Discussion Papers 2007.
Regionality and/or Locality 29-37. p.
THE DEVELOPMENT OF RURAL AREAS
IN CENTRAL EUROPE – AN IDENTIFICATION
OF NEW PROCESSES
JERZY BAŃSKI

While a rural area is quite well understood in everyday language, and is not diffi-
cult to describe, the problems become apparent when a  more precise definition is
sought. When the more complex definitions that scientists might seek to come up
with are left aside, practice dictates that use should be made of the ones adopted by
the  statistical  bodies  –  which  are  found  to  confine  themselves  to  simpler  criteria.
There are attendant consequences: for example, adherence to the typology used in
the European Union1 makes it necessary to accept that 96% of Hungarian territory
and 91.7% of Poland is rural. It seems to the author that the matter of the delinea-
tion  of  rural  areas  requires  a  discussion  of  its  own.  However,  irrespective  of  the
way rural areas are defined, the status of Central Europe as a weakly urbanized part
of the continent persists (Figure 1).
Nevertheless, the last ten and more years have seen these rural areas of Central
Europe  subjected  to  a  fundamental  transformation  that  has  been  manifested  in  a
series of new social and economic processes previously unmet with (e.g. a decline
in  state  ownership,  privatization,  an  increase  in  the  significance  of  local  govern-
ment, the freeing-up of prices, etc.). The transformations have proceeded via three
main stages, of which the first was the move away from the socialist economy and
central  planning  to  the  free  market,  the  second  preparation  for  EU  accession  and
the third actual membership of the European Union.
Each of these stages released new processes shaping the socioeconomic face of
rural  areas.  At  the  outset,  the  most  important  role  was  that  played  by  democratic
public and  economic life, as  well as the  privatization  of state  and  cooperative  as-
sets.  The  period  over  which  accession  to  the  EU  was  being  prepared  for  in  turn
brought  multifunctional  development  of  rural  areas  and  a  decline  in  the  role  of
agriculture.

1Classification of rural areas according to the OECD typology: predominantly rural area (more than
50%  of  the  area’s  population  lives  in  communities  whose  densities  of  population  are  under  150
persons/km2); significantly rural area (15–50%), predominantly urban area (less than 15%).

Jerzy Banski : The Development of Rural Areas in Central Europe - An Identification of New Processes.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 29-37. p.
Discussion Papers, Special

30
JERZY BAŃSKI
Economic assistance from ”the Fifteen” also allowed for an improvement in the
outfitting  of  rural  areas  with  social  and  technical  infrastructure.  The  last  several
years  has  been  a  period  of  major  investment,  changes  in  agriculture  entailing  a
strengthening of the economically-strong farms, as well a discounting of EU fund-
ing designed to even out differences in levels of development.
The  phenomena  referred  to  may  be  treated  as  successes, though  they  were ac-
companied by processes with negative dimensions. It is enough to refer to unem-
ployment, rural poverty, the marginalization of certain rural areas, etc. However, it
would  seem  that  the  scale  of  the  successes  outweighs  those  of  the  failures.  The
diagnosing  of  selected  processes,  and  their  assessment  from  the  point  of  view  of
the development of rural areas is then the main task of this study.
Figure 1
Rural communities in EU

Source: EUROSTAT 2004.

Jerzy Banski : The Development of Rural Areas in Central Europe - An Identification of New Processes.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 29-37. p.
Discussion Papers, Special
THE DEVELOPMENT OF RURAL AREAS IN CENTRAL EUROPE…
3
1
The  makeovers  taking  place  in  rural  areas  did  so  –  and  are  doing  so  –  in  line
with different detailed scenarios, albeit with similar fundamental directions. These
are  set  out  in  planning  and  strategic  documents  making  reference to  the  main  as-
sumptions underpinning the  development  of  rural  areas  as  contained in  EU docu-
ments. These first and foremost expounded the need for rural regions lagging be-
hind  to  catch  up,  and  for  the  living  conditions  of  the  rural  population  to  be  im-
proved.  This  reflects  the  fact  that  changes  in  the  rural  areas  of  Central  European
countries  proceeded  in  line  with  similar  strategic  directions  and  should  achieve
comparable  results.  The  theoretical  concepts  for  the  development  of  rural  areas
contained in documents thus need to be set against their real implementation.
A particular place in planning is taken by the agricultural economy – which is
going to be subject to further radical change in the next few years. The results of
reforms  to  the  Common  Agricultural  Policy  make  it  necessary  to  assume  that we
will not be obtaining the kind of funding that farmers in Western Europe were able
to count on in earlier decades. For this reason, any changes made should also fol-
low a different model. For example, where the modernization of agriculture is con-
cerned, there should be no blind following of the intensive, industrialized Western
model, but rather a move more in the direction of environment-friendly and organic
farming. It should also be recalled that agricultural intensification would entail job
losses in rural areas – something that would be a very serious problem for Central
Europe. These two examples make it clear just how complex the problems placed
before development planning in rural areas really are.
The development of rural areas is thus a very broad and multi-dimensional is-
sue, which can and should be looked at in terms of its social, economic, political,
natural and technical dimensions. Each of these in turn comprises several compo-
nent elements (Figure 2).
Each of the five dimensions entails steady transformation under the influence of
a complex of phenomena and processes that may be of a social, economic or natu-
ral  character.  Among  these  are  processes  stimulating  or  holding  up  the  develop-
ment  of  rural  areas,  as  well  as  those  having  an  ambiguous  influence  where  the
contemporary  and  future  faces  of  rural  areas  are  concerned.  They  also  differ  in
their scope of application, being potentially either processes specific to a local area
or global ones extending over the whole of Central Europe.
Work on the subject literature and statistical materials allows for the identifica-
tion  of  several  fundamental  processes  that  have  either  been  revealed  for  the  first
time or else intensified in the period of the economic transformation of rural areas.
1  The environmental dimension – an improvement in the quality of the natural
environment through the development of technical infrastructure and an in-
crease in the area of land under protection.

Jerzy Banski : The Development of Rural Areas in Central Europe - An Identification of New Processes.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 29-37. p.
Discussion Papers, Special

32
JERZY BAŃSKI
2  The social dimension – depopulation of peripheral areas and a concentration
of population in the vicinity of the large cities.
3  The economic dimension – privatization of the state agricultural sector, agri-
cultural diversification and a weakening of its role in the national economy.
4  The  technological  dimension  –  an  improvement  in  the  outfitting  of  house-
holds with technical installations.
5  The political dimension – the development of local government.
The principles of sustainable development propounded and extended at the Rio
“Earth Summit” in 1992 bore fruit in a new environmental policy in the countries
of Central Europe. There has been a raising of the public’s level of environmental
awareness,  the  introduction  of  more-stringent  environmental  standards  and  an  in-
crease in the amount of land within protected areas. The degree to which rural ar-
eas are furnished with technical infrastructure has improved, notably as regards that
serving to limit environmental pollution (comprising, for example, local wastewa-
ter treatment plants and sewer systems). The result of all these activities has been
an overall improvement in the quality of the natural environment.
Figure 2
Dimensions of rural development

Source: G. Heilig, 2002, European Rural Development, IIASA, http://www.iiasa.ac.at/Research/ERD/

Jerzy Banski : The Development of Rural Areas in Central Europe - An Identification of New Processes.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 29-37. p.
Discussion Papers, Special
THE DEVELOPMENT OF RURAL AREAS IN CENTRAL EUROPE…
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3
Nevertheless, it has to be borne in mind that protected areas actually pose prob-
lems where economic development is concerned, for it emerges that areas enjoying
the  different  forms  of  protection  are  also  subject  to  major  attendant  limitations
when  it  comes  to  new  investments,  the  introduction  of  modern  methods  and  pro-
duction  technologies  into  agriculture,  and  even  the  running  of  the  economy  that
had  been  in  place  previously.  The  Polish  experience  makes  clear  the  general  un-
willingness of local authorities to adopt plans anticipating inclusion of part of their
territory within one or other of the forms of protection.
It  is  usual  for  rural  areas  to  be  characterized  by  a  negative  migration  balance.
What is worse, those tending to leave are the young and entrepreneurial, the result
being a worsening of the age structure of the population, of which an ever-greater
proportion  is  of  post-productive  age.  In  general,  as  compared  with  Europe  as  a
whole,  the  Central  European  states  are  in  a  more  favourable  situation.  Neverthe-
less, at regional level it is possible to observe a further development of differences
in the age structure of the rural population, as well as a slow approach towards the
proportions present in the West (Figure 3–4).
A new and interesting phenomenon taking shape is the trend for city-dwellers to
relocate to rural areas, albeit ones in the immediate vicinity of the large urban cen-
ters. There are thus two directions to the population changes affecting the country-
side: while the suburban zone is witnessing a concentration of population, the pe-
ripheral regions are continuing with their long-term trend towards depopulation.
The inputs  of  new  population  into  suburban  areas  has  been  accompanied  by  a
dynamic development of housing construction; the intensity of this activity being a
function of the size of the urban centre and distance from it. This simple relation-
ship  is  modified  by  the  factor  of  transport  access  and  quality  of  the  natural  envi-
ronment,  for  new  building  focuses  mainly  on  the  main  transport  arteries  and  the
most attractive areas in terms of landscape. The development and improvement of
the  communications  infrastructure  and  increase  in  the  number  of  private  cars  is
ensuring that city folk penetrate ever-larger rural areas. There is also an increased
interest  in  second  homes  and  in  recreation  in  the  clean  countryside  environment.
Rural  tourism  is  becoming  an  ever  more  important  economic  function  that  is
stimulating  the  development  of  new  economic  activity  in  the  countryside  (espe-
cially in services, construction and trade).
While agriculture remains the number-one economic activity in villages, its sig-
nificance  in  the  structure  of  income  into  farm  budgets  is  declining.  The  share  it
takes  in  gross  domestic  product  is  also  going  down,  along  with  the  level  of  em-
ployment.

Jerzy Banski : The Development of Rural Areas in Central Europe - An Identification of New Processes.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 29-37. p.
Discussion Papers, Special

34
JERZY BAŃSKI
Figure 3
Share of population in post-productive age in Europe on rural areas (2002)
Source: CISCO 2002.

Jerzy Banski : The Development of Rural Areas in Central Europe - An Identification of New Processes.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 29-37. p.
Discussion Papers, Special

36
JERZY BAŃSKI
was  an  attendant  process  of  the  fragmentation  of  farms,  whereby  the  number  of
large holdings fell, while the number of small farms increased greatly. Indeed, the
number of landowners increased to 2.2 million, and they had an average of 3.65 ha
each at their disposal.
The changes in ownership structure in Poland were on a smaller scale and were
regional in nature. While around 75% of agricultural land was in private hands in
1988, this had increased to around 88% by 2000. Privatization was associated with
the complete closedown of the State Farms, of which some were in fact in sound
economic condition and hence more in need of restructuring than privatization. The
result of this radical shift was a dramatic increase in unemployment in the former
State  Farm  areas,  attendant  poverty  and  social  exclusion,  the  recapitalization  and
devastation of public assets, and an increase in the area of fallow land.
Figure 5
Changes in the proportion of labour force working on the land and shares of GDP
accounted for by agriculture in Hungary
16
14
12
10
8
6
4
2
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
GDP
enployment
Source: Own elaboration.
The  privatization-related  changes  were  as  large  in  Slovakia  as  in  Hungary,  al-
beit proceeding in line with a different model. The cooperatives and State Farms of
the communist days were converted into private enterprises, in large part remaining
in the hands of those who had worked on them previously. Farmland ownership in
individual hands only accounts for 12% of the land. Fragmentation of the agrarian

Jerzy Banski : The Development of Rural Areas in Central Europe - An Identification of New Processes.
In: Regionality and/or Locality. Pécs: Centre for Regional Studies, 2007. 29-37. p.
Discussion Papers, Special
THE DEVELOPMENT OF RURAL AREAS IN CENTRAL EUROPE…
3
7
structure was thus a lesser problem in this case. As of 2001, Slovakia had just 5681
small farmers, having an average of 39 ha of arable land each. This compares with
an average of 1600 ha of land at the disposal of each agricultural enterprise or co-
operative.
The most important goals and priorities of countries’ economic development are
set  out  in  National  Development  Plans,  which  comprise  a  series  of  Operational
Programs  (like  the  Economic  Competitiveness  Operational  Program,  Regional
Development  Operational  Program,  Agricultural  and  Rural  Development  Opera-
tional Program, etc.). Among them, the one of greatest significance to the country-
side is not unnaturally the program for the development of rural areas and agricul-
ture. Studies of Polish and Hungarian documents make it clear that these repeat the
main  assumptions  of  the  CAP  and  denote  the  same  routes  to  the  development  of
rural areas.
Of equal importance to the long-term development of rural regions are the con-
cepts  for the  country’s  spatial  management.  The  majority  of these  would  seem  to
be concentrating on the development of the metropolitan area and the linking of the
transport  systems  that  represent  an  axis  of  development  on  both  the  national  and
European scales. Little space is given over to the rural areas, which suffered most
tangibly  during  the  transformation  period  and  became  yet  further  distanced  from
urban areas. The concept that won out in Poland holds that effectiveness needs to
be put ahead of equality – with all the spatial polarization effects that that entails.
Perhaps  this  is  indeed  a  justified  concept  over  the  longer  term,  but  its  inevitable
consequence  for  the  next  few  years  is  yet  further  marginalization  of  substantial
rural areas.
Studies  dealing  with  the  issues  of  rural  areas  and  agriculture  form  part  of  the
planning  and  strategic documents  drawn  up  for  different  time  scales  (2004–2006,
2007–2013),  spatial  scales  (national,  regional,  local,  etc.)  and  branch  structures
(agriculture,  environmental  protection,  transport,  etc.).  Analysis  of  the  Polish
documents  points  to  these  in  general  being  cohesive  and  consistent  one  with  an-
other, and indeed with the same facts and proposed solutions being repeated again
and  again.  However,  the  volume  and  number  of  documents  makes  it  difficult  for
these to be taken in properly, and it is possible to leave the subject with the impres-
sion that planning is equated with bureaucracy.