Rural Development experiences of Hungary

1. Rural Development experiences of Hungary Anetta SZILÁGYI FAO Regional Office for Europe and Central Asia FAO Regional Office for Europe and Central Asia

2. History of LEADER Programmes in Hungary 2001-2003 LEADER-Type Pilote programme 2004-2006 LEADER+ (ARDOP LEADER) 2007-2013 LEADER - Axis IV. 2014-2020 LEADER FAO Regional Office for Europe and Central Asia

3. The Managing Authority Main role: implementation of the New Hungary Rural Development Programme Head: Deputy-State Secretary for Rural Development, Assisted by the Department of Rural Development Previouslyperformed the MA tasks relating to SAPARD, ARDOP and the European Fishery Fund.Civil servant employees funded from Technical Assistance budget of the NHRDP. Main tasks: Monitoring and coordination of the objectives set in the NHRDSP and NHRDP; Preparationof annual, mid-term and long-term planning documents; Preparation and coordination of the program modifications; Preparation of legal documents, regulationsand call for applications; Implement the communication plan to popularize the measures of the NHRDP; Monitoring of the subsidy fund utilization; leading the Monitoring Commitee; Coordination of the LAGs; supervises the institutional system at all level (PA, LAG, technical support institute) in charge of the NHRDP implementation; Reexaminationof the localprojects by the Budget Allocation Commission (FAB);Finalranking was made by the MA; Has a technical support institute to carry out those activities where the MA has no capacities; NHRDP: New Hungary Rural Dev. Programme; NHRDSP: New Hungary Rural Dev. Strategic Plan FAO Regional Office for Europe and Central Asia

4. Tasks regarding Finacing, Monitoring, Accreditation and Coordination Collection of financial and statistical information, definition of monitoring indicators; Sending NHRDP monitoring data to the EU Comission; Organizationof the work of the Monitoring Committee; Regular follow-up and supervision of the compliance with the accreditation criteria; Coordination of tasks connected to EU Comission’ audit missions in relation to NHRDP; Coordination of the drafting of legal regulations; Implementation of NHRDP Technical Assistance, including public procurement. FAO Regional Office for Europe and Central Asia

5. What is a LEADER LAG? -associate public and private partners, coming from the different socioeconomic sectors in the area. -receive financial assistance to implement local development strategies, by awarding grants to local projects. -selected by the ManagingAuthority(nationalbody) responsible for the management of the programme. -local partnership, known as a LAG, is an original and important feature of the LEADER approach. FAO Regional Office for Europe and Central Asia

6. LAG and territorial cohesion: • The LAG is a communication space, where people exchange and discover thecommonalities (refer to history, the cultural or natural heritage ofthe area). • At decision making level the economic and social partners as well as other representatives of the civil society, such as farmers, rural women, young people and their associations must make up at least 50 % of the local partnership. • The partnership must be representative for the area. • The partners must be locally based. • The groups formulate an integrated local development strategy and are responsible for implementing it. FAO Regional Office for Europe and Central Asia

7. Most active rural actors in Hungary: • professional organisations and unions (representing farmers, non-farming professionals and micro-enterprises), • trade associations, • residents and their local organisations, • local political representatives, • environmental associations, • cultural and community service providers, including the media, • women's associations, • young people. FAO Regional Office for Europe and Central Asia

8. Role of LAG: • identifying and implementing a LDS, making decisions about the allocation of its financial resources; • improve the area's economic competitiveness; • Strengthen the dialogue and cooperation between different rural actors, who often have little experience in working together, by reducing potential conflict and facilitating negotiated solutions through consultation and discussion; • Facilitatethe processes of adaptation and change in the agricultural sector (for example, quality products, food chains), the integration of environmental concerns, the diversification of the rural economy and quality of life. FAO Regional Office for Europe and Central Asia

9. Minimum tasks of LAGs • Capacity building; • Drawing up a selection procedure and criteria for the selection of projects; • prioritising of the applications for ensuring coherence with the LDS; • Preparing and publishing calls for proposals including definition of selection criteria; • Receiving applications for support and assessing them; • Selecting operations and fixing the amount of support; • Monitoring the implementation of the LDS and the operations. FAO Regional Office for Europe and Central Asia

10. Structure of the LAG LAG: composed of settlements Working organization: management and administrative body of the LAG. Cooperation Agreement was concluded between the LAG and MA and PA.(delegated tasks). Assembly: supreme body of the association(LAG), which is composed of all the members of the LAG. The roles of the Assembly are defined in the Association’ „charter”. Presidency: President is elected for 5 years with 2 vice-presidents and members. -leading organ of the LAG which deals with all the tasks that do not fall under the exclusive competence of the Assembly. FAO Regional Office for Europe and Central Asia

11. Role of municipalities Measures improving the quality of life in rural areas gave opportunity for local governments to implement infrastructuralinvestment projects. LEADERmeasures are dedicated to support the goals of LAGs formulated in the local rural development strategies, the municipalities located on the territory of the LAG can implement their development ideas through those measures, In Hungary, municipalities play an important role in the work of the LEADER LAGs(the membershipof thepublic sector inLAGs is a requirement). Several measures of the RDP are available for municipalities. Axis III- Quality of life in rural areas and diversification of the rural economy; Axis IV-LEADER

12. Experiences and changes • Some working organisations had a hard period regarding financement (post-financing, slow and bureaucratic procedures); • High expectation from the governmental bodies; • Lack of local innovation; • Post-payment cause trouble for rural actors; • General financial supporting rate was too low for entrepreneurs; • Lack of decentralisation of decision-making; • Interim changing of aid intensity (from 65% to 45%): applicants were frightened away; • Administrative problems: slow decision-making (at national level). Changes • The LAGs’ financial and legislative responsabilities increased; • The LAGs became legal entities (non-profit organization); • The number of settlements involved in LEADER increased. FAO Regional Office for Europe and Central Asia

13. Thank you! Contact us Anetta.szilagyi@fao.org FAO Regional Office for Europe and Central Asia