Introduction
This country paper has been written for educational reasons. It is part of the class ‘International Economic Relations I’ – University of Applied Science Wiesbaden of winter 2001. It is attended to
the former socialist country Hungary, which underwent a transition from a socialistic to a democratic country. Mainly it throws light on the question if the simultaneous economical transition - from a planned to a market economy has been successful. Successful means if the country is able to catch up with economical leading countries. ‘What matters is the whole package of policies, financial and technical assistance and dept relief if necessary.’(1)
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1 cf. “Globalization: Threat or Opportunity?”, http://www.imf.org/external/np/exr/ib/2000/041200.htm; International Monetary
Fund Issued Brief; Washington 2000; p. 7f
Table of Content
1. The state Hungary
1.1. Brief Overview
1.2. Geographical Overview
1.3. History
1.4. Population & Culture
2. Economic frame
2.1. National Institutions
2.1.1. State Authorities
2.1.2. Educational system
2.1.3. Health system
2.1.4. Welfare system
2.2. Infrastructure
2.2.1. Transport
2.2.2. Telecommunication
2.2.3. Media
2.2.4. Energy
2.3. Economic Structure
2.3.1. Agriculture & forestry
2.3.2. Mining & Semi-Processing
2.3.3. Industry, Manufacturing & engineering
2.3.4. Financial Sector
2.3.5. Tourism
3. Economy Policy
3.1. Fiscal Policy
3.2. Tax System
3.3. Monetary Policy
3.4. Privatisation
3.5. Dual economy
3.5.1. Sectorial dualism
3.5.2. Regional dualism
3.5.3. Ownership dualism
3.6. FDI
3.7. SME
3.8. Széchenyi Plan
4. Economic Performance
4.1. GDP
4.2. Unemployment
4.3. Inflation
4.4. Investment
4.5. Private consumption
4.6. Sectors
5. International Economic Affairs
5.1. Import & Export
5.2. Current account balance
5.3. Foreign Dept
5.4. Reserves and exchange rate
6. Economical Outlook
Research Objectives & Topics
This paper examines Hungary's transition from a socialist planned economy to a market-oriented democratic system, specifically evaluating the success of its integration into the global economy and its ability to compete with leading economies.
- Historical and geographical context of Hungary's development.
- Political, infrastructural, and social framework analysis.
- Evaluation of fiscal, monetary, and privatisation policies.
- Economic performance metrics and international trade relations.
Excerpt from the Book
1.2. Geographical Overview
Hungary stretches itself over 320 km between 45° 46’ and 48° 35’ degrees north and has a longitude of 16° 05’ and 22° 58’ degrees east over 528 km. It is formed by the so-called Carpathian Basin, surrounded by the Carpathian mountain chain in the northeast and southeast, the Sub-Alps in the west and the Slovenian (Transdanubia) hills in the south.
The surface of Hungary is about 93.036 sq km, which is nearly the size of Bavaria and Hess. The length of its landlocked border is about 2.242 km and the countries Slovakia, Ukraine, Romania, Yugoslavia, Croatia, Slovenia and Austria ad joint to it. Hungary lies in lowland, two-thirds of its area being plains of less than 200 meters above sea level; only 2 % of the land is about 400 meters above sea level. Nevertheless, Hungary owns a wide-hole river-net formed by Danube (along a 417 km - entire length is 2,860 km) Tisza (598 km long), Raab (Györ) and Drau. 1,200 natural and artificial lakes can be found in Hungary and the lake Balaton is the biggest domestic lake with 598 squaremeters. Hungary's capital is Budapest (established through the unification of three cities: Buda, Óbuda and Pest, in 1873), with a population of nearly two million. Hungary can be roughly divided in three major regions.
Summary of Chapters
1. The state Hungary: Provides a comprehensive overview of the country's geography, history, and social demographics.
2. Economic frame: Details the national institutions, infrastructure, and the underlying economic structure including major industries.
3. Economy Policy: Analyzes the fiscal, monetary, and privatisation strategies adopted during the transition process.
4. Economic Performance: Discusses key macroeconomic indicators such as GDP, unemployment, inflation, and investment patterns.
5. International Economic Affairs: Examines Hungary's foreign trade composition, current account balance, and foreign debt status.
6. Economical Outlook: Provides forecasts regarding future economic growth, electoral risks, and EU accession impacts.
Keywords
Hungary, Transition Economy, Market Economy, Privatisation, FDI, Macroeconomics, Fiscal Policy, Monetary Policy, GDP, EU Accession, International Trade, Employment, Banking Sector, Széchenyi Plan, Infrastructure.
Frequently Asked Questions
What is the primary focus of this paper?
The paper evaluates the success of Hungary's economic transition from a socialist command economy to a market-oriented democratic system.
Which specific areas of the Hungarian economy are analyzed?
The analysis covers institutional frameworks, economic structure (industry, agriculture, finance), fiscal and monetary policies, and macroeconomic performance metrics.
What is the core research question?
The central question is whether the simultaneous transition to a market economy has been successful in allowing Hungary to catch up with leading global economies.
What methodology is used to evaluate the economic success?
The work employs a comparative analysis of economic data, policy shifts over different government terms, and performance indicators in relation to neighboring competitors.
What does the main body address?
It provides a detailed breakdown of political systems, infrastructure, tax regimes, and the dual nature of the economy, contrasting FDI-driven sectors with smaller domestic enterprises.
Which keywords best characterize this work?
Keywords include Transition Economy, Privatisation, FDI, Macroeconomics, and EU Accession.
What is the "dual economy" concept mentioned in the study?
It refers to the structural gap between foreign-invested multinational firms and domestic small and medium-sized enterprises (SME).
How does the paper view the impact of the Bokros Plan?
The paper highlights the Bokros Plan as a significant austerity measure that helped reduce fiscal and current account deficits but led to social spending cuts.
- Quote paper
- Uwe Maurer (Author), 2001, Country Paper Hungary, Munich, GRIN Verlag, https://www.grin.com/document/2005
