OECD's territorial review of Hungary. It finds that ater a period of decline Hungary has returned on a satisfactory growth track. However, benefit and cost have not been evenly distributed during the transition. This report points to the persisting disparities between the West and the East, the capital and the periphery and urban and rural areas. It analyses numerous spatial, economic and social issues including transportation priorities, clustering of regional capacities, cross-border co-operation, the links between foreign investment and endogenous activities and social policies decentralisation. The review emphasizes the need to better articulate the territorial policy framework with those of the EU and proposes recommendations in order to streamline the institutional system and reinforce the subnational levels.