Hungary is falling apart, the countryside is following the southern Italian pattern
Over the past two decades, the Czech economy has lagged far behind the Czechs in catching up with the EU14, but is similar to that of the other three countries, mainly the economy. Not outstanding, but not lagging behind. On the other hand, it is striking that regional disparities have not changed, even though a significant proportion of EU cohesion funding has been targeted at the most developed regions. G7-hu Imre Lengyel, a professor at the Institute of Economics and Economic Development of the University of Szeged, and a doctor of the Hungarian Academy of Sciences.
Multinational companies essentially do contract work, employing few local suppliers, so a capacity expansion will only temporarily increase output. technical higher education is almost lacking in these areas, with only a significant number of staff and trainings in Győr, so as a result of Industry 4.0 and robotisation, their economic growth is not expected to pick up. In their case, a typical middle-income trap is outlined, with economic growth close to stagnation.
Whether sustainable and integrated economic development programs involving local people operate in Hungary is highly questionable. Weaknesses in the co-operation between the governmental and economic actors involved in development and the lack of trust in most of the Hungarian regions predict the development trajectory of southern Italy. The development of the capital’s economy will not be able to “pull” two-thirds of the country, but if rural areas do not develop, the markets of companies in the capital will not expand. The capital and the countryside are interdependent.