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Summary
With funding from Canadian International Development Agency’s Central and Eastern European Branch, the CUI implemented this two-year technical cooperation program, which was designed to assist in Hungary’s democratization process, by supporting the formation of democratic and self-reliant municipal management systems in three Hungarian municipalities. The program was undertaken in partnership with the Hungarian Urban Association (MUT) and the Municipalities of Eger, Nagykáta and the twentieth district of Budapest, known as District XX or Pesterzsébet. Emphasis was placed on the participatory formulation of strategies for economic development in the three partner municipalities. Through the skills and experiences acquired in the project, the three municipalities are now better prepared to operate in a market economy and have achieved considerable success with their economic development initiatives. A most significant outcome of this program was the designation as a “Best Practice”, by the UN Habitat, of the strategic planning process in Nagykáta. To quote the UN Best Practices Newsletter #11, “Cooperation was the key to making a single initiative successful. The Mayor of Nagykáta in Hungary, with the help of a democratic process, was able to draw up an urban development plan which has already won international recognition. As a result, many major companies have settled in the area and unemployment has been reduced from 25% to 5%.”

Funding Agency:
The Canadian International Development Agency (Central and Eastern European Branch)

Timeframe:
1996-1998

Geographic Focus:
This program was focused in the Hungarian municipalities of Eger and Nagykáta and the twentieth district of the City of Budapest.

Table of Contents
Project Partners
Background
Project Description
Approach


Want more information?
For more information, contact the CUI’s International Programs Office at cui@canurb.com





  Project Partners
The program was undertaken in partnership with the Hungarian Society for Urban Planning (MUT) and the Municipalities of Eger, Nagykáta and the twentieth district of Budapest, known as District XX or Pesterzsébet.

Background
The decentralization of responsibilities from the national to the local level of government, highlighted the deficiencies in the capacity of municipalities to deal with increasingly complex urban problems. Even though local governments in Hungary were being given many new responsibilities, they did not have the legitimacy, nor the financial, human or technical capacities needed to effectively deal with a range of complex problems. Since 1991 the CUI had been assisting Hungary in the formation of municipal management systems, based on the principles of sustainable development: economic efficiency, environmental soundness and democratic decision-making. This project was a natural progression from CUI’s previous projects and matched the priorities of the Hungarian government to focus on projects that not only focused on economic development, but also on instituting the practice of stakeholder consultation in the municipal decision-making process.

Project Description
The goal of this project was to assist in Hungary’s democratization process by supporting the formation of democratic and self-reliant municipal management systems. In order to accomplish this goal, the following three objectives were pursued: to support the formulation and implementation of municipal economic strategy development (MESD) processes; to diffuse municipal management and economic development expertise throughout Hungary; and to promote the creation of mutually beneficial linkages between Canada and Hungary. Participatory approaches were developed in the formulation of the strategic plans for the partner municipalities and partnerships were established with community groups and local NGOs for the implementation of action plans.

Approach
Project implementation began with the establishment of multi-stakeholder committee systems, strategic planning offices and the development of communications and public awareness campaigns for each participating municipality. Municipal strategy development processes were then undertaken in Nagykáta and District XX and a similar process, focusing on the development of tourism, was completed in Eger. Training modules and curricula in the areas of strategic planning, public participation and municipal economic development were developed and delivered in regional workshops. Additional capacity development activities included Canadian professional assignments in Hungary and a study tour to Canada for Hungarian professionals. A communication and information task force was also established to disseminate project experiences throughout Hungary.

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