Regional inequities in wealth are extremely high in post-communist countries, according to the latest data from Eurostat. The richest regions of Slovakia, Hungary, the Czech Republic and Romania — including the capital — show relatively solid economic figures, while regions far from the capital show remarkably poor results. It is as if the “East-West” frontier isn’t drawn along international borders, but within these countries.
The most shocking difference is in Slovakia: GDP per capita is 160% of the EU-27 average in the western Bratislavsky kraj region — more than three times higher than in the Vychodná Slovensko region in eastern Slovakia, where per-capita GDP is 46% of the EU average.
In Romania, per-capita GDP in the Bucuresti-Iflov region is also more than three times higher than in the Nord-Est, Romania’s least-developed region:
We can see similar imbalances in Hungary and the Czech Republic:
The EU’s new member states also show a much higher imbalance in regional economic production than the EU-15:
These inequities may have crucial political consequences. People in formerly communist countries are nostalgic for big-government paternalism, have strong egalitarian ideologies and a need for high state redistribution. The majority of voters feel that the transformation to a market system has brought unbearably high gaps in income levels and huge social injustices.
These figures show that national governments and the EU have a lot of work to do in increasing social and regional cohesion. Although a huge amount of money has been spent on closing the gap between the regions, people!s wishes remain unfulfilled.
Possible risks of these regional economic imbalances:
- Social instability and a rise of social (or agrarian) populism. Regional inequities can be used as a political tool to mobilise voters in the poorest regions. Political parties can build upon the voters’ feelings of relative deprivation and fuel dissatisfaction in the countryside. As in most countries, the capital is by far the most developed region, and agrarian populism built upon the urban-rural rift can be a driving political force. On the other hand, if governments raise spending on regional integration, the more developed regions can accuse the poorer regions of “free riding”.
- Ethnic tensions. In the CEE countries mentioned, the majority of the Roma population lives in the least-developed regions. Frustration over unemployment is high in these places, and anger over the lack of opportunities is even stronger. Welfare chauvinism can become a powerful force in politics.
- A good opportunity for extreme right. Far-right populist parties can capitalize on the above factors, using dissatisfaction over living conditions and ethnic conflict to harvest votes. This is exactly what is happening in Hungary’s 2010 parliamentary elections, where the far-right Jobbik party stands to make the biggest gains in the least-developed counties. In some counties, Jobbik may even beat the governing Hungarian Socialist Party into second place.
Csaba Molnár- Péter Krekó