Hungarian Industry Research Articles

Firms Afloat and Firms Adrift: Hungarian Industry and the Economic Transition

Firms Afloat and Firms Adrift: Hungarian Industry and the Economic Transition

Revival? Gender Studies in the "Other" Europa

-T -fiH E S L AVE N K A D R A K U L I C -Nanette Funk confrontation became largely known, perhaps even overdramatized, in the West through the written accounts of Funk herself (Funk and Mueller 1993). Funk, an American professor of philosophy who was putting together a collection of essays written by "postcommunist women" on gender politics in the "postcommunist" world, invited Drakulic, a writer from the former Yugoslavia, to contribute a piece to her book. Drakulic reacted sharply: having no movement or organization, not to speak of feminist consciousness, she claimed of Eastern women, "we" are unprepared, confused, not ready for your "critical theory approach." "In the meantime," she suggested "why don't you try asking something else?" Drakulic, herself an author of several books that have sold well in America, refused to write theory in the face of the rise of a sex industry in Hungary, prostitution in Romania, and abortion debates in Eastern Europe. How to understand this confrontation? Funk walked off this battle-

Privatization and Foreign Capital in the Hungarian Food Industry

The food industry has been one of the success stories of Hungarian privatization, accounting for 47 percent of the earnings from privatization so far. By June 1993, 87 of the 138 state-owned enterprises (SOEs) in the food industry had been converted into companies, of which 41 were partly or wholly privatized, in most cases with foreign participation. The value of the foreign stake at present amounts to 25-26 percent of the food industry's total assets. This paper has five main aims: * to review the progress and early results of privatization, especially the ways and means employed and the main motives behind it in the various branches of the food industry; * to outline an explanation for the failure or slowness of privatization in the meat, poultry, dairy, grain, milling, canning, deep-freezing, and wine sectors; * to estimate the importance of foreign capital in terms of participation, share, origin, and business strategy; * to make a preliminary estimate of the impact of privatization, particularly in terms of the privatized firms' production, finances, labor situation, profitability, and degree of technical development; * to outline a possible future Hungarian strategy for further

Firms afloat and firms adrift: Hungarian industry and the economic transition

Firms afloat and firms adrift: Hungarian industry and the economic transition

The environmental challenge for Hungarian industry

AbstractIndustrial environmental management initiatives hold significant economic potential. In Hungary, this is the case for companies that wish to improve their efficiency and for the country as a whole as it seeks access to EU and OECD markets. This paper examines the environmental attitudes and actions of Hungarian managers. It finds that managerial attitudes in Hungary compare favourably to those of their Western counterparts and that while resources may be scarce awareness is not a barrier to change.

The Hungarian water and wastewater industry: past, present and future

The levels of service provided by the Hungarian water and wastewater industry to its customers are below those provided in most of western Europe. The situation in Hungary is typical of much of eastern Europe. A team of Hungarian and western engineers, financial experts and regulatory specialists examined the water and wastewater industry and prepared a restructuring framework to assist in guiding development. Key recommendations for restructuring are that private sector disciplines should be introduced for development and operation of infrastructure; that clear commercial, financial and environmental regulatory measures should be put in place; and that clear priorities should be established for infrastructure development programmes. Hungarian water and wastewater industry professionals were intimately involved in developing the framework and are currently leading its implementation. This work, supported by the British Know How Fund, has direct application to other parts of central and eastern Europe. It demonstrates how a strong international partnership can facilitate water and wastewater industry development.

Book reviews

Book reviewed in this article:Brada, Josef C, Singh, Inderjit, Török, Ádám, Firms Afloat and Firms Adrift: Hungarian Industry and the Economic TransitionKornai, Jaenos, Overcentralization in Economic Administration ‐ A Critical Analysis Based on Experience in Hungarian Light Industry

Evaluating privatization in Hungary's wine industry: A framework for analysis

The future competitiveness of central and eastern European countries will depend, to a large part, on the strategies chosen for the privatization of their agricultural sectors. This article develops a heuristic framework to test alternative privatization strategies against criterion variables important for market competition and for achieving certain social objectives. The framework is tested against privatization of the Hungarian wine industry and indicates that the industry may be less competitive than planned. The analysis suggests how the approach can be used in other sectors and countries. © 1994 by John Wiley & sons, Inc.

State and Market in Eastern Europe: Regional Development and Workplace Implications of Direct Foreign Investment in the Automobile Industry in Hungary

Interactions between state and market in eastern Europe since 1989 are examined by focusing on inward investment in one sector the automobile industry which has been at the forefront in the development of new production strategies within the region, and one state Hungary where much foreign investment has been concentrated. The paper examines patterns of uneven development, the distinctive workplace organization and ownership form of state-planned economies, and their reconstitution as part of the process of transformation. The main direct foreign investment projects within the auto industry in eastern Europe are outlined to identify the global market context. The more detailed account of Hungary concentrates on the strategies of four leading companies: Ikarus, General Motors, Ford and Suzuki. The conclusion reconsiders the reconstitution of states and markets

CMEA and COCOM Abolished: Restructuring Precision Engineering Industry in Hungary

The Hungarian precision engineering industry, although fairly successful in the pre-war period and able to survive all the adverse corollaries of planning and CMEA orientation, might be wiped out by the long-awaited marketisation: far more competitive and powerful foreign competitors can now enter both its former single most important market, i.e. the former Soviet Union, and the domestic market. Thus accumulated knowledge of R&D and production engineers as well as the experience of the highly skilled blue-collar workers, albeit of primary importance in this industry, might become completely worthless and disappear. Combined with fresh capital, access to new markets, recent technologies and up-to-date management methods, however, it can (and should) be regarded as a major asset and the indispensable basis for successful restructuring. This paper suggests that sweeping changes in size, ownership, internal organisation, and product range are also inevitable so as to be able to adjust to the new environment.

Hungary: an economy in transition

1. Introduction Istvan P. Szekely and David M. G. Newbery Part I. Foreign Trade: 2. Economic consequences of Soviet disintegration for Hungary Laszlo Czaba 3. Regional cooperation in East-Central Europe Kalman Mizsei 4. Export supply and import demand in Hungary: an econometric analysis for 1968-1989 Laszlo Halpern and Istvan P. Szekely Discussion of Part I Renzo Daviddi Part II. Privatization and Competition Policy: 5. 10 percent already sold: privatization in Hungary Zsigmond Jarai 6. Hungary: a unique approach to privatization - past, present and future Peter Mihalyi 7. Competition policy in transition Janos Stadler Discussion of Part II John P. Bonin, Rumen Dobrinsky and Paul Seabright Part III. The Financial System and Private Savings: 8. Short-run money market model of Hungary Julia Kiraly 9. The modernisation of the Hungarian banking sector Eva Varhegyi 10. Changing structure of household portfolios in emerging market economics: the case of Hungary, 1970-1989 Istvan Abel and Istvan P. Szekely Discussion of Part III John P. Bonin, Lucian Ionescu and Colin Mayer Part IV. Foreign Debt and Monetary Policy: 11. Hungary's foreign debt controversies and macroeconomic problems Gabor Oblath 12. Managing foreign debt and monetary policy Werner Riecke Discussion of Part IV L. Alan Winters and Richard Portes Part V. Legislative and Tax Reform: 13. A legal framework for the Hungarian transition, 1989-1991 Tamas Sarkozy 14. Tax reform in Hungary Jeno Koltay Discussion of Part V Athar Hussain Part VI. Labour Markets, Unemployment and Social Security: 15. The transformation of shop floor bargaining in Hungarian industry Janos Kollo 16. The social security crisis in Hungary Maria Augusztinovics Discussion of Part VI David M. G. Newbery and David Winter Part VII. State Desertion: 17. State desertion and convertibility the case of Hungary Istvan Abel and John P. Bonin Discussion of Part VII David Begg and R. E. Rowthorn Conclusion Sir Adam Ridley.

Trends and Motives of Organizational Change in Hungarian Industry - A Synchronic View

This study analyzes several cases of organizational change in Hungarian manufacturing firms. These changes mostly occurred in relation to transformation, privatization, or direct foreign investment. An increasingly important behavioral pattern in Hungarian industry, called drifting, constitutes a new field of analysis of the industrial organization of the economy in transition. The attitudes and motives of foreign investors mostly reflect their perceptions of the reasons behind organizational change in Hungarian industry. J. Comp. Econom., June 1993, 17(2), pp. 366-384. Research Institute of Industrial Economics of the Hungarian Academy of Sciences, Budapest and Janus Pannonius University, Pécs, Hungary.

MANUFACTURING MANAGEMENT IN HUNGARY: A PERSPECTIVE

Presents a historical overview of the political and economic changes in Hungary. Emphasizes the implications for production/manufacturing management and corporate strategy. Discusses the current situation in Hungarian manufacturing industry and identifies the more strategic issues within the economic environment. Examines current production management practice, with case histories, and concludes with an assessment of the possibilities of introducing aspects of world‐class manufacturing into Hungarian industry.

New Initiatives in the Hungarian Wine Industry: Foreign Innovation and Investment

A new modern style of wine has emerged in Hungary which draws heavily on the wine making and wine marketing success of the so‐ called New World. Examining two very different wine companies, one foreign‐owned, the other indigeneous, this article highlights the success of these initiatives, illustrating how they have boosted Hungarian wine exports and helped create a positive image for Hungarian table wine. Such approaches cannot be followed exclusively, however. Hungary will never be able to export all its production to the west. Attention still needs to be paid to both domestic demand for the old oxidised wine styles as well as demand in the other export markets in the former COMECON countries. This should help to provide a softer landing for an industry struggling with the upheavals of the last three years. The article concludes that Hungary's willingness to experiment and adopt western methods, together with its relative economic and political stability, suggest that the Hungarian wine industry could and should become the centre for innovation in Eastern Europe.

Scientific and technological responses to structural adjustment: Human resources and research issues in Hungary, Turkey, and Yugoslavia

Hungary, Yugoslavia, and Turkey once were inward-looking economies in which a lack of competition suppressed demand for improved technology. With the exception of the export-oriented portion of Hungarian industry, the investments in civilian science and technology in all three countries led to the development of enclaves of technological capacity that were largely cut off from the rest of the economy. When Turkey emerged from this situation in the early 1980s, it expanded rapidly, a situation similar to that of present-day Malaysia or Thailand. A decade later, Turkey's private and public sectors are contemplating substantial investments to make up for lost time. Hungary and pre- civil-war Yugoslavia inherit from the previous regimes an extensive scientific and technological establishment with pockets of first-class performance that could become the basis of long-run competitive advantage. This capability will require careful management and major investments if it is to be sustained during the difficult transition to a competitive market economy.

Legal and financial issues influencing foreign and internal investment in Hungary—with reference to the hospitality industry

This paper attempts to focus on the Hungarian Hospitality Industry as part of an 'emerging' market economy, to assess its strengths and weaknesses in the privatization process and to gauge its attractiveness for foreign investment. As to its relative importance in the Hungarian economy, there is no question, as it represents up to 10% of the GNP. It contributes a major source of revenue and when taking into account foreign exchange earnings, this figure is much higher. The capital, Budapest, and its immediate environs provides the bulk of tourist interest, particularly those from abroad, but studies show that there is an under-capacity that will sharpen in the approach to EXPO in 1996. Hungary was successful in winning the bid and the tourist authorities estimate that another twenty hotels are required to meet expected demand. This short-fall is not mirrored in the rest of Hungary as a whole. In fact there is an overcapacity in some grades of tourist hotels and other forms of tourist accommodation. Hungary at present only provides 5% of its accommodation capacity at an international standard suitable for foreign visitors compared with 12% by its neighbour, Austria. For the most part, much of the hotel accommodation is in need of modernizing, ergo requiring a large injection of capital. Lending rates are well in excess of 30% and at present debt financing is not feasible using domestic currency. As with other Central and Eastern European 'emerging democracies', individual entrepreneurship has been hampered by raging inflation running in excess of 40% with an initial high of 60% and interest rates to match. Those making deposits in State banks (guaranteed by the Treasury) could and can continue to look forward to high returns on capital, for example deposit rates (Gross) average 26-28% or 24-26% net. With such attractive rates, investors could be forgiven for avoiding risky incursions into other equity participation, in particular in the hotel and catering industry. Internally, investors have fortunately supported the privatization process conducted by the State Property Agency that has already carried out a limited 'sector' privatization in respect of restaurants, cafeterias and other units, for example travel agencies. The purchase of units has been popular not only in Hungary but also in Poland where the privatization process is carried out by the Ministry of Transformation and Ownership. The State Property Agency (SPA) now working its way through the sale of small and medium sized government-owned businesses, has been successful in the privatization of 437 companies with maximum annual gross revenues equivalent to U.S.$37.5 million. It remains to be seen whether these 'sell-offs' will have a sufficient impact on Hungary's gross

The Role of Banks in the Interwar Economy.

Preface 1. Introduction Harold James 2. Political disputes about the role of banks Gerald D. Feldman 3. Universal banking in interwar Central Europe Fritz Weber 4. Comparing the interwar banking history of five small countries in north-west Europe Ulf Olsson 5. American bankers and Britain's fall from gold Diane B. Kunz 6. Banks and the problem of capital shortage in Germany, 1918-23 Gerald D. Feldman 7. State, banks and industry in Sweden, with some reference to the Scandinavian countries Mats Larsson 8. State, banks and industry in Belgium and The Netherlands, 1919-39 Guy Vanthemsche 9. Investment behaviour of industrial joint-stock companies and industrial shareholding by the Osterreichische Credit-Anstalt: inducement or obstacle to renewal and change in industry in interwar Austria Alois Mosser and Alice Teichova 10. Financing of Hungarian industry by the Commercial Bank of Pest: a case study Elizabeth A. Boross 11. The rise and fall of German-inspired mixed banking in Italy, 1894-1936 Douglas J. Forsyth 12. Banking and economic development in interwar Greece Mark Mazower 13. Why Canadian banks did not collapse in the 1930s Ian M. Drummond 14. Japanese banks and national economic policy, 1920-36 W. Miles Fletcher III Index.

Atomic spectroscopy quality control of food industry in Hungary

Quality control of food products with atomic spectroscopy techniques is used in almost every standard method of food control in Hungary, although such procedures are now relatively outdated. While the methods for determining a given element are often very similar from one product to another, it should also be considered that foods are as different as beverages, wines, bread, sausages, vegetables, fruits, baby food, canned food, etc. Some laboratories use the standard methods for all types of samples. On the other hand, recent attempts to update standard methods can be found in sample preparation (microwave sample digestion) and standardization (domestic and international standards), as well as instrumentation. If the Hungarian food industry is to come in line with the Common Market requirements the Chemistry Department of the Hungarian University of Horticulture and Food Industry must adopt new quality control principles. Many thousands of food samples are in fact analyzed each year in the above-mentioned laboratory for industrial and research purposes. Results obtained over the last few years are detailed.

Tackling the Challenge of Western Markets: The Case of Tokaj, Hungary

The Hungarian wine industry is in a state of transition. Old methods and practices are being abandoned and new techniques are arriving from the West. Tokaj, one of the world's oldest and most famous sweet wine‐producing regions, is at the cutting edge of such developments. Examines the obstacles to be overcome in making a successful transition to the new marketing realities, surveying the approaches and progress made in Tokaj. Argues that there are three integral steps required in the formation of a competitive industry: reorganization of ownership; viticultural and oenological modernization; and Western methods of marketing. The impetus for such changes must come not only from within Tokaj, but also from collaboration with Western foreign investors.

Characterization of production-inventory systems in the hungarian industry

The paper reports the main characteristics of the production-inventory systems of Hungarian industrial companies. After a brief discussion of the general economic background some results of a survey are provided. We used a questionnaire developed from an international project aimed to carry out cross-national comparison. The results discussed here will be part of this project. The main conclusion is that the general character and relatively low level of development of the production-inventory systems in Hungary are direct consequences of the specific environmental challenges companies in our country must face. The level of production-inventory management can be — and should be — raised considerably but attempts aimed to improve the situation can be successful only if the environmental conditions are appropriately taken into consideration. More advanced systems with a chance of successful implementation must utilize many conceptual and methodological elements of the internationally known integrated systems efficiently operated in the Western world but efforts to simply copying them would definitely lead to failure.