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The Social Obstacles to Economic Reform in Hungary

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  • Zsuzsa FERGE

    (Eötvös University, Budapest)

Abstract

The eastern European systems, Hungary included, need complete restructuring. Radical political reform needs take precedence over the economic reforms: no genuine economic reform is possible without a legitimate, democratically elected parliament and government. The transformation of the planned into a market economy has started be- fore the elections. Marketization and privatisation have been pressed in the fields where resistance has been the smallest, i.e. where the losses hit the weaker groups - i.e. in case of health, social security, and such like. Also, inflation and unemployment are accepted as inevitable. The result of neoliberal measures introduced in a totalitarian way is the rapid impoverishment of the population and the increase of inequalities. The mounting tensions may become an obstacle to genuine reforms.

Suggested Citation

  • Zsuzsa FERGE, 1990. "The Social Obstacles to Economic Reform in Hungary," Discussion Papers (REL - Recherches Economiques de Louvain) 1990024, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvre:1990024
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