HUNGARIAN FOUNDATION FOR SELF-RELIANCE AUTONÓMIA ALAPÍTVÁNY
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Poverty and Ethnicity
 
 

The Situation in Hungary

The closure of large State industries, in line with the transition to a market economy, resulted in a rapid increase in unemployment and economic hardship in many areas. In particular ethnic minority communities, who traditionally worked as semi-skilled or unskilled labour, suffered. As a result Autonómia's Poverty and Ethnicity programme is largely targeted to Roma or gypsy groups:

  • Roma are the most significant ethnic minority group in Hungary making up 5% of the total population, about 1/2 million people;
  • Many Roma experience severe social and economic hardship, together with prejudice and discrimination. Unemployment is as high as 90% in some Roma communities, whilst nationally unemployment is under 10%;
  • Roma have no homeland as a source of support.

The Poverty and Ethnicity Programme

The Poverty and Ethnicity programme provides support to Roma and other groups, as well as to mixed groups which actively promote solidarity between minority and majority communities. The programme has developed over the years, and many lessons have been learnt during that time. At the same time Autonómia has gained considerable credibility amongst Roma even though it is not a Roma-led organisation itself.

Where?

Support is targeted geographically to areas of high unemployment and poverty, where there are large concentrations of Roma, largely in the North East and South West of Hungary. This effectively means to rural areas and villages. In addition villages often suffered a loss of cultural and social identity under communism and require support to re-establish their identity.

About 80% of Autonómia's support is to rural areas, 20% to urban areas.

What sort of projects?

Most of the applications for funding are from rural agricultural projects, challenging popular perceptions that Roma do not want to settle and cultivate land. The projects supported are run by people who have the motivation and skills to start to take action for themselves and their communities. Autonómia's intention is to support projects which will last, and will enrich and enliven local communities in the process. The projects supported are either:

  • survival projects - growing food for their families and the local community
  • development projects - income generating projects which create employment and have long term prospects
The types of projects vary enormously and are characterised by their diversity: from pig breeding to growing raspberries, making adobe and concrete columns, and basket weaving.

What does Autonómia provide?

Autonómia provides funding in the form of grants and interest free loans, together with support on developing the project and ensuring it is viable. Survival projects tend to receive a grant, as they cannot be guaranteed to generate income in the future, and they are very dependent on the weather. Development projects tend to receive a mix of grant and loan, with mutually agreed repayment terms for the loan based on the projected income of the project. Autonómia has adopted and developed two methods by which it has increased the success rate of projects over the years as well as the rate of loan repayments:

  1. Firstly, the use of monitors in assessing projects and talking through the detail with projects leaders has helped to ensure that projects are not just dreams but have a firm basis in reality and that the people involved have the relevant skills.
  2. Secondly the projects have to make an up front contribution themselves to ensure their full commitment, furthermore all the people in the village are informed publicly about the project to avoid potential conflict and encourage co-operation.


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