Impacts of Transformation on the Regional Development
Petr Halámek, halamek@econ.muni.cz
Masaryk University Brno, Faculty of Economics, CZE
Regional policy, introduction
ˇ basic terms (regional development, transformation);
ˇ reasons for the differentiation of the regions;
ˇ goals of the regional policy;
ˇ regional policy in the process of transformations;
ˇ Czech regional policy (tools, institutions, policies).
Transformation of the Czech Republic
totalitarian system into the democratic system
central-planned economy into the market economy
Communist period (1948 ­ 1989)
- totalitarian system
- inefficient
- social guarantees
- central-planned economy
Economic transformation:
- liberalization of prices and foreign trade
- internal convertibility of the currency
- privatisation programs
- restrictive monetary and financial policy of the state
- tax reform
Phases of the development of the projects
time
economicallevel
growth development declinationstagnation
Basic factors of regional
differentiation:
Geographical factors:
location, total area , distance to centre, traffic connection, climate,
natural conditions, natural environment, ...
Demographical factors:
number of people; inhabitants density; age and sex structure of
inhabitants; birth-rate, mortality; qualification (education), ...
Economic factors (also connected with the political factors):
employment structure (primary sector, secondary sector, services,..);
seat of firms; intensity of the interaction within the region; number of
SMÉs (Small and Medium sized Enterprises); macroeconomic
policy,...
Some reasons of regional differentiation
in the Czech Republic
ˇ Drop down of the production and employment in
the heavy industry
ˇ Decrease of the employment rate in the
agricultural
ˇ Differential development of the services sector
ˇ Differential development of the small and medium
private enterprises
ˇ Low interregional mobility of the employees
ˇ Differential conditions of the natural environment
History of the Regional Policy in the CZ
ˇ CPE, massive redistribution and
realocation, (until 1990);
ˇ Regional Policy Act (1991);
ˇ Act on Principles of Goverment Regional
Economic Policy (1992);
ˇ The Ministry for Regional Development
(1996);
ˇ Principles of Regional Policy (1998).
Regional policy
The regional policy is understood as a conceptual activity
of the state and regional authorities with the aim to:
1) contribute to the balanced and harmonious
development of the regions,
2) reduce the differences in the levels of development
between the regions,
3) improve the regional economic and social structure.
The Principles of the Government Regional
Policy define two types of problem regions:
ˇ Structurally afflicted regions
ˇ Lagging regions (economically weak regions)
Theory of the regional development:
ˇ Development poles
ˇ Support of weak regions
Tools for Regional Development
fiscal policy,
monetary policy,
protectionism,
reallocation of capital;
reallocation of working forces,
programming,
institutional support.
MINISTRY FOR
REGIONAL DEVELOPMENT
OF THE CZECH REPUBLIC
ˇ regional policy, including regional support
for private enterprises
ˇ housing policy
ˇ zoning
ˇ tourism
Organizations controlled by MRD
ˇ Czech-Moravian Guarantee and
Development Bank
ˇ Institute for Territorial Development
ˇ Czech Tourist Authority
ˇ Centre for Regional Development of the
Czech Republic