Modernizing Local Governance in a Transitional Nation: Evaluating the Hungarian Experience

Compared to the national level, the local government level in Hungary is more responsive to reform efforts. The Hungarian experience indicates that decentralization is a key programme of the transition process for the emerging democracies of eastern Europe. These experiences also show that the decentralization process will be efficient and effective only if three key requirements are met. These are: (1) a stable and democratic constitutional, legal background; (2) an efficient municipal finance system; and (3) a well-functioning local administration.