SWOT Analysis - Central Europe

Among the settlements there are 328 municipalities the rests are villages. The
cities include 23 provincial towns and the capital, and the latter is divided into
23 districts. Out of the villages there are 118 large ones. [16] These territorial
units possess their own municipality. In Budapest two-tier local government
system operates, which consist of the Metropolitan municipalities and district
authorities. There is no hierarchical relationship among the counties and
municipal governments. (CSO, 2009b)
Out of the two basic levels, there are two more territorial levels, the designing-
statistical region and the micro-region. Originally both were created for
statistical purposes and under the regional institutional framework, but they
form as well as the territorial basis of organizing some administrative and
municipal functions.
The 7 regions were established with the grouping of the counties and the
capital, and the 174 micro-regions within the boundaries of the counties with
the grouping of municipalities. Budapest forms a separate micro-region (CSO,
2009).
Regarding the Local Self-Government Act, the County Town Municipal
Council in its own territory - corresponding changes - assume their own
competence of the county government functions and powers. Cities with
County Rights however, are not allowed to form a distinct territorial
administrative unit; they are entitled only to specific municipal law.
2.2 Brief description of the economy
Hungary's economic system according to the constitution is based on a social
market economy, which has to ensure fair competition, and everyone
involved in state-guaranteed minimum economic security. Hungary is a
member of the advanced industrial countries comprising the OECD, on the
basis of the economic performance it belongs to the developed countries,
but in the European Union it has tended to count to the poor.