The development of Pécs is essentially due to its historically central location and to the fact that the regional institutions and the revenues generated by them have enriched the city. This functional wealth elevated the city to a position above the surrounding settlements. In its development, culture has always played a significant role. From the second half of the 19th century, it was industrial development which contributed most to its growth, a trend which was reversed at the end of the 20th century. The crisis arrived with the transition in the 1980s and has so far not been resolved. The city once more based its growth concept on human capital and on the cultural tradition when formulating new development strategy, and, as a result, it won the title of European Capital of Culture 2010. However, market processes and EU development funds necessarily generate trends which are rather more global, and in the post-socialist cities there are insufficient funds for endogenous development based on local factors to be realised.
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