
the improvement of the situation of the people living under these circumstances °vying to objective 
factors is the responsibility of the whole society too. The fact that this solution may bring about 
changes that are soon tangible is also in favour of this alternative because it is suitable for letting 
off the social tensions. In our opinion, however, this approach cannot be effective in the long rtm, 
at best it can be only a temporary and only complementary programme. Namely it cannot eliminate 
the cause of the durable accumulation of backwardness. 
The other, solely long-run approach may be called an economico-political one (for lack of a 
better name). According to our judgement the main point of this approach lies in the fact that in 
the course of the restructuring of the economy the regional aspect also obtains an important role. 
From the aspect of the efficiency of socio-economic development the basic principle to be adopted 
is that besides the sectorial optima the regional conditions may also be resources of growth, which 
implies among others the significant strengthening of the regional division of labour and within this 
the promotion of the formation of an economic base corresponding to the regional endowments 
and maximally utilizing them. Tallcing of the objectively differentiated regional effects of socio-
economic development, we should take into account the fact that the majority of the endowments 
and conditions (e.g. human, infrastructural conditions of production etc.) playing an important role 
in the selection are not natural but can be consciously shaped. Any restructuring which 
concentrates only on sectorial productivity and follows economic efficiency talcen in a narrow sense 
sets up its own limits in the long run. Restructuring should include the organizational and regional 
decentralization of the industry and the tertiary sphere, the regionally proportional formation of 
the intellectual potential and malcing regionally general the high level of accessibility of traffic and 
communications in a wider perspective. With that missing the higher operation costs of society will 
considerably worsen the overall social and macroeconomic efficiency of production composed of 
partially profitable branches. That is in the long run the development of either the settlements or 
the tertiary sphere may not be regarded merely as an expenditure-increasing or social overhead 
cost activity or judged on the basis of some modern form of "fiscal rationalism" as it has been done 
in Hungary (and other socialist countries as well) so far. 
There is no doubt that the present regional structure of needs seems to counteract the 
endeavours towards a more balanced regional structure, as the regional and local demands - 
according to the logic of their appearance - are concentrated in the actual centres of the regional 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

structure producing conspicuous bottlenecks. On the other hand, the process may become 
unfollowable in the economico-political sense (in spite of the following development ideology) if 
both the sectorial and regional development principles undertake to disperse only the neuralgic 
points disregarding the reorganizing role of conscious intervention in the regional development. 
In formulating the strategy of development of the backward areas the starting-point is on 
the one hand the process and characteristics of the formation of the diasdvantageous situation and 
the current endowments of the respective zones, the existing system of conditions on the other 
hand. The present economic potential of these zones, its profitability arising from the level of 
development and structure is not suitable for enriching the resources of development in the long 
run particularly becau.se  it has proved to be insufficient in the rec,ent past too. In the economically 
backward areas the industry - if it exists at all - is structurally one-sided as a rule, less dynamic with 
weak productivity and low income-producing ability, being regionally disproportionately located, all 
in all it is underdeveloped in comparison with the long-term needs. The income-producing ability, 
productivity and potential of agricultural plants is more developed nowadays as a rule, in many 
places, however, on account of the weaker site endowments and tmfavourable farming conditions 
their development is insufficient. With full knowledge of the international market of the 
agricultural mass products and the exaggerated withdrawal of profit receipts of agricultura 
enterprises development of even a slower pace can be predicted therefore this branch cannot be 
expected either to provide more resources for the development of the settlements. With regard to 
employment - after a temporary halt - the role of agriculture is likely to decrease in the long run, 
thus its settlement-developing effect is to lessen in this respect too. As a result of this agriculture 
may not be the primary or only base of the regions of rural character - within this that of the 
multiple-disadvantaged regions - in the long run, even if the structure of production were 
transformed due to the strengthening of the (e.g. industrial) auxiliary activity. The tertiary sphere is 
underdeveloped, for the time being no tendencies can be discovered showing it could become 
independent driving forces of the development of regions and settlements - as exemplified by other 
countries - or provide a favourable base for the restructuring and innovative progress. The 
productive and non-productive infrastructure - also in connection with the development of the 
productive forces and the settlement network structure - is in general poorly developed without an 
actually fimctioning homogeneous spatial system. Developed system of infrastructure can be found 
at best only in a few centres that came into being through concentration (in the case of towns and 
some large villages, but sometimes only partially). 
On the basis of all this - in our opinion - the development of multiple-disadvantaged zones - 
taking account of the available resources a.s well - cannot still be directly diverted to the so-cane( 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

innovative, intensive course today because the minimal spatial conditions are generally still missing. 
In an intermediary, transitory stage the base upon which intensive development may be built is to 
be established by strengthening and transforming the present bases, otherwise permanent 
development is inconceivable. It follows from the afore-mentioned that in the long-term 
development of these zones it is not expedient to implement in an accelerated way the conception 
which has brought about considerable regional development elsewhere but to implement a new 
integrate strategy instead which takes account of the new circumstances of socio-economic 
development. The improvement of the economic base of settlements cannot be regarded merely as 
an issue of employrnent but to the same extent it is also an issue of regional economic growth (and 
productivity) and then the necessary basic tendency of development is determined also by the 
general economic development strategy. That is to say the multiple-disadvantaged situation is 
always reproduced, only if the former growth model of the developed zones is renewed, the 
"removed" conception with its "material instruments" is inherited by the backward zones. 
In the context of the general economic development strategy it should be taken as a starting-
point as well that despite the separation of domicile and workplace the large-scale mobility of the 
population between the zones will not have the necessary conditions and possibilities in Hungary in 
the near future either. Therefore the restructuring of the production potential and the organization 
of supply in line with this regional principle will be of utmost importance for the long-term strategy. 
DEVELOPMENT CONCEPTION ELEMENTS OF THE BACICWARD AREAS 
In our view the long-term development conception of the multiple-disadvantaged zones - in 
close connection with the development of the whole country - should be formulated in two stages. 
The first stage covers the period to the mid-90s, the second one the period up to and including the 
millenary. 
In the first stage agriculture may serve as the primary base for the development of multiple-
disadvantaged zones in the future too. In order to be able to perform its function it is inevitable for 
the agricultural economic units to increase their profitability which may be achieved in broad 
outlines by the following means: 
- the necessary and possible elimination of the objectively disadvantageous conditions with 
the help of external support (e.g. soil amelioration); 
- the transitory normative (through the system of regulators) counterbalancing of the 
objectively disadvantageous endowments that cannot be economically ceased: 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
10 
a) by means of the creation of the external conditions of the decrease in production cost 
(reduction of taxes and deprivals etc.), 
b) by means of subsidization (development, support etc.); 
- the alteration of the organization forms: where the conditions of efficient large-scale 
farming can be maintained only at the cost of disproportionately high expenditure vvith the help of 
durable state subsidization, it would only seem reasonable to return to small-scale farming (e g. 
integrated small private farms, forms of specialized cooperatives and groups, family undertakings 
etc.); 
- modification of the production structure (both within the basic activity and in the 
relationship of the basic and auxiliary activities of the agricultural units); 
- interenterprisal specialization and the significant intensification of cooperation of the 
agricultural organizations on the basis of mutual economic interests; 
- the further development of agricultural technology, the extension of the necessary 
infrastructural background. 
With regard to industry this stage includes a task of two directions: on the one hand the 
implementation of direct industrialization by means of the modernization and pos.sible expansion 
of the existing base on the other hand the forming of a new long-term strategy of industrialization, 
the preparation and latmching of its implementation. 
The restructuring of industry is inconceivable vvithout the faster development of the 
innovative spheres, which, in our opinion, grows out of being founded merely on the existing base. 
In  view of the long term in the majority of the present day industrial companies there is no 
significant production-oriented research and development potential of the adequate level, in the 
respective zones the scientific-technological background is rather one-sided, consequently the 
development-oriented, innovative restructuring of the manufacturing industry requires internal or 
external research import, unless the intellectual potential becomes more proportionate regionally. 
Thence it follows that the required restructuring of the industry in the backward regions, its 
strategy can be founded only on the active (offensive) support of the long-term development 
projects of the national economy. In the elaboration of the new conception of industrialization the 
issue of regional structure as an aspect should gain much greater importanc,e. 
The industry is now faced with the basic task of the implementation of restructuring which 
may lead to changes in the economic macrostructure of the settlements and different kinds of 
regional units. This may involve an increase in the proportion of the tertiary sector in the majority 
of settlements and in general will bring about less dramatic changes in the towns than in the 
affected smaller settlements (villages). Moreover there may also be settlements and zones where, 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
1 1 
for example, the beginning of the exploitation of raw materiaLs or the establishment of a new 
industrial project will basically change the macrostructure of production and the chain of significant 
changes arising from this will affect the given settlement as well as its environment. This will, 
however, be a less typical pattern. Another - from our point of view - essential concomitant of 
restructuring will be the liquidation of unprofitable activities and plants. Since in Hungary the 
profitability of the plants in the villages is frequently lower than that of the urban ones, the labour 
power is less readily convertible, the relative standard of infrastructure is low, the required change 
of product structure and introduction of  new  technologies are feasible above all in the central 
(urban) factories. Therefore the exintence of numerous rural industrial plants will be queried in the 
future. The reduction of unprofitable activities and plants may temporarily have an unfavourable 
impact upon the local environment weakening the economic situation of enterprises and 
settlements. Since the structural changes are as a rule accompanied by a reduction in the needs for 
live labour, the former level of employment can be maintained only by means of creating new jobs, 
reallocating the labour force or commuting within the small zones as far as possible, in some areas 
even employment tensions may temporarily arise. Owing to the state compensation that the 
workers get during the courses training them for a new trade or profession their income is not 
reduced, which - due to inflation - does not grow either, and this occasionally involves a further 
disadvantage. In the long run, however, both the companies and the settlements are interested in 
restructuring if it really takes place in accordance with the international tendencies, if it at least 
approaches those standards (infrastructural capacities may be freed, the influence exercised on the 
environment may improve, the income relations are more favourable etc.) and if it results in a more 
proportionate regional structure. Thus in contrast with the former practices even in economically 
bacicvvard areas it is inadmissible to conserve out-of-date production by means of state subsidies 
and short-term measures, instead the temporarily arising or intensifying difficulties should be faced 
and the introduction of modern technologies promoted. Whilst even for reasons of employment 
policy it is improper to maintain the less efficient jobs, it is necessary to subsidize the retraining and 
mobilization of labour. Granting independence to the less efficient provincial plants is not always a 
feasible arrangement. On the other hand, the mother house make it extremely difficult for the well-
functioning plant units to become independent, although it would be in the best interest of the 
regions. Where the provincial plants are modern and can get on their own, the former spatial 
decentralization should be followed by an organizational decentralization. 
In setting the long-term objectives it is necessary to keep in view that the progressive 
branches should transform the possible centres of zones (towns, large villages and maybe some 
other villages) into industrial bases which are able to adopt innovative development and become 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
12 
poles upon which in a later period - in the second stage of the long term - the settlements of their 
respective regions may be "strung" and - assuming an intensive system of relations - these poles will 
be able to replace the wealcening local agricultural base . Furthermore, these poles - to a varying 
degree - have to be also suitable for becoming the network centres of the ancillary industry or 
perhaps those of the putting out system of a new type having asserted itself in the developed 
countries. This network potentially may be structured upon the range of the viable settlements of 
multiple-disadvantaged zones in several organizational forms, in a differentiated way. 
We think that in the rural areas mainly small plants (with less than 50-100 workers) 
belonging to the background (ancillary) industry may be established. The experience of the 
developed countries indicates that such plants are required in a great number by modern economy 
though a great majority of them is constantly replaced or restructured. Their changeability is fairly 
great, so they require favourable conditions of settlements which can ensure adequate possibilities 
of adaptation. Unfortunately, this chain of small industrial plants is missing now in Hungary (and in 
other socialist countries as well). 
The location of new productive projects and expensive technologies in smaller or larger 
regional centres - and the improvement of accessibility - make possible the long-term 
harmonization of economic efficiency and regional balancedness in the rural, economically 
underdeveloped areas as well. By this means such a flexible, adaptive spatial structure may be 
formed which is capable of reacting to the changes of the economy and market without collapsing 
under the pressure of the restructuring of products. It must be stressed, however, that the 
regionally concentrated development of production is suitable for developing the related rural and 
within this disadvantaged zones only by means of the significant increase of accessibility and the 
raise of the standards of communications. If such a close relations between the centre and its 
environment cannot be ensured in some of the established centres or in the rural zones such a 
centre (e.g. a town) does not exist, then the first step to be taken is the formation of the necessary 
centres or system of relations. 
In the long run (and within this in the first stage) the development of both agriculture and 
industry requires the development of infrastructure in such a way that it can contribute to the 
unfolding of the outlined guidelines in an offensive way. The main branches to be developed are 
road traffic and telecommunication (the programme of the main cross-roads, the reconstruction 
and modernization of the road network, on the other hand the development of the telephone and 
telex systems which can be also suitable for establishing an integrated system of information) but 
none the less important is the construction (and the increase of the capacities) of the energy- and 
water-supplying networks according to the predictable needs and the establishment of other 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
13 
technical facilities (e.g. up-to-date buildings for the plants). A flexible industrial structure and a 
production base capable of rapidly adjusting itself to the circumstances are conditioned upon the 
potential industrial areas, the "industrial parks" which can be possessed or rented in principle. In 
the long run, in our opinion, this can be achieved only by eliminating the secondary, following 
position of the infrastructural sphere within the economic development policy - which is often 
presented as an objective position - and by recognizing it as an active wmponent of economic and 
regional development and growth. 
The second stage would include the actual - intensive - course of development. On the basis 
of the adequately developed system of settlement relations (communication network) on the one 
hand the industrial, on the other hand the agricultural and probably tertiary sectorial development 
poles would exist in a homogeneous and well-functioning system of settlements with both vertical 
and horizontal courses of movement. In the regional system of the existence, development and 
economic base of the settlements a new feature would be represented by the fact that 
concentration would come into existence together with the adequate system of relations, that is 
decentralization would aLso have a positive meaning. 
In the development of traffic or in a wider sense in the improvement of communication 
relations it is also important to overcome the contradictions experienced up to now. If we talce a 
look at accessibility and the regional structure of supply organization and production capacities.the 
incongruence becomes sharply distinct. The improvement of the conditions of transport means 
firstly the modernization of the road network (elimination of cul-de-sacs between the settlements, 
construction of main cross-roads, modification of radiate (capital-centred) network by means of 
"horizontal" roads etc.), secondly malcing public transport more flexible (e.g. by running micro-and 
mini-buses), thirdly the general improvement of the conditions of automobilization. 
In our opinion transport has and will have a basic role in decreasing the gap between the 
zones at disadvantage and the other areas. With regard to the small regions both in production 
potential and in supply a concentrated development model will have real chances. And this requires 
accessibility which adjusts itself to the necessary spatial movement of the population. In all 
probability public transport will play a great role in the future. We do not believe that the 
enterprisal or sectorial profitability of public transport should be an exclusive principle in the 
course of development. It seems that the improvement of accessibility should be decided together 
with the consideration of other "extra-sectorial" aspects. At the same time it is true that within the 
framework of the present organizational system it is difficult, if not impossible, to make a multi-
aspect evaluation and assert the interests. On the other hand it is easier to form the organizational 
system of transport than the settlement network. In addition to this issues of great importance are 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
14 
raised by the level of general motorization. It is well-known - and exemplified by many counties - 
that with a highly developed motorization level a more concentrated model, an implementation of 
new development models of large or small zones Will have to face less obstacles. It is clear that the 
improvement of the motorization level - similarly to other issues - exceeds the problem of the zones 
at disadvantage, raising or requiring the solution of a number of questions connected with general 
engineering, infrastructure, economics, social situation and even the way of living and with some 
simplification we can conclude onc,e again the necessity of "infrastructural breakthrough" in 
development policy. 
Besides the improvement of the traffic conditions the prerequisite of the general use of 
modern technical achievements is the simultaneous development of the telecommunication system. 
An up-to-date informational system can be developed only in possession of telephones and wired 
interconnections and at the same time today a geat number of population services can be "built 
upon" the telephone-lines too. 
The bacicwardness of Hungary is enormous in this respect and even within this the picture is 
rather varied. Even between the larger regions there are differences in supply but the differences 
are more conspicuous between the urban and rural zones. 
The country-side and villages are inflicted above all by the disadvantages of underdeveloped 
telecommunication. At the same time due to the lower density of population and underutilization 
this is the very area where development is not profitable. Thus only state intervention could bring 
about tangible results in this field. Possibility of contacts with of any point of the country at any 
time should be regarded as a minimal programme. The developments should be mainly based on 
up-to-date solutions, otherwise obsolete technics would be conserved. In line with this up-to-date 
telecommunication services should also be developed. 
By means of a highly developed telecommunication system the disadvantages of rural zones 
would decrease and in combination with the advantages of the provincial environment it would 
contribute not only to the increased retention of the population of these zones but also to the 
reflux of highly qualified and sldlled labour into the villages. On the side of labour this would make 
possible the decentralization of up-to-date technics in turn. 
With these ideas in mind we should like to emphasize that today the reduction of the 
backwardness of the zones at disadvantage cannot be carried out by means of the traditional 
interference in infrastructure any longer, at the same time any kind of long-term development 
conception is infeasible in these zones without a shift in economic development policy course as 
required by infrastructure. 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
15 
The general bacicwardness of the development level of infrastructure, which can be observed 
particularly in the multiple-disadvantaged zones, is an obstacle to the growth of production as well 
as to population supply. The main nodes of the development of infrastructure of production 
obviously coincide with the basic questions of infrastructure of population supply though an 
additional regional issue is raised by the latter as well. With some simplification this could be 
formulated as follows: there is a socio-economic need for the harmonized long-term development 
of availability (accessibility) and the netvvork of supplying institutions. Even planning conceived in 
the spirit of "fiscal rationalism" has to raise the question in the long run how much the socially 
necessary local basic supply can cost and how much is the combined cost of the concentrated 
construction and operation of supply of higher level made accessible realistically (and not in 
principle) by means of availability as compared with the alternative when the social and individual 
costs of receiving the people removed to towns and the value of the part of the national wealth left 
in villages behind are added up. (The mains direction of people's removal has been so far in 
Hungary direction from underdeveloped villages to towns.) Clear-sightedness is blocked by the fact 
that while we are aware of the inevitable material consequences of the first alternative more or less, 
we can only estimate or perhaps make guesses in connection with the second one owing to our 
separate sectorial way of thinking, not to mention further social factors connected with social 
welfare and equity, which have to be talcen into consideration in the final accotmt. 
As we have already pointed out several times the disadvantageous situation is also 
manifested in the relative backwardness of living standards, in the underdeveloped infrastructure, 
and the direct way of moderating these disadvantages is to develop infrastructure. The 
development should have two moments of extreme importance: the harmonized development of 
transport (accessibility) and spatially divided supply. The basic supply - according to democratic 
principles - has to be locally provided. 
The present routine (planning - organization - financing) handles the organization of 
transport and supply (as two separate branches) quite apart from each other. In our opinion 
decisions concerning the supply development are inseparable from the traffic conditions. The basic 
traffic conditions provide a favourable framework for the possible merging of the supply 
institutions, under the conditions of inadequate availability, however, the centralization of these 
institutions worsens the standard of supply. In planning concentrated supply (supply institution far 
from the domicile) and also in making calculations with regard to economicalness it should be 
taken into consideration that services or users should be moved in space. Taking account of these 
relationships in judging the profitability of some public transport line we catmot be content with 
comparing merely the costs and the fares. The lack of adequate traffic communications may justify 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
16 
the needs of deconcentration, expenditure of which may by far exceed the losses of transport lines. 
The analysis of the advantages and disadvantages or any regrouping of the whole system of 
relations would probably result in a spatial structure which is very different from the present one. 
Besides above-mentioned problems there is the factor of automobilization, the rising costs 
of which with the well-known difficulties of its development and improvement in Hungary - even 
assuming unchanged system and level of supply - may lead to the deterioration of the supply of the 
population through the deterioration of accessibility. In spite of this there is not any sign of the 
appearance of the regional - and other - aspects in the understanding of motorization or in the re-
evaluation of its role in development policy.. 
As today the multiple-disadvantaged areas in Hungary are the regions with small villages, 
the improvement of the supply by institutions will have to face several difficulties due to the 
restriction of development resources. These difficulties are worsened further by the negative 
general approach to institutional hierarchy and concentration, which is observable nowadays. 
In our view the hierarchy of structure and certain concentration of the system ,of supply 
institutions arise not only from the arbitrariness of planning or hierarchy of settlement network 
functions but it is an inherent part of the supply system and a historical category at the same time. 
If we disregard the hierarchical system of the settlements and institutions, among the initial 
conditions of the organization of supply on the one side there is the geographically separated 
population with its needs embodied in differentiated demands, and on the other side the entire 
multitude of the supplying functions which are differentiated mainly on the basis of their 
"sectorial" peculiarities. These two sides should be matched and linked according to the prevailing 
socio-economic conditions in order to make possible the adequate fulfilment and use of these 
functions. 
The matching should decisively follow the spatial aspect with the expected standard of 
accessibility and fulfilment as a criterion (measured by use frequency) on the one side and the 
management conditions of development and operation (dimension, special line etc.) and 
expenditure (as resource constraints) on the other side. An optimal spatial structure can be 
achieved only by the consideration of both sides. 
In the organization of the supply a good and only long-term changing basis is provided if we 
know what proportion and what strata of the population (would) make use of the given form of 
supply. This can be determined in general terms but the local (regional) specifica can be recognized 
as well. It is generally accepted that the forms of supply to be provided locally (at the level of 
settlements or residential districts) are the ones used by the population every day (basic or general 
functions). Concentration may be increased proportionally to the eventuality of the use of the 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
17 
respective function. Thus some kind of hierarchy comes into mistence also on the basis of the 
supplied population or frequency of use and it is only a matter of approach which should be set at 
the top of the hierarchy. As the fulfilment and use of functions take place within the framework of 
settlements, in many cases it is expedient to assign the functions to concrete settlements or 
settlement types in general. In our opinion in the 1970s the negative phenomena arising from 
excessively hierarchical structure of the settlement network and the subsequent condemnation was 
due to the fact that the hierarchy pertaining to this particular "branch" was generalized, used and 
projected over other fields of life with different pattern.s of behaviour. 
Nevertheless basic supply is a dynamic category which can be determined by starting from 
existing needs at a given level of socio-economic development. This also implies that the concept of 
basic supply may differ from settlement to settlement, from zone to zone, and this is to which 
higher level supply has to be adjusted. The concentration of supplying institutions accompanied by 
adequate accessibility is to be regarded as a normal way of development when it rests on a balanced 
basic supply structure of regions and settlements and the division of supply functions is determined 
not by the sectorial but by the spatial aspects, while concentration does not lead to the compulsive 
meeting of the recognized social demands out of harmony with the actual regional structure. 
The development possibilities of the multiple-disadvantaged zones are chiefly connected 
with the traditional, general functions of the settlements. Together with these the specific functions 
arising from the special conditions of settlements may become independent resources of 
development, forming a part of the long-term programme. With regard to the multiple-
disadvantaged rural zones such a special function may become in principle the role in tottrism - and 
within this rural tourism. Today the impact of tourism on settlements is not everywhere favourable 
yet but it contributes to their development and the enhancement of their prestige. The spreading of 
rural holiday-making, however, is impeded by the shortage of available flats in the villages where 
the increase of employment and supplementary income would be greatly needed. 
The natural endowments and special conditions of the zones at disadvantage have more to 
offer for the purpose of tourism unlike the system of conditions of the receiving ability, since it 
could be created only by means of significant developments. Therefore in the long run the special 
resort and recreational function can potentially cover only a limited number of settlements as a 
resource of development. 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
18 
SOME ADMINISTRATION PROBLEMS OF THE BACKWARD SETTLEMENTS 
Although it is not an issue of primary importance, still administration structure is a sphere 
to be relatively easily adjusted in the long run. The multiple-disadvantaged zones have a limited 
possibility or even lack of asserting the local interests, they are far from the decision-making„ 
development centres having indirect, less efficient relationship with them. We can call it a 
"peripheric position in administration- organization" as we did earlier. The related changes in the 
system of administration, economy and fmances sometimes created significant possibilities of 
progress, yet on the whole, our knowledge of the evolution of local autonomy does not strip the 
question of its topicality. 
It is easy to see without lengthier discussion on public administration science that one of the 
most factor in this respect is the administration status of so-called co-community. (In regions with 
smaller settlements - as a rule - some communities belong to a joint municipal council. The council 
seat is the so-called centre-community and the other communities are called co-communities. Co-
communities have so-called local boards of community's members of the joint municipal council.) 
In the range of the multiple-disadvantaged settlements a great proportion of the entire population 
lives in co-communities and the internal differentiation within this range is significant. This is 
another reason for raising the question of the proper "handling" of the relationship between 
centre- and co-community. From the aspect of administration and management, however, there are 
further categories that can be classified as settlements at disadvantage, particularly from the side of 
the assertion of interests. Thus we have to note that the apparatus of larger villages - as opposed to 
the joint (or even independent) municipal council - is more closely and efficiently tied to the 
regional and county administration by virtue of its gyeater articulation and professional grounding 
because it is able to support its preferred interests with a wider scale of arguments anyway. 
Consequently the numerous municipal councils with the earlier intermediation of the district 
council offices and now with the interposition of the town councils (which are, to malce matters 
vorse, rivals in a stronger position) have far less potential chances to effect their individual interests 
in the mechanism of regional and county decision-making and allocation. 
Furthermore the concept of disadvantageous situation from the pont of view of 
administration and organization applies to the councils that have weaker ties with the inhabitants 
and have less prestige in the eye of their electors, for the simple reason, for example, that the gap 
between their development activities and the expectations of the population is larger than usual, or 
because their officials are not highly respected. The problems of the relationship between the local 
- municipal - councils and the population gain a special significance or may become impeding 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
19 
factors when the willingness of the population to sacrifice is specified as one of the bases of 
development resources. 
It can be regarded as a disadvantage of administration and management if the relations of a 
council in administration and in actual supply, transport and economy have developed towards 
different centres. In this case a great part of the energy of the local administration is absorbed by 
co-ordination and the chances of co-operation on the basis of mutual interests are small from the 
outset. Another factor impeding efficiency is the great number of co-communities which leads to 
extra-burdens and contradictions manifested in the corporate, administrative and management 
activities. 
In short the multiple-disadvantaged situation is manifested also from the side of the 
administration status, the system of conditions of administration-management, intermediation by 
towns, the great number of co-communities, weak ties with the population, management without 
prestige and experience, the not quite competent special administration, separation of the relations 
of administration and supply. 
An institution suitable for relieving the disadvantageous situation having c,ome into being 
from the aspect of administration is the local board which can equally serve the representation of 
the interests of the co-communities against the centre, their articulation, forming closer ties with 
the population. We must not forget, however, that a local board is merely an abstract possibility the 
actual effect of which depends to a great extent upon the personal composition of the boards, the 
positions that the members of the board can make a good use of in decision-making, the 
congenialitay of the population, the division of labour between the joint council and the local 
board, the authorities and financial means assigned to the competence of the local board. In 
respect of the latter - since the councils themselves make a decisiOn on it - efforts should be made 
at reaching a situation where the local joint councils are willing to convey, if possible, such an 
amount of financial means to the local boards - fixing it normatively - which enables them to 
dispose of their own resources for minor developments. Significant voluntary (financial) 
contribution and voluntary work can be expected of the population only if in addition to these 
resources there are state revenues guaranteeing the accomplishment of the local targets. The 
normative "conveyance" of the resources makes it possible for the local board to elaborate some 
management strategy as well. We also Icnow that one of the signs and at the same time 
consequences of the decline of small villages is the lethargy of the population and their boredom 
with state (council) solicitude. With regard to "politics" and "public sentiment" it would be very 
beneficial if the population had a chance of comparing its own sacrifices with the development 
intentions of the state (council) or rather with the tangible material results. 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
20 
Another factor having corrected the disadvantageous situation was the elimination of the 
districts from the regional system of  administration  but some additional commentary should be 
made on it. Municipal autonomy and attractivity imply a greater guarantee by virtue of the 
character of toi,vn mediation - so different from that of district mediation - since there does not 
exist a hierarchical relationship between town and communities. We also have to reckon with the 
fact that co-ordinative relationship of towns and communities - particularly in the case of obtaining 
development funds - may imply  rivalizing  too in which the communities do not have equal 
opportunities for asserting their interests. 
In our opinion in the process of the reducing of the gap between the multiple-disadvantaged 
and other zones the decision-maldng-mediating role of the towns should be minimized and 
neutralized with regard to communities, at the same time in the field of urban supply efforts should 
be made to schedule and locate the developments the implementation of which is the most urgent 
for the multiple-disadvantaged zones (settlements) with the consideration of the needs of zones. 
This peculiar "two-way direction" reveals the already mentioned fact the multiple-disadvantaged 
situation is, in our opinion, mainly a problem of regions and within this that of the settlements too. 
With regard to local administration the reduction of the gap between the disadvantaged and 
other zones can rely on two fundamental bases - on the communities (local boards) and the county 
administration. 
We have to emphasize again that the political justification, even benefit of the reduction of 
the gap between the multiple-disadvantaged and other zones depends on whether all the available 
resources - together with the normative (budget) development possibilities - can ensure a scope for 
the local councils where they can decide for themselves the directions, manner and scheduling of 
appropriation according to their own priorities. Such a degree of autonomy will somewhat assist 
the local councils vvith solving the challenging task of creating harmony between the spatial and 
sectorial priorities at the local level too. Intersettlement co-ordination and co-operation may play a 
role in this to the extent the regulation allows it and makes them interested in respect of 
management and financing. The rationality and economic benefits of this are not queried in 
principle although it is without genuine traditions and neither are there any tendencies which 
would indicate evolution in this direction. 
The relationship of centre and its zone outlined earlier in the description of the second 
development stage may bring about a new quality in the horizontal co-operation. The planned two - 
level administration system will establish one of the bases within the bounds of its power. The 
common interests and mutual interestedness, however, can come into existence only by the 
dominance of the economic character of  the regional units (e.g. the possibility and necessity of 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
21 
enterpreneurship). For the time being this possibility is contained in the new system of council 
management regulation but it can become a reality only by means of the establishment of the 
necessary material (financial) and personal conditions. The gradual formation of this flexible 
management with autonomous interests can be accomplished with the condition that the 
paternalism of the top management is suppressed and its decision-making and fmancial sphere of 
authority is reduced to the typical tasks connected with the whole network of settlements or the 
larger regions. 
In this process, however, a new quality of regional development policy must also be present a 
fundamental element of which is the actual co-ordittation of the narrowly taken economic 
(enterprisal) sphere and hereby of the particular integration of it within the regional system. 
SUMMARIZING 
In summary we can say that the differentiation and selection of settlements and regions is an 
objective process, the relative regional bacicwardness will always arise in different forms and with 
different intensity. Therefore the necessity of reducing the gap between the multiple-disadvantaged, 
generally rural and other zones has to be formulated for socio-political as well as for narrowly 
taken economic efficiency (growth) reasons. The moderation and occasional elimination of 
backwardness can be accomplished only by an integrated long-term development strategy aimed at 
influencing the development processes of settlements  and  regions. A programme composed of 
spatially and sectorially assigned individual measures to moderate social tensions as consequence of 
backward position of certain regions and settlements cannot be effective in the long run. This long-
term conception has to be integrally matched with the scope of the socio-economic macroprocesses 
and the path of development considered to be necessary from the point of view of the whole 
society. The levelling moment of the regional development policy must not part with it even for a 
short while because this could produce only temporary results at a very high cost. 
The moderation of the further widening of the gap and its elimination in the possible range 
of settlements, the moderation and elimination of the disadvantageous situation exceed the present 
range of effect and system of instruments of regional development policy. We assume that in the 
future the likely expanded reproduction of the zones at disadvantage will again raise with a number 
of other regional issues the problem of the organic integration of the regional principle in 
economic development policy required for the modernization of the management and planning 
system of the national economy. Even if the volume of the system of instruments and institutions 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
22 
designated today for the moderation of regional baclo,vardness grows - which cannot be made 
probable for that matter - it will not be able to meet the set objectives or give rise to durable 
improvement in itself. 
REFERENCES 
BARTKE, I. (ed.) (1985): A teraletfejlesztesi polialca Magyarorsztigon  (Regional Development Policy 
in Hungary). Alcademiai Kiad6, Budapest. 
BELUSZKY, P. - SIKOS T., T. (1982): Magyarorszag falutipusai (Village Types in Hungary). MTA 
Foldrajztudomanyi Kutat6 Intezet. Elmelet - modszer - gyakorlat. 25. Budapest. 
ENYEDI, GY. (1980): Falvaink sorsa (Destiny of Our Villages).Magveto Konyvkiad6, Budapest. 
ENYEDI, GY. (1983):  FOldrajz es tarsadalom  (Geography and Society). Magvet6 Konyvkiad6, 
Budapest. 
FARAGO, L. - HRUBI, L. (1987): Az elmaradott falusias tersegek felzarkoztatasinalc lehet6segei 
(Possibilities of Catching Up of Bacicward Rural Regions).  Ter es Tkrsadalom.  4. pp. 72- 
ao. 
GULACSI, G. (1986): Infrastruktura-fejlesztes - tanacsi beruhA74sok - teriiletfejlesztesi politilca 
(Development of Infrastructure - Investments of Councils - Regional Policy). 
Tervgazdaskgi Keizlemenyek. 1. 
GULACSI, G. - RONA, T. - BARTICE, I. etc. (1988): A szemelyi jovedelemad6 es a tanacsi 
gazdalkodas (Personal Income Tax and Council Economy).  Tervgazdasagi Kaziemenyek. 
3. 
HORVATH, GY. (1987): Development of the Regional Management of the Economy in East-
Central Europe. Discussion Papers. 5. 
LACKO, L. (1988):  Twilled fejlodes, politika, tervezes  (Regional Development, Policy, Planning). 
Alcademiai ICiado, Budapest. 

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Development Possibilities of Backward Areas in Hungary 
23 
MORILL, R. L. - SYMONS, J. (1977): Efficiency and Equity. Aspects of Optimum Location. 
Geographical Anabrsis. V ol. IX. July. pp. 215-225. 
MOSELEY, M. J. (1979): Accesibility: the rural challenge.  Methuen and Co. Ltd., London. 
PALNE KOVACS, I. (1988): Chance of Local Independence in Hungary.  Discussion Papers. 6. 
Tdrsadalmi-gazdasdgi program a gazelasdgilag elmaradott tersegek fejlesztesenek vorsitdsdra  (1986) 
(Socio-economic Programme on Acceleration of Development of the Economically 
Backward Regions). Orszfigos Tervhivatal, Budapest. 

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Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
The  Discussion Papers  series of the Centre for Regional Studies of the Hungarian Academy of 
Sciences was launched in 1986 to publish summaries of research findings on regional and urban 
development. 
The series has 3 or 4 issues a year. It will be of interest to geographers, economists, sociologists, 
experts of law and political sciences, historians and everybody else who is, in one way or another, 
engaged in the research of spatial aspects of socio-economic development and  planning. 
The series is published by the Centre for Regional Studies. 
Individual copies are available on request at the Centre. 
Postal address: 
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Forthcoming in the Discussion Papers series: 
The Role of the Accessibility in the Development and Functioning of Settlements 
by 
ken SZORENYINE KUKORELLI 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
Papers published in the Discussion Papers  series 
No. 1 OROSZ, Eva (1986): Critical Issues in the Development of Hungarian Public Health with 
Special Regard to Spatial Differences 
No. 2 ENYEDI, Gyorgy - ZENTAI, Viola (1986): Environmental Policy in Hungary 
No. 3 HAJDO, Zoltan (1987): Administrative Division and Administrative Geography in 
Hungary 
No. 4 SIKOS T., Tamas (1987): Investigations of Social Infrastructure in Rural Settlements of 
Borsod County 
No. 5 HORVATH, Gyula (1987): Development of the Regional Management of the Economy in 
East-Central Europe 
No. 6 PALNt KOVACS, Ilona (1988): Chance of Local Independence in Hungary 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 

Discussion Papers 1988. No. 7. 
Development Possibilities of Backward Areas in Hungary 
ISSN 0238-2008 
Kiadja a Magyar Tudomanyos Alcademla Regionalis Kutatasok Kozpontja 
Felelos kiad6: Enyedi Gyorgy akadamikus, foigazgat6 
Sorozatszerkeszto: Hrubi Laszlo 
Kesztilt: TEMPORG, POcs — 1127/89 
Feld& vezeto: Dr. KaHal Sandor 

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