The central government has in recent years been pushing for greater regional and national level coordination in economic policy, and for an expansion of the roles of regional and national governments and institutions in shaping regional development (see for example the national economic development strategy, National Strategy 2003, April 2004 (1), and the national regional development strategy of May 2003; National Strategic Goal 2005. 8. p. 12). Since 2002, it has allocated significant additional budget resources to the areas of structural and infrastructure reforms, public administration reform and regional economic transformation. In response, the Hungarian government has made substantial efforts to promote the development of regional economic policy and the integration of regional economic policies in the larger policy framework. The key features of the model are outlined. It is developed using the concept of an 'enlarged regional' policy: regional policy is enhanced by an expanded capacity to act on behalf of the entire Union, as well as by the strengthening of the Union as an arena of regional competitiveness (in this sense, the concept of state capacity to develop) and by the harmonization of regional policy decisions. The basic structure of the model and the various components are: 1. Ease of implementation: The model aims to give Hungary's citizens and business better access to the European market and to promote regional integration and competitiveness (the latter at EU level). Therefore, it is a long-term process; the integration of specific policies in a specific region takes time to be completed. 2. Ease of enforcement: The model aims to improve the functioning of the European Union in various respects, from the management of migration flows for economic cooperation (see the article below on EU border management) to the fight against corruption and organized crime (see the article below on Europol). The models can therefore take some time to be implemented and then be reviewed. 3. Economic and social impact: The model makes use of a range of tools, including policies in each of the four main sectors: the services, business (financial, insurance, property), agriculture/forestry, and social, and also environmental, which are central in the integrated model (e.g. air and water, land and water, transport, housing, social issues, regional infrastructure). These policies, which are based entirely on national (in Hungary, the regions' policy and the EU-level coordination of policy) principles and guidelines, are implemented by the ministries of the government responsible. 4.
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(Revised version published in ACTA ECONOMIC 2004. 3. pp. 323-243) (First version was sent in October 2002; in revised form in August 2003) THE PYRAMID-MODEL: ENHANCING REGIONAL COMPETITIVENESS IN
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