POSSIBILITIES TO IDENTIFICATE ACTION POINTS IN ECONOMIC DEVELOPMENT OF LOCAL MANAGEMENT
Journal Title: VADYBA - Year 2016, Vol 28, Issue 1
Abstract
Although in the first place the public opinion interprets the success of the settlements from an economical viewpoint, in fact the success of a settlement is depending on several economical-social factors. The settlements and the surrounding social, economical sphere are constantly changing. After the collapse of the communist system development activities of local governments had suffered from lack of enough resources in Hungary. Taking into consideration their operational-financial deficiencies they could not give enough attention to the strategic thinking in local developments plans. Instead of real long-term programmes they were running for simple new resources. Due to their short-term irrelevancies many strategic dimension could not gain enough attention and support. But after debt-consolidation central government encouraged local governments to participate actively in local economic activities and strategic development. The settlements as autonomies due to their far-reaching role-system possess means of different characteristics, which can strengthen or even weaken each other’s effects. According to common experiences decision making-process of the Hungarian local governments is much more based on a kind of opportunism than on a thought of sustainable growth. The research method described in the study supports the strategic decision-making process with recent tools of ’fact-based’ decision-making. It provides structured information not only for prioritizing strategic fields but also for planning actions of economic development. Two main objectives of this method are defining development-fields and setting up an action plan. The main idea of this research is an indicator chart which is based on PESTEL-analysis, Balanced-Scorecard perspectives and a benchmark database which helps the interpretation of data. The analysis of the database is a core element of this method. During the benchmarking process the figures of the examined governments are compared to an average figure of multifarious types of settlements (e.g. similarity by population, size, development or other standards).
Authors and Affiliations
Melinda Molnár, Endre Lendvay
Keywords
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