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    Hungarian economy prior to the transition

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    kosovohp01


    Posts : 54
    Join date : 2010-09-16

    Hungarian economy prior to the transition Empty Hungarian economy prior to the transition

    Post  kosovohp01 Thu Sep 16, 2010 1:55 pm

    The Hungarian economy prior to World War II was primarily oriented toward agriculture and small-scale manufacturing. Hungary's strategic position in Europe and its relative high lack of natural resources also have dictated a traditional reliance on foreign trade. For instance, its largest car manufacturer, Magomobil (maker of the Magosix), produced a total of a few thousand units.[80] In the early 1950s, the communist government forced rapid industrialization after the standard Stalinist pattern in an effort to encourage a more self-sufficient economy. Most economic activity was conducted by state-owned enterprises or cooperatives and state farms. In 1968, Stalinist self-sufficiency was replaced by the "New Economic Mechanism", which reopened Hungary to foreign trade, gave limited freedom to the workings of the market, and allowed a limited number of small businesses to operate in the services sector.

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