Our Work

Printer Friendly  |  Send this Page  |  Sitemap

Hungary – Central and Eastern Europe II (CEE II)

Improving the Operations of Small and Medium-sized Enterprises


ACDI/VOCA entered Hungary in 1992 with the primary objective of improving the operations of small and medium-sized enterprises (SMEs), particularly in rural areas. Activities focused on improving access to information, particularly market information, strengthening cooperatives and other rural SMEs, and increasing access to credit.


ACDI/VOCA-Hungary addressed the U.S. Agency for International Development’s strategic objective of improved operations for small and medium-sized enterprises. The result was over $2 million of investments and incentives for rural development. Over 2,100 businesses benefited from knowledge transfer. Over 20,000 small and medium-sized enterprises benefited from current, accurate market information.


Major Projects and Accomplishments

Through nine distinct projects, including the impressive Central and Eastern Europe II (CEE II), ACDI/VOCA-Hungary pursued an interdependent approach to rural development. The projects were designed to both help individual enterprises and improve the overall business climate.


National Projects

  • Agriculture Policy and Outlook—ACDI/VOCA coordinated development, installation and integration of AgLink, the OECD commodity-forecasting program that provides agricultural information critical to policymakers and businesses. ACDI/VOCA also hosted the first International Agricultural Outlook Conference in Hungary in 1997 and published an outlook paper, then cosponsored the second such conference in 1998.
  • Grain Warehousing Program—ACDI/VOCA, in cooperation with the Hungarian Warehouse Association, worked to improve agricultural producers’ access to credit by increasing the use of warehouse receipts as collateral. The amount of grain stored in warehouses more than doubled.

Regional Projects

  • Regional Monitoring and Evaluation—Each county in Hungary had established a development agency to allocate and manage funds for rural development. In one pilot county, ACDI/VOCA developed a rural development management system that met European Union (EU) standards. This system helped to make efficient use of funds and was replicated throughout Hungary.
  • Cooperatives—ACDI/VOCA helped organize three major cooperatives, the Kisvarda Potato Cooperative, the Awassi Sheep Cooperative and the Zemplen Goat Farmers Cooperative, to improve production and marketing.
  • Hunting and Game Farming—In response to the growing demand for high-quality game meats in Western Europe and Hungary, ACDI/VOCA helped develop a new game farming industry in Hungary. A model farm was developed, and approximately 50 farms sprang up in replication.
  • Tourism—ACDI/VOCA helped boost tourism in northeastern Hungary to provide small and medium-sized enterprises with a larger market for their products and services. With ACDI/VOCA’s support, the first tourism promotion association in the region was established and, in June 1998, several association members participated in a study tour in the U.S. ACDI/VOCA developed a plan for attracting U.S. tourists to the region.
  • Information projects—The EU had established a statistical system that enables policymakers to determine how to target subsidies and development assistance. ACDI/VOCA served on a seven-member team to design and implement a county-level pilot system to enable Hungary to benefit from EU subsidies and other assistance. In addition, ACDI/VOCA developed an integrated software system that provides a two-way flow of information, thereby bringing important information to local communities in Hungary.

To ensure sustainability of these initiatives, ACDI/VOCA facilitated the establishment of a Hungarian nonprofit company, AltAgra. AltAgra started with 13 members, 7 of whom were ACDI/VOCA partners or clients. ACDI/VOCA continued working with the new company throughout 1998, helping it to prepare its business plan and market its services. AltAgra continues its work today. For more information on AltAgra, visit its website here.