The Hungarian diversification strategy: Constraints and opportunities

Abstract

Although agricultural work is declining in Hungary, farming remains an important source of employment. However, the agrarian population should not be regarded as homogenous because many small farms are worked only for subsistence and family income supplement. This is because of prolonged economic crisis which makes for a shortage of job opportunities in other sectors of the economy. Until economic growth accelerates there is a need for transitional solutions to the problem of unemployment. It is argued that the present farming system could be diversified through labour-intensive programmes to provide piped water and drainage in small towns and villages and simultaneously engage many of the long-term unemployed who are no longer entitled to benefit and lack the qualifications for jobs that require special skills. The environment could also be protected by the afforestation of 300–400 000 ha of arable land or its conversion to grassland. Light industry could also generate employment while stimulating the growth of local farm production and the improvement of the infrastructure. Training for unemployed young people should also be a priority if the erosion of rural labour resources is not to become irreversible. A much more proactive approach is needed from government to safeguard rural labour resources and achieve greater integration between forestry, farming and processing.