Annex 2.2
Detailed analysis of the current situation ON THE Slovak side of the border
1. General information
Slovak-Polish borderland occupies northern part of territory of the Slovak Republic. In the west the region borders with the Czech Republic and in the east with Ukraine. The length of border between the Slovak Republic and Poland is 547.1 km which represents 32.7 % of total length of Slovak borders. Through this territory two important multimodal corridors of European relevance pass through this territory. The corridor of the basin of Váh leading through the valley of Váh from Bratislava to Poland in direction of Kraków and Warsaw and in direction of Prešov to Uzgorod and Ukraine. The other important corridor links Baltic states through Prešov and Košice and continues to Balkan.
From administration point of view the border region is eligible at the level of NUTS III in the territory of two krajs: kraj of Žilina and kraj of Prešov. In the framework of this delimitation, in the kraj of Žilina, there are 6 border okreses delimited at the level of NUTS IV which havedirect contact with Polish border (Čadca, Kysucké Nové Mesto, Žilina, Námestovo, Tvrdošín, Liptovský Mikuláš) a in the kraj of Prešov there are 9 border okreses (Poprad, Kežmarok, Stará Ľubovňa, Bardejov, Svidník, Stropkov, Medzilaborce, Humenné, Snina).
Table 1 Determination of border region at the level of NUTS III
Surface in km2 / Number of krajs NUTS III / Number of okreses NUTS IV / Number of municipalities / Of which townsSlovak Republic / 49 034 / 8 / 79 / 2878 / 136
Border region / 15 781 / 2 / 24 / 980 / 40
% of the Slovak Republic / 32,2 / 0,25 / 30,4 / 34,1 / 29,4
Source: Statistical Office of the Slovak Republic, 1999
Natural conditions of the border region are characterised by large mountain massifs that form natural barrier on the two sides of the border. In the territory two geomorphologic provinces meet: West and East Carpathians. The western part of the region and of the kraj of Žilina consists of Slovak-Moravian Carpathian Mountains: Javorníky and Považské podolie. These continuously change to mountain chains and hollows of West and Central Beskydes in the region of Kysuce and Orava. The hollows transformed mostly by action of rivers such as Orava, Kysuca, Rajčianka and Váh.
The central part of borderland between krajs of Žilina and Prešov is formed by mountains of Tatra, hollow Podtatranská kotlina and in the southern okreses by mountain chain of Low Tatra. The river Váh flows through central part of the hollow in direction east - west and the river Poprad in direction southwest - northeast.
The eastern part of border region consists of mountain chains Central Beskydes in the west, East Beskydes and area of Podhole-Magura in the middle and Low Beskydes and Poloniny in the east. The western part is drained by affluents of rivers Dunajec and Poprad to the North Sea while the eastern part is drained by affluents of Torysa, Topľa, Ondava and Laborec to the Black Sea.
2. Current socio – economic situation
2.1 General characteristics
Economic situation in the border region is characterised by the lowest economic performance in the Slovak Republic and large share of social income the growth of which shows mostly by a decrease of purchase power of its population.
The development of gross domestic product in the border region did not show significant change in the years 1996 and1997. In the year 1997 the 19% share of whole-national GDP was caused by a decrease of its formation in the kraj of Žilina. Gross domestic product per inhabitant showed more significant change when in the year 1996 in the kraj of Žilina it represented 84% of whole-national GDP per inhabitant and in the year 1997 dropped to 78% and in the kraj ofPrešov it decreased from 63% to 61%. In the year 1997 GDP in the Slovak Republic represented 46% of the average inEU, in the kraj of Žilina it was 36% and in the kraj ofPrešov only 29%.
The economic performance of the region may be characterised by industrial structure of production and provision of services. In the year 1998 the border region participated in performance of Slovak economy with sale revenues from agriculture by 15.5%, in industrial production by 17.2%, in construction production by 24.3%, in retail trade by 18% and in sales from other market services by 12% whereby the kraj of Žilina dominates all indicators except for agriculture.
Table 2 A share of the border region in production of market goods and services in the year
1998 (in percentage)
Agriculture / Industry / Construction / Freight transport / Trade / ServicesSlovak Republic / 100 / 100 / 100 / 100 / 100 / 100
Border region / 15,5 / 17,2 / 24,3 / 5,8 / 17,7 / 12,0
In it
Kraj of Prešov
Kraj of Žilina / 8,4
7,1 / 7,5
9,7 / 9,3
15,0 / 2,9
2,9 / 7,4
10,3 / 4,8
7,2
Source: Selected Data onRegions in the Slovak Republic. Statistical Office of Slovak Republic, 1999
The allocation of investments in the border region has no significant influence on the improvement of its economic potential. In the year 1998, 10.9% of total investment in the Slovak Republic was allocated to the border region, in it only 3.4% in the kraj of Prešov, which represents a decrease of 1.1% against the year 1996.
In the border region there are 347 254 employed persons which accounts for 24.1 % of total number of active Slovak population. 34.6% of employed persons works in industry, 9.3% in agriculture and 6.3% in construction.
2.2 Economic sectors
Agriculture
Agricultural production is significantly affected by the transformation of ownership relations and, due to less favourable natural conditions, the economic situation of this sector in the border region is getting worse. Agricultural enterprises with private sector execute their activities in total surface of 636 415 ha of agricultural land which forms 40.3 % of total surface of the region. The share of arable land in total surface of agricultural land is 36.7%, in it 28.1% in the kraj ofŽilina and 42.2% in the kraj ofPrešov (share of ploughed land in Slovakia is 60.1 %). Revenues from sale of agricultural products per inhabitant in the border region amounted to 3.6 thousand SKK ( in the Slovak Republic – 6.4 thousand. SKK/inhabit.). The efficiency of utilisation of agricultural land can be characterised by achieved sale revenues per hectare of agricultural land. In the year 1997, sale revenues of 9.5 thousand SKK/ha were achieved in the kraj of Žilina and sale revenues of 7.8 thousand SKK/ha in the kraj of Prešov (the average in the Slovak Republic was 14.5 thousand SKK/ha).
Forestry
Total surface of forest land in the region is 814 274 ha (40.7% of surface of Slovakia), in it 373 890 ha situated in the kraj of Žilina and 440 384 ha in the kraj of Prešov. Forest percentage in the border region achieves 51.6 % which is a little more than average forest percentage of the whole Slovakia (40.8 %).
In the year 1998 timber production in the border region achieved a volume of 1 061 055 m3 b.k., in it 483 892 m3 b.k. in the kraj of Žilina (11.7% of national production) and577 163 m3 b.k. in the kraj of Prešov (13.9% of national production). Considering the species structure of forests, the timber production in the kraj of Žilina was concentrated to coniferous forests (91.6 % out of total extraction) and in the kraj ofPrešov the share of coniferous wood represented 51.5%. The production of deciduous timber was 40 584 m3 b.k. which represented 8.4 % of total timber production. Considering total surface of forest cover the timber production is relatively small. This is a result of relatively smaller representation of economic forests against forests of special assignation and protected forests.
Industry
The industry has dominant position in the border region. In the year 1998 industrial production in the kraj of Žilina achieved the amount of 51 309.6 mil. SKK which represents a share of 9.8 % in production of the Slovak Republic. As for the volume of total production the region occupies the fourth place within the Slovak Republic. The most industrialised okreses are Žilina, Ružomberok, Liptovský Mikuláš and Martin. As for the volume of goods production, the production of cellulose, paper and paper products, production and distribution of electricity, gas and vapour, foodstuff production of telecommunication equipment and production of machines and plant are decisive. The okres of Prešov was in the last place in the Slovak Republic in the volume of goods production in the industry per inhabitant (58.9 thousand SKK). From point of view of industrial structure the most important industries are chemical, engineering, clothing, textile and foodstuff industries.. Some industries developed thanks to sufficient stock of local raw materials (e.g. foodstuff industry and manufacture of building materials), others as a consequence of sufficient labour force (e.g. engineering, clothing and textile industries).
Construction
The building production in the border region participates in building production of the Slovak Republic by 21.6 %, with considerable differences between krajs of Košice and Prešov. In the year 1998 the kraj of Žilina was on the second place in building production per inhabitant within the Slovak Republic (16.7 thousand SKK/inhabit.) while the kraj of Prešov ended on the sixth place (9.2 thousand SKK/inhabit.). 7.2% of labour force from the kraj of Žilina was employed in the construction which is concentrated especially in the okres of Žilina; in the kraj of Prešov it was 5.2 % (in the Slovak Republic 5.7%).
Trade and services
Trade and services rank among industries of the border region which show dynamic development, again at different level in the two regions. In the year 1998 economic performance of trade characterised by retail trade was 56.7 thousand SKK/inhabitant in the region ofŽilina and 35.8 thousand SKK/inhabitant in the kraj of Prešov (SR – 70.3 thousand SKK/inhabit.); wholesale trade achieved the turnover of 55.4 thousand SKK/inhabit. in the kraj of Žilina and19.4 thousand SKK/inhabit. in the kraj of Prešov (SR – 86.1 thousand SKK/inhabit.) whilesales of services achieved 11.7 thousand SKK/inhabit. in the kraj of Žilina and 6.9 thousand SKK /inhabit. in the kraj of Prešov (SR – 20.8 thousand SKK/inhabit.). From the point of view of economic performance in retail trade as well as in wholesale trade, the kraj of Prešov is on the last place within the Slovak Republic.
Recreation and tourism
The development of recreation and tourism in the border region is based on the large territory of the mountains of High Tatra, especially their central band completed by settlements situated under Tatra, with towns of Poprad and Kežmarok, recreation centres of Zamagurie with mountain chain named Pieniny, Levoča - Branisko, territory with wooden churches in the okres of Svidník, Domaša, RZÚ in Prešov and Poprad, as well as point targets.
The territory of the kraj of Žilina has long year recreation and tourist tradition. Almost the whole region has prerequisites for all kinds and forms of tourism in a rich structure of groups of activities. There are excellent conditions for alpinism and long-term stay in mountains, and that in all mountain chains of this region. For a stay at water there are several dams – larger ones, e.g. Orava, Liptovská Mara and those medium-sized – dams of Hričov and Žilina – Strečno, the latter being under construction. Spa tourism with health resorts in Lubochňa, Korytnica, Lúčky and thermal swimming pools is very important. The cyclo-tourism (routes Vážska, Kysucká, Oravská, Liptovská, Podtatranská) and horse riding develop too. Targets of awareness tourism are especially towns of Žilina (MPR), Martin, Liptovský Mikuláš, castles (in it national cultural monuments – castle of Orava, Strečno), memorial places (Martin), technical national cultural monument - Vychylovka, monument reserve of folkloric architecture (Podbieľ, Vlkolínec – the latter is entered in the List of world cultural heritage), picturesque rural settlement, especially newly cleared land and caverns (Demänovská, Važecká). Rural tourism has great perspective of development within the whole region. Settlements such as Oščadnica, Terchová, Zázrivá, Oravský Podzámok, Zuberec, Huty, Žiar, Pribylina, Liptovský Ján, Liptovský Hrádok, the two Boca, Východná and others might accomplish the function of a tourist centre in the future.
From the tourist point of view the kraj of Prešov is characterised by marcant division into parts: western part of Spiš and Tatra, middle part of Šariš and eastern part of Zemplín. The western part as a whole, in the middle part towns of Prešov and Bardejov and Domaša situated at the border of Šariš and Zemplín are of greatest international importance. The rest of territory has large recreation reserves but a linkage to larger settlements and transport infrastructure are missing. In the region there are excellent conditions for alpinism in the mountain of High Tatra with intensively used band of well-known and well-equipped centres and health resorts. Recreation centres are mostly based on favourable conditions for winter sports. Targets of awareness tourism are situated especially in the region of Spiš – its middle section and settlements situated under Tatra (Kežmarok, Spišská Sobota, Podolínec, Levoča, world cultural heritage of Spiš). Rural tourism also develops in contact with territories more important from tourist aspect (as completion to services), namely in the band of communities situated under Tatra, above Levoča, next to spa. Settlements such as Liptovská Teplička, Vernár, Ždiar, Spišská Stará Ves, Litmanová, Vrbov, Spišské Podhradie and communities at the dam of Domaša have favourable conditions to become tourist centres, too.
Monitoring the tourism intensity at border crossings between the Slovak Republic and Poland shows active balance of visitors from Poland where in the year 1998 5 608 thousand visitors from Polish side of border came to Slovakia while only 3 110 thousand visitors from Slovakia travelled to Poland.
Small and medium enterprise
In the kraj ofŽilina, within the framework of diversification, stabilisation and renewal of regional economy, the sector of small and medium enterprise develops. It concentrates especially to trading, hospitality, accommodation and tourism, but also to small industrial production and production of goods based on the utilisation of local raw materials and qualified human potential. From the aspect of development of business the kraj of Žilina with number of profit-making organisations per 1 000 inhabitants 1 000 obyvateľov (9.19) occupies the fourth place and with number of traders per 1 000 inhabitants (48.77) the third place within Slovakia. High intensity of trading activities is in the okres of Žilina where 29.4 % of total number of regional traders have their residence. Slow development of business activities is observed in okreses of Turčianske Teplice, Dolný Kubín, Ružomberok and Čadca.
In the kraj of Prešov small and medium-sized enterprises were developed from former syndicates of which they inherited high indebtedness and problems with sales. On the other hand, new-established companies specialise in trading (more than 40% of enterprises are profit-making organisations). Also for these reasons the small and medium enterprise did not succeed to create conditions for the utilisation of available labour force. All undertaking entities (except for approx. 29 industrial companies) may be classified to the size group of small and medium enterprises ( to 500 employees) while 10% of legal entities are classified to the size group above 100 employees. In the retail trade 46% of sales are produced by traders and almost 22% by small-sized enterprises.
2.3 Human resources
Demographic situation
In the year 1998, in the Slovak-Polish border region lived 1 472 076 inhabitants which represents 27.3% of Slovak population. The most populated border okres of this region is the town of Žilina with 156 773 inhabitants and the least populated okres is the town of Medzilaborce with 12 790 inhabitants. Population density in the region achieved 93.3 inh./km2 whereby in the kraj of Žilina it achieved the value of 102 inh./km2 and in the kraj of Prešov only 87 inh./km2 which is deeply bellow the whole-national average (110 inh./km2). In rural settlements there live 49% of inhabitants of the kraj of Žilina and 48% of the kraj of Prešov (the whole-national average is 43%).
Table 3 Selected demographic data
Population in / Natural increase, decrease / Total increase, decreasepre-productive age / productive age / post-productive age
Total / Female / Total / Female / Total / Female / per 1000 inhabitants
Slovak Republic / 1 101 841 / 538 283 / 3332060 / 1600389 / 959 481 / 631 018 / 0,82 / 1,06
Border region
% out of SR / 340 215
30,9 / 166 349
30,9 / 891 632
26,8 / 425 103
26,6 / 240 229
25,0 / 156 353
24,8 / 4,03 / 0,45
In it:
Kraj of Prešov
Kraj of Žilina / 189 446
150 769 / 92 568
73 781 / 467 774
423 858 / 223 819
201284 / 123 655
116 574 / 80 324
76 029 / 5,17
2,76 / 4,59
2,46
Source: Regional comparisons in SR , 1998 (Statistical Office of Slovak Republic, 1999)
Natural increase of population of the border region sinks (in 1997 6 440 inhabitants and in 1998 5 934 inhabitants) , nevertheless it preserves favourable, positive values and participates in total increase of the region. The region is characterised by migration decrease of population of 663 inhabitants. With exception of okreses of Kysucké Nové Mesto, Kežmarok, Medzilaborce and Snina, all border okreses show migration decrease of population. The largest total increase of population is observed in border okreses of Námestovo, Kežmarok, Stará Ľubovňa and Tvrdošín and the largest total decrease of population in okreses of Medzilaborce, Stropkov, Liptovský Mikuláš and Humenné.
Age structure of the border region is very favourable. However, the process of population ageing is apparent in this region too. The share of pre-productive component of population sinks and the share of population in productive and post-productive age grows. 23.1% of population is in pre-productive age. 16.3% of population is in post-productive age while in the year 1991 it was 15.9%. The vitality index achieves a value of 141.6 (the whole-nation average is 114.8).
In the okres of Medzilaborce they have the worst age structure among all border okreses. Vitality index does not exceed the value of 100 which is typical sign of regressive type of population. The other border okreses have vitality index larger than 100. The most progressive type of population lives in okreses of Námestovo and Kežmarok.
Labour market
The border region has relatively high unemployment in comparison with the whole-national average. As of 31 December 1998, in the border region there were 132 596 registered unemployed persons which represents 30.9% of all registered unemployed persons in the Slovak Republic, in it the rate of unemployment in the kraj of Žilina was 14.1% and in the kraj of Prešov 22.1%. Lower rate of unemployment than the whole-national average is only typical for okreses of Liptovský Mikuláš (10.6%) and Žilina (11.6%). In the other okreses the unemployment is higher than the national average. The development of unemployment depends, in addition to demographic development and economic dynamics, with structural development of economy.
Table 4 Development of labour market indicators in the border region
Number of employees / Monthly wage / Rate of unemployment1997 / 1998 / 1997 / 1998 / 1997 / 1998
Slovak Republic / 1 447 998 / 1 435 859 / 9 369 / 10 212 / 12,5 / 15,8
Border region
% of SR / 300 200
20,7 / 298 965
20,8 / 8127
86,7 / 8 674
84,9
In it:
Kraj of Prešov
Kraj of Žilina / 141 677
158 523 / 143 888
155 077 / 7 757
8 497 / 8 338
9 010 / 17,8
10,9 / 22,1
14,1
Source: P. Karasz et.al.: Possibilities of the Development of Slovak Regions, Bratislava 1999
In the border region there are 2 652 job vacancies which represents 23.8% of SR. The largest number of jobs are offered in okreses of Žilina (354) and Liptovský Mikuláš (315) which represent in total 25.2% out of job vacancies in the whole border region.
Educational structure of population living in the Slovak border region is a little worse than the whole-nation average. 6.5% of population has University education (SR 7.7%). 23.8% of population has completed secondary and apprentice education with leaving examination. The share of population with elementary education is 38.6%.
Rural population is characterised by relatively large share of inhabitants with the lowest education which probably reflects the influence of a larger share of the group of older population and its lower education.