The Role of Foreign Capital in the Transforming Economy of Central Transdanubia

Abstract

The emergence of foreign capital has played an outstanding role in the economic transformation of Central Transdanubia, especially in Székesfehérvár and in Tatabánya. As in other parts of the country there were no alternative ways from recovering from the crisis. However, as we can see there are significant differences between the similar economy development strategy of the two cities. Different actors of the local society had different opinions on the development, the success and the future of the settlements.

The emergence of multinational companies has solved the problems of employment and as a result of it unemployment rate is under the national average by the end of the decade. Some of the small and medium sized enterprises were involved into the production process and social satisfaction increased in the last decade. However all of these are quantitative factors and they don't show the social development connected to the economic development. Problems were solved only in the surface, as multinational companies are not integrated into the local economy and strongly depend on their foreign partners. In the long-term strategy of the cities beside economy development, it is necessary to ensure sustainability and the possibility of social development.