Discussion Papers 1992. No. 16. 
Culture and Urban Development 
(The Case of Pécs)
CENTRE FOR REGIONAL STUDIES 
OF HUNGARIAN ACADEMY OF SCIENCES 
DISCUSSION PAPERS 
No. 16 
Culture and Urban Development 
(The  Case of Pecs) 
by 
HORVATH, Gyula 
Series editor 
HRUBI, Laszlo 
Pecs 
1992 

Discussion Papers 1992. No. 16. 
Culture and Urban Development 
(The Case of Pécs)
The Discussion Papers series is sponsored by 
BAT Pecsi Dohanygyar Kft. 
a Member of the British-American Tobacco Company Group 
ISSN 0238-2008 
©1992 Centre for Regional Studies, Hungarian Academy of Sciences 
Technical editor: Szabo, Janosne 
Typeset by Centre for Regional Studies, HAS 
Printed in Hungary by G-Nyomdasz Ltd, P6cs 

Discussion Papers 1992. No. 16. 
Culture and Urban Development 
(The Case of Pécs)
CONTENTS 
Introduction (5) 
1. Spatial development of intellectual potential in Hungary (8) 
2. Intellectual and cultural resources of Pecs (16) 
3. The basis of adaptation strategy of the city of Pecs: developing innovation and 
professional culture (21) 
4. Possibilities of developing scientific and professional tourism (27) 
Summary (30) 
Bibliography (33) 




Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
INTRODUCTION 
Similarly to a number of problematical regions (where various phenomena of the crisis 
prevail in a concentrated form) of Hungary, the development of Baranya county and 
the city of Pecs has reached a turning point  (Figure 1).  It is no longer possible to pro-
ceed on the road of regional and settlement development that has been followed up till 
now. The key to overcome the crisis is the establishment of a modern economy and the 
transformation of the economic structure. A precondition to this is a thorough examina-
tion and systematization of the endowments of Pecs and the priorities of a long-term so-
cial and economic policy. 
In order to define the intersections of the regional factors and the forecast county, 
national, and international level courses it is necessary to select new guiding principles. 
A structural transformation needs, in lieu of the traditional sectorial factors of re-
gional and settlement development, a thorough examination of "functional" elements 
(status and tendency of spatial division of labor, organizational-economic structure, de-
velopment means), which are more able to manifest the complexity of socio-economic 
movements. The market economy will need a settlement policy different from the pre-
sent one, too  (Enyedi  1990). 
Restructuring and the elaboration of a new urban development strategy, therefore, 
must be considered as simultaneous and interdependent tasks. International experience 
verifies that, in order to revitalize declining regions, it is inevitable to use new guiding 
principles to connect the regional movements, their actors, and the spatial organization 
of the economy; and new criteria are necessary to evaluate the relationship of these to 
the altered conditions. 
The common basic principle of the international revitalization programs is that 
long-term perspective of recovering from a social and economic crisis of a city is based not 
only on the well established sectorial decisions and financial sources, but it is also depen-
dent on —  
what may be a the most impulsive power in the future —  the success of settle-
ment development endeavors of the local social, political, and economic powers being 
realized in consistent programs; that is, on a successful realization and organization of an 

innovative urban development strategy (Bennett—Krebs  1991,  Castells  1987,  Smith—Feagin 
1987). 
The major effective factors of solving local crisis situations  in Hungary  (besides the 
institutional and ownership aspects, such as privatization, small and medium business 
development, etc.) have been linked to the traditional regional development concepts: 
saving enterprises in financial difficulty, restructuring, starting new production plants 
within the industry. 
These solutions can, in the case of the city of Pecs, bring about partial success only. 
Primarily, because these measures can not exceed the narrow conceptual framework 
that in the past decades, besides some objective conditions, have limited the direction 
and possibilities of development of the city  (Horvath — Hrubi  1992). 
More precisely, in addition to the existence of coal and uranium deposits,  ideological 
and political considerations 
played role in forming the character of the city, too. Among 


Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
 
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Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
these was especially the vulgar-Marxist theorem, and the practice that tried to realize it, 
that claims that industry, and particularly heavy industry, is the key element of the eco-
nomy; with even more emphasis on the primary resource exploitation in an economy 
oriented to autarchy. These factors, together with some other components resulted in 
the exaggerated industrialization policy that often did not account for actual needs and 
possibilities. The role of cities in the social division of labor was misinterpreted, i.e. that 
their function as industrial centres was over-emphasized. This policy artificially, though 
not always intentionally, increased the economic and political contrasts among cities 
and villages; while in a healthy society the two types of settlements live together not in 
rivalry but in symbiosis, assisting each other. 
Some important historical facts and observations in connection with the develop-
ment of the cities and their functions seem to have been forgotten. First of all, that the 
city is the main location not only for the  industry that has been separated from the agri-
culture (although often profitably utilizes it); but it is a similarly important  commercial, 
administrative, cultural (including educational), religioits, military, health care, etc.  
central 
place, too. 
These areas of social activity are not only  urban functions  carried by central settle-
ments of smaller or greater regions in the interests of the settlements within their gravi-
ty zones, too, as a service; but these have been, since the medieval ages,  urban develop-
ment and city forming factors  as well. 
Although there has not been much said about complex development concepts of  re-
gional centers of intellectual life  in Hungary yet; some movements into the direction of 
regionalizing intellectual life have been observed already, while the most important cha-
racteristic in this debate is the increase of objections. Opposition and objections have 
various background sources. 
Administrative and institutional interest groups have emphasized primarily the illu-
sory nature of forming such regional centres. Nevertheless, the hardest obstacle seems 
to have been the county political interests, which strived for having higher and public 
educational institutions in each county. Diverging county interests did not aim at crea-
ting regional cultural centers but rather at dissipating resources which could have been 
used for concentrated development. The frittered resources have been made even less 
significant by the fact that the future or desirable intellectual centers have not been 
playing any role of political or administrative centers in their wider gravity zones. This 
conceptional course of the 1970s and 1980s has to be considered an unfavorable line of 
development; it caused the institutionalizing of administrative levels that are not suitab-
le for creating a national network of higher educational, academic, and art institutions. 
The present problems of Pecs, one of the regional intellectual centres of the coun-
try prove that not only industry, or certain sectors of industry, are in crisis but the whole 
economy. Not only the industrial structure was one-sided and disproportionate but the 
financing and structure of the various urban functions, too. Therefore, if we want to 
overcome the present troubles, the future must be thought and planned as a complexity, 
seeing the healthy urban life as one unity. Furthermore, the interdependency and the 
links between the city and its surroundings must be taken into consideration in every 
step. It is impossible to carry out the changes and the creation of a city that is develo-
ping dynamically in the long term without  the complex development of the intellectual 
infrastructure closely connected to the economy.  If the future economic functions of Pecs 
will be connected to technological innovation, industrial restructuring, and marketable 


Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
production, the capacity and institutional structure of the intellectual potential will play 
a determinant role. In the social and economic development of the city such courses 
will need to have happened by the turn of the century that result in: (a) that a dec-
reasing, but highly skilled labor force of manufacturing industries will produce an out-
put value higher than the present one; and (b) the major part of employees will be 
found in the value-producing tertiary sectors. 
This longer term future image of the city makes it very important to  examine the 
cultural resources of Pecs from the viewpoint of urban development, too.  A number of 
examples of revitalization of depression areas in developed countries prove that the in-
tellectual life, culture, cultural services mean important forces of urban development, 
and take part in the re-organization of the socio-economic structure of the city in eco-
nomic crisis as pulling sectors. 
First, these sectors, as  value transmitters,  satisfied the increasing intellectual needs; 
assisted the change of identity linked with traditional economic bases to new local iden-
tity. Second, as  value producers,  contributed to the expansion of the economic basis of 
the city. Third,  they attracted capital carrying the prestige generating function of cultural 
elements. 
This triple urban development function of culture has not yet been taken into 
account in Hungarian settlement development policy. Culture, as economic sector, has 
been approached with the traditional fiscal attitude, thus the above complexity has not 
been realized in urban development. Therefore, it can be an important new model if a 
city can base its cultural development on the above approach, that is, the direct and 
indirect impacts of culture on the economic structure can be demonstrated in a wider 
social and economic environment; and if new objective needs for the expansion of cul-
tural services can be revealed. 
1.  SPATIAL DEVELOPMENT  OF INTELLECTUAL POTENTIAL IN HUNGARY 
The present spatial structure of the intellectual resources of Hungary is a result of long 
historical development. 
Apart from the University of Pecs which was founded in 1367 (during the Western 
European big wave of founding Universities) and operated through near a hundred 
years, there was no higher education institution in Hungary till the middle of the 17th 
century. Hungarian intellectuals studied at Italian, Dutch, Swiss, German, Polish and 
Czech Universities  (Farkas  Tam& 
— 
1981). The new University founded in 1635 in the 
territory of the present day Slovakia (and moved to Buda in 1777) was the only higher 
education institute for near two hundred years. After the establishment of the Hungari-
an Academy of Sciences (1828) a number of scientific societies were founded in the 
country, and in 1872 the University of Kolozsvar began to work (presently Cluj, Ruma-
nia). The idea of a third University was raised around the millennium of the Hungarian 
state. Finally, the government founded, in 1912, two universities (one in Debrecen and 
one in the present day Slovak capital, Pozsony). In this time there can be found as many 
as 60 colleges in the area of historical Hungary. 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
After the Trianon Peace Treaty the universities and colleges outside of the new 
Hungarian borders moved to the mother country, although this usually meant moving 
people while the majority of equipment remained beyond the borders. In the early 
1920s the University of Pecs and, in the North-Western part of the country, the Sopron 
University of Mining and Forestry were formed. 
By this time higher education had been concentrated in the capital. While in the 
early 1880s 33.6 per cent of the students of higher education studied in Budapest, in 
1903 this number was already 57.9 per cent, and in 1934 53.1 per cent. Similar tendency 
of concentration can be observed in other sectors of research infrastructure (libraries, 
book- and periodical publishers), following the increased strengthening of the role of 
the capital in the administration and economy of the country. 
After World War II the country can be characterized fundamentally by the diffe-
rentiation of intellectual potential, while quantitative index numbers were improved sig-
nificantly. In the whole territory of the country the bases of elementary, secondary, and 
vocational education were built. The Hungarian Academy of Sciences formed its own 
research institute network, the various ministries and central authorities organized their 
own research and development centres, too. Development of research institutes was al-
most entirely limited to the capital  (Table 1). 
The Hungarian research and development sector has been broken down into a 
number of separate parts. The independent research and development institutes have 
the highest level of budget, followed by industrial R + D centres, and then higher educa-
tion institutions. However, on the basis of the number of professional employees 
(researchers) the order is reversed  (Table 2). 
The spatial concentration of research and development preserved the pre-World 
War II level in Hnngary. This is characteristic for all types of R + D organizations. 
Ratios similar to the concentration of research institutions in the capital can be obser-
ved in the case of industrial research centres (59.1 per cent of their employees and 48.5 
per cent of their budget is in the capital), and in the case of higher education instituti-
ons the weight of the capital is slightly entailer (46.0 per cent of employees, 48.5 per 
cent of budget). 
This concentration should be regarded as an alarming situation. It is well known 
that research is always situated in a concentrated way, and finds its intellectual infra-
structure in big cities. (Apart from agricultural research the important bases of which 
are in the countryside.) However, this extreme concentration makes Budapest the only 
many-sided research centre in the country, a single island of intellectual renewal and 
modernization. (This hinders modernization further, because e.g. more than 50 per cent 
of modern small business can be found in the capital, 42 percent of industrial exports 
come from Budapest, while only 21 percent of the population of the country and of the 
industrial employees live in the capital.)  Modernization of a country can not be limited to 
one area — as it is demonstrated by the case of developed market economies. 
The predominance of the capital is not the only spatial disproportion. Near two 
third of the countryside research capacity is limited to six counties  (Table 3). Principally 
the core region of the country, i.e. Pest county around the capital, furthermore, the 
counties of the large university centers (Pecs, Debrecen, Szeged, Miskolc, and 
Veszprem) show outstanding data. However, the weight of these compared to the 
capital is still slight. 


Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 1 
Change of the regional structure of research institutions, 1960-1990 
Number of employees 
Percentage share 
at research institutions 
1960 
1970 
1990 
1960 
1970 
1990 
Budapest 
13,118 
24,941 
11,826 
85.5 
89.2 
76.1 
Countryside 
2,227 
3,859 
3,710 
14.5 
10.8 
23.9 
Total 
15,345 
28,800 
15,536 
100.0 
100.0 
100.0 
Source: Farkas—Tatnas 1981. p. 107.; Tudomanyos kutatas es kiserleti fejlesztes 
1990. p. 17. 
Table 2 
Data of R +D organisations, 1990 
Number of 
Per 
Number of 
Per  Expenditure 
Per 
R + D places 
cent 
employees 
cent 
Million Ft 
cent 
R + D institutions 
69 
5.4 
15,536 
26.0 
12,578 
43.9 
Higher education 
940 
74.9 
22,787 
38.2 
5,071 
17.7 
Business R + D places 
174 
13.9 
17,134 
28.7 
9,528 
33.3 
Other organizations 
73 
5.8 
4,266 
7.1 
1,442 
5.1 
Total 
1,256 
100.0 
59,723 
100.0 
28,619 
100.0 
Source:  Tudomanyos kutattis es kiserleti fejlesztes.  1990. p. 17., 21. 
10 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 3 
Data of R + D places by counties, 1987 
Total number 
Per cent 
Percentage 
Expenditure 
of R+D 
of 
R+ D expendi- 
share of 
per one 
County 
total 
ture 
expendi-  
researcher  
ture 
Thou- 
Million Rank 
sand Rank 
Ft 
Ft 
Budapest 
50,839 
65.5 
18,730 

70.5 
741 

Baranya 
1,944 
2.5 
223 
12 
0.8 
185 
20 
Bacs Kiskun 
678 
0.9 
132 
13 
0.5 
422 
11 
-
&Ices 
756 
1.0 
246 
10 
0.9 
1,319 

Borsod-Abadj-Zemplen 
2,322 
3.0 
720 

2.7 
725 
10 
Csongrad 
3,656 
4.7 
747 

2.8 
412 
13 
Fe* 
2,455 
3.2 
1,250 

4.7 
1,577 

Gyor-Moson-Sopron 
1,449 
1.9 
579 

2.2 
808 

HajdU-Bihar 
3,225 
4.1 
631 

2.4 
362  16 
Heves 
570 
0.7 
73 
16 
0.4 
226  19 
Komarom-Esztergom 
624 
0.8 
233 
11 
0.9 
1,137 

Nograd 
241 
0.3 
38 
19 
0.1 
421 
12 
Pest 
4,050 
5.2 
1,226 

4.6 
899 

Somogy 
220 
0.3 
44 
18 
0.2 
340 
17 
Szabolcs-Szatmar-Bereg 
745 
1.0 
120 
14 
0.4 
369  15 
Szolnok 
711 
0.9 
260 

1.0 
1,227 

Tolna 
247 
0.3 
88 
15 
0.4 
1,655 

Vas 
162 
0.2 
19 
20 
0.0 
243  18 
Veszprem 
2,414 
3.1 
1,150 

4.3 
1,345 

Zala 
355 
0.4 
65 
17 
0.2 
409 
14 
Total 
77,663 
100,0 
26,574 
100.0 
986 

Source:  Tudomknyos Kutatas es Fejlesztes.  1987. p. 48. 
11 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
The disproportionate development of R + D basis is demonstrated by the spatial 
separation of industrial research centers and institutions of basic research (academic 
research institutes and universities). In the northern industrial zones industrial research 
centers are more dominant while basic research is insufficient. Only one tenth of in-
dustrial research institutions can be found in university towns. This spatial dis-
proportion puts a constraint on technological modernization and the establishment of 
its necessary regional organizational forms (industrial and innovation parks, technologi-
cal centers, etc.)  (Enyedi, 1987). 
It was pointed out above that, although there is a high concentration of  higher edu-
cation  in the capital, its indices are still more favorable than those of the R + D network. 
Besides the deformed spatial structure the quantitative underdevelopment of higher 
education is an obstacle to Hungarian economic recovery. Hungary has a rather unfavo-
rable position among European countries considering the number of university and 
college students per one hundred thousand people  (Table 4) . 
The internal structure of higher education is not modern either. 54.4 percent of stu-
dents study at universities, and the rest at independent colleges giving shorter and lower 
level high education. 
The spatially scattered countryside high education network can not balance the out-
standing position of the capital  (Table 5). There has not been formed large, competitive 
universities in Hungary that could easily be able to connect into the European research 
and education networks. Countryside high education bases are small even from the 
European point of view (the number of their students is between 500 and 10,000). This 
is a result of the inadequately considered development policy, as a consequence of 
which in 33 settlements of the county can higher education institution be found (the 
average number of students per institution is, without the data of Budapest, 1,726, 
which is much less than the European average)  (Figure 2). 
It is a principal, not only cultural but regional development, task that regional in-
tellectual centers should be reinforced. University towns have the best opportunity for 
this. Larger cities with many-sided intellectual potential — Debrecen, Pecs, and Szeged 
— are situated in the less industrialized Eastern and Southern peripheries of the country 
with their deficient technological training background; whereas the academic research 
basis of the industrialized North is weak and one-sided. Outside of Budapest in Nort-
hern Hungary there is university only in Miskolc, but its industrial engineering profile 
has fallen into deep crisis. Therefore, the capital is not only quantitatively predominant 
but this is the only area of the country where industry, developed service sector, and re-
search and development capacity have met each other. This way, at the entrance to the 
innovative economic development that needs highly intensive research the advantages 
of Budapest are much greater than they were ever in the era of extensive industry deve-
lopment. This is alarming because if research and production is separated spatially to 
this extent then diffusion of modern industries, business forms, and innovation will be 
difficult, and even the up-to-date "enclave" will not be able to expand but it will rather 
waste away. 
12 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 4 
Number of students in higher education in European countries, 1980-1985 
Change 
Number of students  Change 
Country 
Number of 
in per 
per 100 thousend 
in 
students, 1,000 
cent 
inhabitants 
per cent 
1980 
1985 
1980 
1985 
Belgium 
196.2 
247.5 
26.1 
2,111 
2,499 
18.4 
Denmark 
106.2 
114.6 
7.9 
2,074 
2,236 
7.8 
Germany 
1,223.2 
1,550.2 
26.7 
1,987 
2,546 
28.1 
Greece 
121.1 
148.5 
22.6 
1,256 
1,518 
20.9 
Spain 
681.0 
787.9 
15.7 
1,819 
2,067 
13.6 
France 
1,076.7 
1,255.5 
16.6 
2,005 
2,310 
15.2 
Ireland 
54.7 
67.4 
23.2 
1,610 
1,888 
17.3 
Italy 
1,117.7 
1,182.0 
5.7 
1,959 
2,065 
5.4 
Netherlands 
360.0 
390.2 
8.3 
2,544 
2,704 
6.3 
Portugal 
92.2 
101.3 
9.8 
932 
1,005 
7.8 
United Kingdom 
827.1 
1,007.0 
21.7 
1,478 
1,795 
21.4 
Austria 
136.8 
173.2 
26.6 
1,822 
2,309 
26.7 
Finland 
123.2 
128.0 
3.6 
2,577 
2,616 
1.5 
Norwey 
79.1 
94.1 
19.0 
1,936 
2,278 
17.7 
Sweden 
203.7 
220.9 
8.4 
2,451 
2,650 
8.1 
Switzerland 
85.1 
110.1 
29.3 
1,346 
1,790 
33.0 
Bulgaria 
101.4 
113.8 
12.2 
1,144 
1,255 
9.7 
Czehoslovakia 
197.0 
169.3 
- 14.1 
1,287 
1,087 
- 15.5 
Yugoslavia 
412.0 
360.4 
- 12.6 
1,848 
1,571 
- 15.0 
Romania 
192.8 
159.8 
- 17.1 
868 
694 
- 20.1 
Poland 
589.1 
454.2 
- 22.9 
1,656 
1,221 
- 26.0 
Hungary (1990) 
101.2 
102.4 
1.2 
944 
989 
4.8 
Source:  Nemzetkozi Statisztikai Evkonyv.  1989. p. 334. 
13 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table  
Number of students in higher education by counties, 1980-1990 
Number of students 
Percentage 
Share 
County 
change 
in 
per cent 
1980 
1990 
1990 
Budapest 
47,836 
45,417 
-  5.1 
44.4 
Baranya 
7,446 
5,309 
- 15.3 
6.2 
Bacs-Kiskun 
2,959 
2,359 
- 20.3 
2.3 
Bekes 
903 
1,178 
+ 30.5 
1.2 
Borsod-Abaftj-Zemplen 
3,837 
4,226 
+ 10.1 
4.1 
Csongrad 
8,582 
10,041 
+ 16.9 
9.8 
Fejer 
1,945 
1,128 
- 42.1 
1.1 
Gyor-Moson-Sopron 
4,987 
4,633 
-  7.1 
4.5 
Hajdfi-Bihar 
6,904 
7,922 
+ 14.7 
7.7 
Heves 
2,297 
3,038 
+ 32.2 
3.0 
Komarom-Esztergom 
950 
726 
- 23.6 
0.7 
Negrad 
726 
558 
- 23.2 
0.5 
Pest 
1,979 
3,378 
+ 70.8 
3.3 
Somogy 
1,375 
1,286 
-  6.5 
1.3 
Szabolcs-Szatmar-Bereg 
3,188 
3,192 
+  0.1 
3.1 
Szolnok 
1,379 
1,541 
+ 11.7 
1.5 
Tolna 
259 
552 
+ 113.1 
0.5 
Vas 
1,489 
2,288 
+ 53.6 
2.3 
Veszprem 
887 
1,248 
+ 40.7 
1.2 
Zala 
1,238 
1,367 
+ 10.4 
1.3 
Total 
101,166 
102,387 
+  1.2 
100.0 
Source:  Terilleti Statisztikai Evkonyv.  1980. p. 232.; 1990. pp. 190-194. 
14 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
▪ 
 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.


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15 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
2. INTELLECTUAL AND CULTURAL RESOURCES OF PECS 
The number one element of intellectual resources is  population,  with its composition, 
level of education, employment structure. 
Not considering now the demographic and educational composition of the city, let 
us demonstrate the importance of the cultural resources of Pecs by the  sectorial distribu-
tion of active wage earners. 
-
Similarly to other large cities and county seats of the country, 
the ratio and number of people employed in cultural and academic services is higher 
than the national average. On the basis of the data of the censuses in 1970 and 1980 the 
structural change and modification of the proportion of this sector can be demonstrated 
(Tables 6  and 7). Between 1970 and 1980 the number of active employees in all of the 
city's tertiary sectors showed greater rate of growth than the average of 12.9 per cent. 
Behind science and academic services (being still insignificant sector in terms of num-
ber of employees), and personal and business services, educational and cultural services 
take the third place in terms of growth rate. This above-average growth rate has accele-
rated the weight of the sector, too. As opposed to 1970 when 7.1 per cent of the active 
wage-earners worked in the sectors of culture and science, this number was 9.5 per cent 
in 1980. Because of the nature of this sector, this ratio is much higher (35.2 per cent) 
within the population having higher education degree. 
Secondary school education  is a fundamental element of the appearance, level, and 
quality of intellectual resources. Its characteristics are influenced by the urban econo-
mic structure, the traditions of educational institutions, and the administrative status of 
Pecs. In the case of the first factor the network and capacity of the vocational training 
school system is determinant; institutions are bound to basic settlement functions; and 
the last factor is related to the regional role of Pecs. 
Various qualitative and quantitative indexes can demonstrate the development of 
vocational training and secondary education. This time the qualitative analysis (the 
structure, equipment, etc., of secondary education) has to be disregarded, we can only 
quantitatively outline the position of the city - primarily compared to settlements of si-
milar status (county seats). 
Data of  Table 8  show an unfavorable picture of the position of Pecs from the point 
of view of intellectual potential. The last column, which is best representing the quantity 
of resources (secondary school students per one thousand inhabitants in the city), is 
rather unfavorable. Pecs takes the 15th place among the 19 county seats, which can not 
be explained by the demographic structure of the city, since — as it is shown by  Table 9 
—according to the number of primary school students per one thousand people Pecs 
takes the 6th place. Analyzing the data it must be concluded that the city of Pecs — as an 
effect of the educational financing system of the normative regulation of the Hungarian 
secondary education network — has fallen into the trap of regional equalization. The fa-
vorable — although, monopolistic — position of the city that used to be characteristic be-
fore World War II has disappeared, and Pecs can not be considered as a nationally out-
standing secondary educational center any more. 
Further important components of the intellectual resources of the city are the size 
and structure of higher education and academic potential. 
16 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 6 
Distribution of active wage-earners by sectors in P6cs, 1970 
Active wage-earners 
With university/ 
Sector 
college degree 
number 
per cent 
number 
per cent 
Manufacturing 
32,562 
45.0 
1,196 
19.4 
Construction 
5,295 
7.3 
310 
5.1 
Agriculture and forestry 
4,220 
5.8 
377 
6.1 
Transportation and 
communication 
5,939 
8.2 
253 
4.1 
Commerce 
7,716 
10.7 
253 
4.1 
Services 
2,950 
4.1 
81 
1.3 
Health and social 
services 
3,822 
5.3 
769 
12.5 
Cultural services 
5,154 
7.0 
1,997 
32.5 
Science 
42 
0.1 
22 
0.4 
Public administration and 
other services 
4,715 
6.5 
895 
14.6 
Total 
72,415 
100.0 
6,153 
100.0 
Source: Nepszamlalasi adatok, Pecs varos.  1970. p. 229. 
17 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 7 
Distribution of active wage-earners by sectors in Pecs, 1980 
Active wage-earners 
Change 
With university 
Sector 
1980/1970 
or college degree 
number 
per cent 
per cent 
number per cent 
Manufacturing 
32,821 
40.1 
100.7 
1,672 
17.3 
Construction 
6,882 
8.4 
129.9 
587 
6.1 
Agriculture and forestry 
3,057 
3.7 
72.4 
469 
4.9 
Transportation and 
communication 
7,087 
8.7 
119.3 
436 
4.5 
Commerce 
9,584 
11.7 
124.2 
394 
4.0 
Services 
4,847 
5.9 
164.3 
248 
2.6 
Health and social services 
5,450 
6.7 
142.6 
1,286 
13.3 
Education 
6,394 
7.8 
3,036 
31.4 
147.8 
Cultural services 
1,222 
1.5 
331 
3.3 
Science 
137 
0.2 
326.2 
50 
0.5 
Public admin. and 
other services 
4,303 
5.1 
91.2 
1,169 
12.1 
Total 
81,784 
100.0 
112.9 
9,678 
100.0 
Source:  NepszamMlasi adatok, Pecs Wray.  1980. p. 198. 
18 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 8 
Data of secondary education and vocational training schools, county seats, 1980-90 
Number of students 
Number of 
per one teacher 
per one classroom  per 1,000 
County seat 
clossrooms 
inhabitants 
1980 
1990 
1980 
1990 
1980 
1990 
1980 
1990 
Budapest 
1,526  2,148 
12.4 
12.8 
31.9 
35.8 
23.6 
38.1 
Bokescsaba 
86 
134 
14.0 
11.9 
33.0 
31.3 
42.2 
61.9 
Debrecen 
200 
322 
13.7 
13.2 
37.7 
37.1 
39.0 
55.9 
Eger 
98 
145 
15.2 
13.8 
36.8 
38.7 
58.9 
89.8 
Gyor 
161 
234 
14.0 
12.7 
35.5 
37.9 
45.9 
68.4 
Kaposvdr 
87 
123 
12.9 
12.6 
31.5 
32.3 
37.2 
55.6 
Kecskemet 
68 
145 
14.8 
13.3 
33.6 
32.7 
24.9 
45.8 
Miskolc 
295 
339 
14.9 
13.5 
31.5 
33.6 
44.8 
58.7 
Nyfregyhdza 
138 
192 
14.8 
13.9 
31.4 
35.1 
40.1 
58.8 
PECS 
175 
237 
12.5 
12.0 
33.2 
34.0 
34.3 
47.4 
Salgotarjan 
59 
75 
12.3 
11.1 
31.9 
36.4 
38.2 
57.5 
Szeged 
182 
262 
13.2 
13.4 
32.7 
35.2 
34.6 
52.3 
Szekszard 
62 
65 
13.1 
12.8 
31.5 
35.9 
56.5 
70.1 
Szekesfehervar 
130 
196 
14.7 
15.5 
35.8 
38.9 
45.1 
59.9 
Szolnok 
87 
154 
14.1 
13.6 
36.9 
32.2 
42.6 
63.1 
Szombathely 
107 
132 
14.5 
13.6 
33.9 
40.0 
43.8 
61.6 
Tatabanya 
82 
91 
14.0 
13.3 
27.1 
31.7 
29.3 
39.1 
Veszprem 
70 
109 
14.2 
12.5 
33.5 
36.8 
42.7 
62.4 
Zalaegerszeg 
95 
119 
13.3 
12.8 
31.5 
34.3 
54.1 
65.5 
Hungarian cities 
total 
5,686  8,356 
13.3 
12.8 
31.3 
33.9 
44.5 
44.1 
Source:  Teriileti Statisztikai Evkonyv.  1980. p. 178.; 1990. p. 184. 
19 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 9 
Elementary school data by county seats, 1980-90 
Number of students 
County seat 
per one classroom 
per one teacher 
per 1,000 inhabitants 
1980 
1990 
1980 
1990 
1980 
1990 
Budapest 
34.7 
25.2 
14.6 
12.7 
83.8 
91.8 
Bekescsaba 
31.4 
25.3 
14.9 
10.6 
99.8 
106.5 
Debrecen 
38.1 
30.1 
16.5 
13.5 
101.5 
113.1 
Eger 
33.6 
26.7 
17.5 
11.4 
100.9 
116.8 
Gy6r 
36.4 
26.8 
15.3 
13.3 
114.1 
116.7 
Kaposvar 
37.6 
27.7 
16.5 
12.3 
105.0 
118.6 
Kecskemet 
37.9 
29.0 
16.3 
13.2 
108.0 
117.1 
Miskolc 
44.2 
29.5 
14.6 
12.4 
106.5 
115.8 
Nyiregyhaza 
33.7 
27.0 
14.6 
11.6 
116.5 
125.5 
PECS 
37.7 
27.4 
14.6 
11.0 
104.1 
103.6 
Salgotarjan 
30.7 
25.5 
14.4 
12.2 
109.6 
118.1 
Szeged 
33.7 
26.3 
15.6 
12.1 
96.4 
104.4 
Szekszard 
33.6 
28.5 
15.0 
12.6 
107.0 
120.5 
Szekesfehervar 
40.8 
29.6 
18.5 
15.1 
110.4 
125.3 
Szolnok 
41.4 
27.7 
14.9 
11.6 
110.0 
121.2 
Szombathely 
34.4 
27.1 
16.6 
12.4 
114.3 
115.7 
Tatabanya 
37.4 
26.4 
16.5 
13.6 
108.8 
113.1 
Veszprem 
36.2 
26.0 
17.3 
12.8 
127.2 
131.9 
Zalaegerszeg 
38.8 
27.7 
16.5 
12.7 
117.6 
123.9 
Hungarian cities total 
36.0 
26.7 
15.7 
12.8 
100.8 
109.9 
Source:  Teraleti Statisztikai tykOnyv.  1980. p. 176.; 1990. p. 182. 
20 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Pecs is still an important academic and research basis of Hungary. However, the re-
lative weight of the city has decreased since 1945. As a result of the relative — rather 
moderate, in international comparison — extension of higher education to masses pre-
sently each county seat, with the exception of Tatabanya, has its own  higher education 
institute. While up to the end of the 1960s Pecs was the only higher education center of 
South-Transdanubia, today 66.7 per cent of the students of the same region studies in 
this city. As a consequence of the vicissitudious development of the University of Pecs 
and the reformation of teacher training the proportion of Pecs students in the country 
has decreased from 7.4 per cent to 6.2 per cent between 1980 and 1990  (Table 10).  In 
this period Budapest's proportion has decreased besides that of Pecs, while the 
proportion of the other three regional academic centers has increased. 
Can Pecs be considered as an school town upon these data? It must be remembe-
red, first of all, that this type of city, as a result of the ideological and political practice 
of Socialism, has vanished from Hungary, despite the significant traditions. Real educa-
tional cities with peculiar intellectual characteristics on the basis of secondary and 
higher education can not be observed today. In the traditional educational cities (Sop-
ron, Keszthely, Szarvas, Go&116, Sarospatak) the number and ratio of students in the 
population is similar to the same indexes of other cities. 
Table 11  illustrates that the position of Pecs is the least favorable among the Trans-
danubian and Great Plain regional centres. This demonstrates that, from the point of 
view of the future of the city, a comprehensive school development plan is needed. 
Finally, it must be pointed out, as one of intellectual resources, that both in the city 
and in the county there is a  rather weak research and development background which 
could make the basis of a future market diversification - opposed to the general public 
opinion. Some data can illustrate this. In 1987 2 per cent (1,975 people) of the active 
wage-earners of the city worked in R + D institutions (universities, colleges, full time re-
searchers at institutions and enterprises)  (Table 12).  The same number is nationally 1.8, 
in Szeged 4.0, and in Debrecen 3.4 per cent. 
3. THE BASIS OF ADAPTATION STRATEGY OF THE CITY OF PECS: 
DEVELOPING INNOVATION 
AND PROFESSIONAL CULTURE 
The goal of economic restructuring of Pecs is to decrease the weight of material and 
energy intensive, often heavy polluting, sectors; furthermore, to diminish or eliminate 
production with deficit, and to increase the revenue productivity of the economy by in-
troducing efficient production forms. Economic restructuring is motivated by the 
flexible accommodation to the needs of (internal and external) market. If restructuring 
is missed, that results in the long run that the industries of the city may be squeezed out 
of the markets. 
The change of structure inevitably results in the transformation of the structure of 
employment, too. An efficient production structure needs a different volume and qua-
lity of labor force: it assumes and increased mobility of the labor force. Since the 
21 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 10 
Number of students *  in higher education, 1980-1990 
1980 
1990 
City 
number 
per cent 
number 
per cent 
PECS 
7,446 
7.4 
6,309 
6.2 
Janus Pannonius Univ. 
4,420 
3,791 
Univ. of Medical Sciences 
1,302 
1,239 
Pollack M. Engineering Col. 
1,655 
1,168 
College of Music 
69 
111 
Budapest 
47,836 
47.3 
45,417 
44.4 
Debrecen 
6,319 
6.2 
7,513 
7.2 
Szeged 
8,582 
8.5 
9,692 
9.4 
Gy6r 
3,331 
3.3 
2,966 
2.8 
Miskolc 
2,588 
2.5 
3,619 
3.6 
Other cities 
25,064 
24.8 
27,012 
26.4 
Total 
101,166 
100.0 
102,387 
100.0 
* Including all full-time, part-time, and evening school students. 
Source:  Terilied Statisztikai Evkonyv.  1980. p. 180.; 1990. p. 186. 
22 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 11 
"School towns" in Hungary, 1990 
Number of higher-than-elementary 
Rank 
Settlement 
school students per one thousand 
people 
1. 
Eger 
95.2 
2. 
Fehergyarmat 
86.9 
3. 
Esztergom 
79.2 
4. 
Tokaj 
78.2 
5. 
Sarospatak 
76.1 
6. 
Szeged 
73.5 
7. 
Mateszalka 
72.8 
8. 
Keszthely 
70.9 
9. 
Debrecen 
70.6 
10. 
Gyor 
70.2 
11. 
Vac 
70.1 
12. 
Kisvarda 
68.2 
13. 
Szombathely 
68.1 
14. 
PECS 
64.9 
15. 
Baja 
64.4 
16. 
Godo116 
62.4 
17. 
Veszprem 
61.7 
18. 
Szekszard 
61.2 
19. 
Sopron 
60.4 
20. 
Miskolc 
58.2 
21. 
Balassagyarmat 
57.7 
22. 
Kaposvar 
56.8 
23. 
Satoraljafijhely 
56.2 
24. 
Csorna 
55.9 
25. 
Koszeg 
54.3 
26. 
Veszprem 
54.3 
27. 
SalgOtarjan 
53.7 
28. 
Szarvas 
53.2 
29. 
Szekesfehervar 
52.5 
30. 
Szolnok 
52.1 
31. 
Bekescsaba 
51.4 
32. 
Berettyoujfalu 
50.6 
33. 
Papa 
50.6 
Source: The author's calculations, on the basis of  Teruleti Statisztikai Evklinyv. 
23 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
Table 12 
R + D places in regional centres, 1987 
Total number of 
Of this, 
Researchers, Expenditure 
County and 
Number of 
employees 
researchers 
with academic Million Ft. 
city 
R + D places number per cent 
number per cent of degree 
intellectuals 
with degrees 
BARANYA 
83 
1,975 
1.2 
1,263 
7.7 
249 
258.4 
Of this: PECS 
82 
1,961 
2.0 
1,255 
12.6 
249 
252.1 
Borsod-Abafij-Z,emplen 50  2,322 
0.9 
1,073 
4.9 
156 
794.1 
Of this: Miskolc 
39 
1,727 
1.5 
841 
10.5 
147 
427.4 
Csongrad 
130 
3,623 
2.3 
1,963 
11.4 
532 
892.3 
Of this: Szeged 
120 
3,212 
4.0 
1,837 
17.8 
522 
796.9 
Gyor-Sopron 
53 
1,528 
0.9 
738 
4.3 
98 
583.5 
Of this: Gyor 
10 
773 
0.9 
398 
4.5 
13 
413.3 
Hajdti-Bihar 
78 
3,304 
1.8 
1,770 
9.4 
447 
818.0 
Of this: Debrecen 
76 
3,145 
3.4 
1,698 
17.0 
446 
740.1 
Country total 
1,310  75,429 
1.8 
36,453 
8.2 
5,583 
30,908.0 
Source:  Tudomanyos Kutatas es Fejlesztes.  1987. p. 53. 
24 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
structural transformation almost necessarily induces unemployment, rationalization of 
economic systems faces a significant social opposition, regardless to the type of the 
system. 
An accommodation to the changing market needs can be defined as a continuous 
adjustment. If this is successful, then the competitiveness of the city or its business firms 
will be improved. Therefore, a continuous observation of the changing needs, supplying 
products and services that fulfill these needs at a high level, and a permanent adjust-
ment are essential conditions of the competitiveness of the city. The ideas of some inte-
rest groups that emphasize shifting costs, instead of adjustment, as a reaction to market 
changes, are naive, because it would lead to further position loss which can bring se-
rious consequences. 
The goal of the adaptation strategy is increasing the value-added which is realized 
in the region. This requirement can be met by such a concept of structural policy that 
decreases the dependence on the factor conversion organized on the basis of traditional 
endowment of resources. This concept, naturally, needs to include the comparative 
infrastructural endowments, regional administration system, and other factors that in-
fluence the adaptation ability of the city. 
Emphasizing the development of manufacturing as a center of industrial strategy 
means a policy,  especially R +D policy,  that is fundamentally different from the previous 
one. Introduction of value-increasing industrial cultures can be feasible with speeding 
up technological development and establishing innovation-oriented environment in the 
county. (Not mentioning other; well known macroeconomic and policy issues without 
which it is impossible to raise the Hungarian industry to the international level.) 
In the restructuring of the region of Pecs a  technological development,  in the broad 
sense, must be taken into account as an independent, complex political element in the 
county. In the region the underdevelopment of the innovation culture (technological re-
sources, organizational and management patterns) can be demonstrated. As it was 
shown above, there is a low volume of expenses on, and small number of places of, 
R + D activities; furthermore, the signs of the innovation chain (re-
search—development—production—marketing) can hardly be observed in the economy. 
New product appear only slowly in the industrial sectors of the city. 
Incidentally, it must be pointed out that a technological development being speeded 
up will itself necessarily induce a reorganization of the economy. Economic restructu-
ring results in changes of the weights (decrease of their influence and their role in inte-
rest conflicts) of a number of producers in the county. Previous relative stability and 
slow technical development will be replaced by a reorganization of the positions of indi-
viduals and communities, which, in the long run, should be regarded a normal way of 
development similarly to the former slow and mostly safe development period produ-
cing a quantitative growth of goods and services. Naturally, the institutions of the coun-
ty administration, which have been installed under different conditions of development, 
are not sufficient to solve the social conflicts already having been emerged. The publici-
ty of the central,  local,  and office decisions, and the establishment of the  methods and 
institutions of representation and reconciliation of interests  have a much larger importan-
ce. 
Here is a list of some of the basics of the agenda in connection with  the complex sys-
tem of requirements of accommodating the technological renewal,  the new knowledge and 
forms of activities: 
25 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
-
a rational transformation of the structure of production resources, in consequence 
of which the emphasis will be shifted to new technology as opposed to technology-
replacing labor, when choosing between the two, 
-
in order to exploit new resources the loss-producing activities must be eliminated, 
and misallocated factors of production must be withdrawn and allocated properly, 
-
increasing the mobility and flexibility of the factors of production, strengthening the 
connections between factor markets, increasing the role of innovation centers, es-
tablishing capital market, and elimination of the rigidity in the labor market. 
The requirement that the complex agenda of technological innovation should be an 
element of the regional policy inevitably raises the question of division of labor among 
the various actors of the economy and the administration. This obvious especially be-
cause there has not been found such role among the traditional functions of the local 
and regional governments. 
Clearly, business sphere has the rights to and tasks of the appropriate strategical 
decisions of the major lines of development. In the same time, economic restructuring 
(especially when its economic and social environment shows the signs of depression), 
and the determination of the directions of development must not be restricted to the 
enterprises. The system of technological development at enterprises is rather sensitive 
to regulations than to the consequences of international competition. International 
observations prove that the changing philosophy of industrial policy, which connects 
technological development with management expertise, entrepreneurship, and marke-
ting, will widen the channels of encouraging innovation, and create a broad scale of lo-
cal and regional support  (Borlenghi  1990). Besides the forms of traditional central fi-
nancial participation, which are usually related to large special development programs, 
there can be found non-project types of regional support in a number of countries. In 
addition to government subsidies to certain enterprises or R + D cooperation programs, 
significant financial support is supplied to the development of consultative and informa-
tion services, too. (For example, in Great Britain in the years 1987-88 a quarter of the 
financial support for innovation, of the Department of Trade and Industry, was spent 
on non-technological development.) 
The necessity of the establishment of a decentralized, regional innovation support 
system in Hungary is explained by the transformation of the economic structure and the 
structure of business organizations. Obtaining information and expertise for special 
technological tasks, and the search for markets and partners will mean a serious prob-
lem for the small- and medium sized business firms (as long as these are considered the 
organizational engine of structural changes). In general, creating the export-oriented 
and growth-oriented business behavior needs a well operating market system, without 
regard to the size of the firm. Strongly cost-sensitive small enterprises cannot even think 
about maintain self-sufficiently an efficient organization of marketing, design, quality-
control, business planning, financial, and information system  (Coleman 
Jacek  1989, 
— 
Sweeney  1991). To solve this problem appropriate organizations will be required in the 
Pecs area, too; and the utilization of their services must be incited by financial supports 
based on strict criteria. 
Regional and local governments should assume important role in the creation of 
modern infrastructure, and of the  physical, economic, and intellectual environment  of 
technological development and competitiveness. Let us not mention here the electronic 
26 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
and telecommunication aspects that fundamentally influence productivity, cooperation, 
and division of labor. 
The necessity to create intellectual infrastructure results from the level of expertise 
of the new technological culture, its overall social influence, and the tasks of a radical 
transformation of the practice of the executive management of enterprises. 
The priorities of speeding up technological development  in the city of Pecs might be 
the following ones: 
-
quantitative and qualitative development of R + D bases, establishment of an entre- 
preneurial and innovation industrial park, 
-
development of the innovation chain in the selected fields, 
-
organizing and extending post-graduate education in order to meet the future de-
mand for experts with higher education after the economic restructuring (including 
the above mentioned education of engineers, experts in tourism, professionals of 
complex regional socio-economic development, manager training, development of 
foreign trade culture), 
-
training and retraining of skilled workers. 
Personality quality of  enterprise management  should be respected as a factor of 
speeding up the innovation, resulting in technological development, similarly to techno-
logical and economic conditions. Further investigations are necessary to find out the 
role of enterprise management in technological innovation in the county. Presently our 
knowledge is not sufficient to prove the relevance of the findings of a nationwide re-
search to the county, i. e. that management actually slows down innovation. Neverthe-
less, some county-wide investigations, limited to the engineering professionals in the 
county, provide some guidance to the launch of such an inquiry: currently there can be 
found a number of medium- and top-level managers who has not been selected on the 
basis of their professional expertise, initiative, and managerial skills; that is, a part of 
the managers do not comply with the requirements of economic restructuring. There-
fore, it can be assumed that, in the future, a rapid rejuvenation of enterprise manage-
ment will come along. 
4. POSSIBILITIES OF DEVELOPING SCIENTIFIC AND PROFESSIONAL 
TOURISM 
Although the tourism strategy and developments of Baranya county are fundamentally 
based on recreational tourism, there are good chances to develop professional tourism, 
too. The institutions of scientific potential of the county — and primarily the city of Pecs 
—, its business firms, the international relations of the members and organizations of 
local branches of scientific associations, and the domestic programs (of traditionally 
high international interests) of scientific societies form the foundation for building a de-
termined long term development strategy of professional tourism. 
The peculiarity of the Hungarian tourism industry, that incoming tourists spend two 
or three times less than on the average in Europe, is characteristic to Baranya county, 
27 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
too. One of the reasons for this is that from developed market economies the less 
wealthy people tend to come to this region, there is an important role of tourism of 
relatives and families, and that the inadequate supply of programs and services does not 
stimulate higher spending, there are only few attractiveness for tourism. 
Strengthening qualitative characteristics should be part of a program task in this re-
gion just like on the national scale. Professional and scientific tourism can be turned in-
to a development sector of qualitative tourism, and considering its endowments, it can 
be successful, too. 
The present day endowments of the city of Pecs and the county offer primarily the 
possibilities to develop or expand scientific and professional, or shortly: conference tou-
rism. This sector of tourism should be focused upon when developing professional tou-
rism and establishing the physical, organizational and human conditions. 
This endeavor fits the international and domestic development directions, too. 
International tendencies of tourism  unanimously indicate the profitability of the 
congress sector. It is estimated that for a long time this sector will remain one of the 
most dynamically developing market segment for a number of reasons, such as: the 
number of international organizations and the independence of branches of sciences 
are increasing; the differentiation of branches of science is speeding up because of the 
appearance of new fields of science. Because of the increasingly specialized sessions, 
congresses, the number of sessions is rising faster than the number of their participants. 
Domestic qualitative tourism  seems to be one of the best founded ideas among the 
restructuring concepts of the development of the Hungarian economy, too. The examp-
les of all of the successful European small countries demonstrate that in the past ten-fif-
teen years service sector, and within this health, congress, and educational tourism 
gained a great impulse. 
The Hungarian tourism policy soon will have to count on the formation of 
intellectual, cultural, tourism centres in the country outside of Budapest, too. If we have 
the appropriate development program, and if Baranya county and the city of Pecs will 
declare professional and scientific tourism as a part of their development policy objecti-
ves, then here we could have the first conference city of the countryside in Hungary. 
Currently several objective and subjective conditions for the development of the city 
of Hes to professional and scientific tourism centre exist. 
The most important of the subjective conditions is the  scientific potential  that has 
evolved in the city in almost every field of natural, engineering, and social sciences. Pecs 
is an important intellectual centre of the countryside. The structure of scientific poten-
tial, however, is the most complex here. Of the 1,900 researchers and developers in the 
county 380 people have academic degrees. 
The work on one third of the approximately 150 scientific projects going on at the 
research and development places in the county is being done in international coopera-
tion with Western European and American partners. The joint projects are today pri-
marily bilateral, but in the future the expansion of many-sided cooperation can be ex-
pected. This, on the other hand, will result in the increase of the number of scientific 
programs, international conferences and project meetings. 
It can also be an orienting element in the supply of scientific and professional 
tourism that several researchers of Pecs are leaders of various respectable international 
organizations and associations. They and the local members of international societies 
28 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
play a significant role in choosing the site of international congresses and compiling the 
programs. 
While it can be argued, this way, that the subjective resources for the intensive de-
velopment of professional and scientific tourism in Pecs are abundant, the quality and 
quantity of receiving infrastructure  fall behind the requirements which mean the solid 
foundation of a dynamic development. 
Before the analysis of the present state of the conference infrastructure it should be 
pointed out that the geographical position and accessibility of the city of Pecs fail to meet 
the international standards of siting and organizing an international conference. Fo-
reign guests arriving by airplane to Budapest need twice the international time standard 
to get to Pecs using public transportation, and there is a similar difference — in the lack 
of speedways — driving a rented car, too. Therefore, from strategic point of view it is im-
portant to utilize again the former local airport for tourism purposes. 
The volume and qualitative structure of  accommodation  possibilities, and the ser-
vices offered by hotels of various levels, play important role in organizing conferences. 
Neither the number of hotel beds nor the structure of accommodation possibilities 
are sufficient for the dynamic development of this sector of tourism. 
The necessary, perhaps most important, element of infrastructure for the develop-
ment of professional and scientific tourism into business is the availability of  places, 
congress halls with their (personal comfort and technical) equipment. 
Currently in Pecs the university halls and auditoriums, conference rooms of hotels, 
and halls of cultural centers serve as sites for conference programs. It is a big problem 
that for large programs (even if thinking only about domestic conferences) only the aula 
of the Pecs Medical University can be considered. Most of the present conference 
rooms are not appropriate for international programs because of their insufficient tech-
nical equipment. On the other hand, the utilization of university and college halls is re-
stricted by school terms and their regular programs. 
On the basis of our case analysis and the known long term plans of scientific re-
search institutions in the county, the following points summarize the conclusions of the 
study of the development possibilities of professional and scientific tourism in Baranya 
county. 
1) The endowments necessary for the development of this sector are at the disposal 
of the city of Pecs. The international relations and the international positions of the 
professionals of the city form a solid basis for turning Pecs into an international confe-
rence city in long term. It should be remembered, too, that this sector of tourism has 
the spillover effect of settlement development, and the power of developing innovative 
regional development policy. Its direct effect of job creation in services and commerce 
can be demonstrated, and new types of jobs can be introduced in conference cities. 
These jobs all need a high work culture. 
2) The international acknowledgement of its tourist endowments that represent 
intellectual values and production culture (the City of Grape and Wine, a model city of 
the "Healthy City" movement of the WHO world program, a city to be expected on the 
World Heritage list of the UNESCO, its art traditions, art and cultural programs, etc.) 
can supply tourist attraction to scientific programs. Producing the objective and organi-
zational conditions, and the international and domestic introduction of conference tou-
rism can create favorable circumstances for Pecs and Baranya to be a country subcenter 
of the 1996 Budapest World Expo. 
29 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
3) In the future it must be accounted for that 50 per cent of the tourism market of 
the city should be occupied by programs of local scientific institutions, and the other 
half by external organizations on the basis of business enterprise. 
However, in order to increase the latter part significantly, and to turn conferences 
into basis of tourism — based on economic efficiency and hard currency production —, 
further development efforts are necessary. 
SUMMARY 
The need for modernization in Hungary, so far, has been limited to the reform of the 
system of economy, politics, and administration, that is, to the fields which can be integ-
rated functionally according to the goal-rationality: technical modernization, productive 
efficiency, restructuring of production, economic independence, political pluralism. In 
the meantime, it is hardly ever mentioned that the modernization of the economy is not 
possible without the modernization of culture; and, on the other hand, that a big price, 
expressed in social tensions, may be paid for minor or partial success. 
The most important and general conclusion of this paper is that solving the econo-
mic problems of the city of Pecs does not only mean, can not be restricted to, economic 
modernization:  cultural modernization is not only the scenery of the stage or decoration of 
economic modernization.  Modern technology, institutions, democratic management and 
control forms can be adapted, however, without a modern cultural background these 
can hardly be integrated in the operational system of the city. Partial success can only 
preserve the fundamentally unchanged totality and may create new social conflicts. 
The starting point of the transformation of the general conclusion to a program is 
the realization of the role of culture in modernization, and having this accepted by the 
various interest groups of the city. 

While examining the settlement development power of culture, it must be remem-
bered that Pecs is one of the potential regional centers of the whole country and thus 
the situation of a broader set of general settlement functions should be analyzed. Our 
investigation has proved, or more exactly has supported conclusions of some former 
inquiry related to other fields of the life of the city, that having hard data this city can 
be regarded a growth pole, or natural center of the South-Transdanubian region, in the 
West European political sense only with significant restrictions. Its "role" as regional 
center has rooted more in historical traditions (primarily religious and academic func-
tions) and administrative centralization decisions than in regional influence of its mo-
dern functions and progressive sectors. 
Cultural sectors have not provided a different picture either. The fact that, regar-
ding index numbers of cultural life, a remarkable equalization of county seats can be 
observed can be attributed to, besides the results of regional development policy, the 
ideological and political decisions and principles of the previous era, especially the 
1950s and '60s. The ideal of the age, the homogeneous society, was aimed not by the 
means of integration of preserved stratum- and local cultures but by eliminating and 
replacing these. Not only art- and science schools were eliminated at that time but those 
forms of the social solidarity of cultural integration which mean the real basis of repro- 
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Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
duction of cultural background consciousness: various associations, societies, pub-
lishers, etc. There was even a time when a proposal was submitted at the Ministry of 
Culture to the abolishment of the (at that time consisting of only one school) University 
of Pecs. 
Comparing to the other two traditional regional centres of the country, i.e. Debre-
cen and Szeged, Pecs starts in the competition of building intellectual regional centres 
from a less favorable position. The reason for this is primarily that it is less supplied 
with academic and research bases than its competitors; not mentioning the lack of those 
institutions which presently determine the prestige position of European cities.  The furt-
her development of the existing system of higher educational and research institutions of 
the city,  with respect to the economic transformation and potential position, in the inter-
national division of labor, of the region is an important issue of research in the future. 
Besides the initiative of establishing the classical "universitas", primarily the radical re-
form of engineering education, and — based on the various intellectual workshops exis-
ting in the city — creation of national cultural institutions that raise international inte-
rest, should be kept in mind. 
The examination of the potentials and possible reception of a cultural institution for 
Mediterranean cultures (of countries like Italy, Spain, Greece, and Cyprus) deserves 
deep consideration. It would connect this city to the intellectual, and, making no secret 
of it, economic circles of South Europe., The establishment of this  Mediterranean Center 
could be joined with  organising representations of diplomacy (consulates). 
In order to develop Pecs to a modern regional intellectual centre the present sys-
tem of institutions of the city should be reviewed from the aspect that whether it is ca-
pable to support equal opportunities of the intellectuals of the region in a creative 
participation in the cultural life; and to accept and distribute the innovations necessary 
for the economic and social recovery, or to elaborate entirely new methods.  The trans-
formation of the system of institutions and introduction of new types of institutions  (for 
example, information centres, or gallery institutions that rely on the market relations in 
the world of arts, the design, marketing and PR services that are inevitable for a compe-
titive market structure etc.) need a well determined strategy. 
Appearance of cultural sectors on the international market must be considered as a 
significant urban development factor in the future. It is an economic commonplace in 
the developed countries that connecting a wide range of cultural activities (creative arts, 
theater, music) to the international division of labor is an important revenue-creating 
factor. It is not unlikely that in the centre of the system of values of the West European 
market to be unified — and therefore, of the international competition — , besides the 
economy, the culture and science will take place; and these will be fundamental 
elements of the international prestige and dynamic development of cities. 
In the unified Common Market of 1993 the success will not belong to those bringing 
some out-of-European or uniform-European, but to those building on specialities of 
their own countries or regions. The relation of culture and economy will be set into an 
entirely other light; even now several signs demonstrate that culture must not be consi-
dered merely as an autonomous goal but as important marketing and PR way, too, e.g. 
way of promoting a certain industrial settlement as a desirable living place. 
The conclusion, therefore, emerges from the experience of the new forces of urban 
development in Europe: the cultural institutions and intellectual workshops of Pecs 
should be developed to the direction of joining these to the system of cooperation of 
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Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
European cities and international exchange of services. In the long run, Pecs should be 
developed to one of the cultural exchanges, important intellectual and economic mee-
ting points of Central Europe. 
A successful cultural policy can be pictured only as an integrated part of local poli-
cy. Institutions appear in the administration of the city not as objects but as intellectual 
elements of urban development. Therefore, the city government must consider the busi-
ness organizations and the population of the city not only as consumers of cultural ser-
vices but as forming and transforming power of culture, too. The reform of the founda-
tions of economic autonomy will raise the issue of financing cultural services, too.  A va-
riety of local possibilities and institutional forms of new types of supporting culture  can be 
designed. 
As a part of a new cultural policy program, it is advisable to elaborate a  marketing 
strategy  to manage the values of the city of Pecs. Presently there is no doubt about that 
the traditional image of the city is not sufficient to emake Pecs able to meet the 
requirements of the role of a tourist center and of capital attraction. The supply of 
complex cultural (and economic) values can be domestically and internationally reali-
zed only with a well established marketing program. 
32 

Horváth, Gyula: Culture and Urban Development (The Case of Pécs). 
Pécs: Centre for Regional Studies, 1992. 35 p. 
Discussion Papers, No. 16.
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35 




Discussion Papers 1992. No. 16. 
Culture and Urban Development 
(The Case of Pécs)
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 fmdings 
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: 
Centre for Regional Studies of Hungarian Academy of Sciences 
P.O.Box 199, 7601 PECS 
HUNGARY 
Phone: (72) 12-755 
Fax: (72) 10-390 
Telex: 12 475 
Director general: Ivan ILLES 
Editor: Laszlo HRUBI 
* * * 
Forthcoming in the Discussion Papers series: 
Settlement Network Development Policy 
in Hungary during the State Socialism 
by 
Zoltan HAJDU 

Discussion Papers 1992. No. 16. 
Culture and Urban Development 
(The Case of Pécs)
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 PALNE KOVACS, Ilona (1988): Chance of Local Independence in Hungary 
No. 7 FARAGO, Lasz16—HRUBI, Laszlo (1988): Development Possibilities of 
Backward Areas in Hungary 
No. 8 SZORENYINE KUKORELLI, hen (1990): Role of the Accessibility in 
Development and Functioning of Settlements 
No. 9 ENYEDI, Gyorgy (1990): New Basis for Regional and Urban Policies in East-
Central Europe 
No. 10 RECHNITZER, Janos (1990): Regional Spread of Computer Technology in 
Hungary 
No. 11 SIKOS T., Minas (1992): Types of Social Infrastructure in Hungary 
No. 12 HORVATH, Gyula—HRUBI, Laszlo (1992): Restructuring and Regional 
Policy in Hungary 
No. 13 ERDOSI, Ferenc (1992): Transportation Effects on Spatial Structure of 
Hungary 
No. 14 PETER, Sandor (1992): Environmental Regulation and Enterprise Behaviour 
in the Transforming Hungarian Economy 
No. 15 PFEIL, Edit (1992): Local Governments and System Change. The Case of a 
Regional Centre