Economic Development Program for the Hungarian Region Nógrád

The Komitat Nógrád is not alone in its attempt to overcome a considerable number of economic problems. Unfortunately, symptoms of crisis are more pronounced in the Komitat Nógrád (population 220,000) than in other regions of Hungary. Some of Nógrád's problems are linked to pre-transformation structures, which impede efforts to achieve competitiveness and full employment under market conditions. During the reign of the socialist system, overemphasis on heavy industry, intensive in raw materials and energy, as well as on large branch operations, led to structural problems, which during the course of transformation have evolved into structural breaks. Production and employment have declined rapidly in nearly all industrial enterprises. The decline of strategic industrial enterprises has triggered a downward cycle, which has spread not only to subcontractors, but through the entire regional economy. In the light of such concerns as the long term improvement of Nógrád's economic and residential environments, as well as the necessary modernization of its economy, and the rapid conclusion of the transitional recession, the Austrian Institute of Economic Research (WIFO) accepted a commission from the government of the Hungarian Komitat Nógrád to develop a comprehensive regional economic development program. In an effort to exemplify the transfer of economic know-how, the Austrian government financed the preparation of the WIFO concept within the framework of the Osthilfe, Austrian policy designed to support Eastern European countries in transition.