ABSTRACT

This chapter discusses the economic crisis of Borsod-Abauj-Zemplen (BAZ) in order to point out the major fields where action is needed. It examines the institutional changes related to regional development in Hungary, with a focus on selected Regional Development Agencies (RDAs). The process of transition socially and geographically has had a very uneven impact in the Central and Eastern Europe countries (CEE) and Hungary. The chapter shows how the emerging regional development institutions in Hungary and BAZ can be characterised in terms of institutional capability and institutional thickness. The role of PHARE is the point in the description of the new regional development institutions in Hungary. The most important focus of PHARE is not investment but institution building, and the focus has developed along with the rapid changes in the CEE countries. The County Development Agency is a result of the pilot action programme of PHARE in Szabolc-Szatmar-Bereg and in BAZ.