Transition In Hungary Research Articles

Employment of the High-quality Well-educated Intellectual Labour Force (HIL) after the Transition in Hungary

The main question of this paper based on a series of interviews is if there is unemployment among the ranks of HIL. The subject of the research touches a complex social symptom, which contains both objective and important subjective aspects of the unemployment and its special forms - underutilisation and overutilisation. Based on empirical facts and on theoretical consideration, the paper criticises the monetary requirements of the market that has been considered as something of sanctity, to be accepted axiomatically, and which can justify any changes in employment.

Two Phases of Labor Market Transition In Hungary: Inter-Sectoral Reallocation and Skill-Biased Technological Change

Hungary has been a front-runner in the transition to capitalism. It has also experienced exceptionally radical changes in employment and relative wages. One main feature of these changes is an enormous increase in the returns to skill. This paper argues that it is instructive to divide the process into two periods, divided by around the year 1995. The first period experienced major destruction of low-skilled jobs and large inter-sectoral reallocation, partly toward skill-intensive industries. Employment started to rebound in the second period, which has also seen a pervasive skill upgrade in all sectors. The skill premium in earnings started to grow even faster in the second stage because increasing demand for skill met a more and more inelastic supply in the short run. Long-run supply effects have been, however, strong as college enrollment rates soared. Introduction of new (foreign) capital seems to be a major factor behind increasing demand for skill. Foreign direct investment into Hungary was by far the largest among the transition countries until the late 1990?s, but other Central-Eastern European countries started to catch up since. This suggests that the Hungarian experience might be helpful to predict labor market trends in other transition economies, especially those that attract significant foreign capital.

The Efficiency of Input Use During the Early Transition in Hungary

This paper uses Hungarian firm level panel data for the agricultural and light manufacturing sectors during the early years of the transition to investigate differences and changes in the efficiency of input use. Programming techniques measure scale and technical efficiency. The simple radial measure, as well as two other measures that account for programming slacks, are used. The results show little wastage of materials and labour, but inefficient use of energy and capital, which suggests that the development of input markets was uneven. The price liberalisation of 1989 widened efficiency differences, especially in agriculture, but this sector recovered quickest, actually using capital more efficiently by 1991. However, energy efficiency levels were low in the period of soft budget constraints and fell still further after the reforms, suggesting that a free market for energy was not established, particularly in agriculture.

After, Before and During: Returns to Education in the Hungarian Transition

How valuable are the education and skills acquired under socialism in a market economy? This paper uses data for about 3 million Hungarian wage earners, from 1986 to 1998, to throw light on this question. We find that returns to schooling reach 10 percent early on and remain at this high level. These estimates are larger than for other transition economies, but similar to those for middle- income developing countries. With the gap in average years of schooling unremitting, we argue that the Hungarian stock of human capital is considerably less than the existing figures have led us to believe.

The Uneven Development of Suburbanization during Transition in Hungary

This paper considers how far suburbanization in Hungary has followed the Western model. The authors argue that the transition period, as a distinctive era, will not bring about fundamental changes in the cause-and-effect relationships of surburban development. The decisive role of capital in Hungarian suburbanization is evident in the uneven development of this spatial process. It is contended that the actors in the suburbanization of transition, although labelled ‘distinctive’ by some commentators, do not have a trajectory which is essentially different from that of their western counterparts. Differences arise from the means and pace of acquiring property and capital. As in advanced capitalism, suburbanization in Hungary results in social tensions, segregation and exclusion.

Central Bank independence: Hungary's transition economy turns the corner

Central Bank independence: Hungary's transition economy turns the corner

A Stochastic Frontier Approach to Firm Level Efficiency, Technological Change, and Productivity during the Early Transition in Hungary

This paper fits translog stochastic frontiers with inefficiency effects to a panel of Hungarian firm level data for 117 agricultural enterprises and 43 firms in the light manufacturing sector for the period from 1985 to 1991. Throughout this period, labor and materials make important contributions to output while energy and capital do not. Constant returns to scale and low elasticities of substitution are the norm. Technological regression dominates, giving negative productivity change, but the cross-section estimates show that relative efficiency improved sufficiently in both agriculture and industry. In the later years, the average production function is preferred to the stochastic frontier, except when manufacturing efficiency collapsed in 1991. The inefficiencies are explained by overcapitalization, subsidies, and excessive management costs, while firms that had established export markets were more efficient.J. Comp. Econom., September 2000, 28(3), pp. 473–501. Birkbeck College, University of London, London WC1E 7HX, United Kingdom; University of Pretoria, Pretoria, 0002, Republic of South Africa; and Imperial College, University of London, London SW7 2AZ, United Kingdom, University of Pretoria, Pretoria, 0002, Republic of South Africa.

Fiscal Adjustment in the Transition Process: Hungary, 1990-1999

Two economists of the National Bank of Hungary review fiscal developments during a decade of transition in Hungary. The paper examines the role of fiscal policy in stabilizing the economy in the face of external and reform-induced shocks, the way in which fiscal policy contributed to the reforms, and the manner in which the downsizing of the government was implemented. The authors also analyze the main causes of public debt accumulation and sources of financing. The paper concludes by identifying some lessons to be derived from the Hungarian experience. Journal of Economic Literature, Classification Numbers: H62, P27, P35. 7 figures, 9 tables, 20 references.

Economic Transition in Hungary and East Germany: Gradualism and Shock Therapy in Catch-Up Development. By Johannes Stephan. Studies in Economic Transition. New York: St. Martin's Press, 1999. xv, 293 pp. Notes. Bibliography. Index. Figures. Tables. $79.95, hard bound.

Economic Transition in Hungary and East Germany: Gradualism and Shock Therapy in Catch-Up Development. By Johannes Stephan. Studies in Economic Transition. New York: St. Martin's Press, 1999. xv, 293 pp. Notes. Bibliography. Index. Figures. Tables. $79.95, hard bound.

Environmental protection and the Hungarian transition

Drawing upon the agenda-building literature, I examine how and why the issue of environmental protection came to be on the political agenda in Hungary, in both the Communist and post-Communist regimes. If we assume that regime type matters, there should be differences with regard to how and why the environment was placed on the institutional (formal) agenda in the Communist and post-Communist governments. The agenda-setting literature is, however, based on stable political systems rather than systems in transition. Thus, the agenda-building process in the two regime types may not be as different as expected. This leads to the second research question: How does the democratic transition process impact agenda-building processes in the environmental issue area?

The choice of dilemmas in Hungary's transition: Westernization or latin americanization?

This paper deals with Hungary on the basis of selected characteristics regarding European Union accession conditions. In most cases, there are no exact criteria which must be fulfilled. Therefore, the difference between the real and expected levels of performance cannot be measured. The chances for stabilization and growth, reintegration, or periphery are under investigation. This statistical analysis concentrates on the similarity between members of the European Union (and the Organization for Economic Cooperation and Development) and new applicants. The structural similarity and closeness can statistically prove economic success or failure.

Mutations systémiques de l'entreprise et du salariat : le cas de la Hongrie et de la Bulgarie

In this comparison of the impact of transition in Hungary and Bulgaria on wage-earning, two inseparable points are examined : changes in the relative conditions of wage-earning (the distribution of labour by branch, wage levels and differentials) and the process of reorganizing production. On the basis of the determinants of change at the macroeconomic and sector levels (state-company relations, labour relations), attention is focussed on different types of "job-wage" compromises. These two economies have quite different trajectories. Based on a powerful social compromise till 1995, the Hungarian transition combined the reorganization and respecialization of production, the redeployment of labour force, and relative social justice. In contrast, the Bulgarian transition was, till 1997, marked by a "transformational inertia" much to the disadvantage of wage earning.

A net impact analysis of active labour programmes in Hungary

AbstractThis paper presents estimates of the impact on re‐employment and earnings of the two most popular active labour programmes used during the economic transition in Hungary: retraining and public service employment (PSE). To adjust for non‐random assignment of programme participants, net impacts were computed using matched pair samples and regression models. The evidence suggests retraining may improve the chance for reemployment, is unlikely to improve re‐employment earnings, but may improve job durability. Net societal benefits could be improved by retraining relatively more males, older persons, and those with less education. PSE does not appear to provide a reliable path to a regular non‐subsidized job, and may even lower re‐employment earnings. PSE might best be viewed as an income transfer programme having the collateral benefit of maintaining basic work habits. The net societal impact of PSE could increase if it involved relatively more females and older persons.

Managing Economic Transition

In the early stages of economic transition in Hungary, stagnation was the dominant characteristic of the country, accompanied by crisis indicators such as marked internal and especially external economic instability, instability in foreign trade, and structural impediments to development. Massive unemployment, a decrease in real wages, evident even today, and the intensification of social inequalities contributed additional tensions to the initial transition phase. In this paper, the authors first outline the main characteristics of the Hungarian economy. Then, against this background, they discuss the status of human resources development during the transition period, the economic and legal reforms taking place in the context of education and vocational training, and finally the role of the social partnership in vocational training. The discussion and conclusions drawn are intended to indicate key issues in workforce development not only in Hungary but in countries throughout the region of Eastern and Central Europe

Revolution from Within: Institutional Analysis, Transitions from Authoritarianism, and the Case of Hungary

The Hungarian transition from socialism stands out from other examples of political change in the region, in that the ruling Hungarian Socialist Workers' Party (MSZMP) suffered an erosion of political power generated largely from within the party itself. The study shows how the Communist Party, after its destruction in the revolution of 1956, sought to institutionalize its rule through a course of limited liberalization and the broad co-optation of the populace. This policy helped create a tacit social compact with society, particularly in co-opting younger intellectuals who identified with the goals of reform socialism. However, the party eventually marginalized this group, creating an internal party opposition that supported socialism but opposed the MSZMP. Consequently, when the limits of Hungarian reform socialism became evident in the mid-1980s, rank-and-file intellectuals within the party began to mobilize against the party hierarchy, seeking to transform the MSZMP into a democratic socialist party. These “reform circles,” drawing their strength primarily from the countryside, spread to all parts of the party and helped undermine central party power and expand the political space for opposition groups to organize. Eventually, the reform circles were able to force an early party congress in which the MSZMP was transformed into a Western-style socialist party prior to open elections in 1990.The case is significant in that it indicates that the forms of transition in Eastern Europe were not simply the specific outcome of elite interaction. Rather, they were shaped in large part by the patterns of socialist institutionalization found in each country. Therefore, studies of political transition can be enriched with an explicit focus on the institutional characteristics of each case, linking the forms of transitions and their posttransition legacies to the institutional matrix from which they emerged. In short, the study argues that the way in which an autocratic order perpetuates itself affects the manner in which that system declines and the shape of the new system that takes its place.

Types of Microregions, Dispersion of Unemployment, and Local Employment Development in Hungary

A typical feature of the regional processes associated with Hungary's transition to a market-driven economy is the change in the nature and the dimension of regional economic differences. Experience suggests that these are both positive changes, such as private enterprises gaining ground, the quick spreading of new forms of business, and an increase in the number of small businesses; and negative processes, such as a setback in economic performance, the increase in unemployment, and an impoverishment of certain segments of society. These changes have had a varying impact in different parts of the country. Some of the regions were relatively successful in answering the challenges of the transition, while others had to face serious crises that affected the local economy and labor market. i Traditional and new measures for job creation and regional development have not proven to be successful in the management of regional employment and economic crises in the transition. While the active, as well as the passive, measures of employment policy have managed in some regions to avoid a threatening social explosion, one thing that they could not do was to stop or slow down the disintegration of a

Fiscal Policy in Hungary Under Transition (Vol. I, Vol. II)

Transformation of the centrally planned economy to a market based system in Hungary has been a more gradual process than in other transitory economies, although 1990 - when the new democratic government was elected - is considered as an 'official' starting point of the transition period. Since 1968 Hungary experienced a quite long period of reforms. Between 1968 and 1988 due to these reforms (aiming at the establishment of a market based socialist system) the state-owned enterprises became virtually free in decision making concerning production, investment, marketing and also finance and the State's decisions concerned mainly on nationally important projects and on the formation of market conditions. This paper explores the Hungarian transition focusing, in its first part, on macroeconomic development, ownership structure, and financial sector, and, in its second part, on budgetary organization, fiscal development, and public debt.

New social movements: from ideology to identity

Part I: Culture and Identity in Contemporary Social Movements 1. Identities, Grievances, and Social Movements - Hank Johnston, Enrique Larana, and Joseph R. Gusfield 2. Culture and Social Movements - Doug McAdam 3. The Reflexivity of Social Movements: Collective Behavior and Mass Society Theory Revisited - Joseph R. Gusfield 4. Ideology and Utopia after Socialism - Ralph H. Turner 5. A Strange Kind of Newness: What's New in Social Movements? - Alberto Melucci Part II: Collective Actors in Social Movements 6. Activist, Authorities, and Media Framing of Drunk Driving - John D. McCarthy 7. Transient Identities? Membership Patterns in the Dutch Peace Movement - Bert Klandermans 8. Identity Fields: Framing Processes and the Social Construction of Movement Identities - Scott A. Hunt, Robert D. Benford, and David A. Snow 9. Continuity and Unity in Forms of Collective Action: A Comparative Analysis of Student Movements - Enrique Larana 10. Conflict Networks and the Origins of Women's Liberation - Carol Mueller Part III: Collective Action and Identity in Changing Political Contexts 11. Social Movements and Old Regional Nationalisms - Hank Johnston 12. Greens, Cabbies, and Anti-Communists: Collective Action During Regime Transition in Hungary - Mate Szabo 13. Social Movements in Modern Spain: From the Pre-Civil War Model to Contemporary NSMs - Jose Alvarez-Junco 14. The Party's Over - So What Is to Be Done? - Richard Flacks The Contributors Index

Developing public finance in emerging market economies

Fiscal crises during economic transition in East Central Europe - an overview, Kalman Mizsei and Jacek Rostowski some fiscal problems during economic transition in Hungary, Andras Semjen comments on Semjen, Fabrizio Coricelli the Polish government budget stabilization and sustainability, Alain de Crombrugghe comments on Crombrugghe, Marek Dabrowski what is the budget reform in Czechoslavakia and the Czech Republic about?, Vera Kamenickova, et al some lessons from fiscal reform in Czechoslovakia - an extended comment on Kamenickova et al., Tessa van der Willigen the lessons from fiscal reform in democratic Spain, Phillippe Bacchetta comments on Bacchetta, Val Koromzay.

Political transition in Hungary: An overview

Hungary appears to have enjoyed relative success so far in the transition from communist rule to democracy and the market. Multi‐party elections and a parliamentary system are established, with a clear division of political functions; foreign investment is flowing in, and a private sector is developing. To some extent the success builds on the reform experience of the communist era. Further progress depends in part on the international environment, and also on the success with which new governments tackle problems of property ownership, popular consultation and information management.