Figure 1.--Here we see a Hungarian family in 1962. They are podly showing off their SKODA, Kiskunmajsa 1960. Notice the boys is pictured in what may be his school uniform and red Pioneer scarf. Unlike the West, workers could not afford or be allocated cars. The father here would have had an important Goverbment or Party post to obtain a family car. Notyably SKODA was a Czech compamy, but with operations in Hungary. The model is the Kiskunmajsa 1960. We know it was aimed at the Hungarian market as Kiskunmajsa is a town in Hungary. It may have beem built by SKODA in Hungary. It was a very basic car. We are not sure just how good it was compared to the better known DDR Trebbie.

After World War II, the Communists under the aegis of the Red Army seized control of Hungary (1945). Stalin oversaw the same provess in Hungary as the rest of the Soviert Empire he was constructing in Eastern Europe. There was a brief transitiinal period which was useful both to molify the Western press and to identify independent thinking figures to be be purged later (1945-47). The Commiunists were in control from the beginning, but ruked through coalition governments giving the illusion of democracy. The Communist Party seized full control (1948-49). With the breakdown of Soviet-Allied cooperation in occupied Germany and the formalout break of the Cold War, cosmetic coaltions were no longer needed. A new constitution gave the Hungarian Workers' Party an exclusive monopoly on political power and thius the ability to completely overhaul the Hungarian economy. The Communists proceeded to enact a throughly Stalinist political and economic system (1949-53). The Communists launched on a massive program of industrialization. To the shock of the Communists, the economy did not grow like the economies of Western Europe. Not ony were the state-owned industries not profitable and able to pay good wages, but because of state policie, shortages developed for agricultural products. The economomic problens were only partly due to Communist inefficencies. The Soviet Union exploited all of its Eastern European subject peoples. Stalin's death seemed to create the the posibility of more flexibility (1953). Imre Nagy became prime minister. He announcedcnew policies called the New Course. The Soviers engineered his ouster (1955). The economic failure of the Stalinist economic system gavecrise to growing dissension and protest. The workers pradise the Communists had promised not only did not occur, but shortages andc shoiddybproductions meant that Hungarian living standards noyt only did not rise like those in the West, but fell below pre-War standards. The rumors reached Hungay of the Soviet 20th Party Congress and De-Stalinization. Workers and students rose up against the orthodox Communist regime that had replaced (October 1956). Imre Nagy assumed leadership, but the Soviets sent in their tanks to suppress the rebellion. They installed János Kádár as prime minister. The Soviets and their Hungarian acolytes like Kádár launch a Stalinist crackdown amd widespread arrests. Nagy was promised safe passage, but arrested and executed. The Hungarian Workers' Party because of its hated reputation was renamed the Hungarian Socialist Workers' Party. After the repression that followed, more liberal outlook took hold in Hungary and an economy which came to be called Goulash Communism. There were notable improvements, but Hungarian industry was not competive outside the COMECON barter system. This was the situation when Communism fell (1989). While the economic failings of Communist Hungary were well known, before the fall of Communism, what was not know was the envirimental desvestation wrought by stateowned industrial concerns.

Seizure of Power (1945-48)

After World War II, the Communists under the aegis of the Red Army seized control of Hungary (1945). Hungaey was still a largely agricukltural nation. Stalin oversaw the same provess in Hungary as the rest of the Soviet Empire he was constructing in Eastern Europe. There was a brief transitiinal period which was useful both to molify the Western press and to identify independent thinking figures to be be purged later (1945-47). The Communists were in control from the beginning, but ruled through coalition governments giving the illusion of democracy. The Communists at first were somewhat restrained. There was a focus on indutrization, the standard Soviet approach of forced industrialization. Hungary befire the War was notv a heavily industrilized economy. The africultyural sectir was very imprtant. At first only the largest concerns and middle sized concerns meaning concers with 100 or more employees. Stalin refused to allow Hungary to participate in the american Marshakll Plan. .

Stalinist Control (1948-53)

The Communist Party seized full control (1948-49). With the breakdown of Soviet-Allied cooperation in occupied Germany and the formal outbreak of the Cold War, cosmetic coaltions were no longer needed. A new constitution gave the Hungarian Workers' Party an exclusive monopoly on political power and thius the ability to completely overhaul the Hungarian economy. The Communists proceeded to enact a throughly Stalinist political and economic system (1949-53). The Communists intrioduced a centrally planned economy. The Communists launched a massive program of industrialization. They created millions of industrial jobs. Many of these jobs were for women, until the Communists came ton poweer, relatively few women were employed in industry. Unable to participate in the American Marshall Plan because of Stalin's orders, Hungary was short of capital for industrialization. Instead like the other satelite states in the Soviet empire, Hungary adopted a policy of forced accumulation. This meant keeping worker's wages low and the prices of most consumer goods high made to keep down consumotion. People had jobs, but they did not always had productive jobs. Access to consumer goods were far below that of workers in the West. And the welfare sate created offered benefuts far below those of the West. Hungarians had no choice but to save. Thus their savings ngs, which became available for use by the government. The industries created, however, were of little benefit they were ineffucent and unprofitable. The Communists no longer resticted themselves to just the larger amd middle-sized cooncerns. A much mure radical approach to nationilzation was adopted. Concerns with as few as 10 employes were seized. This mean essentially all of Hungaian industry was in Communist hands. The Communists began a massive priogram of collectuvization bring most farm land under Government control. The Government started building new factories expanding the instrial sector. The rapid, forced industrialization followed the standard Stalinist pattern. There was rapid grouth, measured in output. But it was based on a typical Stalinist pattern and outdated technology. Priorirt was given toheavy industry (iron, steel, and engineering). Modern infrastructure, services, and electronics were no given the attention needed fior a nmodern economy. New technologies and high-tech was absent. Hungary's ecinomic development was hampered by the Cold War. Hungary could not trade freely with the West. Hungary had to trade primarily with the COMECON ntions. Andforv securuty reasons, Western countries placed restrictions (the Coordinating Committee for Multilateral Export Controls) on export of high tech to Soviet emopire nations, inclding Hungary. The Communist priority was to achieve a self-sufficient economy. No real concern was given to efficeny or profitability. Economic activity was largely conducted by the new state-owned industrial enterprises or collevtivized cooperatives and state farms. To the shock of the Communists, the economy did not grow like the economies of Western Europe. Ignoring efficency and profitabiity meant that not only did growth not occur , but wages could not approach levels in the capitalist West. And the focus on industry combined with collevtivization meant that as elsewhere in the Soviet empire, food shortages developed. Everywhere employed, collectuvization resulte in declinng harvests. Given this result, one wonders why the Communists insist on collectivization. There of coursev is the ideological impartive and the imprtance f=given to cintrol. The economomic problens were only partly the result of the imherentb inefficies of socialism. The other problem wa Soviet exploitation of Eastern European subject econonomies.

The New Course (1953-56)

Stalin's death seemed to create the the posibility of more flexibility (1953). Imre Nagy became prime minister. He announced new policies called the New Course. The Soviets engineered his ouster (1955). The economic failure of the Stalinist economic system gavecrise to growing dissension and protest. The workers pradise the Communists had promised not only did not occur, but shortages andc shoiddybproductions meant that Hungarian living standards noyt only did not rise like those in the West, but fell below pre-War standards.

Hungarian Revolution (October 1956)

The rumors reached Hungay of the Soviet 20th Party Congress and De-Stalinization. Hungaruians took the idea of freedom seruiusly. Workers and students resisted and eventually rose up against the orthodox Communist regime that refused to acceopt the idea of reform (October 1956). Imre Nagy assumed leadership, but the Soviets sent in their tanks to suppress the rebellion. The Soviets installed János József Kádár as prime minister. The Soviets and their Hungarian acolytes like Kádár launched a Stalinist crackdown amd widespread arrests. Nagy was promised safe passage, but arrested and executed. The Hungarian Workers' Party because of its hated reputation was renamed the Hungarian Socialist Workers' Party.

Goulash Communism (1960s-80s)

The Soviet repression of the Hungarians was severe. There were execution and wide-spread arrests. Over time, however, their were changes. After the repression that followed and the final collectization of agriculture (1959-61), more liberal outlook took hold in Hungary. János Kádár implemented policies with the very unorthodox objective of creating a high standard of living for the people of Hungary with the with some needed economic reforms. This is interesting given that Kádár was the man the Soviets chose to purge the country of anti-Soviet Hungarians. Kádár did this in the immediare aftermath of the Revolution, but once Hungary was firmly back in the Warsaw pact, Kádár began pursuing very un-Stalinist economic policies. We are unsure about the hiow the Kremline leaders vueed this. They certaunly were not soing ghis ith the Siviet economy. But there was no intervention. The Soviets for whatever reason decvided thast as long as there was no effort to break from Soviet ciontrol, a fegree of economic reforms meaning market reforms could be tolerated. Kádár's reforms have been termed Goulash or Refrigerator Communism. They suceeded in acieving a degree of well-being and cultural freedom in Hungary. The country acquired the reputation of being 'the happiest barracks' in the Soviet Bloc. 【Nyyssönen】 Kádár fashioned a system with some elements of market albeit regulated economics and substantially improved human rights record--especially in terms of Soviet Bloc countries. Hungary as a result of stagnating economic growth, introduced the New Economic Mechanism (NEM) (1968). . It was a shift self-sufficiency to market reforms. Hungay partially reopened to foreign trade with the West. Market mechaisms were introduced to an extent. Some small businesses were permitted to operate, mostly in the services sector. There were notable improvements, but Hungarian industry was still not not competive outside the COMECON barter system. Hungary also moderated collctivization to greatly improv on Soviet results. Thisincludedc Americn methods, sgare cropping, expsbding family plots and thev inividual keeping livestock, improved policies toward cooperatives as opposed to state farms, and other measures. 【Varga】 Hungary had developed one of the most liberal and economically advanced economies in the Soviet Empire. This was still the situation when Communism fell (1989). While the economic failings of Communist Hungary were well known, before the fall of Communism, what was not know was the envirimental desvestation wrought by failing to impose enviromental contreaints on state-owned industrial concerns. of the former Eastern Bloc, both agriculture and industry began to suffer from a lack of investment in the 1970s.

End of Commuism

Sources

Nyyssönen, Heino. "Salami reconstructed, Cahiers du monde russe Vol. 47, Nos. 1–2 (June 2006). pp. 153–72.

Varga, Szuzsanna. Trans. Frank T. Zsigó. The Hungarian Agricultural Miracle? Sovietization and Americanization in a Communist Country (Lexington Books: 2020), 354p.

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