Money Incentives And Efficiency In The Hungarian Economic Reform

The essays in this volume document the serious shortcomings of the Hungarian economic reform, which in two decades has brought deteriorating economic performance, declining real wages, a fiscal deficit and severe inflationary pressures. It has proved unexpectedly difficult to substitute a regulated market economy for a centrally planned one. The authors of these essays argue that the problems stem from the incompleteness of the reforms and their compromise character. Today, as the Hungarians prepare to implement more radical measures, constraining the Communist party and rolling back state ownership, they do so under economically difficult conditions.

The essays in this volume document the serious shortcomings of the Hungarian economic reform, which in two decades has brought deteriorating economic performance, declining real wages, a fiscal deficit and severe inflationary pressures. It has proved unexpectedly difficult to substitute a regulated market economy for a centrally planned one. The authors of these essays argue that the problems stem from the incompleteness of the reforms and their compromise character. Today, as the Hungarians prepare to implement more radical measures, constraining the Communist party and rolling back state ownership, they do so under economically difficult conditions.

The essays in this volume document the serious shortcomings of the Hungarian economic reform, which in two decades has brought deteriorating economic performance, declining real wages, a fiscal deficit and severe inflationary pressures. It has proved unexpectedly difficult to substitute a regulated market economy for a centrally planned one. The authors of these essays argue that the problems stem from the incompleteness of the reforms and their compromise character. Today, as the Hungarians prepare to implement more radical measures, constraining the Communist party and rolling back state ownership, they do so under economically difficult conditions.

First Published in 2017. Routledge is an imprint of Taylor & Francis, an Informa company.

Professor Berend presents a comprehensive inside account of Hungary's economic reforms since the 1950s. Working from Communist Party archives, which have hitherto partially remained closed to scholars, Berend situates the history of these economic reforms within their political context, looking in particular at the role of the Soviet Union. He examines the theoretical background to reform, the obstacles that arose during implementation and the gradual realisation that minor reforms of the old system could no longer work. The Hungarian Economic Reforms 1953-1988 comes at a time when many centrally planned economies are examining their performance and structure and seeking suitable forms of change. The Hungarian reforms have attracted those countries wishing to rid themselves of their Stalinist command economies. Thus the book indirectly sheds light upon Chinese economic reforms and on Gorbachev's Soviet perestroika. It will be of interest to specialists and students of East European studies, with special reference to the EMEA, planned economies and economic reform.

This paper examines Hungary's reforms since 1968. It discusses the government's medium-term adjustment program, unveiled in the fall of 1990, which aims to install the key elements of a market economy in three years

First Published in 2017. Routledge is an imprint of Taylor & Francis, an Informa company.