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Economic Policy of Visegrad Countries on the Way of European Integration ‘The Hungarian Case’ alias From the TOP to the BOTTOM KUTTOR, Dániel University of Miskolc, Department of Regional Economics Institute of World and Regional Economics 2nd – 4th December 2013 Tbilisi - Georgia Ivane Javahkishvili Ivane Javahkishvili Tbilisi State University, Faculty of Economics Tbilisi State University, Faculty of Economics

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Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Economic Policy of Visegrad Countrieson the Way of European Integration

‘The Hungarian Case’alias

From the TOP to the BOTTOM

KUTTOR, Dániel

University of Miskolc,Department of Regional Economics

Institute of World and Regional Economics

2nd – 4th December 2013

Tbilisi - Georgia

Ivane JavahkishviliIvane JavahkishviliTbilisi State University, Faculty of EconomicsTbilisi State University, Faculty of Economics

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Introduction the country and the University of Miskolc

Lessons learnt from HungaryThe Socialist heritage

The mission

90es – Crisis management and stabilization

2000es – EU integration

Spatial and sectorial aspect of transformation

ContentContent

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Current Hungary

Introduction of HungaryIntroduction of Hungaryand the University of Miskolcand the University of Miskolc

• Small, mid-sized country in East Central Europe

• Land-locked, but rich in waters (rivers, lakes, thermal springs)

• Mainly flat (2/3 of the country)

• Budapest (metro area) vs. Countryside (Miskolc, 4th city)

• Population: ca. 9.9 Million (ranked 88th)

• Economy: ca. 197 Billion $ PPP (ranked 54th)

• Development level:

- GDPpc: ca. 22 000 $ PPP (ranked 48th)

- HDI: 0.831 (ranked 37th)

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Current Hungary

Introduction of HungaryIntroduction of Hungaryand the University of Miskolcand the University of Miskolc

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

University of Miskolc

Introduction of HungaryIntroduction of Hungaryand the University of Miskolcand the University of Miskolc

• Founded in Selmecbánya (SK) in 1735

• 1919 – Sopron

• 1949 – Miskolc, Technical University

• 1990 – University of Miskolc

Number of students: 13 000

Number of Faculties: 7+1

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

University of Miskolc, Faculty of Economics

Introduction of HungaryIntroduction of Hungaryand the University of Miskolcand the University of Miskolc

• Founded in 1987

• 1993 – PHD School

• 1996 – 5-year courses, credit-system

• 2006 – Bologna-conform system

Number of students:

85 >>> 3 000

Number of Institutions:

4 >>> 17

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

University of Miskolc, Faculty of Economics

Introduction of HungaryIntroduction of Hungaryand the University of Miskolcand the University of Miskolc

BA courses

• Management

• Trade and marketing

• Financing and accounting

• International Business Economics

• Tourism

• Human resources

MA courses

• Marketing

• Master of Business Administration

• Logistics

• International Business Economics

• Regional and Environmental Economics

• Accounting

• Entrepreneurial

• Management

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

VisegradVisegrad EconomiesEconomiesJust a snapshot… Where are we now?

KOF Index of Globalization

The KOF Index of Globalization measures the three main dimensions of globalization:

• economic • social • and political.

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from HungaryThe Socialist heritage The Socialist heritage

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

1950 1960 1970 1980 1990 2000

Per

Capita G

DP

t

Western_EuropeEastern_Europe

GDP pc(int. $, 1990 prices)

GDP pc(Western Europe = 100%)

Name1950 1973 1990 1950 1973 1990

Czechoslovakia 3501 7041 8517 69,84% 57,91% 50,48%

Poland 2447 5340 5115 48,81% 43,92% 30,32%

Hungary 2480 5596 6471 49,47% 46,02% 38,35%

Eastern Europe 2120 4985 5437 42,29% 41,00% 32,22%

Western Europe 5013 12159 16872 100,00% 100,00% 100,00%

Divergence

• Lagging Eastern Europe

• Growing development gap between the core and periphery

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from HungaryThe Socialist heritage The Socialist heritage

Special Hungarian features:

• 1956 Revolution

• Kadarism (after János Kádár, General Secretary)

• Goulash Communism (Gulyás-kommunizmus)

• Economic Reforms (New Economic Mechanism, cooperatives for profit, limited western orientation, partly market pricing, taxation; commercial bank)

• IMF – external debt

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Transition EconomiesTransition Economies

Required steps

controlled/planned economy market economy

socialism capitalism

dictatorship democracy

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Transition EconomiesTransition Economies

Timehorizon

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Transition EconomiesTransition Economies

Former Soviet Union

Commonwealth of Independent States

Baltic

East Central Europe

South East Europe

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Baltic countries:• EE – Estonia• LV – Latvia • LT – Lithuania

East Central European countries:• PL – Poland• CZ – Czech Republic• SK – Slovakia • HU – Hungary

South East European countries:• SI (SLO) – Slovenia• HR (CRO) – Croatia• BA (BIH) – Bosnia and Herzegovina • CG – Montenegro (Crna Gora)

• SRB – Serbia• FYROM – Macedonia• RO – Romania• BG – Bulgaria• ??? Kosovo

Transition EconomiesTransition Economies

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

CIS (FSU):

• AM – Armenia• AZ – Azerbaijan• BY – Belarus• KG – Kyrgyzstan• KZ – Kazakhstan• MD – Moldova• RU – Russia• TJ – Tajikistan• UZ – Uzbekistan

• TM – Turkmenistan• UA – Ukraine

• GE - Georgia

Transition EconomiesTransition Economies

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Transition EconomiesTransition Economies

The „Shock” (J curve) Falling output (GDP)

-45 -40 -35 -30 -25 -20 -15 -10 -5

%

Indonesia (1997-98)

France (1929-32)

Czech Rep. (1989-92)

Germany (1929-32)

Venezuela (2001-03)

Chile (1981-83)

Hungary (1989-93)

Poland (1978-82)

Argentina (1998-2002)

Saudi Arabia (1981-85)

USA (1929-33)

Russia (1989-98)

The Economist

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Transition EconomiesTransition Economies

The „Shock” (J curve)

The main reasons of serious decrease:

• collapse of Soviet and eastern market (COMECON);

• rising price level generating inflation;

• diminishing state subsidies (5,4% of GDP in 1992, 2,3% in 2001);

• indebtedness and insolvency among comapnies;

• large external debt (by IMF); receipt to be followed: Washington Concensus >> privatisation;

• non-performing loans (29,6% of total loans in 1993; 20,2% in 1994)

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Privatisation

Types:• direct sale for foreigners;• direct sale for natives;• MBO, Management-buy-out;• EBO, Employee-buy-out;• coupon system (recoup);• restitution.

Lessons learnt from HungaryLessons learnt from HungaryThe mission The mission

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

primary secondary tertiaryCzech Republic Coupon MBO/EBO RestitutionHungary Sale MBO/EBO RestitutionPoland Sale MBO/EBO CouponSlovakia MBO/EBO Sale Coupon

Type of privatisation

Privatisation

Lessons learnt from HungaryLessons learnt from HungaryThe mission The mission

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Privatisation revenues (cumulative, in per cent of GDP)

0

5

10

15

20

25

30

35

40

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

%

Czech Republic Hungary Poland Slovakia

The main questions: time and rapidity??

Lessons learnt from HungaryLessons learnt from HungaryThe mission The mission

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Privatisation

Different scenarios, stories:• positive: TUNGSRAM >> GE;

• negative: IKARUS >> just a few local companies;

• all in all: a great loss within manufacturing, negativ effect on labour market and budget revenues.

Lessons learnt from HungaryLessons learnt from HungaryThe mission The mission

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Privatisation

Unfavourable changes on labour market:

Lessons learnt from HungaryLessons learnt from HungaryThe mission The mission

Unemployment, total (% of total labor force)

02468

101214

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

Labor force, total

3 800 0003 900 0004 000 0004 100 0004 200 0004 300 0004 400 0004 500 0004 600 000

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

New political elite had fears from turning back (tosocialism)!

0%10%20%30%40%50%60%70%80%90%

100%

1992

1993

1994

1995

1996

1997

1998

1999

2000

State sector share inGDPPrivate sector share inGDP

Lessons learnt from HungaryLessons learnt from HungaryThe mission The mission

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

-20,00

-15,00

-10,00

-5,00

0,00

5,00

10,00

1991 1992 1993 1994 1995 1996 1997 1998 1999 Czech RepublicHungaryPolandSlovak Republic

Vulnerable growth, structural problems!

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from Hungary

The conceptual background The conceptual background Export base theory

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

0

5 000

10 000

15 000

20 000

25 000

30 000

1992 1993 1994 1995 1996 1997 1998 1999

Czech RepublicHungaryPolandSlovak Republic

Extern growth factors:

1) export, but what about import-substitution?

Hungary 1992 1993 1994 1995 1996 1997 1998 1999 2000

Trade balance (millions of USD) -3 246 -3 635 -2 442 -2 645 -1 963 -2 353 -2 176 -2 119 -2 930

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

0,00

1 000,00

2 000,00

3 000,00

4 000,00

5 000,00

6 000,00

7 000,00

8 000,00

9 000,00

10 000,00

1993

1994

1995

1996

1997

1998

1999

2000

Czech Republic HungaryPolandSlovakia

Extern growth factors:

2) Foreign Direct Investment (million USD)!Hungary is the TOP;

~ 16 Billion USD till 1999

FDI stock

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

Extern growth factors:

2) Foreign Direct Investment (million USD)!

Attractivity of the country:

• good location, proximity to WE;

• „qasi capitalist” preliminaries, industrial traditions;

• relative developed infrastructure (around the capital, BP);

• low wages: especially the minimum wage (from 22 000 to 98 000 HUF; ~ 330 EUR in 2013)

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

Extern growth factors:

2) Foreign Direct Investment (million USD)!

Threats of poverty: remaining poor!

Circulus vitiosus!Gross wages (USD), 2013Czech Republic: 1 268Hungary: 899Poland: 1 203Slovakia: 1 069

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Number of banks (of which foreign owned) 35 (12) 40 (15) 43 (17) 42 (21) 41 (25) 41 (30) 40 (27) 39 (27) 42 (33) 41 (32)

Asset share of state-owned banks 74,4 74,9 62,8 52 16,3 10,8 11,8 9,1 7,7 9,1

Financial structure and conditions:

-9

-8-7

-6

-5-4

-3

-2-1

0

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

0102030405060708090100

General governmentbalanceGeneral governmentdebt

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

Hard to keep the balance!Reasons of budget deficit in HUN:

• large external debt & debt service;

• extensive bureaucracy in Public Administration >> corruption;

• high level of tax rates (on income, VA <27%>) >> tax evasion;

• soft budget frames >> deficit;

• wide range social benefits (partly due to the aging society);

• much clearer and concentrated economic startegy.

Result: constant budget constraints (1995, 2006, 2008-).

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

0

50

100

150

200

250

300

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

External debt/GDP

External debt/exportsof goods and services

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

Fighting against the external debt! (%)

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

0

50

100

150

200

250

300

350

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Exchange rate(FORINT/USD, annualaverage)

Consumer prices (end-year)

0

5

10

15

20

25

30

1992 1993 1994 1995 1996 1997 1998 1999 2000

Continuous devaluation!

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

• No fixed exchange rate;

• crawling peg (1995-2001);

• floating exchange rate (since 2001).

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Lessons learnt from HungaryLessons learnt from Hungary90es 90es –– Crisis management and stabilizationCrisis management and stabilization

Continuous devaluation!• Crawling peg (1995-2001);

• floating exchange rate (since 2001).

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Moses Genesis 41

Pharaoh dreams…seven years of plenty and seven of famine…

La Fontaine: The Ant and the Grasshopper

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

GDP per capita (PPP)EU average 100%

GDP per capita (WB, 2012)

European Union: 33 014 $Czech Republic: 26 590 $ (37./17.)Hungary: 22 119 $ (48./24.)Poland: 22 162 $ (47./23.)Slovakia: 25 305 $ (40./20.)

Lessons learnt from HungaryLessons learnt from Hungary2000es 2000es –– EU integrationEU integration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

GDP annual growth rate %

GDP surplus 2000>>2014European Union: x+19,2 %Czech Republic: x+ 38,7 %Hungary: x+ 24,6 %Poland: x+ 50,8 %Slovakia: x+ 56,4 %

Lessons learnt from HungaryLessons learnt from Hungary2000es 2000es –– EU integrationEU integration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

PopulationPop density

(person/sqkm)

1990 2011 1990 2011

Czech Rep. 10 333 355 10 546 000 133,73 136,18

Poland 38 110 782 38 216 000 125,19 125,52

Hungary 10 373 988 9 971 000 115,43 110,46

Slovakia 5 299 187 5 440 000 110,17 112,92

Name Per 1 000 persons 1991 1996 2001 2006 2010

Czech Rep.

Number of births 12,6 9,0 8,9 10,3 11,1

Number of deaths 12,0 11,0 10,5 10,2 10,2

PolandNumber of births 14,3 11,1 9,6 9,8 10,8

Number of deaths 10,6 10,0 9,5 9,7 9,9

Hungary Number of births 12,3 10,4 9,5 9,9 9,0

Number of deaths 14,0 14,1 13,0 13,1 13,0

SlovakiaNumber of births 14,8 11,2 9,5 10,0 11,1

Number of deaths 10,3 9,5 9,7 9,9 9,8

Deficit!Deficit!

Lessons learnt from HungaryLessons learnt from Hungary2000es 2000es –– EU integrationEU integration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

1990 1995 2000 2005 2010

Czech Rep. 1,89 1,28 1,14 1,28 1,49

Poland 2,04 1,61 1,35 1,24 1,38

Hungary 1,84 1,57 1,32 1,31 1,25

Slovakia 2,09 1,52 1,30 1,25 1,40

Fertility rate

1990 1995 2000 2005 2010

Czech Rep. 71,38 73,07 74,97 75,92 77,42

Poland 70,89 71,89 73,75 75,00 76,25

Hungary 69,32 69,79 71,25 72,65 74,21

Slovakia 70,93 72,25 73,05 73,90 75,11

Life expectancy (year)

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Share of economically active age classes within the total population (15-64 year)

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Share of population 65 year old and over within the total population (%)

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

2000 2012Czech Republic 4 624,9 4 810,4Hungary 3 805,7 3 842,8Poland 14 154,7 15 340,3Slovakia 2 096,0 2 317,2

Number of employed (persons)

Rate of eployment (%)Number of pensioner (person), 2007Czech Republic: 2 719Hungary: 3 045Poland: 9 188Slovakia: 1 246

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Threats:• young (24-)

• old (50+)

• female 2012, %European Union 58,5Czech Republic 58,2Hungary 52,1Poland 53,1Slovakia 52,7

2012, %European Union 48,8Czech Republic 49,3Hungary 36,9Poland 38,7Slovakia 43,1

2012European Union 32,8Czech Republic 25,2Hungary 18,6Poland 24,7Slovakia 20,1

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

%

Unemployment rate (%)EDP!!

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Number of emigrants within the EEA

Number of persons

2000 32 370Czech Republic 2011 85 941

2001 451 834Poland

2011 1 567 650

1999 74 016Hungary

2011 129 467

2003 68 899Slovakia

2011 156 752

Remittance (GDP %)

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

General government balance (GDP %)EDP!!

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Social expenditure (GDP %)

Euro per capita, 2010Czech Republic: 2 877,88Hungary: 2 228,79Poland: 1 759,84Slovakia: 2 253,78

•Social protection benefits•Administration costs•Other expenditure•Sickness/Health care•Disability•Old age•Survivors•Family/Children•Unemployment•Housing•Social exclusion n.e.c.•Sickness / healthcare and disability•Old age and survivors•Housing and Social exclusion n.e.c.

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

External government debt (GDP %)

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Debt service, interest (GDP %)

2000 2006 2012Czech Republic 0,8 1,1 1,5Hungary 5,4 3,9 4,3Poland 3,0 2,7 2,8Slovakia 4,1 1,5 1,9

Millió euro, 2010

Czech Republic: 2 227,9Hungary: 4 172,7Poland: 10 830,9Slovakia: 1 322,1

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Investment, 2001, 2006 and 2011

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Gross fixed capital formation, 2011

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Gross national savings, 2001 and 2011

Lessons learnt from HungaryLessons learnt from Hungary2000e2000es s –– EU EU integrationintegration

Economic Policy of Economic Policy of VisegradVisegrad CountriesCountrieson the Way of European Integrationon the Way of European Integration

The Hungarian caseThe Hungarian case

Tbilisi Tbilisi -- G

eorgia 2G

eorgia 2 -- 4 Dec 2013

4 Dec 2013

Thank you for your attention!Thank you for your attention!

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