Local governments with well-integrated assets management will be able to improve their services and their financial position. In order to link these four areas, a deeper understanding of each element of urban development is required. This work began with a detailed analysis of rules, traditions and practices. Then local ways of operation were compared with available models and internationally accepted methods of management and financing. An investigation was initiated to determine the impact of sudden change on municipalities in different situations: how they reacted to such challenges and what methods have been developed. Six municipalities were examined—Balatonboglár, Biatorbágy, Eger, Kecskemét, Tatabánya and Veresegyház— of different sizes, positions and locations, and the results of the investigation are presented throughout this work. There are many lessons that can be drawn for both levels of government: at the national level concerning changes in policymaking and in the behavior of central departments, and at the local level concerning new procedures, management practices and financing schemes.
The research and development work of this study was performed under the assumption of an emerging and solid market environment. Local governments should identify roles and functions that are separated clearly from the private sector while simultaneously pursuing cooperation with private actors. Municipalities have to find their way under these circumstances; when private ownership is dominant in the economy, there are no major additional financial sources from privatization or from the transfer of state-owned property. Cooperation in the market system requires transparency and greater involvement of the general public in local decisions. Thus, public and private partnerships have to be based on institutions that meet the needs of both parties. Under these new circumstances, public sector operations and management should be modified as well.
Thus, local government assets are used in a broader sense here, including not only municipal property but also other local capacities that provide returns from local activities. Urban planning, regulations and administrative powers might have an impact on local revenue raising and thus should be regarded as assets. Similarly municipal service delivery rights can be utilized in such a way that private partnership leads to improved infrastructure and better services. Finally, local revenue policy measures are also assets. Urban development should be based on the harmonized use of these four types of assets.

Urban development as a complex activity requires cooperation among various professions: property and real estate managers, urban planners and regulators, local government and company finance experts. These experts do not communicate easily, and local government administrative structures often do not support such cooperation.

Technical University Of Budapest Faculty Of Architecture Department Of Urban Design
Hungary
http://www.bme.hu
Gábor Locsmándi Phd (reader), tel. +36 1 463 1319

01/01/2000

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Mr Gábor Locsmándi, Phd.; Mr Gábor Péteri, Mr Béla Varga-Ötvös

research

Urban Policy