Evaluation of socioeconomic situation of Czech cities - different aspects Ing. Milan Damborský, Ph.D. Ing. Taťána Hornychová Centre for Regional and Administrative Sciences Faculty of Economics, University of Economics in Prague [email protected]

MasterCard Czech Development Centers • Independent project of University of Economics in Prague sponsored by MasterCard Company. • Annually evaluates the situation of regions and regional centers of the Czech Republic.

Chosen aspects in the following years • 2012: Socioeconomic development of regions and regional centers 2008 – 2012 • 2011: Social situation in 63 biggest Czech cities • 2010: Quality of life in 50 biggest cities • 2009: Socioeconomic level and investment attractiveness of 24 biggest cities

Metodology • Index for each aspect was created based on statistics. • Index functions based on comparison of figures of a specific region with the best figure (best region):

Ii Pi  , I • The formula in case when lower figure is more favourable:

I Pi  , Ii

Metodology • Next step when constructing MasterCard index is to set the weights of indicators. Following formula represents the usage of standard deviation:

uj 

vj

j

,

• Final part in constructing the index is setting points for different regions. This calculation is done by the following formula: n

Ri   Pij * cij , j 1

2011: Social situation in 63 biggest Czech cities

Used Indicators •

Labor market – registered unemployment rate – long-term unemployment

•

Price of housing – price of flat 1+1 – price of flat 4+1

•

Quality of social and health care – life expectancy – men – life expectancy – women

•

Criminality – number of criminal offences per 1000 inhabitants – number of criminal offences – violent type per 10 000 inhabitants

•

Income of inhabitants – wage level (machinist, apprenticed) – wage level (accountant, graduation exam) – average full pension – average full disability pension

Overall results • Best performing are the cities of: • Jihočeský region • Královéhradecký region • + Prague

• On the contrary the worst situation can be identified in the cities of: • • • • •

Moravskoslezský region, Karlovarský region, Olomoucký region, Jihomoravský region, Ústecký region.

• The situation is a bit better in Czech cities than in Moravian and Silesian cities.

Prague and Středočeský reg. •

Prague – Highest income of inhabitants as well as high criminality. – Decent health care and work conditions.

•

Středočeský region – Mladá Boleslav confirms its role of economic pole (proves to have very good economic statistics). – Statistics indicate weaknesses of town of Příbram.

Jihočeský region •

Together with Královéhradecký region - the best social situation of cities.

•

Jindřichův Hradec – Good safety situation. – Excellent environment on labor market while price of housing remains low.

•

České Budějovice –

4. place among regional centers.

Plzeňský region •

Plzeň – Export oriented economy was hit by world economic decrease.

Královéhradecký region •

Hradec Králové – Second place among regional centers. – Motorway helped the region.

•

Trutnov – Peripheral location causes inconveniences.

Pardubický region •

Pardubice – Very similar figures.

•

Chrudim – Good situation on labor market.

Moravskoslezský region •

Třinec – Winner of Moravskoslezský region. – One of the biggest surprises of the research. – Relatively good situation on labor market, in housing and criminality statistics.

•

Ostrava – High criminality (expected) corresponds to the situation of a big center in urbanized region with high unemployment.

Jihomoravský region •

Blansko – Low criminality. – Proximity of economic center Brno.

•

Brno – Progressive economic center. – High price of housing.

•

Břeclav, Hodonín, Znojmo – Economically falling South. – Low income of inhabitants. – Low life expectancy of men.

Liberecký region •

Liberec vs. Jablonec nad Nisou – Jablonec nad Nisou shows lower criminality. – Jablonec shows a lot lower rate of long-term unemployment and lower rate of unemployment as well. – Price of housing in Jablonec is according to the research lower as well.

Zlínský region •

Zlín – Low criminality – the lowest number of criminal offences among regional centers.

•

Uherské Hradiště – Worse statistics of income of inhabitants.

•

Vsetín – Significant difference in life expectancy of men and women.

Olomoucký reg. • •

All cities were placed in the second half. Problems mainly in economic area.

Ústecký region •

Situation on labor market – Low qualification is a problem (it creates long-term unemployment).

•

Teplice – Criminality on a decent level. – Low price of housing. – Low life expectancy of men and women.

Karlovarský region •

Karlovy Vary – Relatively decent rate of unemployment but high proportion of long-term unemployment.

Vysočina • •

Very balanced situation. Žďár nad Sázavou, Jihlava, Třebíč – Shows high life expectancy of men and women (worse situation in Havlíčkův Brod).

Chosen characteristics • Low price of housing is usually connected to high rate of unemployment and low wage level.

• Hradec Králové city or Vysočina region are the most suitable for longevity. • The safest city is Jindřichův Hradec. • The highest salary is earned in Prague. • The highest pensions (old age and disability) are in Prague and Moravskoslezský region. • Moravia has lower life expectancy of men.

• Social situation is not determined by the size of a city.

2012: Socioeconomic development of regions and regional centers 2008 - 2012

Data source • Czech Statistical Office • Ministry of Labour and Social Affairs CR • The General Directorate of Finance • Police CR

Statistical data without sensational poll.

Regions

Social area (40 %) •

Economic area (60 %) • Unemployment rate, • Number of building permits per 10 thousand inhabitants, • Proportion of university graduates employed in the national economy, • Number of VAT payers, • Number of commercial companies.

• • • •

• •

Number of criminal offences per thousand inhabitants, Number of violent and immoral crimes per thousand inhabitants, Number of jobseekers per vacancy, Average wages, Proportion of jobseekers registered for more than 12 months in the total of jobseekers, Average area of finished apartments, Disbursed housing allowances per inhabitant.

Regional centers • • • • • •

Unemployment rate, Number of building permits per 10 thousand inhabitants Number of VAT payers, Number of commercial companies, Number of jobseekers per vacancy, Proportion of jobseekers registered for more than 12 months in the total of jobseekers, • Average area of finished apartments.

Regions

Unemployment rate • • •

•

Weight 15 percent. Unemployment rate rose in all regions of CR. The lowest relative growth was registered in regions with the highest unemployment. In the capital Prague the unemployment more than doubled nevertheless it is still close to natural rate.

Number of building permits per 10 thousand inhabitants in a month • • • •

Weight 15 percent. Decrease registered in all regions. The lowest decrease in Ústecký and Karlovarský regions. On the contrary, the highest decrease was in moravian regions – Zlínský and Jihomoravský regions.

Proportion of university graduates employed in the national economy • • •

Weight 15 percent. Increase in all regions. The lowes growth was in Zlínský region despite the growing importance of the University of Tomáš Baťa in Zlín.

Number of VAT payers per thousand inhabitants • •

Weight 7.5 percent. From the point of view of business development, Prague still dominates.

Number of commercial companies • •

Weight 7.5 percent. Pozitive development registered in Moravskoslezský region as well.

Number of criminal offences per thousand inhabitants • •

Weight 7.5 percent. The highest increase was in Moravskoslezský region characterized by high rate of unemployment (absolute figures as well).

Number of violent and immoral crimes per thousand inhabitants • •

Weights 7.5 percent. The development in Prague can be assessed positively. (Prague – a criminality center of CR).

Number of jobseekers per vacancy • •

Weight 5 percent. Stable labor market confirmed in Jihočeský and Pardubický region.

Proportion of jobseekers registered for more than 12 months in the total of jobseekers • •

Weight 5 percent. Proportion grows in all regions of CR.

Average wages

• •

Weight 5 percent. Surprising difference between the situation in Prague and Středočeský region.

Average area of finished apartments • •

Weight 5 percent. In average there was an increase by 3 percent.

Disbursed housing allowances per inhabitant • •

Weight 5 percent. The highest growth was in Prague, where the cost of housing increased the most.

Regional centers

Unemployment rate • •

Weight 20 percent. Favorable development in Jihlava.

Number of building permits per 10 thousand inhabitants • •

Weight 10 percent. The highest growth was in Karlovy Vary. The only city where there was no decrease.

Number of VAT payers, • •

Weight 15 percent. Prague dominates here as well.

Number of commercial companies • •

Weight 7.5 percent. Positive change in Karlovy Vary and Ostrava.

Number of jobseekers per vacancy • •

Weight 10 percent. Zlín shows better statistics than Zlínský region.

Proportion of jobseekers registered for more than 12 months in the total of jobseekers • •

Weight 20 percent. Problem in structuraly affected regions.

Average area of finished apartments • •

Weight 10 percent. Indicator of standard of living.

Overall results: regional centers •

•

•

•

Despite limited database, the results show interesting information. Positive evaluation among regions is confirmed by regional centers such as Ostrava, Karlovy Vary and Ústí nad Labem. The third place belong s to Brno. It proves the difference in the level of the central area and peripheral parts of Jihomoravský region (Brno vs. Hodonín or Znojmo areas) . The 13th place belongs to Hradec Králové, which however according to the state variables achieved very favorable results (see, eg, ranking the quality of life).

1 2 3 4 5 6 7 8 9 10 11 12 13

Ostrava Karlovy Vary Brno Ústí nad Labem Jihlava Praha České Budějovice Liberec Pardubice Zlín Plzeň Olomouc Hradec Králové

93,01% 92,26% 87,19% 87,17% 85,94% 85,17% 84,83% 84,51% 84,12% 83,45% 82,91% 81,15% 78,35%

Conclusion • The research proves that it is not possible to resolve problems of a region without cooperation with cities, as well as cities are not able to solve their problems without cooperation with each other.

THANK YOU FOR YOUR ATTENTION. Center for Regional and Administrative Sciences 4 W. Churchilla Sq. 130 67 Praha 3

Milan Damborský, [email protected] Taťána Hornychová, [email protected]