Abstract

The nation of Hungary has been a model of a transforming socialist state. Yet recently Hungary has followed the trend in other transforming Eastern European countries by electing a socialist parliament majority (Economist, 1994). This vote may be a reflection of how the Hungarian people feel about the reforms which are impacting their social welfare. Market and economic reforms are linked in a cycle where an improving economic environment should help firms adopt a philosophy of directing resources to meet the needs of the customers. In return, when the customer feels that their needs are being met, they are more likely to vote into control those who will allow the free market to meet their needs. Hungarian firms adoption of a market orientation, or a focus on meeting the needs of the customer, is a vital link in that nation's movement to free market reform.

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