Economic transformation in central and Eastern Europe: The role of regional development

The spatial impact of transition in Central and Eastern Europe is becoming an increasingly important question. Two main areas of regional disparity have emerged—core‐periphery contrasts and a West‐East gradient, with more positive development in core and Western areas respectively. A recent embryonic regional policy response is evident in the Visegrad Four countries, including the creation of a distinct Ministry in Hungary, the designation of assisted areas, and the provision of spatially focused instruments. The institutional infrastructure for regional development remains a central problem, including issues of coordination, strategy, implementation and territorial administrative structures. There is both an economic and political rationale for future development, with some potential for the transfer of western experience.     

Industrial development,technology change,and regional disparity in Hungary

In this paper the main conclusions concerning regional differences in enterprise development in Hungary will be summarized, and the fields and scope of action at enterprise and at the level of the authorities will be outlined briefly. The empirical results need to be put into a wider perspective, and therefore the first part of the paper contains a brief overview of the process of transition and of the regional economic development of Hungary.     

Technology transfer agencies and regional economic development

Many regions in Western Europe have set up technology transfer agencies in order to support endogenous potential by encouraging the diffusion of new technologies from universities and large firms to small and medium‐sized enterprises (SMEs). However, many studies have shown that business partners such as customers and suppliers are the most important partners for the stimulation of the innovativeness of SMEs. Universities and transfer agencies are given a very low rank in these studies. These results have led to doubts about the usefulness of these institutions for regional economic development. In order to increase transparency, streamlining of the agencies involved is necessary so that there are fewer actors and more cooperation between them. To be able to reach technology‐following SMEs, at least one transfer organization in every region should employ senior engineers with extensive business experience to visit firms frequently (proactive) to help them come up with some technological issues (demand‐oriented). These agencies need long‐term financial backing so as to provide free advice to technology‐following SMEs.     

International development in transition

International development is in a period of transition. While the outcome of this is still unclear, this article argues that there are at least four areas in which the project of international development is changing. First, there is a debate, especially within the World Bank, about development strategy and how we think about development, particularly in terms of the balance between states and markets. This is evident in the debate over state failure and the new structural economics. Second, there is increasing evidence of a shift in lending, away from projects of ‘small’ human development, perhaps best encapsulated by the United Nations Millennium Development Goals, towards more transformative ‘big’ development projects such as infrastructure. Third, ‘non‐traditional’ aid donors and new forms of private philanthropy are playing a more significant role in development financing and this, in turn, offers developing countries a new range of choices about what kinds of development assistance they receive. Fourth, aid relations are changing as a result of the renewed agency of developing states, particularly in sub‐Saharan Africa, and shifts towards increased South–South cooperation are growing as evidenced by increased funding from regional development banks and increased trade flows. The article reviews these changes and suggests a series of questions and challenges that arise from them for analysts of international development, developing countries and traditional aid donors.     

Policy governance from an autopoietic perspective: revisiting Hungary’s regionalization experience

This perspective on Hungary’s post-socialist regional policy governance is informed by an approach that relates region-building and regional governance to social autopoiesis and the self-referential and self-(re)producing nature of social systems such as states. Following debates in regional studies that reflect tensions between the local constitution and external determination of regional governance, we will demonstrate how Hungary has incorporated European Union (EU) policy frameworks through specific appropriations of territorial politics and regional ideas. These appropriations reflect Hungary’s post-socialist transformation not only in terms of responses to global forces, but also as specific spatial practices and regionalization experiences. As we argue, this has in effect resulted in a regionalism without regions – a strategy of Europeanizing territorial politics without creating institutional structures that directly challenge existing power relations. Autopoiesis thus helps explain the resilience of social systems, not only their resistance to institutional change but also their capability to ‘domesticate’ external influences. While criticisms of Hungary’s technocratic and post-political regionalization projects cannot be ignored, our analysis indicates why externally driven intervention in self-organizing governance processes, for example through EU conditionality, has had less impact than expected.     

Civil society,radicalism and the rediscovery of mythic nationalism

The article argues that contrary to the widely held view that traces the recent rise of illiberalism in Hungary and Eastern Europe to a weak civil society, the past decade has witnessed a surge of civil society activism. But rather than working exclusively towards strengthening and complementing liberal political institutions, civil society has also provided fertile soil to the spread of right‐wing populism, radicalism and xenophobia. The analysis suggests that civil society organisations have in fact played an important role in the right‐wing radicalisation of contemporary Hungarian politics. Conservative civic groups have been instrumental in reinvigorating the symbolic vocabulary of a mythic nationalism that was widespread at the turn of the nineteenth and twentieth century as well as in the 1930s. The resurrection of nationalist, irredentist and anti‐Semitic symbols and paraphernalia (e.g. greater Hungary car stickers) has been a major vehicle for increasing the public visibility and political impact of these groups. The article shows through case studies of specific organisations how this seemingly anachronistic symbolic repertoire has found new resonance in contemporary Hungarian public life.     

Learning About Regionalism from Europe: ‘Economic Normalisation’ and Beyond

This paper critically analyses the European Union's regional policy framework and considers its implications for Australia's multi‐level governance system. The analysis is made with reference to the ‘new regionalist’ debates in Europe and North America that have asserted the importance of regional economic development in the context of globalisation. New regionalism's advocacy of ‘economic normalisation’ as a leading regional policy aim is critically evaluated against the EU policy experience. Conclusions about the adequacy of new regionalist claims are drawn for Australian policy debates.     

Beyond flexible specialization: the rearrangement of regional production orders in Emilia‐Romagna and Baden‐Württemberg

Emilia‐Romagna and Baden‐Württemberg are two highly successful industrial regions. Their economic success is based on a specific industrial and institutional order, on regionally concentrated production network based mainly on small and medium enterprises and on ‘cooperation enhancing’ institutions. This regional production order was the basis for strategies of flexible specialization’. The fundamental restructuring of mass production concepts as well as harsher worldwide competition over innovation and costs, however, undermined previous advantages of these regions. Emilia‐Romagna and Baden‐Württemburg handle these new challenges in different ways: while Baden‐Württemberg counts on technology‐ and research‐based restructuring, Emilia‐Romagna's restructuring is service‐based—increasing the demand for new production‐related services (quality control, financial services, marketing). These different patterns of reorganization and institutional learning point out institutional and industrial differences between the two regions undervalued in the concept of ‘flexible specialization’.     

URBAN NETWORKS AND GOVERNANCE IN CITY‐REGION PLANNING: STATE‐LED REGION BUILDING IN NANJING CITY‐REGION,CHINA

During the transition towards a more market‐oriented economy and entrepreneurial governance, local authorities have attempted to create new cross‐jurisdiction regional entities to enhance their competitiveness through making city‐region plans or regional strategic plans in China. This article analyses the process of region building in China through a case study of Nanjing city‐region. We argue that region building is a state‐led regional project in China, not a spontaneous process. City‐region planning has played a legitimacy‐seeking role in the construction of new regions. Based on the discourse provided by the city‐region plan, associated city networks are being created as a mechanism for plan implementation and regional coordination. This signals that regional planning is entering the stage of regional institution building. By assessing the capacity of regional institutions, we argue that the newly‐emerged regional institutions or urban networks have facilitated regionalization in terms of the increasing involvement of non‐state actors, the formation of regional coherence and identity and the enhanced inter‐city co‐operation. However, it is still difficult to establish effective regional governance due to competing local governments, the arbitrary political leadership and the fragmented planning functions.     

Authoritarianism and the securitization of development in Africa

Debate on the ‘securitization’ of aid and international development since 9/11 has been anchored in two key claims: that the phenomenon has been driven and imposed by western governments and that this is wholly unwelcome and deleterious for those in Africa and elsewhere in the developing world. This article challenges both of these assumptions by demonstrating how a range of African regimes have not only benefited from this dispensation but have also actively encouraged and shaped it, even incorporating it into their own militarized state‐building projects. Drawing on the cases of Chad, Ethiopia, Uganda and Rwanda—four semi‐authoritarian polities which have been sustained by the securitization trend—we argue that these developments have not been an accidental by‐product of the global ‘war on terror’. Instead, we contend, they have been the result of a deliberate set of choices and policy decisions by these African governments as part of a broader ‘illiberal state‐building’ agenda. In delineating this argument we outline four major strategies employed by these regimes in this regard: ‘playing the proxy’; simultaneous ‘socialization’ of development policy and ‘privatization’ of security affairs; making donors complicit in de facto regional security arrangements; and constructing regime ‘enemies’ as broader, international threats.     

The Role of Universities in Regional Development: Conceptual Models and Policy Institutions in the UK,Sweden and Austria

The literature on universities’ contributions to regional development is broad and diverse. A precise understanding of how regions may draw advantages from various university activities and the role of public policy institutions in promoting such activities is still missing. The aim of this paper is to provide a framework for analysing universities’ contributions to regional economic and societal development in differing national contexts and the policy institutions that underpin them. To do this, we review four conceptual models: the entrepreneurial university model, the regional innovation system (RIS) model, the mode 2 university model and the engaged university model. The paper demonstrates that these four models emphasize very different activities and outputs by which universities are seen to benefit regional economy and society. It is also shown that these models differ markedly with respect to the policy implications and practice. Analysing some of the public policy imperatives and incentives in the UK, Austria and Sweden, the paper highlights that in the UK, policies encourage all four university models. In contrast, in Sweden and Austria, policy institutions tend to privilege the RIS university model, whilst at the same time, there is some evidence for increasing support of the entrepreneurial university model.     

Images as institution builders: Metropolitan planning in Madrid

This article chronicles recent changes in planning practice. It documents the rise of strategic planning and the move toward proactive planning centered on strategy, marketing, publicity and images. The author studies two cases. One is sub‐regional, of the ‘Great South’ of metropolitan Madrid. The other is regional, of the program ‘Madrid Metropolitan Region’. Planners created physical designs and rhetoric that encapsulated new images for the south and the entire metro area. The planners used the evoking image to craft the strategy, implement it, and build the institutions of regional planning and government. These cases suggest that external images (plans, photos) and internal images (in the mind's eye) are key to understanding how planning processes worked. It reveals the role images played in planning and political discourse, and how discourse was based on the image.     

The culture of investment‐led international development: the Chatham House circle (1939–45) and lessons for today

In 1939–45 an economic group for the discussion of postwar economic order was established at Chatham House, gathering a transnational community of economists and scholars at 10 St James Square in London. Papers were written and seminars were held before—and following—the conference held in Bretton Woods in 1944. Polish‐born economist Paul Rosenstein‐Rodan (1902–1985) coordinated the group, which invoked investment‐led growth and new international institutions for development. Chatham House played a role in making sense of, and disseminating, this new culture of international development. To be clear, this ‘new’ culture was not entirely new, and had its roots in the interwar years, including colonial development policy. Nor was Chatham House the only hub of this culture. This article aims at filling a gap in our understanding of the role of economic research done at Chatham House during the Second World War. In addition, by looking to the past, it may also help at broadening our views on how to globally reignite growth today. Policy‐makers seem to have learnt some of the monetary lessons of the 1930s, but not the development ones of the 1940s. This article is based on sources from the Chatham House archive and brings to special attention articles published in International Affairs.     

Linking Up to Development? Global Value Chains and the Making of a Post‐Washington Consensus

Over the last decade, the global value chain (GVC) approach, with its associated notions of chain governance and firm upgrading, has proliferated as a mode of analysis and of intervention amongst development institutions. This article examines the adoption and adaptation of GVCs at four multilateral agencies in order to understand the purchase of value chain approaches within the development field. Mixing GVC perspectives with other theoretical influences and applied practices, these institutions deploy value chain frameworks to signal a new generation of policies that promise both to consolidate, and to advance beyond, the market fundamentalism of the Washington Consensus. To achieve this, value chain development frameworks craft interventions directed toward various constellations of firm and non‐firm actors as a ‘third way’ between state‐minimalist and state‐coordinated approaches. The authors identify key adaptations of the GVC framework including an emphasis on value chain governance as an instrument to correct market failure in partnership with state and development agencies, and upgrading as a de facto tool for poverty reduction. They find that efforts are ongoing to construct a ‘post’ to the Washington Consensus and that the global value chain is enabling this process by providing a new language and new object of development intervention: ‘the chain’ and the local–global linkages that comprise it.     

Knowledge bases and regional development: collaborations between higher education and cultural creative industries

This paper builds on the assumption that cooperation between higher education institutions (HEIs) and creative and cultural industries (CCIs) stimulates innovation and economic growth at the regional level. It further assumes that HEIs and CCIs hold different perspectives on their intention to cooperate with external actors and, thus, there is a need for joint arenas to develop and integrate knowledge and practices among stakeholders across academia and industry. With this rationale in mind, the paper’s main objective is to discuss how universities’ roles in the establishment and development of locally embedded CCIs change or evolve over time. Taking a process economics perspective and building on a case study from the South of Norway, two questions are addressed: (1) What are the barriers – structural and cognitive-cultural – hindering cooperation between HEIs and CCIs in Southern Norway? and (2) How can long-term win-win cooperative arrangements between HEIs and CCIs be enhanced? Different knowledge bases, combined with lack of knowledge and understanding of the other sector’s expertise or knowledge content, and thus the lack of common language, were found to be the biggest barriers that must be overcome to stimulate strategic cooperation between HEIs and CCIs in Southern Norway. The findings support the need for a diverse and flexible policy where target initiatives are adjusted to CCIs’ needs and academic departments’ fields of knowledge to decrease barriers to cooperation, with the ultimate aim of moving from a situation of ‘lock-in’ towards the creation of new innovative and valuable relationships.     

‘The True Love of the People and the Motherland’: The concept of socialist patriotism,socialist nation and anti-nationalism in Hungary in the 1960s and 1970s

In the late 1950s, the concept of socialist patriotism in Hungary was reformulated as a basic political concept in the ideology and propaganda of state socialism. The definite appropriation of Leninist contraposition of socialist patriotism and bourgeois nationalism became paramount in the second half of the 1950s because of the nationalist sentiments of the 1956 revolution. I trace the history of the concept of socialist patriotism in the 1960s and 1970s in socialist Hungary. During this period, socialist patriotism served as a slightly undetermined, yet didactic counter-concept to set against ‘bourgeois nationalism’ which was characterised as a xenophobic sense of nation. From the late 1960s, the doctrine of socialist patriotism confronted a new ideological enemy: supra-nationalism or cosmopolitanism. In the mid-1970s, a new ideological equilibrium was elaborated in Hungary between socialist patriotism and proletarian internationalism, which served the economic and political integration of the Eastern bloc countries. In this sense, socialist patriotism was meant to express a link with socialist political order, its achievements and its institutions, in contrast to the ethnic character and revanchist tendencies of nationalism.     

Institutions,Markets and Economic Co‐ordination: Linking Development Policy to Theory and Praxis

This article explores policy applications of ‘new institutional economics’ theory in relation to markets and economic development. It argues for application of an analytical framework which instead of looking at institutions primarily in terms of their contributions to making competitive markets work better, sees such markets as one form of institution fulfilling exchange and co‐ordination functions in an economy. A key element in this is recognition of the importance of processes of change in non‐standard market arrangements in economic development, and there are strong theoretical, practical and historical grounds for more consistent policy in this area.     

The Altai Road: Visions of Development across the Russian–Chinese Border

The Altai Republic is a poor mountainous region of Russia squeezed between Kazakstan, China and Mongolia. A project to build a road connecting Russia with China through the Altai has been conceived within a quadripartite regional co‐operation project, supported by Western development organizations. Yet while at the Chinese side of the border road construction went ahead, in Russia, a coalition of globally connected ecologists, romantic ‘Eurasianists’, nostalgic conservationists and anti‐Chinese xenophobes turned the road into a political hot potato. This case study, in which production and investment are the focus on the Chinese side and environmental protection is key on the Russian side of the border, shows the inadequacy of approaches that pit global capital/international (read: Western) organizations against local (read: non‐Western) resistance or adaptation. China's entry into the politics of international development may be a setback for development critics who have helped engineer a ‘cultural turn’ in institutions such as the World Bank.     

CONTRASTING SUBSISTENCE STRATEGIES IN THE EARLY IRON AGE? – NEW RESULTS FROM THE ALFÖLD PLAIN,HUNGARY, AND THE THRACIAN PLAIN,BULGARIA

Summary. What can students of the past do to establish the predominant land‐use and settlement practices of populations who leave little or no artefactual discard as a testament to their lifeways? The traditional answer, especially in Eastern Europe, is to invoke often exogenous nomadic pastoralists whose dwelling in perpetuo mobile was based on yurts, minimal local ceramic production and high curation levels of wooden and metal containers. Such a lacuna of understanding settlement structure and environmental impacts typifies Early Iron Age (henceforth ‘EIA’) settlements in both Bulgaria and eastern Hungary – a period when the inception of the use of iron in Central and South‐East Europe has a profound effect on the flourishing regional bronze industries of the Late Bronze Age (henceforth ‘LBA’). The methodological proposal in this paper is the high value of palynological research for subsistence strategies and human impacts in any area with a poor settlement record. This proposal is illustrated by two new lowland pollen diagrams – Ezero, south‐east Bulgaria, and Sarló‐hát, north‐east Hungary – which provide new insights into this research question. In the Thracian valley, there is a disjunction between an area of high arable potential, the small size and short‐lived nature of most LBA and EIA settlements and the strong human impact from the LBA and EIA periods in the Ezero diagram. In the Hungarian Plain, the pollen record suggests that, during the LBA–EIA, extensive grazing meadows were established in the alluvial plain, with the inception of woodland clearance on a massive scale from c.800 cal BC, that contradicts the apparent decline in human population in this area. An attempted explanation of these results comprises the exploration of three general positions – the indigenist thesis, the exogenous thesis and the interactionist thesis. Neither of these results fits well with the traditional view of EIA populations as incoming steppe nomadic pastoralists. Instead, this study seeks to explore the tensions between local productivity and the wider exchange networks in which they are entangled.     

Regionalization and the rescaling of agro-food governance: Case study evidence from two English regions

Some researchers detected a new-found subsidiarity in rural policy after England’s 2001 Foot and Mouth Disease epidemic, with regional and sub-regional institutions working together to implement an economic recovery strategy. While such research began to link debates on the new regionalism and the rescaling of agro-food governance, its conception of the latter focused too narrowly on the ‘turn to quality’, thereby overlooking other important aspects of food relocalisation. Based on interviews conducted in England’s South West and West Midlands regions, this paper examines whether the attitudes of key actors from regional and sub-regional governance institutions provided a sound basis for partnership working on the food relocalisation policies recommended in the Government’s Strategy for Sustainable Farming and Food. It finds different attitudes on the part of regional and sub-regional actors, with the former favouring regional foods and the latter local foods. Despite scepticism from both groups about the ability of the England Rural Development Programme (2000–2006) to promote food relocalisation, grants were awarded to both regional and local food entrepreneurs, suggesting that the programme contributed more to food relocalisation than previously thought.