Historical Background

Analysis of the Situation

Rationale of the Project

Description of the Program

Results of the CBED Program

Planning, Realization, Sources of the Project

Organizations Participating in CBED Projects

Course of Institutionalization

The common, tri-border regions of the Central European countries (Ukraine, Slovakia and Hungary) have similar geographical and economical features. The distance from the capital cities resulted in the local population seeking relations more intensely in all possible areas of life (economic, cultural, education, artistic, sports, etc.) This process was caused by the fact that the population grew more ethnically diverse after new borders were introduced following World War I. National minorities were shut out of their mother countries, striving to maintain or re-build connections with their national states, since the secular traditions of economical and commercial collaboration were broken off.

Initial arrangements directed towards the activation of the tri-border regions’ economy have been, for the most part, conceived at the governing level during the past decade, but failed to be efficiently realized due to the lack of prerequisite political and ethnic subtlety deriving from the region’s individual particularities.

In the absence of proper information and active communication the government organs could not have the benefit of any support coming from local business entrepreneurs. Entrepreneurial initiatives in the area were typically self-supportive, missing all types of central monetary backing or management which could have led to developments of a higher nature. It was not, therefore, accidental that in the early 1990’s there were organizations coming to life with the aim of stimulating and enlivening business enterprises, that took the interests of the local communities into consideration as well, working as foundations on non-profit basis. ( Zemplén Local Enterprise Development Foundation, Sátoraljaújhely, 1991, Nagykapos Regional Enterprise Agency, Nagykapos ( Vel’ke Kapusany ) 1992, Carpathian Society of Hungarian Intellectual Workers, Ungvár ( Uzhgorod ) 1993. )

The Carpathian Border Region Economic Development Association was established in 1994 by economic and business promoting branches that were already functioning in Hungary, Slovakia and Ukraine, with the purpose of fostering the recovery of the region’s economy.

Beyond providing direct assistance for the enterprises run in the bordering area of the founding countries, the CBED have been working on to draw western investments, upholding the admission of the “free market” principles among the countries and peoples involved.

We are strongly convinced that the Europe-conform strategic concept for economical and regional development, having been elaborated by CBED, will ensure an unprecedented opportunity for those participating in the realization of the project. It will keep unitary economic development principles in view and assist the gradual improvement in living standards for the population in the Carpathian border area. The entrepreneurs polled agree on the point that the economical subsistence in the near future entirely depends on the responsive cooperation in the Carpathian region. The strong intention for this vital collaboration is present on the part of the countries and leaders of the county and local governments. The local economic development centers began actually to carry out the realization of the project in 1995.

The Tri-Border Region Economic Cooperation Strategic Program is directed towards an area geographically designated and includes the Zemplén region in North-East Hungary (Bodrogköz, Hegyköz,), provinces bordered by Eastern Slovakia and Hungary (Terebes and Nagymihály/ Trebisov - Mihalovce ) as well as the Ungvár and Beregszász ( Uzhgorod - Beregovo ) districts in Kárpátalja.

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Due to the absence and instability of programs for area and regional development projects the properties and the economic condition of certain territories reveal considerable similarities.

The tri-border regions of the Carpathian area in Eastern Slovakia, Kárpátalja and North-East Hungary are lagging behind and deficient in economic progress although they are geographically diverse, with manifold advantages in regard to the geopolitical features.

The regions lagging behind the economic evolution of the preceding decades, are a great distance from their capitals which resulted in the total lack of central administration or of financial support.

There were no significant companies being established here; the dominant branch of the region’s economy was agriculture. This branch, which functioned in collective structural forms earlier, had to cope with adverse climatic and soil conditions, which left little or no prospect for people employed in farming to take initiatives in the new economic structure based on private properties.

The smaller portion of employment was provided by processing and light industrial sectors that had settled in cities ( food industry, wine-production, wood products, furniture, mechanical and ancillary engineering, etc.) These worked as affiliated companies of larger state companies, thus it was chiefly these productive branches that had to undergo liquidation and bankruptcy proceedings owing to the course of privatization. The size of the workforce with no employment has grown at a startling rate in the past 4-5 years. The qualification of the unemployed has deteriorated even further, due to the steady flow of migration of the trained manpower unable to find jobs in the region.

A large number of people having been excluded from employment are now in exigency having neither adequate qualifications nor enough experience to start running an enterprise of their own. They are, however, compelled to establish a small business. The insufficient amount of conditions (typically low income rates, absence of purchasing capacity, lack of experience and in tradition, lack of information, the clumsiness of administration, the slowness and complexity of acquiring loans, the unfavorable attitude of banks towards small-business owners, etc.) leads to the outcome that around 30% of the new small business enterprises are bound to go bankrupt before the end of their first year.

It has to be stated though, as a positive factor, that since the industrial production has not caused any serious damage to the environment, it could be considered as a potential breakthrough to develop these regions for purposes of tourism.

The development of tourism that is based on natural sources ( hills and mountains covered by forests, mineral springs, etc.) and on “ pure” environment has close ties to other regional developments aspects.

Modernization, for instance, is indispensable in certain districts: to construct the road, water, gas and telephone networks in the area, to attract tourists showing interest from other sectors.

It is the enterprise development organizations that have taken over the initiation of discussions with the regions concerning the borders, thus coordinating the tasks for economic and regional development, as well as elaborating the complex development ideas. When forming the strategic programs both the definite advantageous and the disadvantageous sides are taken into consideration.

GOOD POINTS : BAD POINTS:

- advantageous geopolitical situation - shortage of assets in business start-up at the join of North-Southern deficiency in international funds and East-Western directions - long distance from capital cities,

- convenient transit and transport facilities peripheral location (standard and broad-gauge loading - declining rate of industrial and districts: Záhony, Tiszacsernő) agricultural activity

- two international airports (Kassa, Ungvár,) - attractive provinces are difficult to possibility of transporting by water access, defects in transportation

- international energy cables infrastructure (gas, oil, electric energy) - undeveloped business-financial

- beneficial infrastructure conditions infrastructure relations and services regarding telecommunication - restricted transport capacity of borders

- untouched natural sources, - differences in legal regulation tourist potential - a general lack of knowledge on market

- ethnically mixed, economy and of business experience multi-language population, - missing AutoRoute facilities

- workforce available at relatively - the region’s being scarcely known at low wages international level

- traditions in cooperation among local - available international resources’ being enterprise development organizations hardly known in the area

- civil organizations’ and local governments’ growing experience and sense of  responsibility in regional development

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Springing from the features mentioned above, the CBED’s entrepreneurs and regional development programs aim to promote the international collaboration among undertakings working within the countries involved by way of realization of distinctly outlined objectives.

The most important aim, which makes up part of the Tri-border Economic Development Strategic Program, is to provide local enterprises with up-to-date information as well as to constantly convey alterations of laws controlling business activity to firms and individuals. A database, which is being continually updated, is set up to assist the administration of the potential clientele.

To achieve this goal, we operate an office network, with a computerized database being at the disposal of enterprises searching for business partners. This is where we gather and disseminate all the current economic information that is considered crucial for making and maintaining external trading relations.

To ensure more efficient services, we are planning to set up new office(s) in the region so as to spread and facilitate our information services. (A new office was opened on February 1, 1997 in Királyhelmec- Kralovsky Chlemec - Slovakia ) Regularly organized international exhibitions and markets guarantee a wide range of opportunities to shape definite business relations and to locate further markets. In meetings held simultaneously with the exhibitions, current information about economic regulations, legal and customs conditions is publicized for businessmen who come to attend these events.

Partner-searching is further encouraged by catalogues showcasing the entrepreneurs who participate. These are distributed among those interested at the end of the meeting.

The Carpathian Business Review a quarterly published newsletter through which we intend to broaden intermediary services for information and business contacts and to provide the possibility for business advertisements. To supplement our information services, we broadcast the television program called “Referencia” , a monthly business production, which enables mostly local enterprises to publicize the introduction of their activity in the region.

It also contributes to more acute, more thorough partner-searching attempts. Experts are invited to take part in the programs so all current changes in laws are immediately conveyed to each of the three parties involved in this project.

By the statements conveyed in the study “Tri-border Region Economic Cooperation and Development – Creating an Entrepreneurial Sector”, which was elaborated by the CBED, the economic cooperation among these border regions is restricted not only by differences in jurisdiction processes and rules but by several physical obstacles as well.

The crossing points along the affected borders have greatly limited transport capacity, and in certain naturally adjoining areas they are not even built properly (Dobra-Dámóc, Palló-Mátyóc, etc.), thus being unsuitable for international transportation.

The organizations joining CBED and the Council pursue explicit lobbying to coordinate and settle problems regarding border transportation. Besides these physical difficulties the problem area includes the question of initiating the simplification and facilitation of custom processes. We wish to make feasibility studies in these fields and introduce them to the appropriate governing bodies, since the completion of the project cannot be effectively fulfilled without central support.

The development of the tri-border regions can only be accomplished by organizing and integrating these closely related bordering business sectors as soon as possible, as they are to ensure the necessary sphere for achieving the economic union of enterprises and companies in the area. The countries joining in the project take up actualizing these enterprise zones according to their own regulation processes. The next initiative is Hungarian , for its government elaborated the complete ideology concerning the enterprise zone and described the full scale and extent of the incentives available for private enterprises in December, 1996. The Zemplén RVA, as the Hungarian founder party of CBED, thereupon, has set out to accomplish the project of establishing the enterprise sector.

Simultaneously with the creation of enterprise sectors, we intend to compile a comprehensive and multi-language promotion publication on the economic potency of the region. It will provide explicit facts and figures for foreign investors. We expect this booklet to arouse the attention of companies that have already shown interest in investing in the area. This region has such an exemplary geographical position, since business establishments settling down in this territory would have continuous access to the potential markets of several countries within only a remarkably short distance.

Our continued objective is to get acquire sponsorships / applications for the Strategic Program of the Tri-border Region and to recruit members currently participating within CBED. To subsidize programs included in the project we wish to gain supplementary resources by means of fund applications. Partners cooperating in the enterprise are to broaden the scope of their supporting members

(local governments, civil organizations, companies, private individuals, banks, etc.) through their respective recruiting strategies, based on local circumstances.

Besides other resources, the funds that are obtained from these organizations are used for assisting the operation of the regional offices. To foster recruitment, we want to increase the publicity and the number of visual presentations of CBED as an effectively functioning organization by means of its active participation in exhibitions, its dynamic relations with the media, etc. We also would be happy to share our experiences obtained through the course of project realization with organizations working on similar developmental objectives in other regions. We intend to take part in both domestic and international trade programs and to organize similar events in our region. The description and availability of the Tri-border Region Strategic Program for Economic Cooperation may greatly encourage the elaboration of other border region development concepts not only in Hungary but in further regions of similar characteristics in Central-Eastern Europe.

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The project is going to be executed in geographically defined areas (Eastern-Slovakia, North-East Hungary, border regions in Kárpátalja) , aiming at, for the most part, the improvement of economic relations of the small- and medium-sized enterprises in the neighboring countries, the physical infrastructure and other microeconomic conditions. Having been elaborated by CBED, its main objectives focus on concrete strategic sub-areas, which are meant to serve the development of the tri-border economic cooperation system.

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In order to accomplish its objectives, the Association has developed a coordinated schedule for the years 1995 and 1996. The realization of the goals sorted out in that schedule has been completed with the following results:

With the help of the three organizations participating in the Association’s work and by employing full-time chief administrators we have established an office network. The central office in Sátoraljaújhely has been functioning since January, 1995; the ones in Nagykapos and Ungvár were founded in May, 1995. The basic technical equipment was provided for each of the three offices, including a proper telephone line, a facsimile and a photo copier machine. The administrators were charged with gathering facts and details about all the actively working enterprises in the tri-border areas, with the aid of the “Regional Data Sheet” , which was developed jointly and distributed in Hungarian, Slovakian, Ukrainian and English languages. These data sheets were placed at the disposal of interested clients in our offices and at international markets and business meetings.

Since December, 1995, it has also been available as part of the quarterly published Carpathian Business Review editions. Registration in the database is free of charge for our clients. To accelerate the course of gathering information we have installed computers of the same configuration in our offices, thus we have succeeded in simplifying data processing.

The tri-lingual software for database management was developed by the Slovakian counterpart in May, 1996. It was immediately installed in each of the offices during the following month. The number of enterprises present in our database totaled 600 by the end of 1996, but the respective background database created earlier by our cooperating partners is much larger: it contains approximately 5-6000 items.

From the database of the regional enterprises we provide our clientele with gratuitous services for interceding business proposals and information about potential partners. This service is available both directly in our offices and by phone, facsimile or E-mail as well. The number of business partners sought in the offices was initially around 2-3 on weekly basis (equaling 240-360 altogether in the three countries). By 1996 the rate has increased to a weekly number of 4-5 (making 480-600 on the whole). This service is provided in our three international markets, where we welcome our clients at our own booths.

Partner-searching activities seem to be prominent in the following fields:

- commerce ( farming products, provisions, wood and wooden products, articles of clothing and other light-industrial products, machinery, equipment, supply and demand on technology)

- production cooperation, conveyance, supply and demand on basic material

- transportation activity

- tourism, accommodation facilities

We do not have the explicit number of successful ventures interceded through services provided by CBED. Since the participation on the part of the clients is voluntary, there is no obligation for their giving us feedback.

According to our estimations, the CBED has provided able guidance and support to 40-50 bilateral ventures since it began operating.

The CBED, partaking in the organization of exhibitions regularly held in the last few years in the tri-border region, now joins in arranging Hegyalja Farmers’ Days (in Szerencs), the Uzhgorod EXPO (in Ungvár), and in COPUS EXPO (in Nagykapos). CBED participates, in particular, by compiling the professional programs and through the invitation of local companies and other business establishments. Within the framework of these events, which last several days, the professional programs include lectures held on topics such as current international economy, commerce, customs and taxation, with the participation of experts in charge of the given areas. During the past two years we have had the opportunity to welcome, among others, the vice-chairman of the EBRD, the President of the Hungarian Parliament, leaders of factories accredited to certain countries, international desk officers of county and district bureaus, the Minister of Agriculture (Hungary), the managing director of the ÁPV Rt., the president of the Hungarian Tourist Service, the deputy-chairman of the Ukrainian Ministry of Foreign Affairs, the secretary-general of the Carpathian Euroregion, leaders of local governments, mayors, chamber leaders and a number of economic experts from all three parties. The program also covers entrepreneurial meetings, which are visited by business representatives coming from a broadening circle and by businessmen on behalf of Hungary, Slovakia, Ukraine, Rumania, Poland and Bohemia. As a further service, colleagues of the CBED were distributing “market circulars” and catalogues on business meetings in the region.

The table on the following pages indicates data of participation on exhibitions and businessmen’s meetings organized by the CBED in the last two years :

* Planned events

The idea of publishing a quarterly economic/entrepreneurial newsletter was established in the 1995 schedule of the Association. The 16-page long publication is meant to fill a gap in the Carpathian border region area and is issued in Hungarian, Slovakian and Ukrainian languages ( in 4000 copies supplied with a summary in English). Its columns cover four major fields:

A.) Articles analyzing actual changes made in laws of the three countries. Within this scope we have presented –among many others- the CEFTA regulation, the customs policy of Hungary, legal procedures pertaining to customs free districts, alterations in taxing laws, etc.

B.) News, up-to-date information about foreign trade, customs proceedings, taxation and other regulations, in brief form, making references to the explicit places of articles so that those who are interested know where to find the complete text of certain acts.

C.) The free publication of business proposals and partner-search requests through completion of the Registration Form. We ensure publishing paid advertisements as well.

D.) Regional, entrepreneurial information, introduction of CBED offices, news about its programs, current events.

The issues of the Carpathian Business Review are forwarded to local governments, county and district economic and regional development organizations and to establishments who join in helping execute our projects: local agencies of commerce, to entrepreneurial associations, chambers and to the National Entrepreneur Association. To our international partners organizations in the USA and in Europe, we direct the summaries published in English.

The important role of this publication is indicated by the growing number of clients coming to our offices subsequent to its distribution. We also receive positive feedback regularly from various organizations.

Within the framework of the Carpathian Euroregion, the Polish party intends to join in compiling the circular introduced in The Regional Development Committee, by providing economic and entrepreneurial information.

The “Kárpátia” enterprise was established in October, 1995 by winning a competition and employs the academic analysis of the Marketing Department of the Miskolc University. It has developed the study “Tri-Border Region Development – Creating Entrepreneurial Sectors”, which consists of over 600 pages. Its first volume (which was edited in December, 1995) outlines and summarizes the current situation of the region to be developed on the basis of research, documents and both macro- and micro-economic analysis previously prepared by CBED offices.

The second volume (published in February, 1996) attempts to draw the possible directions of future cooperation, having explored and analyzed interregional relations among regions with similar bordering positions in Western Europe. One of the issues of utmost significance is ensuring the sufficient transport capacity of checking points to facilitate the movement of trade traffic among enterprises located in the region.

The study served as a basis for a 50-page long summary, which contains the Strategic Program of Tri-Border Economic Cooperation. We have put the complete study and the summary at anyone’s disposal in our offices, and the summary has been translated into the official languages of the cooperating countries. (The summary in English has been forwarded to a number of American and European organizations.)

With the help of the CBED Committee Members, the leaders of the regional enterprise development organizations and representatives we began lobbying to activate central support for the regions.

Since routes to central governments vary in different countries, the achieved results are also different.

As an outcome of the Act of Region Development acceded in November, 1995, more and more attention has been paid to the promotion of these desolated areas.

The “Europe-Conform” interregional programs outlined by this regulation indicate the projects that may be expected to gain noticeable support from governmental funds, aiming at achieving the complex development of certain territories, like the one nurtured by CBED.

Through the successful interceding activity of the representative in Zemplén County, the interdepartmental Committee quickly placed the question of opening crucial checking points in the border region on the agenda. Later (in July and October, 1996) the chairman and the expert of the Association took part in personal meetings with the leader of the Traffic and Transport Portfolio and expounded the concepts for development, concerning, first of all, the opening of the Slovakian-Hungarian border station “Dobra-Dámóc”. The minister enacted a study on what probable effects the checkpoint would have on the transportation structure of the area and how the geographical displacement of road transport traffic would influence the terminal traffic of the Záhony railway loading point.

The study has not reached the ministerial level in Slovakia, but the summary was sent to the Eastern-Slovakian district leaders. The administration map of the region underwent a course of alterations by the new executive decree, which was accepted in 1996. The size of the cooperative areas remained more or less the same with the Nagymihály center. The new leader of the Regional Development Department of Administration is an expert who sees the opportunity for future developments in close economic cooperative links with the neighboring Hungarian regions. He was presented with the CBED programs, many of which he regarded as potentially feasible. At present, they are working on building relations with the Terebes district leadership to obtain their support for the realization of the strategic program. Slovakian internal affairs are, however, rather disadvantageous for placing much hope in winning central government support for the able development of territories bordering Hungary.

As for Kárpátalja, both district and county administrations have warmly welcomed the proposals put down in the study, having integrated several of its elements into their own development programs. The representative of the region has turned in the study to the Foreign Trade Ministry.

Definitive measures, however, apart from opening or expanding several border stations were not completed till December 1998. Kárpátalja was designated as a special economic zone in December 1998.

The CBED started the regular transmission of the live television program “Referencia” in March, 1996. The broadcasts are produced in cooperation between the Association and the Zemplén Television Station in Sátoraljaújhely and they are presented in Hungarian, Slovakian as well as in Ukrainian languages.

The program consists of four blocks:

A.) Live talks with experts on current matters of foreign trade, enterprising and regulations. Topics that have been discussed so far are: a detailed overview of CEFTA ruling, Hungarian customs policy, regulations concerning foreign trade relations, the question of entrepreneurial sectors, customs free districts designed for the region..

We had the expert of the ACDI/VOCA as our guest, who introduced the complex regional development and agricultural project. We have introduced the activity of the Zemplén Local Enterprise Foundation and presented the volunteer counselors working for the Peace Corps. Our viewers could glimpse the work of the Tőketerebes Entrepreneurial Information Center as well.

B.) We film and introduce successfully functioning border-crossing enterprises and business relations, analyzing the results; the leaders of these establishments show the steps of building international entrepreneurial cooperation through their own concrete examples. There were 18 bordering entrepreneurial ventures introduced in 1996.

C.) We provide the possibility for Hungarian, Slovakian and Ukrainian enterprises to introduce their companies and activity within the section “Supply and Demand”, which amounts to almost half of the program time. Making the most of the broadcasts, there is a chance to briefly present the range of products, and the company directors are encouraged to make direct business proposals in public.

In the eight programs transmitted between 1996 - 1998 , there were altogether 155 Hungarian, Slovakian and Ukrainian companies introducing themselves altogether in 28 broadcast programs.The number of enterprises listed has reached almost 600.

D.) At the end of the programs, we call the attention of businessmen and entrepreneurs to other broadcasts dealing with questions of current regional economy.

The influence of “Referencia” is clearly shown by inquires and opinions phoned in by our viewers during the broadcasts. In the days following the transmission, there are, on the average, 3-4 clients who come to our offices to request information about the products or business proposals presented.

7. Building An Association Body

At the time of its establishment, the Association set up the objective of making all efforts to create a broad unity of cooperation for the sake of successfully realizing the projected economic development programs. The active participation in these mutual programs have been judged fundamentally important by the collaborating parties. To achieve the same goal of building a body of members, however, different methods are required, owing to the discrepancies among countries and attitudes of entrepreneurs, companies and local governments.

There are 18 companies and 8 local governments that have shown the intention to support the Association partly financially, partly with in-kind contributions. There were 18 firms in the Eastern-Slovakian region that expressed their willingness to join in the Association and its program as supportive members. 19 of the interested companies have asserted they would be ready to participate in the projects. The support is used in covering a part of the operational costs of offices. Another portion of these funds are at the disposal of the Association for organizing international programs, exhibitions and business meetings (renting halls, holding receptions, providing printing services at reduced prices, possibilities to advertise, etc.)

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VI. PLANNING, REALIZING, SOURCES OF THE PROJECT

The Carpathian Border Region Economic Development Association has been performing its job, since its establishment in 1994, based on constant coordination between leaders of the founding organizations and Committee members. The schedules elaborated by the leaders of economic development foundations and centers for 1-year periods are introduced to the Committee for consent. Besides the leaders of the founding economic development organizations, there are dedicated mayors and entrepreneurs from the region who take part in the Committee’s job of designing and executing the outlined projects. Members also make attempts to gain support for the Association in their own countries, which means, first of all, providing information about the Association and its programs, taking advantage of their respective relations.

To carry out the projects, there are regional offices collaborating in the three countries, where managing clerks and contributors are working on certain tasks. The mutual objectives (providing information, partner-searching, organizing exhibitions and markets, business meetings, holding forums on regional development, publishing the international newsletter, etc.) are done jointly. In addition, each center works on carrying out its own projects, making efforts to find sponsors for the integrated developmental activities.

Managing administrators are supposed to compile a report on the course of goal-achievement and on financial completion every three months. The CBED analyzes the results and makes decisions on Association projects and financial backings. The program manager of the CBED is the person responsible for executing the settlements included in the minutes prepared on these sessions. The Association is represented by the President of the CBED, who takes initiatives towards third parties in accordance with the consent of the members.

The Association endeavors to enlarge its base and to enter into agreements on cooperation with local organizations, local governments and regional development partnerships operating in the area. It invites representatives of partner associations to its programs and partakes in regional meetings held by its collaborators to exchange experiences acquired in regional development.

We obtain information and exchange views about interregional cooperation with our partners on international conferences.

To financially support sub-projects, within the elaborated economic- and regional development program, which are to be realized in the countries involved. The founding organizations submit applications to different organizations ( County Development Councils, national funds, foreign aid programs, etc. ) to obtain both domestic and foreign grants.

To ensure proper incomes needed as contributions to operate our offices, each founding member is to organize local sponsorships, to win new active supporters and partners (local governments and their partner associations, civil organizations, companies, enterprises, banks, etc. ) in its own country. In order to ensure further successful operations for the Association’s programs we are planning to charge for certain services in the future (for instance, advertising, participating in businessmen’s meetings, etc.)

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The Zemplén Local Enterprise Foundation ( ZRVA ) was founded in June, 1991 for supporting the growth of small and medium enterprises in the Zemplén region.

The ZRVA is a non-profit foundation, which encourages and supports the formation of enterprises that are about to be established as well as ventures already functioning. The ZRVA, through the course of accomplishing its programs, takes emerging demands and the particulars of the area into consideration.

During the past 7 years we have outlined a regional network of information offices to serve the widest kind of entrepreneurial demands in the cities of Zemplén: Szerencs, Tokaj, Sárospatak; as well as in townships: Ricse, Cigánd, Pálháza, Monok, Bodroghalom and Kenézlő where part - time administrators direct the activity of these offices.

The ZRVA is working in 7 major fields whose charge is to supply direct assistance for entrepreneurs and enterprises in the region. These fields are as outlined in the table on the following page.

With the agreement of the cooperating partner associations the center of CBED is in Sátoraljaújhely, at the Zemplén Local Enterprise Foundation. Coordinating the program is done by György Sáfrányos, a programmanager working for the Association. The managing director of the Zemplén Local Enterprise Foundation is István Juhász, who was appointed the President of the Association on January 31, 1995.

The Zemplén Local Enterprise Foundation signed a contract with the Nagykapos Regional Enterprise Development Establishment (Slovakia) and with the Carpathian Society of Hungarian Intellectual Workers, on 4 November, 1994. In the framework of this agreement, we founded the Carpathian Border Region Economic Development Association to coordinate the region and economic development concepts in the three countries. The region and area developmental programs, as well as the projects directed towards economic development, are piloted by the founding members in their own countries, who also organize mutual international events to be included in the program of the Association (exhibitions, business meetings, etc.). They also execute joint objectives (Carpathian Business Review, producing the business television program “Referencia”, initiating the opening of border stations, creating entrepreneurial sectors, etc.).

Data about the Slovakian partner indicating its modified official name:

The organization was registered to Nad/1/92 by the Nagykapos District Office on 18 September, 1992.

The organization gives support to starting small enterprises in the Nagykapos region and launches entrepreneurial training programs in marketing, financing and communication.

It encourages relations between both domestic and foreign entrepreneurs and enterprises, and takes part in regional development programs. The managing director of the Enterprise Center is Sándor Fuksz, who is also member of the CBED Council, a Slovakian coordinator. The manager of the CBED office is Zoltán Kovács.

Data about the Ukrainian partner indicating its modified official name

The organization was registered at No. 017 by the judicial department of the state office of the Kárpátalja region on 10 September, 1993.

The Carpathian Society of Hungarian Intellectual Workers is a professional collaboration of economic experts and of entrepreneurs working in the private sector, or in financing, administration, commerce, industrial production, company economy or agriculture. The Association is designed to execute economic and regional development programs elaborated for the Kárpátalja region.

The Chairman of the Association is György Dupka, who is a member of the Council of the Association, the coordinator of the CBED program in Kárpátalja and is in charge of managing the CBED office.

There were several foreign organizations taking part in the process of establishing the Association and in elaborating its programs (U.S. Peace Corps, CESO ). We were given remarkable help from the small business development volunteers of the American Peace Corps working in Hungary, who have been actively participating in the work of the Zemplén Local Enterprise Foundation ‘s assistance in accomplishing the program and in seeking possibilities for funding of the Association from September, 1993 until June, 1997.

Raymond Patrick Becker provided daily practical assistance in implementing the program and in seeking for application opportunities from September, 1993 till September, 1995. Thomas and Joan Ritzenthaler also helped us collaborating with Peace Corps volunteers working in the neighboring countries to explore and establish further relations. They have promoted international familiarity with the work of the Association and took active part in preparing further funding proposals as well.

In the following part of the third chapter we will introduce other outstanding program elements of the CBED completed in Hungary analyzing them in the order below :

- Economic Development Program of the Zemplén Enterprise Zone
- Tourism Development Plan of the Zemplén Region
- PR Strategy of the Zemplén Region

We mention Hungarian parts of the project as methodological basis.

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VIII. THE COURSE OF INSTITUALIZATION

The possibility of making the Association a model interregional economic cooperation available for other organizations concerned in similar collaborating relationships was already dealt with at the time it was established. We also wanted to share the acquired experiences with interested organisations and local governments. The institualization project provides this opporunity in formal terms.

• Preparing documentation of the project in Hungarian, Slovakian,
  Ukrainian and English languages ( project Book ).

• Sending this publication to entrepreneurial centers, local governments working in border areas of Hungary,
  Ukraine, Poland, Slovakia, Romania and Yugoslavia.

• Providing information about the Association and its programs and a possibility for local consultation with representatives of inquiring organisations, with colleagues working in CBED project,
  with members of the prsidency, chief administartaors and professional experts on “ opendays”.

• Organising professional lectures, meetings with the purpose of introducing the CBED project, providing an opportunity for consultation with the participation of inquiring and interested professional and civil organizations representatives and delegates form local governmants.

• Preparing video material on the CBED project in Hungaria, and in English distributing it among organizations concerned.

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