Country: Hungary
Project Title: Support to the development of a strategy for territorial organization and sustainable land
management in areas with high natural disaster risk
Project Symbol: TCP/HUN/3002 (A)
Starting Date: July 2004
Completion Date: June 2006
Government counterpart: Ministry of Agriculture and Rural Development

I. BACKGROUND AND JUSTIFICATION

The Tisza is the second largest river in Hungary. During the 19th century the Tisza used to regularly inundate up to 4 million hectares, approximately 40 percent of the country’s total land area.
Ever since, and despite all mitigation efforts, there are periodically heavy floods with immense financial cost and social hardships.
River regulations which on the one hand brought some relief, led however to a dramatic loss of natural flood plain habitats and had severe consequences for the hydrology of the entire Hungarian Great Plain.
Historically people living along the Tisza were resourceful and had a profound knowledge of their environment. The high diversity of the landscape, the various options for land use provided rich opportunities for people to rely on multi-functional farming. On the one hand they took advantage of the pools of water retained in natural depressions; on the other hand during floods they opened up sluices (called “fok”) in the high banks so that water could inundate large areas in a controlled manner.
The expansion of the population during the 18th century increased the demand for grain. To meet the growing need, extensive herding was gradually replaced by field crops and forests were converted to arable land. Moreover, it became necessary to reduce the areas affected by floods.
The main river regulation works at the Tisza valley took place between 1846 and 1905. The concept was to dig short cuts of river bends and to build dykes along the new riverbed so that the shortened river could take the floodwater in a much shorter time. During the ‘grain boom’, river transport offered the cheapest way for getting cereals to the markets. River barges were towed upstream by oxen. To make towing possible, much of the valuable forest along the riverbed was cut, and the foks were filled in.
Following political change, the Tisza region was targeted by several government initiatives. Most of the interventions however were emergency measures focusing exclusively on water management in terms of hydraulic engineering. Fundamental changes in land tenure regimes which led to a series of externalities (such as land fragmentation) were not considered. Additionally the approaches responded to sector interests from different line ministries, hence these were not comprehensive, very much top-down and focused little on the improvement of people’s livelihoods.
During 1999 and within the preparation for SAPARD (EU-Special Accession Programme for Agriculture and Rural Development) the Department for Rural Development in the Ministry of Agriculture and Rural Development (MoARD) commissioned a series of micro-region development plans which initiated a much needed process of stakeholder participation.
Nevertheless several shortcomings such as time constraints, limited capacity and lack of adequate skills led to mixed results. The main problems encountered include: the plans were too oriented towards SAPARD measures; low coherence and correlation among different activities; no priority setting; lack of long-term vision and managerial and organizational shortcomings. Additionally, some plans reflect the results of ‘desk-exercises’ carried out by external consultants and hence did not contribute to a corporate, participatory process.
It was not until 2000 when toxic spills put the Tisza and its region at the centre of national and international interest. Several subsequent studies pointed on the urgency to address the multiple problems (flood, water logging, drought, inadequate land use) comprehensively integrating elements of rural development and spatial planning.

In 2001, the MoARD initiated a more holistic regional planning process with the intention of covering the entire Tisza floodplain including nine counties, 443 settlements and a population of 1 800 000 inhabitants. Although this focus was clearly on agriculture, the overall goal was to establish an economically viable and ecologically sound land use system in accordance with the National Agri­Environmental Program.
Another state run project, the so-called Vásárhelyi Plan (VTT) received the green light from the Government in 2002 and an amount of approx. US$250 million over a period of five years has been allocated. The initial proposal aimed at orthodox flood prevention and water management schemes relying mainly on hydraulic measures. However pressure from stakeholders and interest groups has led to a conceptual rethinking, including economic and social development aspects for the region.
The project reflects the objectives of the National Development Plan (NDP). The NDP aims to address the externalities of land reform such as land fragmentation (in terms of dispersive, small, inadequately-shaped parcels) and the deficient agricultural infrastructure (rural roads, irrigation network etc.) which is currently disconnected from the new ownership structure. Overall, the main purpose of the NDP is to provide an enabling environment for sustainable farming systems.
The project is also closely related to:
- The National Rural Development Plan (NRDP) under the EU-EAGGF Guarantee Section Measures, which is currently under preparation;
- EU initiatives such as the Water Framework Directive, Natura 2000 and the Habitat and Bird Directive;
- National micro-regional development strategies and EU-LEADER type pilot programmes;
- Bilateral projects such as the land consolidation and integrated rural development programme financed by Dutch-MATRA;
- Private sector and non-governmental initiatives such as the WWF “One Europe More Nature” programme which includes pilot areas in the Tisza flood plain.

In the given context, the project aims to address the following issues and areas of concern:
Improved land use and land management
During land reform, land and real estate was returned to private ownership either through restitution or compensation. As the reform process was a political necessity, technical and managerial aspects were largely neglected. As a consequence, land fragmentation emerged creating very small agricultural holdings and properties. At present in Hungary the size of farm holdings averages 3.5 hectares and only about 50 000 farmers (out of a total of 960 000) have sufficient acreage for competitive crop production.
Additionally fragmented parcels and properties, scattered over different political, juridical and administrative boundaries obstruct spatial/territorial planning. Decision-makers from both the public and private sector are faced with limited possibilities and alternatives to allocate resources. This hampers the implementation of rural regional development policies, strategies, programmes and projects aimed at improving rural livelihoods.
Over the centuries, most of the Tisza floodplain was converted into farmland. However, only one third of farmland possesses good soil quality for crop production. Despite this fact, during socialism, large grassland areas and orchards were converted into arable land and the number of livestock decreased drastically. It is important to mention in this context that with the integration of Hungary in the EU, farmers will face higher competition and higher quality requirements while simultaneously receiving only a fraction of direct subsidies under the EU-Common Agriculture Policy (CAP) stipulations. This will influence farmers’ possibilities to compete with conventional agricultural products and thus alternative land use schemes including environmental friendly/organic farming, reforestation and set aside schemes for nature conservation are needed to strengthen and sustain livelihoods. At present, intensive agriculture is only practiced on about three to five percent of all arable land and the share of abandoned land has increased dramatically.
Improved sector coordination for better integration of land and water management
In the past, flood prevention and water management in the Tisza watershed relied heavily on hydraulic measures in the floodplain such as increasing the water draining capacity, heightening dykes and the construction of water storage reservoirs.
However, pressure from experts, stakeholders and interest groups has provoked a turn around. It is now recognized that flood prevention and disaster risk management has to be people-centered and hence should include social, economic and ecological aspects. The flood problem does not only relate to the specific watershed of the Tisza but has far reaching implications for the wider area of the Great Plain in Hungary and adjacent countries both up-stream and down-stream. Consequently, flood prevention converts from a single standing issue into a complex, pluri-sector endeavour, which requires inter-institutional and multidisciplinary efforts.
The main aim of this approach is the step–wise, ecological rehabilitation of the flood plain, reactivation of its historic role as natural water storage and reinstatement of the original landscape structure. The revitalization of the natural water drainage system in the flood plain would eventually lead to a better and ecologically sound water distribution and avoid flood-related damages.
Institutional Development and Organizational Management (IDOM) for sustainable natural resource management
Past river regulation works have drastically reduced the area of floodplain habitats from around 40 percent to approximately two percent. Nevertheless, most valuable natural habitats in terms of landscape and biodiversity (flora and fauna) still exist in sufficient quality and quantity within the active floodplain. Many of the species are either rare or already extinct in other European countries. As outlined before there are several threats however which could damage the ecological balance. The current types of (unsustainable) land use and other human activities in the active floodplain contribute to the loss of habitats and to water pollution. River regulations have led to profound changes in the hydrology of the Great Plain (such as an enormous decline in groundwater levels). Without appropriate counter-measures this will have long term impacts on the watershed and the wider catchment area.
Consequently the floodplain should be preserved and restored both within the river boundaries and beyond the dykes. Especially the latter areas possess a high regeneration potential and many of them are tolerating and/or even require certain types of human intervention. Traditional and adapted land use methods contributed to the formation of the current environment in the first place. Thus one entry point to achieve the sustainable management of natural resources is the revival and renewal of validated land use practices and methods preserving both natural and cultural heritage which combined defines the value and attractiveness of the area. By utilizing the right tools and instruments the ecological/cultural potential might provide alternative economic and social opportunities for the local population. Some good practices where the main economic activity shifted from agriculture to the service sector especially related to rural tourism, fishing, hunting and nature observation are already emerging
It is widely believed that the outlined diversification of the rural economy could provide livelihood alternatives but would need substantial resource mobilization and access to services, which should then be made available from projects and programmes such as the outlined ‘Vásárhelyi Water Management Plan’.
The Government recognizes that this period of transition requires the development of new techniques, methods and skills to implement cross-sector approaches and include issues regarding spatial planning, rural development and environmental management into the current scheme and effectively link them to flood protection. However, the national services do not dispose of the professional capacity to promote the practical utilization of different models and approaches for alternative water management schemes that would enable them to address the problem.
To this effect, the Hungarian Ministry of Agriculture and Rural Development (MoARD) requested FAO technical assistance to help starting this process. The Government considers the request as urgent in order to prevent further harm in the Hungarian river basins, which might otherwise lead to serious and irreversible economic, environmental and social consequences. Should this problem not be addressed in a timely manner, flood-related economic damages would persist, livelihoods would deteriorate further and emigration, hence abandonment of the area would be the logical consequence.
Sustainable land use and integrated water management in alliance with the outlined social and economic measures could become a reliable source of income for the rural population and would certainly contribute to the smooth integration of Hungary in the agricultural, social and environmental policy framework of the EU.
Additionally the project results will be used as a model for local and national decision and policy makers in the development of sustainable land management practices.

The project will also serve as a model to be replicated by adjacent countries. The experiences and lessons learned from the current project would be utilized for a cross-border, regional disaster risk management program.

II. OBJECTIVES OF THE ASSISTANCE

The overall objective of the project is to contribute to sustainable agriculture and rural development in areas with high disaster risks and improved livelihoods for the rural population.
The immediate objectives are:
ˇ to design and develop an appropriate, socially acceptable and economically sound land management strategy for environmentally sensitive areas suffering from flooding and other hazards;
ˇ to improve the capacity of relevant stakeholders with a strong focus on the rural population including the gender aspect, for diversified use and sustainable management of natural resources.

To achieve these objectives the project will integrate measures regarding institutional development, organizational management, participatory territorial organization, improved land use/land management, nature conservation, diversification of alternative income and employment opportunities and village renewal in order to be as comprehensive as possible and therefore secure active participation of a wide range of stakeholders, especially on the local/regional level.

III. PROJECT OUTPUTS

ˇ A strategy for sustainable land management in areas of high natural disaster risk;
ˇ An area development scheme designed and tested in a selected pilot site;
ˇ Some 100 land owners, farmers and rural entrepreneurs trained in participatory territorial management with a clear focus on alternative income and employment opportunities emerging from the new land management scheme;
ˇ Some 40 representatives from different institutions, agencies and organizations trained in institutional development-organizational management mechanisms, methods and techniques;
ˇ Appropriate information, awareness and training material prepared;
ˇ Proposals to improve existing (flood) disaster risk mitigation and management strategies and organizational capacities in place at community and district levels to monitor, prepare for and manage the risk of flooding in the Tisza river basin,
ˇ A set of guidelines and recommendations, including monitoring indicators, for policy makers on improved and integrative land management prepared.

IV. WORK PLAN

Project implementation arrangements:
The proposed duration of the project is 24 months. The project implementation requires the input of several national consultants spread over the entire duration of the project. The exact timing will be defined in the inception phase of the project and further elaborated in a detailed LogFrame (Logical Framework) prepared at the beginning of the project.

The implementation of the activities will be supported by experts from the MoARD, international experts, national consultants and technical backstopping missions of FAO officers.

The consultants and experts will provide on the one hand specialized technical assistance and guidance to both stakeholders and contractors. They will monitor and evaluate the performance of the contractors and assist the Government in transforming the project outputs into sound and conclusive policy recommendations and guidelines. These recommendations and guidelines for sustainable land management formulated during the project will allow better use of existing government funds and further improvements of integrated land use and rural development schemes in connection with the accession to the EU.

Participation of stakeholders will be assured during the whole project period by a continuous iterative process. The project will extend FAO experience and technical knowledge in comprehensive, people-centred land and water management, with the involvement of national specialists and officials, international experts, local and regional representatives and the private sector.

All project related information will be collected in the form of a CD Rom.

Project components:
Strategy for sustainable land management in areas with high natural disaster risk

The document will be based on a thorough assessment of the current political, legal, institutional, socio-economical and environmental situation. Beside technical components such as flood protection, environment and nature conservation, agriculture and land use it will contain a proposal for institutional development and organizational management.

Area development scheme - Pilot project
A small pilot area will be established where the use of concrete practices and techniques for the development of sustainable land management schemes will be demonstrated. A participatory area development plan will be elaborated containing a detailed land management and nature conservation plan. This measure will be supported by small demonstrative infrastructure. The pilot experience should serve as a catalyst to start a systematic process for alternative, close to nature land use systems.

Training and capacity building
Three major groups will be targeted: a) Relevant staff members from the MoARD, the Ministry of Environment, regional and local authorities b) private sector representatives, small land owners, farmers and rural entrepreneurs; c) a small core of facilitators/educators and trainers to ensure continuity of the training, through integration of the training modules into on-going training programmes. This group could be composed of representatives from several organizations including the research institutes, educational organizations, local associations, NGOs and CSOs.
The training will be built around two main axes Disaster Relief Management and Social and Economic Opportunities. A large number of people will be trained (at least 100 local land owners/farmers/entrepreneurs and 40 other staff involved in land and water management). The pilot site will give the opportunity to stakeholders to discuss, implement and monitor new models of improved land use and land management. Training materials, guidelines and recommendations will be prepared.

Experiences gained and lessons learned through the implementation of the project shall be shared by conferences and printed materials.

Project activities:
Months 1 to 3:
ˇ Appointment of the staff of the Ministry of Agriculture and Rural Development (MoARD) and other relevant institutions
ˇ Project launching workshop in Budapest
ˇ Selection/recruitment of national and international consultants and experts
ˇ Installation of project offices both in Budapest and in the project area
ˇ Purchase of equipment and material
ˇ Preparation of a detailed activity, work and assignment plan
ˇ Identification and selection of the pilot project area
ˇ Identification of relevant partners and stakeholders
Months 4 to 7
ˇ Preparation of tender documents and contracts for different project elements;
ˇ Training and capacity building for local actors (landowners, farmers and rural entrepreneurs);
ˇ Training for representatives from different institutions, agencies and organizations;
ˇ Organization of start-up workshop in the pilot area. Main activities will include: discussion of the area development scheme and draft activity plan; identification of key stakeholders; priority setting; available resources and capacities; training needs; commitments; and selection of a local project committee;
ˇ Starting area development plan formulation at the pilot site;
ˇ Start-up of analysis phase of the strategy development by collecting relevant information from institutions, agencies and organizations; review water management, environmental and agricultural policy implications on land management and alternative land use schemes.
Months 8 to 9
ˇ Finalization of analysis phase of the strategy development;
ˇ Two-day workshop in the project area to discuss findings and preliminary results;
ˇ Second phase of strategy development (potentials and constraints, goal setting, scenario setting);
ˇ Finalization of area development plan;
ˇ Continuation of training courses.
Months 10 to 12
ˇ Two-day workshop in the project area: presentation of draft area development plan and the preliminary findings of the overall strategy; prepare first recommendations for an improved land use/land management plan; assessment of necessary arrangements to implement relevant measures;
ˇ Field visit to other regions with similar problems and compare environmental and land use policies, conceptual environmental approaches, methods and techniques;
ˇ Implementation of improved land use/land management scheme in the pilot area including zoning (demarcation and delineation), land consolidation, land use changes (Conversion of arable land into pasture/grasslands, reforestation, protected areas), installation of demonstrative infrastructure and preparing small activities;
ˇ Continuation of training courses.
Months 13 to 15
ˇ Finalization of the second phase of the strategy development;
ˇ Mid-term workshop in the project area: presentation of findings and preliminary results of the second strategy phase; presentation and assessment of preliminary results from the pilot project; cross-fertilization and harmonization;
ˇ Design of strategic action plan/project portfolio;
ˇ Implementation of project activities in the pilot area continued;
ˇ Training component continued;
ˇ Field trip to regions/countries with similar problems to compare environmental and land use policies, conceptual environmental approaches, methods and techniques.
Months 16 to 18
ˇ Third phase of strategy development; preparation of action plan/project portfolio;
ˇ Continuing implementation of project activities in the pilot area;
ˇ Mid-term assessment and evaluation workshop on the training component;
ˇ Start preparation of recommendations/guidelines;
ˇ Mid-term assessment and evaluation process for the improved land management scheme in the pilot area.
Months 19 to 21
ˇ Finalization of third phase of the strategy development;
ˇ Two-day workshop; presentation of findings and preliminary results of the third strategy phase;
ˇ Continuation of training;
ˇ Continuation of implementation of activities in the pilot area;
Months 22 to 23
ˇ Analysis of pilot activities in the pilot project; interim progress evaluation;
ˇ Follow-up to the pilot project discussed and defined;
ˇ Recommendations/guidelines finalized and discussed with government officials;
ˇ Finalization of the strategy of improved land management; integration of lessons learnt and best practices from the pilot project; dissemination of the draft document among stakeholders;
ˇ Finalization of the training component; start evaluation process;
ˇ Round table meeting with line ministries, local stakeholders, donors and development agencies.
Month 24
ˇ Finalization of strategy document review process. Translation into Hungarian.
ˇ Final workshop/regional conference with the participation of representatives from adjacent countries;
ˇ Finalization of the guidelines for participatory and integrated land and water management for assisting other micro-regions in the Tisza flood plain. Preparation of CD Rom;
ˇ Preparation of terminal statement.

V. CAPACITY BUILDING

Among the objectives of the project, the training component is addressed to increase the capacity of landowners, farmers and other stakeholders in areas with high natural disaster risk to plan and implement improved land use and land management schemes adapted to the social, economic and ecological environment. Additionally, it should increase the responsiveness and capacity of policy makers and personnel from public administration (Ministries of Agriculture and Environment) and other associations/NGOs in defining, supporting and implementing sustainable land use practices.

The main objectives of the capacity building component are as follows:
ˇ Increase capacity on policy formulation, cross-sector coordination, inter-institutional cooperation, organizational management and hence both vertical and horizontal integration among stakeholders of different levels and interests.
ˇ Strengthen knowledge management, information exchange and communication at all levels.
ˇ Increase knowledge and capacity of local stakeholders in areas such as project planning and implementation, organic and extensive farming, water resource management, forestry, fisheries, territorial organization, land consolidation and the identification and pursuit of opportunities to gain additional income from non-farm activities.

Through government continuation of the experience and activities demonstrated by the project, a large number of people are expected to have been trained following the implementation of new concepts, methods and technologies.

By employing international expertise and organizing study tours, Hungarian professionals as well as local participants will gain out of country experience, which is essential in widening their capacity to find solutions.

VI. INPUTS TO BE PROVIDED BY FAO

1. Personnel
International consultants
ˇ One expert in area/micro-regional development (six weeks in four missions)
ˇ One expert in land consolidation (four weeks in four missions);
ˇ One expert in organic farming (two weeks in two missions).
National Consultants
ˇ One expert in institution building and community development /lead national consultant (11 months, on a WAE basis) ;
ˇ One expert in natural resource management, nature protection and environmental education (four months) ;
ˇ One expert in land consolidation/national land fund (two months);
ˇ One expert in regional development and spatial planning (one month);
ˇ One expert in relevant EU directives, initiatives and programmes (one month);
ˇ One expert in hydraulic engineering/water management (two months).

FAO Supervisory Technical Service (STS)
ˇ Land Tenure and Rural Development Officer, SEUM, (six weeks).

FAO Advisory Technical Service (ATS)
ˇ Rural Institutions and Participation Officer, SDAR, (four weeks in three missions);
ˇ Farming System Officer, SEUM, (two weeks in two missions);
ˇ Land and Water Management Officer, AGLW, (five days, desk work at FAO headquarters.

2. Duty Travel
To cover in-country travels of FAO and project staff for the implementation of the project activities.

3. Contracts
Four contracts or LOAs will be prepared with local organizations or NGOs for the specialized technical services.
Contract 1: Case study on existing (flood-) risk mitigation and management strategies ;
Contract 2: Strategy for sustainable land management in areas with high natural disaster risk;
Contract 3: Design and implement the area development plan in the pilot site;
Contract 4: Elaborate training materials and implement training courses

4. Training
1) Internal training/workshops:
ˇ Project launching workshop (two days): at the project inception for the definition of the project orientations, with the involvement of some 30 participants;
ˇ Final workshop (two days) at the end of the project for discussing the project results, recommendations and further follow-up steps, with the involvement of some 30 participants.
ˇ One seminar with key stakeholders to analyse the lessons learnt from the case studies in the project area and to compare their results and hypotheses with the international experiences, lessons learned and best practice on the topic will be organized .
ˇ Ten two-day local seminars during the different phases of the project cycle.
A series of training and capacity building courses for different target groups are foreseen under a Letters of Agreement with local organizations.

2) External training:
Study tour to Germany for two participants from the MoARD and the Water Management Board for two weeks.

VII. REPORTING

All project consultants and contractors as well as the FAO backstopping officers will prepare missions reports, with conclusions and recommendations, after each mission.
The National Project Coordinator, in collaboration with the project consultants, will submit to FAO quarterly progress reports in English on project activities.
The lead national consultant will prepare, in consultation with the national coordinator, a draft Terminal Statement, in accordance with TCP procedures, for finalization by SDA/SEUM and formal submission to the Government of Hungary according to established procedures. The Terminal Statement will be based on the major findings and recommendations of the project staff and consultants.

VIII. GOVERNMENT CONTRIBUTION AND SUPPORTING ARRANGEMENTS

The Ministry of Agriculture and Rural Development (MoARD) will be responsible for the execution of the project and for the mobilization of all counterpart inputs, including the coordination with other concerned national institutions, agencies or centres. It will, in particular:
ˇ Nominate and cover the emoluments of a coordination team and a National Project Coordinator to support the project coordination and monitoring for the whole project duration.
ˇ Nominate and assign to the project all project counterpart personnel to participate in both the implementation of the project activities and the training. It will also facilitate the selection of other stakeholders to be involved in the above.
ˇ Provide hosting and office facilities, telecommunication facilities, local transport, administrative and translation facilities for the project activities. It will make available to the project experts all existing information relevant to the project activities.
ˇ Provide an appropriate pilot area and contribute to the acquisition of additionally required materials and supplies to be utilized in the pilot area above the level of the project inputs.
ˇ Make all necessary arrangements for clearance of consultants, customs clearance of equipment, and tax-free local purchase of project equipment and supplies.
ˇ Assist in organizing and implementing the workshops and will bear all expenses related to the start-up and final events.
ˇ Provide training venues and facilities for all training sessions.

After the project, the Ministry of Agriculture and Rural Development, in close coordination with other line Ministries, will continue over three years the implementation of the recommended measures and activities on a larger scale in order to introduce improved land use and land management schemes in areas with high natural disaster risks.